Marketing Feeder CattleIn Economic Units

Rickey G. HudsonRegional Extension Agent

Alabama Cooperative Extension System

Marketing Feeder Cattle In Economic Units

What is an Economic Unit of Feeder Cattle?A package of marketing factors for feeder cattle to add value to calves and generate a better bid price.

Marketing Feeder Cattle In Economic Units

• Package 50,000 lbs. Sale Lots of Feeder Cattle• Package Same Sex Sale Lots of Feeder Cattle• Package Uniform Weights in Feeder Cattle• Package Uniform USDA Feeder Cattle Grades• Package Health Program in Feeder Cattle• Package Weaning/Backgrounding of Feeder Cattle• Package Identified Source & Age of Feeder Cattle

Marketing Feeder Cattle In Economic Units

• Package 50,000 lbs. Sale Lots of Feeder CattleFeeder Cattle in Truck-Load Lots: (48,000 - 50,000 pounds)(load a truck & lower shipping costs = better bid price)

Marketing Feeder Cattle In Economic Units

• Package Same Sex Sale Lots of Feeder CattleFeeder Cattle sorted into steers/heifers (split-loads discounted)(remove gender variance = better bid price)

Boys OnlyGirls Only

Marketing Feeder Cattle In Economic Units

• Package Uniform Weights in Feeder CattleFeeder Cattle with individual weights in a small range, < 100 lbs.(lower variance = better bid price)

Marketing Feeder Cattle In Economic Units

• Package Uniform USDA Feeder Cattle GradesFeeder Cattle Grades: medium - large frame, #1 - #2 muscling(higher quality & lower variance = better bid price)

Marketing Feeder Cattle In Economic Units

• Package Health Program in Feeder CattleFeeder Cattle with quality immunization & health regimen(healthy calves = less sickness & treatment = better bid price)

Marketing Feeder Cattle In Economic Units

Health Program

• ImmunizationsClostridial (7-8 Way)IBR-PI₃-BRSV-BVDMannheima (Pasturella)

• AnthelminticInternal Parasites

Lower health risks = lesstreatment & better gains= better bid price

Marketing Feeder Cattle In Economic Units

• Package Weaning/Backgrounding of Feeder CattleFeeder Cattle weaned, feed-water from bunk-trough (≥45 days)(remove stress of weaning = better bid price)

Marketing Feeder Cattle In Economic Units

• Package Identified Source & Age of Feeder CattleFeeder Cattle identified for source & age (PVPs, EIDs, tag brand)(higher accountability, traceable source = better bid price)

Marketing Feeder Cattle In Economic Units

How does selling an economic unit pay?

• with a Price Premium

• with less Weight Shrink

• with heavier calves, Weigh Gain

• with less Marketing Costs• with less Transportation Costs

Marketing Feeder Cattle In Economic Units

Where will you get paid for an economic unit?

You must chose a Marketing Outlet which rewards the Value Added Feeder Cattle from an Economic Unit.

Marketing Feeder Cattle In Economic Units

Summary of an Economic Unit

• 50,000 lbs. Truck-Load Lots• Same Sex Lots• Uniform Weights (less than 100 lbs. variance)• Uniform Feeder Cattle Grades (quality, M-L , #1-2)• Quality Health Program• Weaning/Backgrounding Program (≥45 days)• Identified Source & Age (PVPs, EIDs, brand tagged)