Month: February 2021

Extension Meat Specialist Offers Workshops to Tackle Meat Industry Labor Challenges

A hands-on opportunity to learn about food animal processing.

When COVID-19 hit the US meat industry in early 2020, many disruptions quickly surfaced impacting our livestock and meat industries. As large-scale meat plants were in the process of slowing their operations, and in some cases even stopping, local meat processors were looked at to relieve the pressures brought forth by COVID-19. As local meat processors stepped up to fill these needs, significant stresses were quickly felt by the employees on the front lines. As many of the small scale meat processors were accustomed to a slower, steadier pace, the onset of doubling or tripling work load caused employees to reconsider their future.

In the world of the meat industry, physical labor is a major component to the job that not many can, or even might choose to do. Smaller meat processors offering a slaughter service are accustomed to harvesting significantly fewer number of animals when compared to large-scale meat processors. For instance, a small-scale meat processor may harvest and process from a few hundred to four thousand beef cattle annually, whereas a large-scale beef plant will harvest over 125,000 head. A small meat processor typically operates with Continue reading Extension Meat Specialist Offers Workshops to Tackle Meat Industry Labor Challenges →

Winter Storms and Cold Cattle in the Southeast

– Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State University

If you are reading this, there is a good chance you have been dealing with impacts from the significant winter storm wreaking havoc on a large portion of the U.S. – even in the deep south. Power outages, school or business closures, and cold cattle are all occurring. This storm is rare due to not only the cold temperatures and ice/snow, but also the duration of the event.

Cattle sales volumes will be low this week in most places as some auctions close along with a reduction in the supply of cattle that would show up for auction even if they are open. The impact on winter pasture will be seen in the coming weeks as there will likely be at least some cattle that go to market sooner than intended due to reduced pasture conditions.

While there are certainly market impacts that will play out over the next few weeks, the production challenges faced by cattle producers are the most severe during an extreme winter weather event such as this one. For operations who have started calving, harsh temperatures and precipitation create significant stress for newborn calves (and cattle producers). Calving is not yet in full swing for most producers but there will be Continue reading Winter Storms and Cold Cattle in the Southeast →

Weekly Livestock Comments for February 12, 2021

– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee

FED CATTLE: Fed cattle traded steady to $1 higher compared to last week on a live basis. Prices on a live basis were primarily $113 to $114 while dressed prices were mainly $180.

The 5-area weighted average prices thru Thursday were $113.78 live, up $0.50 compared to last week and $180.07 dressed, up $0.75 from a week ago. A year ago, prices were $118.88 live and $190.26 dressed.

It would appear the cash price is attempting to catch live cattle futures, but that process is tougher than herding cats. The cash price remains $2 lower than the February live cattle contract, and there are two weeks left to close the gap. The more optimistic part of the market is April live cattle trading near $125. The ability to reach or surpass this price level is dependent on beef demand. Beef supply may play a role as well if the extremely cold temperatures persist and result in reduced cattle performance in the feedlot. It is always difficult to predict markets and weather. In this particular case, the Continue reading Weekly Livestock Comments for February 12, 2021 →

Providing Extra Energy in Bad Weather

– Dean Kreager, Licking County Agriculture and Natural Resources Educator

In some cases, simply offering two pounds of whole corn on frozen ground can be effective. Photo: Penrose

Winter is here! As I write this, we have had some snow and freezing temperatures along with a healthy dose of mud, but the worst is yet to come. Some grazers may still be utilizing stockpiled forages but many of us have transitioned to feeding hay, baleage, or silage. Hopefully, we know the quality of our forage and the needs of the livestock that will be consuming it. Maybe we have even planned for supplemental energy sources when needed. This is all great until mother nature throws a monkey wrench into things. Rain, snow, wind, and mud can destroy our best laid plans.

There are charts that tell us the nutrient requirements of all types of livestock during different stages of their lives. These help us know which forages are best suited to which animals and when a supplement needs to be added to maintain performance and reach genetic potential. What we sometimes forget is these tables do not account for non-typical weather conditions. A sunny day with no wind and temperatures near zero are better tolerated than a muddy 40°F day with blowing Continue reading Providing Extra Energy in Bad Weather →

Utilizing Annual Forages for Cattle Feed

The second session of the 2021 Ohio Beef Cattle Management School was hosted via ZOOM by the Ohio State University Extension Beef Team on January 25th. During that second session the focus was on supplementing our perennial forage production with annual forages – many of which are considered cover crops – grown at strategic times throughout the growing season. In the presentation that follows, Al Gahler discusses what he and his colleagues have learned about growing a number of different annual forages for feed. To begin, Extension Beef Field Specialist Garth Ruff, introduces Al and his presentation on utilizing annual forages.

