On suckler farms with April- and May-calving cows, these animals are most likely being weaned at present.

Where weaned cows are marked for culling, farmers should consider the options for marketing these animals.

Although cull cow sales form a small part of herd output, maximising this income helps to cover the cost of purchasing or rearing replacements.

Options

When selling cull cows, there are three basic options open to suckler farmers, provided herds are not under movement restrictions.

These include selling animals live after weaning, feeding for a short period before selling live and, finally, taking cows through to finish.

Considerations

When deciding on the best option for marketing cows, considerations should include cow type, body condition, age, housing space, feed prices, fodder reserves and current market prices.

Young cows with 100% continental breeding and in good flesh are always an easy sell in the live ring, but also suit intensive finishing.

In contrast, older cows or animals with a heavy dairy breeding influence are a harder sell live, meaning there is usually a higher return from finishing.

Whichever market outlet is chosen for cull cows, farmers should carry out a few simple sums to compare the possible returns.

Example

An example of budgeting between the three sale options is outlined in this article.

In the case of the example, the herd owner runs 60 cows, predominantly April-calving, and has eight animals to cull.

Cows are mainly three-quarter-bred Limousin, with zero dairy influence.

The average age profile of cull animals is typically fourth-, fifth- and sixth-calvers, making cows around six to eight years old.

The example assumes the farm has plenty of fodder (68% to 70% DMD) and adequate housing space to finish cows.

Cows were housed on 20 October and weaned on 30 November.

The outlined options compare the input costs and sale values for the example herd.

Option one: selling cows straight after weaning

In option one, the farmer decides there is little merit in retaining cull cows on farm after weaning, so opts to sell through the live ring at the first opportunity.

As outlined, cows were weaned by 30 November, so body condition is most likely on the thin side, as cows have been on a silage-only diet since housing to help dry off.

Assuming cows are in body condition score (BCS) 2.5, with an average liveweight of 680kg and sale price of €1.60/kg, the cows are worth €1,088 in the live ring.

Pros and cons

The big positive with option one is cows are cashed in early, before the real surge of dairy and late spring-calving cows come on the market.

With cows sold now, there is a considerable saving on feed, for example purchased concentrate, and more housing space is freed up for productive cows over the winter.

For farmers considering this option, cow type has a big bearing on sale value. Older cows, thinner cows and those with poor conformation will have a significantly lower sale value if sold straight after weaning when animals are lacking body condition. If housing and fodder reserves permit, these animals would be better off held and fed for a short period to improve condition.

Option two: feed cows for 30 days before selling live

In option two, the farmer decides to hold cows for 30 days to improve body condition before selling live.

During the 30-day period, cows are fed 30kg/day of silage (€25/t) and 8kg/day of rolled barley (€225/t).

This equates to a combined feed cost of €76.50. Adding in €10/head to cover labour, diesel, etc, this brings basic input costs to €86.50.

Assuming a weight gain of 1.2kg/day, cows will weigh 716kg when sold. Given the improved flesh cover and the animal’s breeding background, such cows are likely to realise closer to €1.70/kg. This gives the animal a sale value of €1,217. After deducting the basic input costs, there is a small margin of around €42 compared with option one at the outlined sale price.

Pros and cons

With this option, cows will come on to the market in early January. In most years, processing demand for manufacturing beef in January is usually firm, but this could change with Brexit. Reducing sale value to €1.60/kg, the cull cows are sold at a loss of €29/head, meaning cows would be better off sold now after weaning.

In contrast, on farms carrying plenty of silage, the alternative is to feed cows ad-lib silage and 2kg to 3kg/day of barley. Animals are held until mid-spring, when there may be more market stability at sale time.

Option three: intensive finishing cows

With option three, cows are fed for 50 days to reach slaughter condition. Cows are fed an average of 30kg/day of silage (€25/t) plus 8kg/day of rolled barley (€225/t).

Assuming animals have an average daily gain of 1.1kg/day during this period, cows have a final sale weight of 735kg. Weight gain is slightly lower than option two given the longer feed period.

At 53% kill-out, carcase weight is 389kg. Taking a beef price of €3.30/kg to reflect a mix of U and R grading animals, cows are worth €1,283/head.

Deducting feed inputs of €127.50, plus €15/head for costs such as labour and diesel, leaves a price of €1,140, giving a margin of €52.50 compared with option one.

Pros and cons

While the outlined costs reflect a small margin, the example assumes animals have good performance with zero setbacks.

Sale price will depend on processing demand in late January. A 10c/kg change in beef price will increase or decrease sale value by close on €40/head, altering the economics considerably.

Summary

  • Option one: selling cows live straight after weaning. Sale weight is 680kg at €1.60/kg = €1,088.
  • Option two: feeding cows for 30 days before selling live. Sale weight is 716kg at €1.70/kg = €1,217. Deducting input costs leaves a positive margin of €42 over option one.
  • Option three: feeding cows for 50 days and slaughtered. Sale value on 389kg carcase at €3.30/kg = €1,283. Deducting input costs leaves a margin of €52.50 over option one.
  • While the example uses basic input costs and assumes good management at all times, it reflects the value of completing budgets when selling cattle.

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