Cost-benefit analysis of feeding market dairy cows prior to slaughter compared with shipping direct

Cull (market) dairy cattle often arrive at auction facilities and slaughterhouses in poor body condition, which presents welfare concerns and results in low return on carcasses at slaughter. The objective of this study was to evaluate the potential economic value of feeding market-designated dairy cows for 60 d before shipping compared with shipping directly to slaughter and determine sensitivity of this value to BCS, market price, and feed costs. A deterministic partial budget was created to estimate the costs associated with feeding market cows for 60 d, considering inputs related to initial and final BCS, management costs, and discounts applied for cull cattle at various BCS. Compared with a market cow shipped directly at a BCS of 2.0, a cow fed for 60 d to achieve a BCS of 3.0 would sell for approximately Can$664 greater. However, this benefit was partially offset by the associated costs of retaining her on the farm. Sensitivity analyses showed the greatest benefit-to-cost ratio (BCR) in feeding cows from a relatively low initial BCS when the cost of lactating cow TMR was low. Specifically, the highest BCR of 1.9 was seen when cows began with a BCS of 2.0 and the average cost of lactating cow TMR was Can$0.23/kg or Can$0.24/kg. A BCR of 1.7 was observed in cows with an initial BCS of 2.0 at market values of Can$4.00 or Can$4.50/kg. This economic model and associated sensitivity analyses show that it may be profitable, while also improving cow welfare, to dry off and feed market dairy cattle before shipping in certain circumstances, yet advisors and producers should consider the individual farm's capacity to retain market cattle beyond a typical culling management protocol.