Backgrounding Cow-calf. Backgrounding for Profit. Backgrounding Cow-calf. Backgrounding Cow-calf VA Veterinary Conference 2/27/16

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1 Backgrounding for Profit W. Mark Hilton, DVM, DABVP (Beef Cattle) Clinical Professor, Department of Veterinary Clinical Sciences Purdue University College of Veterinary Medicine Backgrounding Cow-calf Starts well ahead of weaning Fetal programming/developmental programming/epigenetics Calve at a time of year that fits your environment Dam health Vaccine Parasite control Calf vigor heterosis 6.1% Backgrounding Cow-calf Starts well ahead of weaning Colostral intake Sandhills calving system to potentially eliminate neonatal disease Low-stress cattle handling Marketing to get full value Does producer have the following data from feedlot? Health Performance Carcass Backgrounding Cow-calf Value of preconditioning Weight gain Health price advantage Where is the $$? practice) 1

2 Profit/Head Preconditioning Keys to Success 1. Team Building 2. Weight Gain and Genetics 3. Herd Health and Nutrition 4. Marketing PC calves Can Vet J October; 33(10): $ Relationship between ADG and Profit/Head Weight Gain Pounds Pay Efficiency Pays More Days = More Profit Improve Genetics $ $ $80.00 $60.00 $40.00 $20.00 $ Average Daily Gain Table 3 Effect of value added health programs on the price of beef calves sold through Superior Livestock Auctions a. Value added health program administered to sale lots Not weaned Weaned Not vaccinated Vaccinated Vaccinated Vaccinated Year Not certified Not certified b Certified c Certified d Price, $/cwt Premium over non-vaccinated and non-certified, $/cwt practice) 2

3 PC Big Picture Profit from PC 11/11 years Averaged $80.70/calf 2014 Profit of $211/calf Primarily due to strengthening over fall/winter Minimal price slide 2015 Profit of $190/calf to loss of $245/calf Almost entirely due to market timing Minimal to large price slide Buying All High Health PC calves to background Benefits include: less antibiotic use improved beef quality assurance (BQA) decreased labor improved carcass quality But: Higher cost Weaning is the more important than vaccination Ranch-origin calves were less (P < 0.001) likely to be treated for bovine respiratory disease than MARKET calves; COMM calves were intermediate. Calves that were retained on the ranch after weaning (WEAN45 and WEANVAC45) were also less likely to be treated (P = 0.001) than MARKET or WEAN calves. Calves from a single source that are retained on the ranch for 45 d after weaning exhibit less morbidity and less health costs during the receiving period at the feedyard than when cattle are commingled or trucked to the feedyard immediately after weaning. J ANIM SCI 2008, 86: Step, et. al AABP Proceedings, 2011, Busby How to Eliminate Sale of High-Risk Calves For the next 30 days Every buyer of feeder cattle agrees not to bid on high-risk calves As auctioneer goes down and down on price and no one buys, he cries, take them back home boys, no one wants them at any price! Do you think the word would get around? Transmission of Mannheimia haemolytica The significant within pen diversity of M. haemolytica during BRD episodes indicates that the disease is not primarily due to the spread of a single virulent clone among cattle and highlights the importance of predisposing factors that enable the resident flora to overcome the cattle s immune system. (Same for P multocida) The results also demonstrate that isolates recovered from nasal swabs are not always representative of the isolates present deeper within the respiratory tract. Timsit, et al: Veterinary Microbiology 161 (2013) practice) 3

