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Feeding Cattle Beyond Optimum
Market Weight and Finish

Author: Dennis Martin - Feedlot Specialist/OMAFRA
Creation Date: 17 June 2003
Last Reviewed: 31 August 2004

Since the May 20th announcement of a single case of Bovine Spongiform Encephalopathy (BSE) in Alberta, many feedlot producers have been holding cattle that under normal circumstances would have gone to market. Several thousand finished cattle are being held back weekly in Ontario, but these animals will have to be marketed some time in the near future, regardless of price. How long can finished cattle be held, and at what expense? Factors such as feedlot performance, feed costs, yardage, interest and potential discounts all come into play when determining the cost of holding cattle..

Feedlot Performance

Heavy cattle on a finishing diet will generally eat about two percent of body weight in dry matter (this may vary depending on type of cattle, environment, and ration fed). Once cattle reach their ideal market weight and finish, their dry matter intake (DMI) as a percent to body weight will drop. As well, they will convert feed less efficiently, resulting in lower average daily gains. As days on feed are extended, this drop in performance will increase daily expenses and potential discounts. Table 1 demonstrates the impact on performance and cost to hold a 1400 lb. steer on feed 20, 40 and 60 days beyond finishing.

Table 1. Effect on Performance and Cost of Holding a 1400 lb. Steer Beyond Ideal Market Date
  # of Days Beyond Ideal Market Date
20
40
60
Live Weight (lb.)
1460
1510
1550
Carcass Weight (60% dressed)
876
906
930
DMI as % of Body Weight
1.95
1.85
1.75 or lower
Average Daily Gain (lb.)
~ 3
~ 2.5 to 2.75
~ 2 to 2.5
Feed Efficiency (declines)*
5-8%
12-18%
18-25%
Added Feed Cost **
$48.50
$95.50
$139.50

Added Yardage + Interest Costs ($0.50/day)
$10
$20
$30
Weight discounts
$35
$72
$74
Total Cost to Hold
(excluding possible yield discounts)
$93.50
$187.50
$243.50
* Feed Conversion becomes less efficient (i.e. more lbs. of feed /lb. of gain)
** Feed Cost is based on: Corn @$150/t + Supplement @$350/t

Performance drops as days on feed increase. Feed efficiency declines and Average Daily Gain (ADG) decreases, as days beyond ideal market weight are extended. Rumen health also becomes an important consideration the longer cattle are held past optimum weight and finish. Declining rumen health will cause even lower ADG's and may also cause founder or laminitis.

Weight and grade discounts are determined and assigned by individual packers, so they may vary. As well, a large influx of very heavy, overfinished cattle may trigger higher discounts in these categories. Table 2 outlines a fairly standard example of discounts that may be applied.

Table 2. Finished Cattle Weight and Grade Discounts
All bids on carcass/grade offerings are on the basis of A1-A2 carcasses.
Grade Discount
$/lb.
Yield Grade 3
-$0.05
B 1 F (Devoid Marbling)
-$0.20
B2
-$0.25
B3
-$0.25
B4 (Dark Cutter)
-$0.25
Carcass Weight (lbs.) Discount
$/lb.
751 to 800
-$0.02
801 to 900
-$0.04
901 to 1000
-$0.08
1001 to 1100
-$0.10
1100 & Up
-$0.15

Take Home Message

  • Stay current on the status of the markets.
  • Know your costs in holding cattle past optimum weight and finish.
  • Monitor your cattle for rumen health and associated problems.

 

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