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Evaluation of calving seasons and marketing strategies in Northern Great Plains beef enterprises. II. Retained ownership systems

V. L. Reisenauer Leesburg^*,1, M. W. Tess^*,2 and D. Griffith

^* Department of Animal and Range Sciences, and Department of Agricultural Economics and Economics, Montana State University, Bozeman 59717

² Corresponding author: mwtess{at}montana.edu

Two bioeconomic computer models were used to evaluate calving seasons in combination with calf marketing strategies for a range-based cow-calf enterprise in the Northern Great Plains. Calving seasons studied were spring (SP, calving beginning March 15 and weaning October 31), spring with calf mortality increased by 5% (SP-IM), summer (SU, calving beginning May 15 and weaning December 31), summer with early weaning (SU-EW, calving beginning May 15 and weaning October 31), and fall (FA, calving beginning August 15 and weaning February 1). Marketing scenarios for steer calves and nonreplacement heifer calves were as follows: sold after weaning (WS), backgrounded in Montana and sold as feeder cattle (WBS), backgrounded in Montana and then fed to slaughter BW in Nebraska (WBFS), and shipped to Nebraska at weaning and fed to slaughter BW (WFS). Quarterly inflation-adjusted cattle and feedstuff prices were representative of the 1990s cattle cycle. Cumulative gross margin (CGM), the sum of ranch gross margin and net return from retained ownership was used to compare systems. At the peak of the cattle cycle, all forms of retained ownership (WBS, WBFS, WFS) were profitable for all calving seasons, but during the descending phase, only WBS increased CGM markedly over WS for SU-EW. At the cycle valley, retained ownership was not profitable for SP and SP-IM, whereas WBFS and WFS were profitable for SU and SU-EW, and all forms of retained ownership were profitable for FA. During the ascending phase, retained ownership was profitable for all calving season-marketing combinations. Systems with the greatest CGM at each phase of the cattle cycle were FA-WFS, SP-WBS, FA-WFS, and FA-WFS at the peak, descending, valley, and ascending phases, respectively. In beef enterprises representative of the Northern Great Plains, with a restricted grazing season and limited access to low-cost, good-quality grazeable forage, no single calving season and no single combination of calving season and calf marketing is expected to be superior throughout the cattle cycle. Fall calving systems most often benefit from retained ownership through slaughter.

Key Words: beef cattle • calving season • marketing • system

This article has been cited by other articles:

				R. E. Kruse, M. W. Tess, E. E. Grings, R. E. Short, R. K. Heitschmidt, W. A. Phillips, and H. S. Mayeux Evaluation of Beef Cattle Operations Utilizing Different Seasons of Calving, Weaning Strategies, Postweaning Management, and Retained Ownership Professional Animal Scientist, August 1, 2008; 24(4): 319 - 327. [Abstract] [PDF]

				V. L. Reisenauer Leesburg, M. W. Tess, and D. Griffith Evaluation of calving seasons and marketing strategies in Northern Great Plains beef enterprises: I. Cow-calf systems J Anim Sci, September 1, 2007; 85(9): 2314 - 2321. [Abstract] [Full Text] [PDF]