The current beef shortage has driven up cull cow prices, presenting an opportunity for farmers to earn more from older cows. Strategies for maximizing value include timing sales for peak periods, adding weight to increase market price, improving body condition for better quality grades, and exploring alternative markets such as direct sales. Additionally, concerns about contamination in beef processing, particularly the presence of birdshot, underscore the need for vigilance in maintaining quality and avoiding foreign materials.
In the current landscape of beef shortages, cull cows—often overlooked in cattle marketing strategies—are now commanding unprecedented prices. Here’s how you can maximize profits from your old cows in these high-value times.
Understanding the Market Dynamics
This year, the shortage of beef has pushed cull cow prices to new heights. Cull cows, which are typically less valued than prime beef cattle, are currently seeing record prices due to increased demand and limited supply. Patrick Linnell, director of market research for CattleFax, highlights that cull cow values tend to peak in the middle of the year, aligning with the high demand of the grilling season. Prices generally decline towards the end of the year when grilling season ends and market supply increases.
How to Maximize Cull Cow Value
- Timing is Key CattleFax data reveals that cull cow prices often rise from May to July. By timing your culling season to align with this peak period, you can capitalize on the highest market values. Last year, average cull cow prices were around $1 per pound. This year, prices are expected to reach $1.15 per pound, translating to an additional $200 per head.
- Add Weight for Increased Profits Adding weight to your cull cows before selling can significantly boost their value. Delaying the sale from November to February and increasing the cow’s weight by 100 pounds can add $180 to its market value. Proper feeding and management practices are crucial for this approach. For example, Ted Paulsrud, a cattle producer from Western Iowa, uses high-quality feed to ensure weight gain and sells his cull cows at the seasonal peak.
- Improve Body Condition Cows with better body condition scores (BCS) can command higher prices. Cows with a BCS of 3 or 4, showing fewer ribs and better fat cover, are valued higher than those with lower scores. Research from the University of Nebraska indicates that improving a cow’s condition from a canner to a utility grade can increase its value by up to 20%.
- Explore Alternative Markets Direct marketing through locker plants or on-farm butcher facilities can provide better returns for certain cull cows. Additionally, cows that are culled not due to age but for other reasons may have value in different herds, potentially earning an extra $400 or more.
Addressing Contaminants in Beef Processing
Wayne Morgan, president of protein products for Golden State Foods, which supplies beef patties to major retailers like McDonald’s and Nestlé, sheds light on a critical issue: contamination from foreign objects like birdshot. This contaminant, which often ends up in beef trimmings, highlights the need for stringent practices to prevent foreign material in meat. Morgan urges farmers to address and prevent this issue to avoid costly waste and maintain quality standards.
In light of the current beef shortages, it’s crucial for farmers to optimize the value of their cull cows through strategic culling, weight management, and improving body condition. Exploring alternative markets and addressing contamination issues are also vital for maximizing profitability and maintaining high standards in beef production.
