By Jamie Martin
In Tennessee's cattle industry, understanding the economic impact of different cattle classes is crucial for maximizing profitability.
Recent data from the Middle Tennessee Research and Education Center highlights significant disparities in the market values of steers, bulls, and value-added cattle.
Over the past 14 months, bull calves consistently fetched lower prices than their steer counterparts, with 525-pound bulls selling at an $88 discount per head and 625-pound bulls at a $125 discount. Interestingly, 525-pound steers and 625-pound bulls averaged the same market value of $1,512 per head.
The advantage of value-added cattle—defined in Tennessee as weaned and vaccinated—was evident. Value-added steers at 525 pounds sold for an additional $85 per head compared to regular steers, and at 625 pounds, the premium increased to $116 per head.
A notable case study involved comparing the profitability of raising a 525-pound steer to a 625-pound value-added steer. The latter commanded an additional $241 per head, showcasing the potential financial benefits of value-added practices.
"Employing advanced management practices such as weaning and vaccinating not only enhances the welfare of the animals but also significantly boosts their market value," states the report from the research center. This statement underlines the ongoing need for both basic and advanced management education among cattle producers.
As the industry evolves, the data presents a clear message: investing in cattle management can lead to improved market returns, providing essential insights for producers aiming to optimize their operations.
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Categories: National