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Texas
Agriculture Archive
July 5, 2002
Maximize cull cow value!
By Lana Robinson
Field Editor
During a session of the recent Regional Beef Quality meeting in San Antonio, a livestock specialist, auction barn manager and a packer explained to producers how they can capture more value from cull cows. The segment was one of several afternoon presentations June 20 at the Omni Hotel, conducted by the Texas Cooperative Extension (TCE) with support from the Texas Beef Council (TBC) and the Independent Cattlemen's Association (ICA),
A basic part of ranch management, cull cows represent 10 to 20 percent of gross revenue on most cow/calf operations, according to research conducted by the TCE. Understanding what factors determine the value of a cull cow can increase that revenue when certain management factors are considered, said Dr. Rick Machen, TCE livestock specialist. Informed marketing, rather than simply selling, can add to income from cull cow and bull sales.
"Cull cows can be marketed to take advantage of seasonal
trends and fluctuations in cow condition," said Machen. "Understanding
the factors that affect the value of cull livestock can increase returns,
he said.
Sale weight, body condition, muscling, quality and blemishes all effect
the value of the animal in the eyes of a cow buyer.
"Cull cow value is based on percent lean meat yield and live weight," explained Machen.
Cows that are too thin or too fat do not dress well or have low lean yield, and are docked in price accordingly, he added.
To maximize the value of cull cows, Machen recommended adding weight to thin cows, especially if cows have a body condition score (BCS) of 3 or lower.
"Target a BCS of 5 for light muscled cows and a BCS of 5 to 6 for heavier muscled cows," he said.
He also suggested culling old cows before they lose their teeth, decline in body condition and fail to breed, pointing out that holding on to them too long results in lower cull weight and value plus the fact that they typically wean lighter calves than the younger cows.
Carcass grades explained
Also tag teaming with Machen was Mike Brzozowski, manager of the Hills Prairie Livestock Auction in Bastrop. Brzozowski advised producers to try to eliminate bruising due to rough handling, and observe withdrawal times on products as a means of adding value to cull cows.
"Remember, that cow has to be loaded, unloaded and walk down an ally to a test chute," said Clayton Leonard of L&H Packing Co., San Antonio, who joined Machen and Brzozowski during the presentation. "That's a lot of stress. If I have any doubts, I don't buy that cow. They won't haul and the rendering plants are closing down, so you already don't have too many buyers. The key is, don't keep the cow too long."
The men used a video illustration of various cull cows and explained what to look for to determine grade.
Cows are graded into four broad categories, Canner, Cutter, Utility, and Commercial. Canners are thin, emaciated cows which have lost muscle mass due to poor nutrition or health. Cutters are thin to moderate in flesh. Little muscle mass has been lost but no excess condition is being carried. Cows grading Utility carry higher levels of condition. (It is a fat cow grade.) Utility is further divided into Boning and Breaking classifications as well. (Cow tenders, strips and top rounds can be, and often are, pulled from cows grading Boning Utility.) Producers learned that Breaking Utility cows have sufficient intramuscular fat (marbling) and muscling for the primals (particularly cuts from the rib and loin) to be used outside the ground meat trade, which greatly increases the carcass value of these cows. They were also told that cows that will grade Breaking Utility are very difficult, if not impossible, to determine before processing. It was further noted that it is not practical to manage cows with the goal of producing Breaking Utility grade.
It was also pointed out that carcasses grading Commercial are normally from younger cows that are approximately 42 months old or older. Primal cuts are routinely pulled from these cattle and used in the restaurant trade.
Canner cows bring a lower price per pound than Cutter, Utility or Commercial cows. Cutters normally have a higher price per pound than Canner or Utility. However, recently, Utility cows have sold for more per pound than Cutter cows. Utility cows bring a price per pound that is usually intermediate to Cutters and Canners, but will often have more total dollar income due to extra live weight. The speakers said producers should target cows for the high yielding Cutter or Boning Utility grade.
How to avoid discounts
According to TCE, producers who market cows directly to a packing plant should expect cows that grade high Cutter and Utility to be discounted if they have too much external fat. Packers discount what they classify as fat cows. Unlike processing facilities for feedlot cattle, cow processors sort cow carcasses according to the described criteria. Carcasses are not graded by a USDA grader or stamped with the packer grades.
Another discount to be aware of when marketing directly to the packer, TCE reports, is for light carcasses. Carcasses weighing less than 350 pounds receive up to $15/cwt discount. The Canner grade is most likely to produce light carcasses. Thin, emaciated cows are discounted at the sale barn to compensate for the probability of light carcasses. For example, a cow with a body condition score (BCS) of 3, weighing 800 pounds and dressing 40 percent, would hang up a 320-pound carcass. A $15/cwt discount equals $48 per head, or $6/cwt on a live-weight basis. This is in addition to the lower price per pound for Canner cows.
Cows are inspected by USDA inspectors at processing. Condemnations are the result of the USDA inspector, not plant management. Condemnation is due to pathological conditions only, most commonly due to cancerous conditions which have spread out of a localized organ such as an eye. Clayton Leonard said a surgical procedure can be done to remove the eye prior to culling the cow, if the cancer has not spread to the lymph node, that may prevent condemnation.
"You're better off culling that cow early, before the disease has a chance to spread," he said.
The most competitive environment for selling cull cows is still the local auction facility, according to Brozowski. Unless a prearranged price is agreed upon and conditions for determining carcass value are set, it is risky to sell directly to a processing plant.
TCE tips for culling
To maximize value of cull cows, TCE recommends consideration of some or all of the following changes in management if they appear to be profitable:
1. Add weight to thin cull cows before selling. This is particularly valuable when cows are BCS 3 or lower at culling. High quality forage efficiently replenishes muscle mass on cows. Extremely old cows may not gain as efficiently as younger cows. Target a BCS of 5 for light muscled cows and BCS 5-6 for heavier muscled cows.
2. Cull old cows before they lose their teeth, decline in body condition and fail to breed. Besides having lower cull weight and value, such cows have also weaned lighter calves than the younger cows for probably at least two years.
3. Explore selling directly to a packer on a prearranged price. Caution should be exercised! Bids are more competitive at local auctions. Only a knowledgeable producer should attempt to market good quality cows directly to a packer.
4. Market crippled cattle directly to a packer, without going through usual marketing channels. Cows with other blemishes, such as bad eyes, probably should also be sold directly to a packer.
5. Sell cows before they become fat (BCS 8-9). Fat cows are discounted for low lean yield regardless of their potential to classify as Breaking Utility.
6. Sell cows outside seasonal marketing trends. Cull cow prices are normally lowest in October and November. If possible, consider marketing between February and September when slaughter rates are lower.
7. Consider cull cows as a valuable asset and handle them as such. Bruising is a major problem with cull cows. Most bruises are caused by rough handling and hauling from the time they are sorted at the ranch until they are processed at the cow plant.
8. Always be cautious and concerned about withdrawal times when marketing cows which have been treated with any kind of pesticide, antibiotic or any other chemical compound.
Sell early before all that is left is a shell of a cow. Try not to market cows that are too thin or too fat. Sell before blemishes become problems. Sell crippled cattle and cows with obvious blemishes directly to the packer.
Eliminate small framed cows, which produce less pounds of saleable product of less value to the ground meat processor, a double loser. Reasonable cow weights should be 1,000-1,250 pounds. Moderate framed cows (frame score 5) with average muscling in a BCS 5 should weigh from 1,150-1,250 pounds at maturity.
Obviously light muscled, early maturing bulls should not be purchased in the first place. However, cull bulls should be marketed with as much muscling as possible and as little fat as practical.
