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CPH-45 Sales Worthwhile Even In High Cattle Market | |
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An analysis of 11 years of data from the Pennyrile CPH-45 sale at |
By Laura Skillman PRINCETON, Ky. (Sept. 8, 2004) – Preconditioning calves for the CPH-45 program can still offer advantages to producers even in a year with already high prices, say University of Kentucky College of Agriculture beef specialists. For
beef producers considering selling calves directly off the cow and not
preconditioning the animals, a look back through the program’s history tells
them the effort is worthwhile, said Roy Burris, UK Extension beef cattle
specialist. The
CPH (certified preconditioned for health) program
basically requires a certain health standard for calves sold through the
program, such as proper weaning and immunizations. Calves sold under CPH-45 are
tagged for identification and grouped by grade and breed in order to create
large lots of healthy, uniform calves. Health
records assure the proper vaccination of the animals and build confidence among
potential buyers. Local sales may have additional requirements. An
analysis of 11 years of data from the Pennyrile CPH-45 sale at “Based
on history, what we’ve seen is that you make your most money when calves are
high because the biggest economic advantage comes from weight gains not
premiums,” Burris said. “The buyers of preconditioned calves are generally
looking for calves that are heavier so we don’t see much of a price slide.
Also, these sales are more beneficial to the buyers when cattle are high because
of the health standards and lower likelihood of calf loss.” Normally,
the price drops per pound as the weight goes up. Data shows that in regular
sales every year except one saw higher prices for calves weighing 550 pounds
sold in October than prices received for 650-pound calves sold in December. The
decline averaged a negative $3.99 per hundred pounds. However, 650-pound calves
selling in the December CPH-45 sales at Net
returns over the 11-year period showed an added value of $58.92 per calf for
those sold in the CPH-45 sale compared to calves sold at weaning. In 2003 when
calf prices were approaching historical levels, producers in the “Where
we see most of the money being made is being able to put rapid efficient gains
on calves,” Burris said. “In a 45 day period 120 to 150 pounds can be put on
a calf. My research has surprisingly shown that the best gains are made in the
first 20 days. Also, when you wean them on the farm, there’s less stress than
when they are transported off-farm.” By
utilizing commodity or home-raised feeds, weight gain can often be achieved at a
cost in the low 30-cent per pound range. This allows producers to add weight to
calves efficiently and cheaply then take advantage of market demand later in the
year. “When
I get the opportunity to put 30-cent gain on $1 plus per pound calves, I’m
going to take it,” Burris said. For more information about the CPH-45 program, contact a county office of the UK Cooperative Extension Service. -30- Writer: Laura Skillman 270-365-7541 ext. 278 Sources: Roy Burris, 270-365-7541 ext. 208; Kevin Laurent, 270-365-7541 ext. 226 Return to Main News page. |
