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National Stocker Survey is a First

Collective effort characterizes a dynamic hard-to-define segment of the beef industry


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As well, 30.4% of pure stocker operators utilize retained ownership through the feedlot for risk management. Compare that to 26.2% of the CCS group, 54.4% of those in the WCS category and 75.7% of the FS group. The older producers are, and the more time they've spent in the business, the more likely they are to retain ownership through the feedlot on half or more of their cattle.

Whether or not they retain ownership through the feedlot, 14.3% of the pure stocker respondents say they receive feedlot data on 50% or more of their cattle; 5.5% say they receive carcass data on half or more of the cattle.

Though in the minority, a segment of stocker producers also aim some of their cattle toward value-added production, be it the natural market, age-verified, genetic-based or something else. 6.7% of pure stocker operators say their cattle are geared toward value-added programs, that's about half as many as in the other categories (14.7-19.2%). Likewise, as cattle numbers increase, operations are less likely to manage cattle for value-added programs, or as large a percentage of their cattle for those programs.

On the other hand, the youngest producers are most likely to aim for value-added markets: 17.7% of those younger than 35 say half or more of their cattle are intended for value-added; 11.8% for those aged 35-44; 14% for those 45-64; and 14.6% for those 65 and older.

Among respondents (all categories) indicating more than half their cattle are owned/managed with value-added programs in mind, 37.5% say 51-75% of the cattle they buy and manage are intended for value-added programs; 62.5% say 76-100% are intended to go that direction.

Though it's not surprising to find a low percentage of stocker operators managing for value-added programs, it is surprising too that so few of those stocker programs heavily vested in the strategy (managing more than half of their cattle with value-added intent) require certification of necessary attributes to make cattle eligible for specific programs via Quality Systems Assessment (QSA) or Process Verification Programs (PVP).

Among pure stocker operators who own/manage some cattle with value-added intent, 62.2% require source verification; 51.4% require age verification; 37.8% require genetic verification. Yet, only 19.1% require that verification come via a QSA or PVP.

Health risks

Another survey surprise is how little health risk stocker operators report, compared to long-held beliefs and experiences. In other words, lots of stocker producers would be tickled pink to enjoy the numbers reported in the survey.

Among pure stocker respondents, 43.1% say their typical pull rate due to bovine respiratory disease (BRD) within the first month is less than 5%; 12.3% say it's more than 20%; 43.5% of pure stocker respondents say their typical death loss within the first 90 days, due to all causes, is less than 1%; and 9.4% say it's more than 4%.

On average, pure stocker respondents say 27.5% morbidity due to BRD is considered high-risk; 15.1% is considered medium risk; and 6.6% is considered low risk. By those definitions, pure stocker operators say of the cattle they receive, 37% are considered high risk; 56.6% medium risk; and 58.2% low risk.

Operations running 2,500 or more head (all categories) say 31.5% morbidity due to BRD, on average, is considered high risk; 16.5% is considered medium risk; 7.1% is considered low risk. These operations say 35.9% of the cattle they receive are high risk; 43.8% are considered medium risk; 49.5% are low risk.

On average, 26.9% of those running 2,500 head or more say their typical pull rate due to BRD within the first month of arrival is less than 5%; 21.8% say it's 5-10%; 27.7% of producers say it's 11-20%; 23.5% say it's more than 20% (Figure 3).

Death loss within the first 90 days, due to all causes, is less than 1%, according to 33.3% of those running 2,500 head or more. 51.7% say it's 1-3%; 15.0% of these producers say typical death loss is 4% or more (Figure 4).

Youth apparently is as tolerant of health risk as larger operations are. Producers younger than 35 say high risk for BRD is 30.2%; 15.8% is medium risk; 6.9% is low risk. These producers say 39.4% of the cattle they receive are high risk; 48.1% are considered medium risk; 64.4% are low risk.

On average, 59.1% of operators younger than 35 say their typical pull rate due to BRD within the first month of arrival is less than 5%; 19.4% say it's 5-10%; 6.5% of producers say it's 11-20%; 15.1% say it's more than 20%. Death loss within the first 90 days, due to all causes is less than 1%, according to 57% of producers younger than 35. In this group of producers, 37.6% say it's 1-3% and 5.5% say typical death loss is 4% or more.

As logic suggests, the larger an operation is, the more likely it is to receive more cattle from longer distances. 17.1% of operations with 2,500 head or more report the typical length of time purchased calves are hauled between collection point and processing facility is more than 14 hours; 13% say it's 10-14 hours.

In terms of operation type, 9.4% of pure stocker operators say the typical haul is 10-14 hours; 5.1% say more than 14 hours.

The challenge of how to effectively employ testing for calves persistently infected with bovine viral diarrhea virus (PI-BVDv) has most stocker operators waiting, according to NSS.

16.2% of pure stocker respondents say they test over half the cattle they buy for PI-BVDv, compared to 15% of CCS, 20.4% of FS, and 22.6% of the WCS group.

Most unnerving is the fact that 8.8% of the pure stocker operators who test and find calves positive for PI-BVDv market them through the local auction without identifying them as such. That's similar for the other operation types. Ironically, 16.2% of those aiming half or more of their cattle at value-added markets dispose of PI-positive calves by taking them to the local auction without identifying them as such.

Input costs a chief concern

Looking ahead the next five years, stocker operators in all categories view the input cost of feed as their most limiting factor to stocker business competitiveness.

That may be one reason for another surprise in the survey. 47.4% of pure stockers claim to utilize at least some limit-feeding (feeding a fixed level of feed based on body weight) in their operations. Of those, 36.8% utilize it with 75% or more of their cattle.

The high number could certainly stem in part from the wide array of definitions for limit-feeding. It's high enough, though, to suggest limit-feeding is becoming entrenched in the business. Here again, high feed prices climbing higher might have something to do with the number.

For pure stocker producers, after feed costs, the next most risky limiting factors in order are potential return on investment, other input costs besides feed, weather and cattle-health problems.

For value-added respondents, feed costs pose the greatest competitive risk in the next five years, followed by potential return on investment, non-feed input costs, weather and land prices.

Across all ages and categories, the most commonly cited risks to competitiveness during the next five years are feed costs, other input costs, potential return on investment and weather. Of similar concern to producers 54 years old and younger, are land prices and availability for lease.

Based on tenure, the same can be said about the major risks being feed costs, other input costs, potential return on investment and weather. Producers in business 21-40 years are also most concerned about land-purchase price; producers with 6-30 years are also most concerned about land-lease prices.

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