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Economics of Replacement Rates in Commercial Beef Herds¹

Washington State University, Pullman 99163

Abstract

THE income and replacement consequences of alternative policies have seldom been included in research projects concerning the commercial beef industry. This problem is particularly vexing to cattlemen because they must bear the consequences of their actions for several years. Productivity of a cow-herd is influenced by its age. With advancing age, a cow's productivity eventually diminished. Thus, lower profits ensue if a cow is retained in the herd too long. The objective of this research was to determine the optimum age at which to cull aged cows from the herd and replace them with heifers.

Selection of replacement rates requires consideration of both the physical productivity of cows with advancing age and the economic consequences of changing costs and market prices. Published reports by animal scientists at various locations were used to establish the relationship between productivity and age of the cow. Cost and returns information was obtained from a survey of commercial producers in north central Washington and from published market reports. Optimal replacement rates may vary among locations if feed conditions , price relationships, or other factors differ significantly. Specific references to production or cost relationships are detailed in the body of this article.

¹ Scientific paper 3815, Washington Agricultural Experiment Station Project 0069.