Managing for Today's Cattle Market and Beyond Retained Ownership of Cattle: Factors to Consider
Cattle producers often follow the same marketing and/or pricing pattern year after year. The dynamics of the U.S. cattle industry, however, make it necessary for cattle producers to evaluate relevant marketing alternatives. Even then, changes often are not made unless something “shocking” occurs. That shock can take many forms, not the least of which is lower prices. Then, there is a danger that producer reaction to the shock may result in inappropriate action which results in less profit, not more. Retained ownership (holding cattle longer than would “normally” be the case) is one action some producers take in response to low prices at the time they would normally sell their cattle (calves). Retained ownership practices include everything from the use of pastures and crop residues to dry lot feeding and many combinations of those alternatives. Positive returns to retained ownership are possible; so are losses. One needs only a quick look at Table 1 to prove that point. In deciding whether one should retain ownership of calves, there are some major factors to consider. The focus of this article is on some of those factors. Factors are not necessarily presented in order of importance; what may be important to one producer may not be important to another. Managing for Today’s Cattle Market and Beyond