Cull cows are often overlooked as a stockering alternative and a good source of income to any farming operation. Generally, cull cow supplies are readily available in late fall soon after calves are weaned. Stocker cows are frequently thin and in less than optimal condition from having raised a calf and are sold because of old age, body condition, or poor performance. Stocker operators purchase these culls, feed them to restore body condition and resell them for slaughter. Frequently, cattlemen are able to purchase these cows at low weights and prices. Weight gain and a potential increase in price over the feeding period are used to generate positive returns to the cattleman's time and efforts and compensate for the cost of feed.

There are three factors you need to consider as you evaluate buying cull cows. The seasonality of cow prices, cull cow slaughter grade price differentials, and the cost of feed. Let's discuss these factors and analyze the decision to purchase and stocker cull cows.

Cull cow prices generally follow a consistent seasonal pattern. Prices are the lowest in the fall and peak in late winter and early spring. Summer prices are near the average for the year. Figure 1 contains a graph of cull cow prices for the period from January 1995 to July 1997. Cull cow prices rise as the supply of cull cows decline. The lowest prices occur as the supply of cull cows increase near fall weaning time. The highest prices are during the winter months when slaughter cow availability is at lowest point.

Prices for cull cows are based on their USDA carcass grade or their expected carcass grade. The most common grades, in order of worst to best, are: Canner, Cutter, Utility and Commercial. The difference between the prices paid for these classes is frequently based upon the age of the animal, the amount of fat covering and the expected dressing percentage.

These price differentials greatly impact the value of the cow. In South Carolina the price difference between grades can range from $5 to $16 per cwt. depending upon the time of the year, supply availability and processor demand. These price variations occur from year to year and also from month to month (Figure 2). The price spread between these grades appears to hold across most of the year; diminishing in the fall as supply of cows increase. The absolute value of the animal is dependent upon the time of year (fall or winter/spring) and processor demand.

The third factor to consider in evaluating a stocker cow program is the cost of the feed. Revenues can often be increased just through price appreciation from the fall through the winter. However, this doesn't automatically imply a profit has been made. The cost of the feeding program must also be considered. This feeding program is similar to feeding stocker calves. It could range from a winter feeding regime based on small grain grazing to one of hay/dormant pasture and supplement grain. Generally, cows do not need the quality of feed used in a stocker program. Bone growth and muscle development have already been achieved on these animals. The objective is to return it to its normal condition.

It is likely in the Carolinas that stockering cull cows can be achieved by focusing a feeding program on limited quality forages, poultry litter, and/or cottonseed. This program will not allow the cow to gain at rates equal to a calf in the feedlot, however, the cost would be substantially cheaper. An illustration might help understand this process.

Let's assume that in October you purchased fifty cows averaging 750 pounds. They are thin but appear healthy. Slaughter cow prices are close to $36 per cwt. for this animal. Your purchase cost is $270 per head. Cows in the 900- 1000 pound weight class (higher grade) sell at $42 per cwt. at this time. Your goal is to average 1.5 pounds per day on these animals and to sell them 180 days later (March). You feed these cows through the winter on good quality hay, supplementing nutritional needs with cottonseed. The cost of gain is $30 per cwt.

In March, you take these animals to market and they average 1020 pounds. A net gain of 270 pounds per head over the 180-day feeding period. Slaughter cow prices have increased seasonally. Utility grade animals (where you started) are priced at $39 per cwt. and high dressing cows are priced at $45 per cwt. Not only have you obtained an increase in weight but the animals have moved up one grade class and are now priced at $47 per cwt. The average sales value of these stocker cows is now $459 per head. The cost of gain is $81 (1.5 lbs./day x 180 days x $.30 per lb. of gain) per head. Your return per head is $108 ($459-$270-$81).

Stockering cull cows is very much like stockering steers or heifers calves. The cost of gain is the most critical factor under the cattleman's control. The higher the cost of the feeding program the lower the net returns to the cattle producer (Table 1).

Table 1. Stocker Cow Returns at Selected Feed Costs and Market Prices. 1
Cost of	Market Price ($/Hd)
Gain/Cwt.2	$30	$35	$40	$45	$50
$20	- 18	33	84	135	186
$25	- 32	19	70	121	172
$30	- 45	6	57	108	159
$35	- 59	- 8	43	94	145
$40	- 72	- 21	30	81	132
1. Stocker cow purchase value is 750 lbs. at $.36/lb. = $270/hd.
2. 1.5 lbs./day for 180 days = 270 total lbs.

Stockering cows is a viable option that South Carolina cattlemen should evaluate. Cattle producers, who do not have the land to grow small grain forages in the winter time, the facilities to work or the time to manage calves should find cows to be a good alternative. Stockering particularly fits the management style of many cow-calf producers, who feel more comfortable raising cows than calves.

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updated 7/29/97