Derrell S. Peel, Oklahoma State University
Kellie Curry Raper, Oklahoma State University
Calves that are preconditioned at weaning are healthier and more resilient to withstand the rigors of shipping and commingling prior to introduction in subsequent production programs. Preconditioning can add significant value to calves but requires planning and management.
Preconditioning adds value to calves due to the weaning, health and other management protocols that are included in the programs. Certification adds additional value by providing assurance to buyers that preconditioning programs have been completely and properly implemented. The value of each of the preconditioning program components has been verified by years of data and research along with the additional value of certification. More information about OQBN programs, protocols and sales is available at Oklahoma Quality Beef Network | Oklahoma State University (okstate.edu).
As with any economic decision, producers should evaluate the costs and returns of preconditioning programs. Additional costs of preconditioning vary across operations and situations and, while there is no guarantee of positive returns, the probability of positive returns is higher and more consistent in recent years. Figure 1 shows the average premiums of OQBN calves compared to calves sold without preconditioning. Over the previous 12 years, OQBN premiums have averaged $13.05/cwt. It is important to remember that OQBN calves sell at a premium to calves not preconditioned and, also at heavier weights compared to the beginning of weaning. Producers may feel that the current high prices for calves makes the value of preconditioning less, but Figure 1 shows that the highest average premium for OQBN occurred in 2014 at the time of the previous record high cattle prices. For buyers, the reduced risk of animal morbidity and mortality due to preconditioning is more valuable when the cost of the animals is higher.
Marketing calves for added value requires two steps: first, complete the health and management requirements of the preconditioning program and second, market the animals in a manner that buyers who demand and value preconditioned calves will have the best opportunity for purchase. OQBN sales are scheduled with partner auctions to attract the volume of both buyers and certified preconditioned cattle to result in better markets and value for the calves.
