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November 11, 2011

    I find it interesting that our customers the consumer seem to be more interested in Animal Welfare and Food Safety than anything else about the beef we provide them.  This in a country that has the safest beef in the world and can stack our animal care standards up against any country and meet or exceed them.

     And if this is not enough to distract our customers, I think the next most important thing to them is buying locally produced food.  I am not sure who is going to produce all the food for large cities like New York and LA, but they will get hungry pretty quick if they only buy locally produced food.

    But, the customer is always right, even if they are not.  So, this leaves us with the challenge of giving them what they need and will still buy.  So instead of viewing their logic and dismissing it as silly, we will be better served to consider what it will take to get their mind satisfied that Midwest finished and harvested beef is Safe, treated well, and Local enough so they make Beef their protein of choice and get back to enjoying its flavor and health benefits.

April 30, 2011

High Beef Prices

    Usually in times of high prices cattlemen just take the money and don't look for value adding opportunities.  Not all producers, but the majority do.  When I coordinated Angus America we had record high volume when the market was the worst, and conversely we had our lowest volume when prices were high.

     What is different in these times is along with high prices we have high inputs.  The high cost of inputs seem to be keeping all of us looking for ways to offset them other than just hoping the price of "any old steer" will keep us in the cattle business.

     The natural market is booming and so is the export market.  These are two markets that any of us can play in. They do take a little effort of course and some added cost of production.  But the benefits are real in terms of premium at time of sale. I think these are two of the best options as all of us look ahead and try to plan a future for ourselves.  There is plenty of room for more players as both are national and international markets with big demand, so they are not fads or the latest and greatest flash in the pan that leaves us hanging with investment and effort turned into just another bad deal.

    One opportunity that some are skeptical of is Residual Feed Intake or RFI.  A feedyard manager just told me that right now conversion is king.  Well I would agree but argue that efficiency has always been king.  When you look at input costs (regardless of high or low feed prices) spread out over the cowherd, backgrounding or yearling programs, and feedyards, the total importance of efficiency out weighs the importance of gain. 

    Fact is you have to have both. But for our industry as a whole efficiency has been the elusive 2000 pound gorilla for us to find a way to really measure and benefit from.  Many of us chased easy fleshing smaller framed genetics.  Now we find a small fat cow is just that--a small fat cow. When really measured for intake small and fat is unproven to be any kind of indicator of efficiency. 

     Some are hung up on what RFI is and how it is measured.  Sure there are details that could be argued, but don't let the details de-rail you.  Let the academia brains argue and sort that out.  Just remember we now have a tool that shows what an individual animal eats each day and we can compare that against how much they gained and now know what any given animals cost of production really is.  Isn't this what we have all been waiting for???  Jump in the water is fine.

     What's the fear?  It appears to me its the argument that measuring RFI for 70 days does not carry into lifetime performance of animals, particularly on forage.  Well data has always indicated this to be true.  I just read some University data out of Florida that once again lines up showing "once efficient always efficient".  Think about it--has your metabolism ever changed?  I am blessed to be a hard keeper so I can eat alot and not show it.  This has never changed and I dont think it will.  Thankfully I am not bovine or I would be a steer.  (Maybe I would have a shot at being a heifer bull-but my luck says not likely).

     While I like the opportunities today and moving forward for Natural and Export, I think building a herd around RFI is even more logical.  If you are in the employment of someone else think of it this way.  A bonus is great, but a pay raise you get every paycheck from that point forward.  A premium is great, but a genetic improvement in lowering cost you benefit from every day forward.  Fact is in todays economy we need both the premium and the cost savings to stay in the game.

                                          Mark

January 20, 2011

Added Value Beef

    I am changing up the headline to Added Value Beef as I am now well past focusing on commodity beef.  Clear back last year I promised to differentiate between Natural and NHTC (Non Hormone Treated Cattle).

    Both types are hormone free and in demand at premium prices.  After that they are about as different as night and day, but often confused with each other.  I work with both types, in my relationship with Meyer Natural Foods we procure Natural cattle for our Meyer Natural Angus and Laura's Lean programs.  In my relationship with Samson we third party verify NHTC cattle and producers operations under our USDA Approved PVP (Process Verified Program)..

     Natural cattle are considered Never Ever, meaning they have never ever been administered a hormone or antibiotic.  This is validated mostly through producer signed affidavits for whatever program they are going into. This can be validated by a Never Ever 3 (NE3) PVP such as Samson has, but most are done by affidavits. Antibiotics are not allowed in any feedstuffs or treatments.  "Treats" or cattle doctored with an antibiotic must be identified and not sold as Natural.  Ionophores are not allowed in feeding Naturals.  Rumensin is they most commonly used feed ingredient that disqualifies cattle for Natural status.  Some feedstuffs utilized at weaning also disqualifies alot of calves, but can vary from program to program and some are allowed as preventive in some cases, so check with whatever program you hope to sell to before weaning to keep your calves Natural.

