How Much Could Your Cull Cows Be Worth

We share tips on how to manage your cull cows and bulls to maximize your dollars.  Cultivated and lab grown meat hit the news as more and more states push to shut down the selling of lab grown meat.  We have market reports, news you need to hear, horse sale updates and lots more all wrapped into this episode of The Ranch It Up Radio Show. Be sure to subscribe on your favorite podcasting app or on the Ranch It Up Radio Show YouTube Channel.
EPISODE 173 DETAILS
Up to 20 percent of a producer's income can come from the marketing of cull cows and bulls.  But we need to manage them a certain way to maximize the profit potential, especially with markets being as high as they are.  Michaela Clowser, The Director of Producer Education from the National Cattlemen’s Beef Association joins us to introduce the Right Way, Right Time program.
Alabama has become the latest U.S. state to take legislative action against cultivated meat, with the Senate passing a bill to ban these proteins.  The bill will now move to the House of Representatives, where it could become law.  Many other states are trying to pass such legislation.  
Meat sales have been strong thus far in 2024 as beef margins shrink for the packer.  We have all the details.  
RIGHT WAY, RIGHT TIME
For cattle producers across the country, whether beef or dairy, cull cattle are part of doing business. Animals age, they no longer breed back, and their health deteriorates. Incorporating culling decision guidelines into an operation’s best management practices benefits both animal welfare as well as the producer’s bottom line. Animal well-being must be considered in every decision made throughout the animal’s life.
Cull cattle, while being removed from the herd, are an untapped market for producers. It’s estimated that sales of market cows and bulls contribute up to 20% of operational gross revenue for beef operations.1 According to Derrell Peel with Oklahoma State University, “It is possible to increase the value of cull cows by 25 to 45 percent or more by improving cull cow management and marketing.”
According to the 2022 National Beef Quality Audit (NBQA), the market cow and bull sector provides an alternative product and a secondary value to animals once their original purpose is no longer suitable. When it comes to product fabrication, market cows and bulls are typically associated with ground beef production. However, over time, the industry has realized that some market cows and bulls have the potential to yield valuable primals to be fabricated and sold as retail cuts and to the restaurant trade.
Even though cull animals are often viewed as a loss, with effective planning, these animals can be a significant source of revenue and should not be overlooked. In essence, cull cattle are market cattle. This document addresses key problem areas, provides strategies for making timely culling decisions, and is designed to help producers examine the opportunity to capture more value through effective management regarding cull cattle.
COW COUNTRY NEWS
Alabama has become the latest US state to take legislative action against cultivated meat, with the Senate passing a bill to ban these proteins. The bill will now move to the House of Representatives, where it could become law.
Senators in Alabama have passed a bill to ban cultivated meat from being sold.
Sponsored by Senator Jack Williams, Senate Bill 23 makes it a Class C felony to manufacture, sell or distribute cultivated meat in the southern state. If you’re the owner of a restaurant hoping to offer cultivated meat to patrons, you could be convicted and your establishment could have its food safety permit suspended or even revoked.
Alabama is far from the only state hoping to limit the cultivated meat sector. Florida has introduced two bills hoping to ban the production, sale, holding and distribution of cultured meat within the state. One of them suggests imposing criminal penalties – including facing misdemeanors of the second degree, fines of $500 to $1,000, and license suspensions or stop-sale orders – on anyone violating these rules.
In Texas, Governor Greg Abbott signed a bill requiring clear labelling of plant-based and cultivated meat, seafood and egg products, while Nebraska’s Real MEAT Act would mandate the word “imitation” on alternative protein if passed. Policymakers in Tennessee are making their case for a $1M fine as part of its proposal to outlaw cultured meat.
An Arizona House representative drafted HB 2244, a bill that would make it illegal to “intentionally misbranded or misrepresent” an alternative meat product as meat, while David Marshall went a step further with HB 2121, attempting to ban the sale or production of cultured meat. On similar grounds, Wisconsin State Assembly representative Peter Schmidt proposed two bills against alternative protein, one of which put restrictions on the labelling of cultivated meat.
In Iowa, a state senate subcommittee unanimously advanced a bill that would require labels on what the proposal calls “manufactured meat” to outline the sources of the products.
Just last month, senators Mike Rounds and Jon Tester proposed a federal bill to ban these proteins in school meals. 
Strong Start To The Year For Meat Sales
In January 2024, beleaguered consumers received some good news with the USDA predicting a slight reduction in grocery prices in 2024. Additionally, the U.N. Food and Agriculture Organization announced that its food price index is at the lowest level in three years. However, rising labor and other operational costs have been eroding margins and the USDA expects restaurant prices to continue their fourth-quarter increase in 2024.
January restaurant engagement was flat, with 80% of consumers having dined at restaurants or ordered takeout or delivery, according to the Circana survey of primary grocery shoppers. The home-cooked share of meals also continued to average around 78% to 80% for most households. When shopping for groceries, the survey found that 81% of consumers applied one or more money-saving measures in January, led by looking for sales promotions (53% of households), cutting back on non-essentials (40%) and looking for coupons (33%).
Beef Margins Shrink For Packers
Beef and pork packer margins have been seeing a decline as of late.  Beef packers experienced a decline in margins by as much as $49 per head, resulting in a loss of as much as $70 per head.
 Annual projections for 2024 show an improvement in packer margins compared to the current week, with indications of a slightly better outlook for packers in the long term.  
 
