New analysis underscores the financial benefits for cattle producers who castrate male calves, indicating that steers consistently command higher prices than bulls in feeder cattle markets. Research using recent Oklahoma data shows significant price discounts for bulls.
This market data indicates bulls face a consistent discount relative to steers when compared by weight, quality, breed, and other physical and management factors.
Studies previously measured bull discounts in Oklahoma markets ranging from $6 to $12 per hundredweight at different times. Preliminary research using current Oklahoma auction data estimates the bull discount averages around $13.22 per hundredweight, according to OSU Livestock Marketing Specialist Kellie Curry Raper.
While the estimated discount per hundredweight remains stable across weight classes, it results in larger per-head discounts for heavier bulls when combined with the standard price slide for increased weight.
The market typically discounts bulls due to potential impacts on health, performance, management requirements, and carcass quality as these animals move through the Beef Production supply chain.
Castration involves resources including time, labor, and equipment, incurring costs for producers that vary by operation. However, the market provides direct financial incentives for producers who implement this practice.
These incentives encourage castrating calves at an earlier age and weight rather than delaying the procedure until calves are older.
Producers managing their Cow-Calf operations should evaluate their castration costs against the market premiums demonstrated for selling steers to maximize profitability.