     Most all Natural Cattle are destined to have their beef labeled and marketed in the domestic US market.  However, cattle can be both Natural and NHTC and premiums at harvest can be additive, but not at full price for both. Cattle can qualify for Domestic and EU export premiums by either being set up as NE3 to be be both, or be set up both as Natural under affidavits and be set up as NHTC (two processes on the same animals).

     NHTC cattle must be third party validated by a USDA approved PVP.  The ranch of origin must be set up as NHTC approved and there is a cost for this for both the ranch and the cattle.  Cattle must be tagged with a Program Compliant Tag before leaving the ranch of origin.  If they are marketed through and Auction Barn, the Auction Barn must be set up as an approved facility through a PVP. 

    NHTC status enables beef from approved cattle to be exported to the European Union (EU).  Shipping paperwork is always required to come through a third party PVP.

     Past the process of being set up under a PVP for NHTC, it is an easier set of standards to meet. "Treats" are allowed to be included in many cases of product use, and most antibiotics are allowed in feeds (such as Rumensin).

     For a complete list of Approved/Dissapproved Feed Ingredients, Animal Health Products, and Drugs click here view on the Samson website and click on the Approved Feed and Drug lists.  Or go to samson-inc.com, click on PVP, then click on the lists.

                                             Mark

November 1, 2010

Commodity Beef Part III

       Packers can buy finished cattle at market price with no premiums offered and sort out cattle into premium product lines with out paying the producer any share.   This can happen in any case where a product line requirement can be identified at the plant.

         An example is Certified Angus Beef.  Anytime a packer buys black hided cattle on a cash basis, they can identify the black hided cattle on the kill floor and any "A" stamped cattle which meet CAB criteria on the grading chain are marketed by the packer as CAB with no premium to the producer.  Of course in this example the packer has to deal with decreased value on all out cattle (such as Yield Grade 5's, 1000 wt. carcasses, dark cutters, etc) with no recourse so it is fair that they get to benefit from the premium value too.

    For the packer to guarantee their customers a steady supply of a premium product, they need to know well before cattle hit the grading chain how much meat they can sell.  So, while cooler sorts do help packers fill premium product lines, it is not a good way for them to do business.

     In most cases packers can only add so much value in cooler sorts.  In many cases the most added program value still needs some validation or information from the seller.  Consumers are tight with their "premium money" and even the uninformed ones will only pay so much for "better" meat.  The discerning ones, and they are in minority but growing, are looking for more than generic premium labels.  This opens up opportunities for beef producers to participate and profit from. 

     The most confusing consumer issue I see occurring is the "all natural" term that can be used on labels. Beef product labels can be approved to say All Natural with the simple criteria of "No Added Ingredients" and "Minimally Processed".  Virtually all fresh beef product meets this criteria, so many further processors take advantage of this and sell All Natural product that does not necessarily fit the final users definition of Natural which is basically no implants or antibiotics.  But a growing number of housewives are learning the labeling jargon and making more informed buying decisions. 

     Export is an area that is growing and has been a real help to some beef producers.  And the rules here are very well defined.  Almost every Export premium requires documentation from the seller for the packer to be able to export beef.

     The next blog I do will delve into your options to add value that you can market.

                                                                   Mark

September 27, 2010

Cow Size Part III

    After talking with a couple of producers about my prior comments on cow size, I decided to add a couple more thoughts. 

    A 1000 pound cow should not be considered ideal just because she weighs 1000 pounds.  But she can be your ideal cow if she breeds back every year, has a calf that weighs half her body weight at weaning, and doesn't run you over every time you work her.  But if you have a 1400 pound cow that does all the same things, I would contend she is the better cow of the two due to the reasons I put forth the past couple weeks. 

     As to my comments on 1500 pound steers being desirable to feeders and packers, please keep in mind I am talking about an individual animal.  And no one wants them much bigger than 1500.  Bigger is better up to a point, but too big goes bad in a hurry.  A pen of steers averaging 1500 pounds will likely include steers that range in weight up to 1700 pounds and this is too big. 

     Packers don't care if carcasses run right up against 999 pounds, but they don't want them over 1000.  A 1700 pound steer dressing at 64% makes a 1088 pound carcass.  Too big. 

     Ribeyes.  No one can tell me exactly what an ideal rib eye size is, but most will say somewhere between 12 and 16 inches rib eye area.  If you hold your standard are 1.2 square inches of rib eye area per hundred weight a 1400 pound steer gives you a 16.8 inch rib eye.  So if you are doing a good job of putting muscle on you cattle 1500 pound steers are ok for feedyard performance and maximize packers efficiency, but you are making too big of ribeye for most restaurants. They advertise a certain weight of steak and inconsistent sizes can make for too thin or thick of cuts for them to cook a good steak. 