Find details of the 2021 Ohio Beef School sessions that continue each Monday evening through February 22nd linked here.

What Does the Increased Grain Prices Mean for Backgrounders?

– Jeff Lehmkuhler, PhD, PAS, Associate Extension Professor, University of Kentucky

This time of year, we receive several questions regarding supplementing cows and calves. Often, I must ask what feeds are available and prices as this is rarely included in the original request. I see a wide range in feed prices when this information comes back. However, one thing is certain, feed prices are higher in 2021. What impact will this have on the backgrounding segment?

The backgrounding and stocker enterprises are tight margin industries. By margin, we are referring to the difference in the value of a feeder calf at marketing and the price paid at purchase. If an 800-pound feeder is expected to bring $1,050 and was purchased for $750, the margin would be $300 to cover all costs and hopefully leave a bit of profit. If feed costs increase and all other factors remain the same, then the margin is decreased. To compensate, buyers will have to pay less for feeders if the projected sell price does not march up with the feed costs. Let’s compare two scenarios where feed cost is $180/ton versus $280/ton. I’ll use a model that includes typical enterprise budget information. I am leaving labor out, though one should value their time. Many enterprise budget tools are available, and you should find one that you like and enter your own values.

Additional inputs are necessary and include days owned or fed. Purchase date and expected marketing date to look at the feeder cattle contract closest to your marketing day along with the basis. The diet or ration to be fed and cost is a critical part of Continue reading What Does the Increased Grain Prices Mean for Backgrounders? →

The Buckeye Beef Byte; a Conversation with Jessica Pempek, Extension Animal Welfare Specialist

This is the second in a six-part series of discussions with Beef industry specialists at OSU and in Ohio. In this edition, show hosts Clifton Martin and Garth Ruff  visit with Jessica Pempek, an Assistant Professor, and Animal Welfare Extension Specialist, in the Department of Animal Sciences at Ohio State.  The conversation focuses on animal welfare issues in Ohio and in particular the beef industry.

You can also find a draft of the transcript of the conversation with Dr. Pempek linked here.

After enjoying the podcast, we’d like for you to share your feedback with us here: https://osu.az1.qualtrics.com/jfe/form/SV_eEvVvvzEolrrHlc

2020 Cow Slaughter and 2021 Inventory Expectations

– Dr. Kenny Burdine, Livestock Marketing Specialist, University of Kentucky

Cattle slaughter got a lot of attention in 2020 as the sector raced to deal with labor challenges in the spring that greatly impacted processing volumes. At its lowest point, federally inspected cattle slaughter was down by more than one-third from 2019. But the processing industry showed a lot of resiliency through summer as slaughter levels picked back up, despite the challenges the pandemic created.

While cattle slaughter is often considered as a whole, I want to focus this discussion on cow slaughter for three reasons. First, cow slaughter was not impacted the same as steer and heifer slaughter during the pandemic. Secondly, cull cow prices were relatively strong last year, which created additional incentive for culling. And third, 2020 cow slaughter volumes impact beef cow numbers in 2021. This final point should be reflected in USDA’s cattle inventory estimates that will be released on January 29th.

The beef cow slaughter chart that I am sharing this month compares beef cow slaughter in 2019 and 2020. The sharp drop in slaughter levels from March to April is clear in the chart. However, cow slaughter was not Continue reading 2020 Cow Slaughter and 2021 Inventory Expectations →

Fed Cattle and Feeder Cattle Divergence

– Stephen R. Koontz, Department of Agricultural and Resource Economics, Colorado State University

The current outlook communications for the cattle and beef markets in 2021 are commonly optimistic –bullish. The underlying market fundamentals support this position. On feed number are currently high and will moderate through the remainder of the year with smaller placements and smaller calf numbers. Further, the currently very large carcass weights will shrink into the spring as winter weather has its impact. Similar optimistism is often offered for feeder cattle and calves but I believe this is a tenuous perspective. Rather, I believe cow-calf producers should look hard at Livestock Revenue Protection (LRP) insurance. My outlook communications discussed to potential for returning to normal seasonal patterns and opportunities this year. For cow-calf producers that involves diversifying and making some sales in the spring and early summer with fed cattle and beef price rallies. I am concerned that this year may playout more like last year. In 2020, selling opportunities evaporated through March. If the current changes to feed costs persists then we may be in for a repeat.

The February WASDE report will be released this week and the first look at USDA grain acreage forecasts will be offered at the Agricultural Outlook Forum at the end of next week. This information will update us on the tightness of corn and soybean stocks and possible acreage relief with this crop year. Regardless, stocks are considerably Continue reading Fed Cattle and Feeder Cattle Divergence →