Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his 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 discusses Cattle Market Complexities.
The U.S. cattle and beef industry is arguably one of the most complex set of markets in the world. One of many factors that adds to cattle industry complexity is the wide range of environments and the diverse production systems that are used to successfully produce cattle in those environments. Cattle production is the primary use of forages across the country with cattle necessarily produced in climates ranging from sub-alpine to sub-tropical. Cow-calf and stocker production take advantage of the climatic adaptability of mammals and the flexibility of ruminant biology to utilize a wide range of grazing resources in all parts of the country.
At one extreme of production environments in the country is the cattle industry in south Florida. Last week I had the pleasure and honor to travel with a group of Extension professionals from the South Florida Beef and Forage Program as they traveled to Oklahoma and Texas to see and learn about the destination of Florida calves. Almost all Florida calves are shipped north and west to stocker operations and feedlots in Oklahoma, Kansas and Texas. These calves originate in a unique environment that not only impacts the production systems used for cow-calf production, but also how they are managed after shipping and ultimately how they are marketed for harvest.
The cow-calf production environment in south Florida provides production opportunities and challenges. The sub-tropical environment provides ample precipitation and year-around frost-free forage production. Use of Bos indicus genetics in cows is advantageous. However, some production practices must be adapted in respect to the hot and humid climate. Many beef cows are fall-calving with calves weaned in July or August. It is not a good environment to wean calves, so many calves are shipped west directly off the cow. This is a compromise to the common recommendation of preconditioning calves prior to shipping. Florida calves typically receive a solid vaccination program as suckling calves to prepare them for shipping and receiving at a far-away destination. Florida calves typically require a longer receiving program after shipping but perform well after receiving. Forida producers and western feedlots develop a relationship, and everyone knows what to expect.
Last week, the Florida extension group visited a cattle auction, several feedlots, a packing plant, research facilities, and finance and marketing companies in Texas and Oklahoma to better understand issues and challenges of Florida cattle in later stages of the supply chain. Florida calves typically arrive at western stocker and feedlot operations in late summer or early fall. Generally, the earlier in the fall the better, as variable fall and cold winter weather causes lots of health problems for calves arriving with thin hides and little hair from subtropical conditions unless they have sufficient time to acclimate.
The first challenge of cow-calf production anywhere is to utilize cows adapted to whatever environment they are in. This impacts the size, type and condition of resulting calves. While few environments in the U.S. are as unique as south Florida, it is important for cow-calf producers everywhere to understand how their calves fit into the industry – who wants them, how they are used, and how they contribute to the broader role of beef production. The beef cattle industry is remarkably complex and does an incredible job of utilizing cattle of all shapes and sizes produced all over the country.
