The Case for Earlier Castration: Selling Steers versus Bulls

Kellie Curry Raper, OSU Extension Livestock Marketing Specialist

 

For cow-calf producers, your “current situation” likely includes lots of young calves running around the place with a few more expected in the near future. That also means there are additional management decisions coming your way – one of which is the castration decision. That involves a yes/no decision and – if yes -  then it also involves decisions about method and timing. Today’s focus is on the yes/no decision and timing.

 

Research over time has consistently indicated price discounts for bulls sold in feeder calf markets. Oklahoma data indicates that bulls are consistently discounted relative to steers when comparing cattle of similar weight, quality, breed, and other physical and management attributes. Past OSU research has measured bull discounts in Oklahoma markets at $6/cwt to $12/cwt at different points in time. Discounts tend to increase when market price levels increase.

 

Preliminary research with recent Oklahoma data indicates that the bull discount per cwt is stable across weight classes at -$13.22/cwt. At first glance, that may seem counterintuitive, as we might expect the bull discount to be larger for heavier animals based on the implications of later castration on health, performance, management, and carcass quality as those animals move through the beef supply chain. And actually, it is…when you look at it on a per head basis.

The table below reflects average bull discounts per hundredweight and per head based on the latest research using our auction data. These values are relative to steers of the same weight with similar characteristics. Though the estimated discount per hundredweight does not increase by weight class, it does still result in larger per head discounts for heavier bulls. When combined with the price slide for heavier cattle, an unchanging bull discount ($/cwt) still has a proportionately larger impact on overall price per hundredweight for heavier versus lighter animals. That concept is reinforced in the table above using Oklahoma City prices for Medium/Large #1 &#2 cattle from December 2022. The bull discount as a percentage of the steer price at the corresponding weight steadily increases from 6.0% at 375 pounds to 7.9% at 875 pounds.

 

Bull Discount per cwt and per head by weight class ($),

Selected Oklahoma Auctions, 2020-2022

Weight Class

Estimated Discount per cwt ($)

Average Discount

per Head ($)

Discount Range

per Head ($)

Bull Discount as % of Steer $/cwt – OKC Dec 2022

300-399 lbs.

13.22

46.27

39.66 - 52.75

375 lbs.

6.0%

400-499 lbs.

13.22

59.49

52.88 - 65.97

475 lbs.

6.3%

500-599 lbs.

13.22

72.71

66.10 - 79.19

575 lbs.

6.8%

600-699 lbs.

13.22

85.93

79.32 - 92.41

675 lbs.

7.4%

700-799 lbs.

13.22

99.15

92.54 - 105.63

775 lbs.

7.2%

800-899 lbs.

13.22

112.37

105.76 - 118.85

875 lbs.

7.9%

900-999 lbs.

13.22

125.58

118.98 - 132.07

 

 

 

 


 

 

Castrating your male calves is not free. It requires resources, including time, labor, equipment and sometimes an extra measure of patience - with the calf or with your labor resource. Also, the availability and cost of those resources varies by producer. But the market does provide incentives for including castration in your bundle of calf management practices and those incentives encourage castration at an earlier age and weight rather than when calves are older.

 

As Dwight Eisenhower once said, “Farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field." Substitute “ranching” and “cattle chute” and I may have just guessed what you are thinking because these days my boots don’t get dirty nearly as often as yours. But the cattle market is encouraging you to consider the incentives for castration, to consider your costs for castration, and to consider adding another layer of dirt to those boots while you castrate your calves and castrate them early.


Oklahoma State University, in compliance with Title VI and VII of the Civil Rights Act of 1964, Executive Order 11246 as amended, Title IX of the Education Amendments of 1972, Americans with Disabilities Act of 1990, and other federal laws and regulations, does not discriminate on the basis of race, color, national origin, sex, age, religion, disability, or status as a veteran in any of its policies, practices or procedures. This includes but is not limited to admissions, employment, financial aid, and educational services.  References within this publication to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement by Oklahoma Cooperative Extension Service.