RANCHING Business
can help reduce shrink. At weaning, calves have a base value, Swigert
says. Young, fresh calves are considered a high-risk purchase. As such, there is a discount of $10 to $15 per hundredweight (cwt) for freshly weaned “bawling calves,” he says. Plus, those same calves can easily shrink 6 to 12 percent. “There is a double penalty for putting a high-risk
product into the marketplace,” Swigert says. “Precon- ditioning transforms a ‘bawling calf’ into a yearling, and potentially reduces shrink to 2 percent or less, removing the double-whammy of the marketplace.” In addition, preconditioning creates a premium
product for which savvy buyers are willing to pay. “An order buyer recently told our Integrity Beef Al-
liance producer members that he was willing to pay more for preconditioned cattle in this high market because they provided the best ‘guarantee’ against health problems and death loss,” Wells says. “When cattle are this expensive, morbidity and mortality can wreak havoc on profi t.” Preconditioning also allows the rancher to put ad-
ditional weight on the calves while still at home. In 2014, this increased weight was worth an additional
WEST AUCTION, LLC ae Y 5
www.westauction.us A Family Owned and Operated Business
CATTLE SALE EVERY THURSDAY Sale starts at 11:30 a.m.
We sincerely appreciate our valued customers and our many packer, order and country buyers. Our top priorities are getting the best price for your livestock and handling your cattle in an effi cient, prompt and gentle manner.
We are open every weekday and on Wednesday 8:30 a.m. to 9:00 p.m.
Thursday 7:00 a.m. until 9:30 p.m.
Friday 8:00 a.m. to 1:00 p.m.
Barn: 254-826-3725 Gift Barn: 254-826-3828 Restaurant: 254-826-3460 Vet Clinic: 254-826-5305
52 The Cattleman July 2015
Call Gillepspie Livestock for all your
livestock needs.
We all look forward to serving you, from the men outside to the ladies in the offi ce.
Call 830-997-4394 or
Wayne or Shaun Geistweidt at 830-889-4394 or 830-998-4233.
GILLESPIE LIVESTOCK COMPANY 621 Longhorn St. | P.O. Box 454 Fredericksburg, Texas 78624 830-997-4394 | Fax 830-997-5804
thecattlemanmagazine.com
$0.75 to $1.40 per pound of gain — net, Wells says. This can equate to an additional $2 to $4 per day net revenue for each day after weaning that the owned calves remain on the ranch. Additionally, preconditioning opens up marketing
options such as value-added calf sales. This is par- ticularly useful for smaller operators who want to add value to their calf crop, but don’t have enough cattle to fi ll truckload lots, Swigert says. Of course, for producers to reap the benefi t of both
preconditioning and the additional marketing options, operators must make the effort to identify market venues where the buyers will pay for their superior product and then get their cattle there, he says. “It doesn’t make sense for producers to invest in
preconditioning if they’re just going to haul their calves to the local auction market,” Swigert says. “If there aren’t enough like-type preconditioned calves to
Put a pencil to the cost of gain versus the value of gain.
ni e ss!
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