On today’s Cow-Calf Corner, Kellie Curry Raper, Oklahoma State University Livestock Marketing Specialist and Derrell S. Peel, Oklahoma State University Livestock Marketing Specialist talk about the Oklahoma Quality Beef Network.
Calf enrollment numbers may have been down, but premiums for Oklahoma Quality Beef Network (OQBN) Vac-45 calves were not. The combination of drought and higher calf prices did entice some producers to forgo preconditioning programs last fall. However, those producers who did participate in OQBN’s 3rd party verified Vac-45 preconditioning program during 2023 saw the 3rd highest average premium in program history. Data collected on 6,200 head of cattle across 767 lots indicate that 2023 OQBN premiums averaged $18.41/cwt. OQBN premiums are measured as the weighted average premium for OQBN VAC-45 calves relative to non-preconditioned calves at the same sale.
While premiums were strong across all weight classes, this year’s pattern looks a bit different. In a typical year, premiums per hundredweight tend to be higher for lighter weights. Interestingly, heifers generally followed that pattern, commanding higher premiums at lighter weights. However, the premiums for steers this year deviated from that norm. Steer premiums tapered slightly as weight class increased, but then spiked back up beyond the 5-weight category. The average premium across all weight classes was $21.75/cwt for steers and $14/23/cwt for heifers. Across the years, the bulk of OQBN calves are typically marketed between 400 and 600 pounds. However, 2023 saw that shift toward slightly heavier calves. For steers, 77% sold at weights between 500 and 700 pounds, as did 68% of heifers.
Overall, OQBN added an estimated additional $238,777 in revenue across 2,091 head from 50 producers in 2023. That’s an average increase in value of $114/head based on premiums alone. Approximately $6.2 million in value has been added to Oklahoma calves through OQBN since 2010, for an increased average revenue of $103/per head over that extended time period.
Data collection helps us provide immediate feedback to producers regarding overall value differences associated with preconditioning. Over the longer run, it also facilitates opportunities to measure and communicate market values for the research-based calf health management and marketing practices encouraged in Extension efforts. OQBN is available to all producers willing to follow the protocol, as there is no minimum number of calves required for program enrollment. Most producers market through special OQBN sales at designated livestock markets, but some choose to direct market their certified OQBN cattle or to market through alternative livestock markets. The overarching goal of the program is to encourage continual improvement of the Oklahoma beef industry and to provide value-enhancing opportunities to producers. If you’d like more information, visit https://extension.okstate.edu/programs/oklahoma-quality-beef-network/.
