Category: Livestock Market

Beef Cattle producers are feeling more optimistic. With an El Nino winter forecasted, cattle producers are anticipating a reprieve from multi-year drought conditions. For consecutive years the beef cattle herd has been in decline due to environmental conditions. A March 2023 USDA report shows that since 2022, there has been a 4% decrease in beef cows, 6% decrease in replacement heifers, and 5% decrease in heifers expected to calve this year. According to another published USDA article, the latest cattle inventory peaked in 2019 at 94.8 million and has since plummeted 6% to 89.3 million this year. The rapid decline in beef cattle inventory over the past four years was driven by drought conditions; however Northern states experienced above average rainfall during the 2023 spring and summer months and in the coming months NOAA predicts a wetter-than-average winter in the southeastern United States, allowing calf producers in recovering areas to consider opportunities to rebuild their herd.

When rebuilding, heifer selection carries significant economic importance. Phenotypic characteristics such as udder quality, temperament, and body conformation are initially considered in replacement heifer selection. Yet with fertility and longevity being highly heritable, it is critical to evaluate the stayability of heifer’s dam. The University of Florida recommends ranchers introduce 17% first calf heifers annually into the herd; however, when emerging from a sustained drought, the ranchers may consider increasing this percentage.

Investing in replacement heifers – purchased or ranch raised – will have long term implications on the operation’s profitability. With the multi-year decline of cow numbers, cattle are being traded at historically high prices causing additional pressure around the economic investment.

Journal of Applied Farm Economics Article Profitability of Developing Beef Heifers on Stockpiled Winter Forages calculates the breakeven cost of heifer development in years of calf production. Heifers on forage-based systems would breakeven after 3-4 years of calf production, while dry lot heifers would breakeven after 9-10 years in calf production. All management decisions should be considered to increase longevity and profitability in the young female’s production lifetime.

When breeding heifers, producers should be seeking bulls with high fertility and increased opportunity for a low-birth-weight calf to ensure a successful first calving season. For this very reason many producers select Wagyu bulls for increased profitability when developing heifers.

Wagyu bulls are known for their high libido and consistency in producing low birthweight calves, reducing the risk of dystocia and increasing the opportunity for profitability. Using Wagyu bulls provides many quantifiable benefits: increased opportunity for pregnancy, low birth weight calves, increased breed back, and a calf that yields a premium over market.

The crossbred calf produced from Wagyu bulls warrants a premium due to Wagyu cattle’s genetic ability for increased deposition of intramuscular fat (IMF). Unlike other beef breeds, the intramuscular fat is abundant and possesses a unique fatty acid composition. The IMF in Wagyu and Wagyu cross cattle is higher in oleic and linoleic acids, with a higher concentration of unsaturated fat providing an elevated eating experience.

The recognition of these unique breed attributes had contributed to the increased growth of Wagyu cattle in the United States. All domestic Wagyu cattle are DNA traceable back to the original imports from Japan during the 1990’s. Less than 200 black wagyu cattle were originally imported, and The American Wagyu Association currently estimates that over 40,000 head of Full Blood Wagyu and Wagyu cross feeder cattle. The growth of the breed steams from the commercial application of feeder cattle production as well as the increased demand for quality beef from the consumer.

For calf producers working with a branded beef company provides ranches the ability to forward contract each calf crop of F1 Wagyu cross calves. Mishima Reserve American Wagyu Beef – a branded beef company – provides a calf buy back program after supplying producers with high quality Wagyu bulls or semen. Mishima raises and sells hundreds of fullblood Wagyu bulls across the Western United States annually, offering quality genetics to their producers – focusing on low birthweight and carcass merit EPDs.

By buying back calves out of these Wagyu bulls, Mishima can monitor feed conversions in the yard and produce calves with elevated carcass quality. Mishima Reserve strives to improve feed efficiency and feedlot performance while producing a consistent quality beef product.

An initial hesitation of cow calf producers when committing to a Wagyu crossbreeding program is due to the belief that a low-birthweight F1 Wagyu calf will not wean enough pounds for the premium to warrant a change in their production system. Yet, many producers that have committed to the F1 production program report that their Wagyu cross calves wean on average 50 less pounds in comparison to their straight Angus animals, but still profit more dollars per head than calves produced out of their cows.

Montana producers who have been partnering with Mishima Reserve Wagyu Beef to produce F1 Wagyu Angus calves for the luxury beef brand were interviewed about their initial decision to breed their heifers to Wagyu. Producers interviewed reported the average birth weight is 65 pounds and attested to the additional attributes in participating in Mishima Reserve’s calf buyback program.

Mishima Reserve is a proven partner when considering breeding heifers and marketing into a premium market. Turk Stovall of Billings, MT, owner of Stovall Ranches and partner in Yellowstone Cattle Feeders stated “We really put a lot of effort into research and data and working with Mishima Reserve and their team has been awesome. We couldn’t find a better partner.” Producers like Turk Stovall have been using wagyu bulls on their heifers for years and marketing their calves to Mishima Reserve.

With beef demand sustaining amongst the end consumer, a tightened feeder cattle inventory warranting increased prices, and starting to see reprieve from the drought, there is opportunity for rebuild of the beef cattle inventory in the United States.

To capitalize on your calf crop from your first calf heifers – consider participating in a buyback opportunity with a branded beef company such as Mishima Reserve. Mishima Reserve bulls are housed in Montana and Texas but can be shipped nationwide. For more information on the program visit Mishimareserve.com or come by booth 2484 during NCBA’s Annual Convention in Orlando, Florida January 31 – February 2,2024.

