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Strategic Crossbreeding for Optimal Marketing

May 17, 2010

By Brad Parker, NALF

For cow-calf producers, survival and operational profitability are reliant upon efficiently producing uniform calves for target markets in an economical fashion. Doing so requires a clear management plan, set goals for the cow herd, proper bull selection and a concise marketing strategy. Collectively, those things reduce risk and generate greater returns to the bottom line.

"Breeding cattle isn't rocket science, although it does require common sense and a certain degree of business savvy,” said Mike Horvath, director of commercial marketing for the North American Limousin Foundation (NALF). "Simply put, there are three basic markets available: mainstream, lean and premium-Choice. The majority of commercial producers shoot for the mainstream commodity market, with a handful of managers gearing their enterprises towards the lean or premium-Choice markets.”

For the latter two options, he explained, producers must be comfortable accepting greater risk. For example, if a calf destined for a natural program gets sick and requires an antibiotic, its destiny changes.

Despite the target market, true success starts in the cow herd.

"Regardless of breed composition, cows must be sound-structured, big-ribbed, loose-flanked, easy-fleshing and moderate,” Horvath explained.

Conservatively sized females usually will be more profitable and efficient because they often wean more total pounds of calf per cow exposed, and their calves have more market flexibility as they either can be backgrounded or go straight into the feedyard. Additionally, females should be genetically balanced – using expected progeny differences (EPDs) – if they are to be productive in the herd.

Furthermore, producers realize additional value through maintaining a crossbred cow base. Production and economic advantages of commercial crossbred cows, adapted to their environment, will trump those of straightbred cows, with the following advantages:

  • 20% more pounds of calf weaned per cow exposed and
  • an additional 1.3 to 2.0 years of cow longevity.

"That equates to a 30% increase in lifetime cow productivity,” Horvath stated.

In terms of dollars and cents, an average commercial F1 cow will return about $70 more per year than a straightbred. If the chosen crossbreeding system yields between half and two-thirds of maximum hybrid vigor (heterosis), the additional $50 per cow per year yields at least $400 more in lifetime earning over a straightbred.

With a strong cow base, managers have more versatility in bull selection and, ultimately, greater access to a larger array of market opportunities. Producers should apply many of the same criteria used in female selection when seeking out bulls.

"Potential sires should be big-footed, good-structured, high-capacity, muscular and have above-average testicular development,” Horvath advised. "Genetic composition and associated EPDs should be above breed average and progressive for the direction the enterprise is headed.”

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FEATURED IN: Beef Today - Late Spring 2010

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