Before marketing calves, it is important to evaluate available options and the benefits of each. For cow-calf producers, common options for marketing calves include:

Banta jason
Associate Professor and Extension Beef Cattle Specialist / Texas A&M University
  • Selling at a weekly livestock auction
  • Selling in a preconditioned calf sale
  • Selling in truckload lots through a video auction
  • Selling the calves to a buyer directly off the ranch

There is no single option that is best for every operation and situation, but options should be selected that have the greatest chance to maximize net income. Some factors to consider when marketing calves include shrink, potential for premiums or discounts (depending on how you want to look at it), transportation costs, commission and flexibility.

Shrink is often overlooked when marketing calves, even though it can have a significant impact on the dollars generated per head. Most shrink occurs due to reductions in gut fill from excretion of urine and feces during periods of reduced feed and water intake. Additionally, shrink can also occur from tissue losses and from the loss of body water through respiration. Shrink is negatively affected by poor handling, high temperatures, longer transportation times and increased time standing in pens before being weighed.

Precipitation map

To get a better understanding of how much shrink can impact income from calf sales, consider how the income of a calf that weighs 500 pounds and brings $150 per hundredweight (cwt) is impacted by changes in shrink or price. A 2 percentage unit change in shrink changes sale weight by 10 pounds (500 x 0.02 = 10 pounds) and drops income by $15 per head.

In comparison, a change in sale price of $2 per cwt results in a difference of $10 per head (5 cwt x $2 = $10). It is not uncommon for calves to shrink 8% to 12% or more depending on conditions so, as illustrated in the example above, taking steps to reduce shrink can result in significant increases in income.

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This article just took a brief look at shrink and some ways it can impact income from calf sales. Don’t forget to consider how other factors like preconditioning and competitive bidding can impact prices. Additionally, for producers who have the ability to sell in truck load lots, video auctions and direct sales provide the flexibility to choose to not sell if the market is lower than expected without the cattle leaving the ranch.