Page 13 - MWC 2-2-2023s

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PREPARING FOR FINANCIAL OPPORTUNITY - HEIFER RETENTIONARING FOR FINANCIAL OPPORTUNITY - HEIFER RETENTION The Midwest Cattleman · February 2, 2023 · P13

The opportunity to market bred replacement heifers at premium
The opportunity to market bred replacement heifers at premium values will be available. values will be available.
by Mark Johnson, Oklahoma State University Extension

It’s time to look ahead o 368 ÷ 200 = 1.84-lb. aver-
at some of the financial op- age daily gain (ADG) needed
portunities on the horizon. from now until breeding sea-
Cattle producers need to act son
as business managers and •As we take inventory of
assess inventories of all re- our hay, silage, feed grains
sources and commodities on and potential for winter
hand to determine the best grazing, we need to arrive
course of action to maximize
profit potential through the continued on page 22
next several years. Regard-
less of what you have done in
the past, now is the time to
prepare for financial oppor-
tunities that lie ahead in the
cattle business. Let’s address
the upside of heifer retention.
Consider the following:
•Drought has resulted in
cyclically low cattle inven-
tories. The laws of supply
and demand dictate that
when cattle inventories
are low, the future value of
cows, calves, yearlings and
feds will increase. Feedlot
placement data shows more
heifers going on feed as op-
posed to being retained as
replacements. What oppor-
tunity does this create? The
opportunity to market bred
replacement heifers at pre-
mium values in the future.
•In mid-October, the
USDA Oklahoma Weekly
Cattle Auction Summary
tells us that 477-pound (lb.),
Medium- and Large-frame,
Muscle Score 1 heifer calves
traded at an average of
$162.79 per hundredweight
(cwt.). This translates to a
total value per head of $777.
•If we collect weights on
our 4- to 7-year-old cows at
weaning, we can determine
the average mature weight
of our cow herd.
•Let’s assume: 1) these
heifers will be 14-15 months
old by May 1, 2023, when we
are ready to begin our breed-
ing season; 2) they need to
be at 65% of their mature
weight at that time to be cy-
cling and ready to breed; and,
3) our average mature cow
weighs 1,300 lb.
•This permits us to calcu-
late the following:
o 1,300 x 0.65 = 845-lb. tar-
get weight by May 1, 2023
o 845 – 477 = 368 lb. of
gain needed during the next
200 days