tradefatcow

ASWeb-0058-98MarketingCullCows:UnderstandingWhatDeterminesValuebyRonGill,Ph.
D.
,ExtensionLivestockSpecialist,TexasA&MUniversityUnderdroughtconditionsitislikelymanyoperationswillexperiencelowerconceptionratesthannormal.
Feedcostsanduncertaintyaboutgrowingseasonsnextyearmakecullingoftheseopencowsappeartobethecorrectmanagementdecision.
Inanaverageyear,cullcowswillrepresent10-20%ofgrossrevenueonacow-calfoperation.
Informedmarketing,ratherthansimplyselling,canaddtoincomefromcullcowandbullsales.
Whenfactorsaffectingvalueareunderstood,cullscanbemarketedtotakeadvantageofseasonaltrendsandfluctuationsincowcondition.
Factorsaffectingvaluearesaleweight,bodycondition,,muscling,qualityandblemishes,allofwhichcanbemanagedattheranchtoaddvaluetotheculls.
Cullcowvalueisbasedonpercentleanmeatyieldandliveweight.
Cowsaregradedintofourbroadcategories,Canner,Cutter,Utility,andCommercial.
Table1indicatescharacteristicsassociatedwitheachgrade.
Cannersarethin,emaciatedcowswhichhavelostmusclemassduetopoornutritionorhealth.
Cuttersarethintomoderateinflesh.
Littlemusclemasshasbeenlostbutnoexcessconditionisbeingcarried.
CowsgradingUtilitycarryhigherlevelsofcondition.
(Itisafatcowgrade.
)UtilityisfurtherdividedintoBoningandBreakingclassificationsaswell.
Cowtenders,stripsandtoproundscanbe,andoftenare,pulledfromcowsgradingBoningUtility.
BreakingUtilitycowshavesufficientintramuscularfat(marbling)andmusclingfortheprimals(particularlycutsfromtheribandloin)tobeusedoutsidethegroundmeattrade.
Thisgreatlyincreasesthecarcassvalueofthesecows.
CowsthatwillgradeBreakingUtilityareverydifficult,ifnotimpossible,todeterminebeforeprocessing.
ItisnotpracticaltomanagecowswiththegoalofproducingBreakingUtilitygrade.
CarcassesgradingCommercialarenormallyfromyoungercowsthatfallintoCmaturity(approximately42monthsoldorolder).
Primalcutsareroutinelypulledfromthesecattleanduseinrestauranttrade.
CannercowsbringalowerpriceperpoundthanCutter,UtilityorCommercialcows.
CuttersnormallyhaveahigherpriceperpoundthanCannerorUtility.
Recently,UtilitycowsaresellingformoreperpoundthanCuttercows.
UtilitycowsbringapriceperpoundthatisusuallyintermediatetoCuttersandCanners,butwilloftenhavemoretotaldollarincomeduetoextralive.
ProducersshouldtargetcowsforthehighyieldingCutterorBoningUtilitygrade.
Table1.
CullCowGradesandCharacteristicsedarGgnisserDegatnecrePfotnetnoCnaeLsgnimmirTSCBwoCtnerruCaeulaVtkMtwc/$rennaC64ot0429ot093ot152ot81brettuC94ot5409ot885ot443ot02ytilitUgninoB25ot0538ot879ot543ot52gnikaerB45ot2528ot679ot605ot83laicremmoC06ot5508ot079ot505ot83a.
ValuesreportedasofJuly24,1998b.
Cowscouldbesubjecttolightcarcassdiscounts.
Cautionshouldbeexercisedwhenmarketingcowsdirectlytoapackingplant.
CowsthatgradehighCutterandUtilitywillprobablybediscountediftheyhavetoomuchexternalfat.
Packersdiscountwhattheyclassifyasfatcows.
Unlikeprocessingfacilitiesforfeedlotcattle,cowprocessorssortcowcarcassesaccordingtothedescribedcriteria.
TheyarenotgradedbyaUSDAgraderorstampedwiththepackergrades.
Whensellingcowsdirectlytothepackeranotherdiscounttobeawareofisforlightcarcasses.
Carcassesweighinglessthan350poundsreceiveupto$15/cwtdiscount.
TheCannergradeismostlikelytoproducelightcarcasses.
Thin,emaciatedcowsarediscountedatthesalebarntocompensatefortheprobabilityoflightcarcasses.
