– Dr. Andrew Griffith, Assistant Professor, Livestock Marketing Specialist, Department of Agricultural and Resource Economics, University of Tennessee
Can good, bred females be profitable at these prices.
There have been several heifer and cow-calf pair sales over the past several weeks. Given the price levels, some observers have asked if those females will have a profitable life or if the purchaser will lose money on those females.
First, the West Kentucky Select Bred Heifer Sale sold 193 bred heifers with an average purchase price of $3,264 per head. A couple of weeks prior to that heifer sale, I attended a bred cow and cow-calf pair sale. The biggest portion of those animals sold for more than $3,000, and I would make no claim that they were anything special. Given the information of where female prices have been recently, can the buyer make money with these animals?
The answer is always “it depends.” If calf prices remain elevated for three or four years and those females produce a calf each year then they will likely be profitable. Another way to be profitable may be to market the animals first calf and sell a bred female or cow-calf pair next year. If they fail to rebreed or lose a calf then profitability will be difficult.