4 Initial BRD vaccination Newer studies show intranasal vaccine for BRD pathogens likely superior to SQ/IM vaccinations for initial immunization April/May IN BRD, SQ BVD7 way, fly tag, pour, x, +/-implant Wean SQ BRD, deworm, pour, +/- implant Revaccination of backgrounding cattle on a set time schedule is likely not warranted. Assess group to see if $$ and time warranted Calves Buy all PC calves Less health risk May need no vaccinations No bulls No horns On feed more quickly May be able to sell into specialty market BQA certified All-natural, etc. Calves Buying high risk cattle Be sure the bargain is worth the risk Use metaphylaxis If Myco risk, Draxxin or Zactran Vaccinate after short rest IN IBR-PI 3 -BRSV SQ BVD Clostridials? Mannhemia hemolytica Deworm/pour Nutrition Discount for Bulls Weight BG $/cwt $5.44 $4.99 $3.63 SL $/cwt $1.81 $6.35 $ $/cwt $ $98.50 $94.00 disc BG 09 $20.40 $22.99 $20.00 disc SL 09 $6.80 $29.26 $ $/cwt $ $ $ disc BG '15 $36.59 $43.76 $36.81 disc SL '15 $12.20 $55.70 $78.22 BG $/cwt disc '15 $9.76 $9.50 $6.68 SL $/cwt disc '15 $3.25 $12.09 $14.19 Calves - Nutrition Goal of 2-3#/day gain Water Energy Low/no starch DDGS (wet feeds increase intake) Corn gluten feed Soyhulls Wheat mids practice) 4

5 Calves - Nutrition Protein All natural source DDGS Corn gluten feed Soybean meal Roughage In TMR Pasture Balanced vitamin/mineral mix specific to ration Feed in TMR Example starting ration for 400# calves: 52% stalks 45% wet distillers 2% supplement package Photo and ration courtesy of Dr. Bob Smith, Veterinary Research and Consulting Services, LLC Difference in dollars returned per head relative to the number of treatments (2004) Number of treatments NT ST 2T Death loss discount *, $ PAR Treatment cost **, $ PAR ADG reduction #, $ PAR Yield grade premium, $ PAR Quality grade discount, $ PAR Light carcass discount, $ PAR Dark cutter adjustment, $ PAR Total difference, $ PAR * Accounts for cost of gain investment and lost carcass value. ** Includes medicine, labor and chute/equipment charges. # Based on additional carcass weight gained during the feeding period. Difference in dollars returned per head relative to the number of treatments (2014) Number of treatments NT ST 2T Death loss discount *, $ PAR $54.91 $ Treatment cost **, $ PAR $25.16 $64.28 ADG Bonus #, $ PAR $34.56 $68.74 Yield grade premium, $ PAR +$1.62 +$4.03 Quality grade discount, $ PAR $5.35 $14.29 Light carcass discount, $ PAR $1.61 $4.69 Dark cutter adjustment, $ PAR +$0.05 $0.19 Total difference, $ PAR $ $ * Accounts for cost of gain investment and lost carcass value. ** Includes medicine, labor and chute/equipment charges. # Based on additional carcass weight gained during the feeding period. Treatment of calves with BRD If Mycoplasma is a risk, use AB with Rx label Draxxin Zactran Resflor Gold None of above extremely effective for treatment of Myco If minimal myco risk, many choices based on previous history No studies to show that combination antibiotic therapy is superior to single drug therapy practice) 5

6 Low-stress Cattle Handling Acclimation of new cattle 2-3 training session/day initially US/Home/Acclimation Backgrounding All Calves Feed Additives Ionophore Should be in every ration Antibiotics Variable results in trials Questionable cost-effectiveness MGA Cost-effective when feeding heifers Backgrounding All Calves Growth Implants Should be in every calf selling unless receiving a premium for all-natural, etc. Low dose for less than 400# Ralgro Component E-C/Synovex C Steers over 400# Component E-S/Synovex S Revalor G/Component TE-G Heifers over 400# Component E-H/Synovex H Revalor G. Handling/Behavior/Social Aspects Impact Health Windbreaks in winter Sunshade/sprinklers in summer Dust/mud control Fresh water that is easily found Acclimate calves to pen Low stress cattle handling Feed in bunk that is similar to what they have previously consumed Cow-calf Producer Backgrounds Own fetal programming/nutrition of the dam calving time and calving environment calving ease in heifers calf vigor with crossbreeding colostrum using the Sandhills Calving System prewean/precondition low stress cattle handling Buyers of high health PC calves find suppliers that do all of the above feed a healthy, profitable calf will produce the best possible product for feedlot practice) 6

7 Buyers of high risk calves Metaphylaxis Gentler vaccination with IN Proper nutrition Don t buy bulls If do make sure discount is sufficient Low-stress cattle handling Acclimation All calves Bought right is half sold Nutrition Vaccinations Parasite control Growth implants Ionophores Low-stress cattle handling Marketing practice) 7