UPCOMING BULL SALES ANGUS CHAROLAIS HEREFORD GELBVIEH BALANCER RED ANGUS SIMMENTAL SIMANGUS
Chestnut Angus Farm: February 25, 2024, Pipestone, Minnesota
Eichacker Simmentals: March 1, 2024, Salem, South Dakota
Mason Angus & SimAngus: March 2, 2024, Broken Bow, Nebraska
Pederson Broken Heart Ranch: March 6, 2024, Firesteel, South Dakota
Mar Mac Farms: March 6, 2024, Brandon, Manitoba
Leland Red Angus & Koester Red Angus: March 8, 2024, Beach, North Dakota
RBM Livestock: March 10, 2024, Florence, South Dakota
Sundsbak Farms: March 16, 2024, Des Lacs, North Dakota
Hidden Angus: March 17, 2024, Sebeka, Minnesota
Vollmer Angus Ranch: April 2, 2024, Wing, North Dakota



BULL SALE REPORT & RESULTS
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Van Newkirk Herefords
Gardiner Angus Ranch
Cow Camp Ranch
Jungels Shorthorn Farms
Ellingson Angus
Frey Angus Ranch
Edgar Brothers Angus
Schaff Angus Valley
Prairie Hills Gelbvieh
Clear Springs Cattle Company
CK Cattle
Mrnak Hereford Ranch
Frey Angus Ranch
Hoffmann Angus Farms
Topp Herefords
River Creek Farms




FEATURING
Michaela Clowser
Director of Producer Education
National Cattlemen's Beef Association
https://www.ncba.org/
@BeefUSA
 
Kirk Donsbach: Stone X Financial
https://www.stonex.com/  
@StoneXGroupInc   
 
Mark Van Zee 
Livestock Market, Equine Market, Auction Time
https://www.auctiontime.com/
https://www.livestockmarket.com/
https://www.equinemarket.com/
@LivestockMkt
@EquineMkt
@AuctionTime
 
Shaye Koester
Casual Cattle Conversation
https://www.casualcattleconversations.com/
@cattleconvos
Questions & Concerns From The Field?
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References
https://www.stonex.com/
https://www.livestockmarket.com/
https://www.equinemarket.com/
https://www.auctiontime.com/
https://gelbvieh.org/
https://www.imogeneingredients.com/
https://alliedgeneticresources.com/
https://westwayfeed.com/
https://medoraboot.com/
http://www.gostockmens.com/
https://ranchchannel.com/
https://www.greenqueen.com.hk/alabama-senate-bill-cultivated-lab-grown-meat-ban/
https://www.meatingplace.com/Industry/News/Details/113407
https://www.meatingplace.com/Industry/News/Details/113410
https://www.meatingplace.com/Industry/News/Details/113392