Realizing Your Full Profit Potential
Some management and health considerations can substantially increase your profits.

By Jill J. Dunkel

In any industry, understanding and catering to your customer's needs is essential to increasing the profit margin. But if you're producing a calf that does not meet all the needs of the buyer, the marketing potential of that animal may be limited. A sizable percent of the profit may be left on the table.

To get more for your calves, it helps to understand the factors that affect market pricing. For starters, the sex of the cattle makes a difference. Steers typically bring $8 more per hundred than heifers, and bull calves are usually $8 to $12 per hundred back of steers. So by castrating your bulls, you're already getting more for your calves.

Next, consider the calves' health. Increasing profits may be as simple as adding a vaccination program to a cow/calf operation. The calves will be healthier and more marketable, and can put extra money in the rancher's pocket. Many producers who do not vaccinate their calves are not realizing their full profit potential.

The premium paid for vaccinated calves is proven. In a 1997 study on 500 pound calves, those receiving virus shots sold for 88¢ more per hundred and those with a pasteurella shot sold for 88¢ more per hundred than calves with no vaccinations. Calves administered both virus and pasteurella shots brought $1.28 per hundred more.

This additional profit adds up, but still more can be realized.

Preconditioning the calves, including a 45-day post-weaning period, will substantially increase the overall dollars paid for a calf.

After analyzing calves sold through Superior Video Auction, researchers found considerable premiums paid for preconditioned calves.

The calves enrolled in Superior's Vac 45 program, which involves backgrounding the calves for a minimum of 45 days after weaning, brought $3.89 more per hundred. Those participating in the Vac 34 program (which is not as stringent as the Vac 45 program) brought $1.61 per hundred more, and those calves which were not in the programs but had received some virus shots brought 72¢ more per hundred.

Experts recommend developing a health protocol program and incorporating it with management techniques to lower stress on the calves. This can be done at the ranch if the facilities and "know how" exist, or the calves can be preconditioned at a backgrounding yard.

To combat health problems, Dr. Bob Larsen with the University of Missouri Commercial Ag Program recommends vaccinating calves first and foremost with a blackleg vaccine, and also a viral vaccine. A good choice is a viral vaccine that includes two strains of BVD, BRSV, PI3 and IBR. If you are not familiar with a vaccination program, it is important to get help from your veterinarian or other animal health professional.

To get the best immunity, give an initial dose followed by a booster. This can best be accomplished with the first dose administered three to four weeks before weaning and a booster given at weaning. If that is not practical due to the size of the ranch or other ranch management techniques, the first dose can be given at branding with a follow up dose at weaning.

Consider your circumstances and apply these profit increasing techniques where you can. Premiums of $21 to $50 per head can really make a difference on the bottom line, and you're producing a product designed to meet the buyer's needs.