CASE STUDY: Preconditioning Beef Calves: Are Expected Premiums Sufficient to Justify the Practice?

The concept of preconditioning calves has been around for a long time; yet, adoption of the practice has been slow. Current trends in the beef industry are consistent with management requirements and benefits of preconditioning, which likely will increase interest in the practice. This research estimated premiums received for preconditioned calves and the expected returns from a preconditioning program. Preconditioned calves sold in the fall received a premium of approximately $0.099 to $1.21/kg relative to non-preconditioned calves. Premiums were less when calves were sold in the winter, were less for heavier calves, and were less when cattle markets were strong. Based on a 45-d postweaning preconditioning program, cow-calf producers can increase returns about $14 per head when compared with the sale of calves at weaning with no preconditioning program. Returns associated with preconditioned calves in the feedlot are in the $40 to $60 range (per head; $0.154 to $0.243/kg), indicating that premiums paid for preconditioned calves will likely increase as the quality and integrity of the preconditioning programs can be documented.