1. Preconditioning Elective
Economic Decisions for the Producer.
The Veterinarian’s role.

2. Goals for Today:
Discuss the possible roles for the Veterinarian in the preconditioning event.
Introduce data collection and the role you can play.
Outline and define economic concepts that impact management decisions in adding value to the calf crop.

3. Your Role?
Your role in your producer’s operation is based on your philosophy.
Is this just processing?
Can you add value?
Is your participation important to the relationship?
Is your participation important to your practice health?

4. Your Value! Proper handling of livestock! Proper handling of products!
Proper placement of products!
Proper data collection for appropriate interpretation!
Efficiency of the process!
All of the above talking points improve the chances of an appropriate immune response. Many producers are small and will not develop the expertise to effectively manage the event appropriately. Producers don’t “neighbor” as in the past due to conflicting schedules and want the additional labor. It “goes better” when we are there. Your job is to provide feedback in a way that stimulates producer questions which will allow you to provide information on a fee basis.

5. Data Collection: Utilization of prepared software: Easy Efficient
Professional
Basis for complete herd interaction for your practice.
Easy: Will require little time to collect. Little time to generate reports. Should not change the dynamics of the event. Professional: Your practice identified on form, Producer identified may provide visuals, can quickly search for outliers, can quickly adjust data and customize to the needs of the producer. Ties the producer to you and your practice for the financial health of both and the improvement of the health and welfare of the animals we serve.

6. What should we collect? Weights:
Can adjust weights for birth date.
May start to make decisions for replacement pool.
May allow for early weaning of poor doers and evaluation of possible Dam issues.
Provide basis for projected feed inventory needs.
EID application and generation of necessary records for age and source verification.
Note individual calf health issues.

7. Economic Based Decisions:
Traditionally the Cow Calf enterprise ends at weaning. Calves marked at this time.
Can we provide information to allow producers to make choices on how to manage and market there calves?
What are the pitfalls?

8. Decision Making!
Successful decision making starts with an assessment of a producers ability to implement all necessary changes needed to realize economic return.
Are facilities sufficient?
Are there necessary resources?
Is the producer willing/able to deal with the additional needs of possible changes in the management of the enterprise?
Producers not willing or able should not enter in to changes in management practices. As a Veterinarian you need to assess the situation and make sure the producer understands your analysis so they can make decisions. I feel a Veterinarians role is to provide accurate information to allow the producer to make management decisions. Information not recommendations.

9. Basic concepts:
Marketing decisions are based on projections. They are dependent on information that can change after the decision is made. Having an understanding of the factors affecting projections is paramount.
Important variables:
Seasonal variation
Condition
Color/type of calves
Price adjustment for weight “price slide”
Shrink
Preconditioning premiums

10. Seasonal Variation
Seasonal variation in like cattle historically exist.
Historical information is important to understand but market conditions can vary greatly in any given year.
Generally calf prices tend to be lowest in October and November and then gradually climb.
Moving marketing date 45 days may create a premium of two or three dollars on average.

11. Condition
Condition of cattle as it relates to fleshyness can have negative impact on price especially in lighter cattle.
An explanation can be found in the article on your flash drive entitled Feeder Price Differentials.pdf
If feeding calves for a high rate of gain there might be a price discount associated with this practice.

12. Price adjustment for weight
Condition and type of cattle being equal, heavier calves sell for less dollars per hundred weight.
When considering a projection for retaining ownership for a period of time remember these calves will be heavier and will have a price differential associated with this weight gain.

13. Shrink
When retaining ownership, calculation of calf value at weaning should include a 3-5% shrink of weaning weight.
Calves weaned and sold tend to shrink more than calves fed for a period of time.
In the calculation you might consider decreasing the shrink for the calves retained on the farm after weaning one half to one percent.

14. Preconditioning premium
Recent research has documented premiums at sale for calves meeting preconditioning program requirements.
This premium needs to be included in the break even analysis when deciding how to market the calf crop.
Numerous sources have been included on the flash drive.

15. Reference:
Factors affecting feeder cattle price differentials. Schroeder, Mitert, Brazle, Grunewald. Western Journal of Agricultural Economics, 13(1):
Effect of certified health programs on the sale price of beef calves. King et. al. JAVMA, Vol 229, No. 9, November 1, 2006
Nebraska cash cattle prices and basis patterns. S. Overturf, D. Mark. University of Nebraska Extension Publication. 2010