Agriculture & Natural Resources: The CPH report 2017
Source: Kevin Laurent and Tim Dietrich, UK Livestock Specialist & Ky. Dept of Agriculture In the early 1990s, Kentucky beef producers were looking at ways to improve the value of our quality feeder cattle. As a result, the Kentucky Certified Pre-Conditioned for Health program was created. The program ensures buyers that these calves have met certain criteria involving health, weaning, and eating from a bunk. As such, they pose a smaller risk to the buyer. Many buyers have shown a greater likelihood of paying more for these certified feeder cattle.
The CPH report expands the analysis of CPH-45 sales to estimate the economic value of preconditioning calves prior to marketing. This analysis consists of two main components. First, is the CPH Advantage - which compares prices received in the CPH Sale to the average weekly statewide prices reported by the Market News Service of the Kentucky Department of Agriculture. The second component is the
Estimated Net Added Return – which compares the CPH Sale value of the calf to the estimated value of the calf at weaning. In these estimates, we use a 60 day preconditioning period and an average daily gain of 2.5 lbs. per day. Costs incurred during the preconditioning period such as feed, health program, interest, death loss and differences in sales commission are subtracted from the added value to arrive at an estimated net added return per head. The table above is an analysis of all fifteen CPH-45 sales of 300 head or more held in calendar year 2017. Sales were held in Guthrie, Lexington (including Stanford location), Owensboro, Springfield, Paris, and Richmond.
Several items to note are that Owensboro sells with a two percent pencil shrink; Owensboro, Guthrie and Springfield charge less commission for CPH calves; only weight classes of 20 or more head were used in comparisons; and steers with weaning/starting weights of less than 350 pounds were not included in the analysis.
More details on how these figures were calculated can be found in the column definitions above. Also, visit the CPH-45 website at www.cph45.com. If you are interested in selling in a CPH-45 sale, contact the Woodford County Extension Service at 873-4601.