CattleNetwork.com, KS
09-06-07
Cattle Preconditioning - Does Extra Cos & Work Bring Extra Dollars?
A preconditioned calf is one that has been vaccinated, castrated and weaned for
30-45 days prior to sale date and has experience feeding from a bunk. Most
producers would agree that preconditioning adds value to calves but are not
certain whether the benefits outweigh the costs.
Cattle buyers will usually pay for value but they need to be assured that the
preconditioning has been done properly and is worth it. Fortuneately, availability
of animal information to the buyer has never been better which allows buyers to
find cattle easily. Consequently source verification of cattle has become as
important as preconditioning itself.
What is preconditioning worth?
Two recent studies from Iowa State University provide some evidence that
preconditioning is beneficial to feedlots. In one study cattle were obtained from
three separate sources: 1) ranch direct preconditioned calves; single source 2)
preconditioned calves from many sources commingled on sale day 3) unweaned
calves commingled on sale day. The calves were randomly placed in feedlot
pens and fed a backgrounding/finishing ration of corn and corn silage until they
reached slaughter weight. The calves were compared for final weight, days on
feed, ADG, health costs (US$/head) pulls and retreats. Non-preconditioned
calves had a slightly lower ADG, more days on feed and higher health treatment
costs including pulls and retreats than the other two groups of calves (See Table
1). For 650 lbs of gain the non-preconditioned calves were on feed for 10 days
longer and had approximately 4$/head higher health product costs.
In a second study the Iowa State University researchers evaluated several
years of steer test data that showed a higher value for preconditioned calves.
The results showed non-weaned calves were 3 times more likely to experience
BRD than weaned calves, independent of age, feedlot or vaccine status. They
concluded that the net profit was $57.48/head lower for steers treated for just
BRD and 20% of the calves were treated. From this information, it is highly
advantageous for feedlots to buy cattle that they do not have to treat.
What will feedlots pay?
Experience suggests that the seller will bear the majority of the post- weaning
treatment cost in a preconditioning program. For example research shows that
40% of the treatment for BRD occurs in the first 14 days in the feedlot while 81%
of the first treatment of high morbidity cases is in the first 42 days.
Researchers from Iowa State put together an estimated budget for a 42 day
preconditioning program. The budget included feeding, vaccination and treatment
costs. The budget showed a $23.00 return to facilities labour and management
illustrating that a preconditioning program pays for itself after accounting for
weight gain and price slide without a premium from feedlots. The researchers
concluded that for operations with the appropriate facilities and time the cash
cost of preconditioning was relatively low.
While research indicates that feedlots can benefit from preconditioned calves
they must have confidence in the calves they are buying. This can be done by
documenting calves back to the herd of origin or participating in a recognized
preconditioning program that requires third party (vet, auction yard) validation.
Another Iowa State study found that after accounting for factors that could impact
cattle prices such as weight, grade, sex, feed prices and lot size, preconditioned
calves brought higher prices. For example, a pooled group of 90 head (550 lb
steers) received $20- 35/head more than non-source verified calves.
The bottom line is that buyers can pay more for verified preconditioned calves.