Oklahoma Quality Beef Network Sees Highest Premiums Yet During 2024

Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, teamed up with Kellie Curry Raper, Oklahoma State University Extension Livestock Marketing Specialist, for this economic analysis of the beef cattle industry as part of the weekly series known as the “Cow Calf Corner,” published electronically by Dr. Peel, Mark Johnson, and Paul Beck. Today, Dr. Peel analyzes the role of stockers in the cattle market.

Oklahoma Quality Beef Network (OQBN) producers in 2024 were rewarded with the highest overall average premium in program history at $22.12/cwt (Figure 1). OQBN is a third-party certified VAC-45 preconditioning program offered through Oklahoma Cooperative Extension. Producers follow an OQBN calf health management protocol to qualify for certification and eligibility to market cattle through OQBN. Extension personnel provide guidance to producers and certification to potential buyers that protocols have been followed. OQBN premiums reported here are measured as the weighted average premium for OQBN VAC-45 calves relative to non-preconditioned calves of the same sex and weight class at the same sale.

OQBN feeder steers earned an average of $23.36/cwt more than non-preconditioned calves. The weight range for OQBN steers was 400 to 799 pounds with nearly 40% of those in the 600-699 pound category (Table 1). Premiums ranged from $10.04/cwt to $37.56/cwt across those weights (Figure 2). OQBN steers averaged increased revenue of $150.73 per head.

For OQBN heifers, the average premium over non-preconditioned calves was $19.39/cwt. Heifer weights ranged from 300 to 799 pounds. Heifer premiums exhibited a tighter pattern of premiums than steers, with values ranging from $9.11 to $24.45/cwt. On average, heifers brought $106.03 per head in increased revenue compared to non-preconditioned heifers. Historically, lighter weights have tended to bring higher premiums per cwt. However, that pattern is not as evident in this year’s data. For steers, 4-weights and 7-weights brought the highest premiums per hundredweight, while for heifers there is no clear pattern.

Figure 1

Table 1. OQBN Weight Distribution and Average Premiums, 2024

Figure 2

The 2024 fall marketing season for OQBN included 7 fall sales across 6 Oklahoma livestock markets with total OQBN enrollment of 1,452 head. This year’s data includes 7,900 head marketed in 1,014 lots, including 94 OQBN lots. As expected, sales with more OQBN calves or other preconditioned calves tended to have higher premiums for those calves, as those sales usually attract a larger number of buyers to compete for preconditioned calves.

Certified preconditioning programs are one marketing strategy for cow-calf producers in marketing their calves. Past research at OSU indicates that 80% of the time, certified preconditioning nets positive returns. Every producer’s situation is different. Different resources. Different constraints. Different opportunities. We encourage you to assess your situation and implement recommended calf health management practices to the fullest extent possible. These practices can not only enhance your bottom line, but they also benefit the beef supply chain as a whole – which is why many buyers are willing to pay more for calves with these management attributes. Calves are healthier, grow better, and ultimately result in higher quality beef for consumers. OQBN has no minimum requirement on number of head enrolled, so the program is accessible to all producers, large and small. More information about the OQBN protocol, past market premiums, upcoming marketing opportunities, program enrollment and Extension educator contact information can be found at https://extension.okstate.edu/programs/oklahoma-quality-beef-network/.