Forexample,acowwithabodyconditionscore(BCS)of3,weighing800poundsanddressing40%,wouldhangupa320poundcarcass.
A$15/cwtdiscountequals$48perhead,or$6/cwtonalive-weightbasis.
ThisisinadditiontothelowerpriceperpoundforCannercows.
CowsareinspectedbyUSDAinspectorsatprocessing.
CondemnationsaretheresultoftheUSDAinspector,notplantmanagement.
Condemnationisduetopathologicalconditionsonly,mostcommonlyduetocancerousconditionswhichhavespreadoutofalocalizedorgansuchasaneye.
Themostcompetitiveenvironmentforsellingcullcowsisstillthelocalauctionfacility.
Unlessaprearrangedpriceisagreeduponandconditionsfordeterminingcarcassvalueareset,itisriskytoselldirectlytoaprocessingplant.
Tomaximizevalueofcullcows,considersomeorallofthefollowingchangesinmanagementiftheyappeartobeprofitable.
1.
Addweighttothincullcowsbeforeselling.
ThisisparticularlyvaluablewhencowsareBCS3orloweratculling.
Highqualityforageefficientlyreplenishesmusclemassoncows.
Extremelyoldcowsmaynotgainasefficientasyoungercows.
TargetaBCSof5forlightmuscledcowsandBCS5-6forheaviermuscledcows.
2.
Culloldcowsbeforetheylosetheirteeth,declineinbodyconditionandfailtobreed.
Besideshavinglowercullweightandvalue,suchcowshavealsoweanedlightercalvesthantheyoungercowsforprobablyatleasttwoyears.
3.
Exploresellingdirectlytoapackeronaprearrangedprice.
Cautionshouldbeexercised!
Bidsaremorecompetitiveatlocalauctions.
Onlyaknowledgeableproducershouldattempttomarketgoodqualitycowsdirectlytoapacker.
4.
Marketcrippledcattledirectlytoapacker,withoutgoingthroughusualmarketingchannels.
Cowswithotherblemishes,suchasbadeyes,probablyshouldalsobesolddirectlytoapacker.
5.
Sellcowsbeforetheybecomefat(BCS8-9).
FatcowsarediscountedforlowleanyieldregardlessoftheirpotentialtoclassifyasBreakingUtility.
6.
Sellcowsoutsideseasonalmarketingtrends.
CullcowpricesarenormallylowestinOctoberandNovember.
Ifpossible,considermarketingbetweenFebruaryandSeptemberwhenslaughterratesarelower.
7.
Considercullcowsasavaluableassetandhandlethemassuch.
Bruisingisamajorproblemwithcullcows.
Mostbruisesarecausedbyroughhandlingandhaulingfromthetimetheyaresortedattheranchuntiltheyareprocessedatthecowplant.
8.
Becautiousandconcernedaboutwithdrawaltimeswhenmarketingcowswhichhavebeentreatedwithanimalhealthproducts.
SummarySellearlybeforeallthatisleftisashellofacow.
Trynottomarketcowsthataretoothinortoofat.
Sellbeforeblemishesbecomeproblems.
Sellcrippledcattleandcowswithobviousblemishesdirectlytothepacker.
Eliminatesmallframedcows,whichproducelesspoundsofsaleableproductoflessvaluetothegroundmeatprocessor,adoubleloser.
Reasonablecowweightsshouldbe1000-1250pounds.
Moderateframedcows(framescore5)withaveragemusclinginaBCS5shouldweightfrom1150-1250poundsatmaturity.
Obviouslylightmuscled,earlymaturingbullsshouldnotbepurchasedinthefirstplace.
However,cullbullsshouldbemarketedwithasmuchmusclingaspossibleandaslittlefataspractical.
EducationalprogramsofTexasCooperativeExtensionareopentoallpeoplewithoutregardtorace,color,sex,disability,religion,ageornationalorigin.
IssuedinfurtheranceofCooperativeExtensionWorkinAgricultureandHomeEconomics,ActsofCongressofMay8,1914,asamended,andJune30,1914,incooperationwiththeUnitedStatesDepartmentofAgriculture.
ChesterP.
Fehlis,Director,TexasCooperativeExtension,TheTexasA&MUniversitySystem.
ProducedbytheTAMUDepartmentofAnimalScience,TheTexasA&MUniversitySystemAdditionalinformationonanimalsciencetopicscanbefoundontheWebathttp://animalscience.
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edu.