1. BEEF COW CALF & SEEDSTOCK INDUSTRY By David R. Hawkins Michigan State University

2. OVERVIEW The cow calf segment of the U.S. beef industry is the largest segment with over 814,000 producers. The seedstock industry is a specialized segment of about 120,000 producers who supply herd bulls and replacement females for the commercial cow calf segment.

3. OVERVIEW Average beef cow herd size in the U.S. is about 38 cows. Therefore, it is a part-time enterprise for most producers. The cow calf industry uses large quantities of pastures and harvested forages. Little grain is fed except for replacement heifers and young bulls.

4. LARGEST U.S. COW CALF HERDS IN 2001 1. Deseret Ranch, Florida - 40,000 cows 2. J.R. Simplot, Idaho - 32,500 cows 3. King Ranch, Texas - 25,000 cows 4. Lykes Brothers, Florida - 20,550 cows 5. Parker Ranch, Hawaii - 18,000 cows 6. Briscoe Ranch, Texas - 17,000 cows 7. Matador Ranch, Kansas - 15,000 cows 8. Silver Spur Ranch, Wyoming - 15,000 cows

5. LARGEST U.S. SEEDSTOCK HERDS in 2001 1. Leachman Cattle Co., Montana – 3,340 calves 2. Stevenson/Basin Inc., Montana - 2,900 calves 3. Summitcrest Farms, Ohio – 1,939 calves 4. DeBruycker Charolais, Montana - 1,600 calves 5. Express Ranches, Oklahoma - 1,575 calves 6. Sitz Angus Ranch, Montana – 1,450 calves 7. Camp Cooley Ranch, Texas - 1,331 calves 8. BB Cattle Co., Connell, WA – 1,316 calves

6. BREEDS OF BEEF CATTLE 2000 Registrations Angus - 260,907 Hereford - 84,989 Limousin – 48,825 Simmental – 43,073 Charolais – 42,738 Red Angus – 39,636 Beefmaster – 32,263 Brangus – 26,898 Gelbvieh – 26,265 Shorthorn – 18,579 Brahman - 18,000 Maine-Anjou – 12,219 S. Gertrudis - 10,500 Salers - 10,286 Tx. Longhorn – 6,300 Chianina – 6,280

7. SEEDSTOCK INDUSTRY It is a small but highly visible & specialized segment. –Only about 2% to 3% of U.S. beef cattle are registered purebred cattle. In theory, the seedstock industry should be concerned with the same traits that are important to the commercial industry since it is supplying the genetics for commercial herds.

8. SEEDSTOCK INDUSTRY It has a higher investment in cows and bulls, but has the potential to sell breeding stock at a much higher value than slaughter value. This segment tends to be an early adopter of new technology. –Artificial insemination and embryo transfer. –National genetic programs to generate EPDs. –Ultrasound and carcass data collection.

9. SEEDSTOCK INDUSTRY Participates in many promotional activities. –Showing and exhibitions. –Advertising in breed and trade publications. –Participation in bull testing & sire evaluation programs. –Consignment and production sales. –Host and sponsor many youth related activities. Average length of time in business is 5 to 7 years.

10. SEEDSTOCK INDUSTRY Cattle produced in these herds are sold to other seedstock breeders, commercial cow calf breeders or enter the normal beef chain. Historically, this segment has had wider swings in type than the commercial herds. This segment is more likely to have extensive record keeping systems, computers, etc. The owners tend to make an above average commitment of time and resources to the industry.

11. COMMERCIAL COW-CALF Primary product is a weaned calf weighing 450 to 500 lbs. at 7 months of age. Economics usually dictates that the calf is sold, but we are starting to see some retained ownership. Most herds raise their own replacement heifers. Some of these herds also background cattle, especially if they have abundant forage.

12. COMMERCIAL COW-CALF Most herds use natural service with bulls. Artificial insemination –Less than 5% of cows in commercial herds. –Up to 40% of cows in seedstock herds. Calving season may extend over 120 days, but 60 days would be preferred. –Calves are more uniform if similar in age.

13. CALVING SEASON Michigan is a spring calving region. –Jan. & Feb. 7.3%- May 17.1% –March 24.2% - Other 11.8% –April 39.7% Southern states may calve in the fall to avoid hot weather. This tends to even out the supply of cattle for feedlots.

14. BREEDING SYSTEMS Straight breeding means mating a bull to cows of the same breed. Crossbreeding means using several breeds. –Will increase pounds of calf weaned per cow exposed to service. Heterosis or hybrid vigor Breed complementarity Crossbreeding is most effective when superior purebred cattle are used in a “planned” program.

15. MICHIGAN COW-CALF NUTRITION Feed costs are the largest single component of annual cow costs. Pasture (5/15 to 10/30) – 165 days –1 to 5 acres per cow calf pair. Harvested Forage (11/1 to 5/14) – 200 days –Corn stalk residue – 30 to 60 days –Grass legume hay or silage – 140 to 200 days –Fresh water & free choice mineral supplement.

16. COMMON NUTRITIONAL PROBLEMS of BEEF COWS Thin Cows –Body Condition Scores (1 to 9) – 5 to 6 is ideal. –Calving difficulty and delayed rebreeding. Fat cows –Calving difficulty and reduced Milk Flow Legume Bloat Grass Tetany

17. 1995 NATIONAL SPA AVERAGES Calf Crop Weaned84% Average Weaning Weight 512 lbs. Lbs.weaned/Cow Exposed 431 lbs. Annual Cow Cost $ 397 Breakeven Calf Price$ 93/ cwt. Investment Per Cow$ 1,977 Lbs. of Feed / Cow 2,505 lbs.

18. HOW TO IMPROVE PROFIT Improve Reproductive Rate. Wean Heavier Calves. Wean Higher Value Calves. Develop Alliances & Retain Ownership. Reduce Cow Herd Costs. Most of the rest of this course will deal with trying to solve the above challenges.