Feedlot Performance Impacted by Weather

Cattle standing at a feed bunk after a recent rain.
Cattle standing at a feed bunk after a recent rain.
(University of Nebraska)

By: Derrell S. Peel, Oklahoma State University Extension

USDA-AMS estimates U.S. beef production for the year to date to be down 1.0 percent year over year.  Total cattle slaughter is up 0.7 percent so far this year over last year.  Daily slaughter totals for the year to date show steer slaughter down 3.9 percent; heifer slaughter up 7.6 percent; dairy cow slaughter up 5.0 percent; beef cow slaughter up 1.1 percent and bull slaughter down 8.8 percent all compared to the same period last year.  Adverse weather has likely slowed cattle finishing somewhat but the slaughter totals across classes mostly reflect underlying herd dynamics.

Weather impacts are more evident in cattle carcass weights.  Carcass weights are declining seasonally thus far but are well below year ago levels.  In the latest weekly data, steer carcass weights are 12 pounds below one year ago; heifer carcasses are down 11 pounds; and cow carcasses are 18 pounds lighter year over year.  Lighter cow carcass weights are particularly surprising given that dairy cows are making up a bigger proportion of cow slaughter and are typically heavier than beef cows.  For the year to date, steer carcass weights have averaged 866 pounds, down 7.3 pounds year over year; heifer carcasses are  at 804 pounds,11.7 pounds lighter compared to last year and cow carcasses are averaging 645 pounds, 14.3 pounds lighter year over year.

Feedlot survey data from Kansas show the weather impacts in more detail.  For the month of February, closed-out steer pens averaged 3.43 pounds per day of gain (ADG), down slightly from 3.48 ADG one year ago.  Feed conversion was sharply higher at 7.08 pounds of feed per pound of gain (F/G) compared to 6.22 F/G last year.  This indicates the additional feed required to support animal maintenance and growth; meaning that cattle are much less efficient in adverse weather.  Steer death loss was higher as well at 1.68 percent compared to 1.59 percent last year.  Cost of gain (COG) is higher now compared to last year, partly as a result of these impacts but may also reflect changes in feed costs. February 2019 steer COG is reported at $85.26/cwt. compared to $79.73/cwt. one year ago.

The impact on feedlot heifers may be even more apparent.  February heifer ADG was 3.18 pounds per day, compared to 3.34 ADG in February last year.  Feed conversion was 7.31 F/G compared to 6.40 F/G one year ago.  Heifer death loss was 1.53 percent in February compared to 1.29 last year.  Heifer COG for February was $89.17/cwt. versus $80.56/cwt. last year. 

As in often the case, adverse weather is largely a management headache with significant economic impacts mostly borne by individual operations.  However, there are no doubt some market level impacts given the lengthy and widespread period of poor cattle production conditions experienced this winter.  Impacts reported above are likely even worse in more northern regions compared to Kansas.  Reduced beef production appears to have supported boxed beef prices, reducing supplies somewhat so far this year compared to earlier expectations.  Fed cattle prices have likely been supported as well, though the weather impacts have not been as obvious as some had expected.  Fed cattle prices may have peaked seasonally but continued weather impacts and the onset of summer beef demand should provide continued support for a few more weeks and possibly another chance for a spring price peak.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.