An economic analysis of conventional and alternative cow-calf production systems

Abstract Text: Profitability through weaning of four cow-calf production systems was modeled under current forage and feed prices.  Two systems represent conventional Nebraska sandhills production with either March (MA, n = 88/yr) or June-calving (JU, n = 74/yr) cowherds each with 4 yr of previously reported data.  MA cows grazed summer range, winter cornstalks upon October weaning, and were fed hay (12.5 kg DM/cow/d) at calving.  JU cows grazed range from early-spring through fall, followed by cornstalks, and were not fed hay.  JU cow-calf pairs were supplemented (0.45 kg DM/pair/d) with distillers grains from August through weaning (April).  JU calves were 77 d older and 16 kg heavier (P ≤ 0.01) at weaning than MA calves.  Two other July-calving cowherds represent alternative intensive and crop residue based systems (one year of data not previously reported).  In one system, cows were in intensive management year-round with January weaning (INT, n = 84).  The final system included intensive management from April through October, and cornstalk grazing with supplementation (1.36 kg DM/pair/d distillers grains) all winter until April weaning (INTSG).  In INT and INTSG systems, a common diet (60:40 distillers grains:crop residue, DM) was fed while cows were intensively managed and amounts varied with production stage.  Unit cost of production (UCOP) for producing a weaned calf was calculated using actual weaning weights adjusted to a common % weaned/pregnant.  October 2013 base prices used for analysis included: grass $1.33/pair/d, cornstalk grazing $0.60/d, distillers grains $0.247/kg DM, hay $0.165/kg DM, harvested crop residue $0.104/kg DM, and mineral supplement $10/cow/yr.  Other assumptions were: yardage $0.10/d ($0.45/d for cows in intensive management), and cow ownership $250/cow/yr.  UCOP was $3.28 and $2.98/kg for conventional MA and JU systems, respectively.  Not feeding hay and increased calf weaning weights decreased UCOP for the JU system.  For alternative systems, UCOP was $4.89 and $3.06/kg for INT and INTSG, respectively.  Cornstalk grazing and increased calf weight due to greater weaning age improved the profitability of the INTSG system.  Data indicate alternative production methods utilizing corn residues can be economically competitive with conventional management strategies.

Keywords: beef cow, economics, system