Tucked in the heart of the Bear Paw Mountains, Shipwheel Cattle Company has been making its mark on the Angus cattle industry since the family ranch was first homesteaded on the Rocky Mountain front in 1896. Multiple generations later, the family-run operation is now headed by Klint and Lori Swanson, along with their children, Austin and Bree, who oversee the family’s ranches located in North Central, Montana, about 60 miles from Canada. The Shipwheel Cattle Company’s sale barn and grow yard are located about 15 miles southwest of Chinook at the Clear Creek Ranch, with most of the registered cows located at the family’s Snake Creek Ranch in Lloyd, MT in the Bear Paw Mountains.

Today, Klint and Lori pride themselves on continuing the family ranching legacy that was first established by Klint’s grandfather, one of the first cowmen to bring the Angus cow to Northern Montana in 1945, transitioning from ranching Herefords at the time.

“Klint’s parents founded Apex Angus in the 1960s and began raising and marketing bulls from the registered cows they had purchased,” explains Lori. “The Shipwheel herd originated from two bred heifers given to Klint when he was nine years old in 1984.”

From those two original heifers, the Shipwheel Cattle Company’s herd has grown to nearly 500 cows, along with 100 additional cows that were purchased from Dr. Gale Jellum from West Fork Angus in Chinook, MT. After marrying in 1998, Klint and Lori moved to Lori’s parents’ land on Clear Creek, south of Chinook in 2000.

“We continued to market bulls with Apex Angus until 2009 when the decision was made to go on our own and we formed Shipwheel Cattle Company,” Lori says. “In 2010, we purchased the Miller Ranch at Lloyd in the Bear Paw Mountains, where the mature registered cows reside.”

Today the Swanson family runs 1200 mother cows with 500 being registered. With limited feed and labor resources, the ranch’s cows are required to run in a true commercial environment and range calve on their own and graze winter pastures after weaning until the snow gets too deep.

As Klint explains, Shipwheel Cattle Company’s main focus is breeding sound, problem-free cattle with longevity and fertility. Their cows are required to have excellent mothering ability and maternal instinct along with good feet, udder and teats. If they don’t, they get sorted out pretty quickly. “These aren’t barn cows, they calve out on their own in the hills and we ride through them once a day and tag,” Klint says.

“A medium framed, easy fleshing, 1350-pound cow is ideal for us. We don’t breed for big numbered, terminal-type cattle. Mother nature sorts them out pretty quick here. Renown and Resource females have the extra body, length, and fleshing ability that we like and the bulls carry extra muscle over their top and rear quarter,” Klint says. “Every registered cow is artificially inseminated once, then they are put with our top clean-up bulls. We put in approximately 100 embryos into our commercial cows from our elite donors every year.”

For both Klint and Lori, retaining and improving the qualities that the Black Angus cow is famous for is their priority. In fact, their donors must prove themselves before being flushed, with many having pathfinder status.

“We rely on these cows to pay the bills here and pay for the ranch we purchased in 2010. Every cow needs to do her job, do it well and do it for a long time. This is the mindset we have for every animal that we produce,” Klint says. “That animal needs to be profitable for our customers and keep them in business. We stand behind our sale cattle with a 110% guarantee. Our bulls’ feet are guaranteed for three years.”

Being a multi-generational family ranch requires the entire Swanson family to personally handle everything they can on the ranch. This not only allows the family to ensure the quality of their herd and their overall operations, but it allows them to pass along the traditions of ranching onto their children.

“There is no better way to raise kids. Our kids started working with cattle and horses and running machinery at a young age. We put up most of our own feed for our cowherd and feed yard,” Lori says. “Ranching isn’t just a way of life, it’s what God put us here to do. It’s no different than our cow dogs that are bred to work cattle. They don’t want to do anything else.”

A Continued Focus

In addition to exuding exceptional qualities of longevity and fertility, the Shipwheel Angus cattle are hardy, grazing on native short grass as well as tall grass, traveling in some steep terrain in extreme climates with temperatures ranging from -60°F to 110°F,” Lori says.

Because of these attributes, Shipwheel Cattle Company has earned a name for itself within the cattle industry, thanks in part to its long-standing, proven genetics. As such, the ranch hosts an annual sale, providing the opportunity for industry members to purchase various bulls and females from the herd.

“Our first sale was a silent auction where we sold 25 yearling bulls. We have since grown and transitioned to a December sale at the ranch and offer 100 18-month-old bulls along with 150 to 200 bred females,” Lori says. “We also market 80 private treaty bulls in the spring. Every bull we market is bred, born and raised here.”

Having been ranching Angus cattle for nearly 80 years is testament to the Swanson’s family success in the industry.

“God, family and freedoms that this great country have blessed us with, along with a whole lot of faith, determination and hard work, have led us to where we are today,” Klint says. “We are truly blessed to do what we love and wouldn’t be here without the people before us. The seedstock business is as much of a people business as it is a cow business. We breed these cattle to work for people. The countless relationships we have made over the years with our customers and friends that support us is truly one of the best parts of this business. Our hope is to pass this ranch and way of life on to the next generations, with each generation improving on the previous. We work every day to improve the quality of our cowherd and ranch.”

The next Shipwheel Cattle Company sale will be held on Wednesday, December 13, 2023 at 1p.m. They will be offering sons by Shipwheel Dreamer 8522, Basin Rainmaker 4404, U2 Coalition, Shipwheel Essential, Duff Real Deal, Fairview Pacesetter, Connealy Packer.

For more information about the upcoming sale, visit www.shipwheelcattle.com