     So for those of you who are not comfortable with me saying bigger cows can be better (but remember, I still prefer if possible to measure each cows performance and efficiency and let that decide), rib eye size is a logical reason to downsize a bit.  I like to see cattle with 1.2 inches of rib eye per live cwt as a standard to meet Red Meat Yield.  Red Meat Yield is how much marketable meat you actually get from fabricating a carcass. 

     Few people really hit this, but if you are achieving it on a consistent basis, then about 1350 pounds live finish weight is a nice target. This gives our customers a 16" Rib Eye a a decent sized steer to feed and slaughter.  You can very realistically do this with 1200 pound cows mated to performance bulls.

    What size cow any of you has really does not make a lot of difference to me.  I would just encourage you to do the math on your own herd and not let a standard for cow size be set for you by someone other than yourself, and for sure don't just accept someone elses' (including mine) standard and let it become yours with out alot of thought.  Because size does matter.

     One last thought, cow condition and frame score can sure vary from cow to cow, making weights really vary.  So really defining cow size from ranch to ranch, time of year, and developmental age of cow makes for a moving target anyway. Skeletal size develops at different rates where one cow is at her full frame score at a young age and some seem to keep growing for years, all effecting cow size. So to pick a magical size really isn't very good management in general unless you take a multitude of things into consideration.  So unless we consider and measure everything, some will still contend a smaller cow is better and I will contend a bigger cow is better.

 

September 10, 2010

Cow Size II

    One additional observation on this discussion. As long as a cow raises a respectable amount of her body weight in calf pounds at weaning and has bred back she is doing her job no matter what her size is. 

     Some will argue that if you have smaller cows you can run more of them on the same acres, so you need smaller cows.  This will get you more calves, but not necessarily more pounds to sell.

     Until we test and measure individual efficiency, we have to assume cows eat proportionally to their weight.  So if we hold them accountable to raise pounds of calves at weaning relative to their weight, and stock our pastures by cow weight and not head count, you can raise just as many pounds to sell running big cows as small cows.

     With this in mind big cows are more profitable to run than small cows. If you run small cows and more of them, you need more bulls.  You have more effort to calve more cows, work them, and handle more calves each time you work them, taking you more time.  Any fixed cost per cow raises your total cost when you have more of them.  Less big cows raising a big calves are more cost effective with this taken into account.

    I am not for big cows or little cows in general.  I am for cows that work best and are more profitable for their owners. To find out what fits this can only be identified by doing all of the math. Efficiency must be measured and then bred for, not assuming small fat cows are most efficient. And cows must be held accountable for their individual weight raising a comparable amount of weaned calf weight.

     My point is, if I knew for sure my big cows and little cows were equal in production and efficiency, my math tells me I want more big cows to lower per head costs and save total per head handling time, and to raise feedlot cattle that finish at 1450 pounds.

                                                Mark

August 23, 2010

Cow Size

    You hear alot about what is the most efficient and profitable size cow is.  The popular answer I hear is "smaller cows are more efficient" or data shows cows 1050 to 1100 pounds are more profitable.  I am a data freak and don't typically disagree with data, but  I prefer to decide what cow is the most profitable for each ranch and ignore pre ordained weight ranges for all. 

     I was just on a ranch that feeds all of their own calves and market into progressive programs and also supply their own restaurant with beef.  He did not bat an eye when asked what his average cow size was. His average cow size is 1535 pounds.  And he knows what cows in his herd are profitable and not profitable. This ranch was in South East Nebraska and not Arizona or Western Wyoming.  I would suspect the good managers there do not have 1500 pound cows, but I don't know for a fact.

     Each ranch has its own resources and challenges and the type of cow that works in one scenario may not work on another.  So why am I even bringing up this topic if I am just going to say it depends from every ranch to the next?

     Well, I will weigh in on what the customer wants and in turn tries the hardest to buy what works for them.  The feedyard and packing plant are the two customers closest to cow calf operations.  In these settings, pounds pay. When just generally talking about final out weights, Feedyards have the most opportunity to profit on cattle that gain alot of pounds for alot of days on feed.  So a 1500 pound steer at harvest is generally more profitable than a 1200 pound steer at harvest.  Now I will back up pretty quick and say that every feedyard has different programs and there may be some out there that are more profitable at 1200 out weights. But I can safely say they are in the minority.

     Packing plants also vary and have differing programs. If you look at their grids where they actually pay more and less for things you can find pretty quick they rarely discount until you get to the magical 1000 pound carcass (a 1500 pound steer yielding 64% gets you a 960 pound carcass).  And it basically costs them the same to kill a 1100 pound animal as it does a 1500 pound animal, but they spread the overhead and labor costs out over 36% more carcass weight.  No rocket science going on here.

     If 1050 to 1100 pound cows are ideal, how often do your see them produce 1500 pound progeny?  Simple EPD's would conclude you must breed an 1100 pound cow to a really, really big bull to average 1500 pound steer progeny at 14 to 15 months of age.  And can you imagine the uniformity issues this would bring?

     If I had to pick a ideal average weight cow, I like the sound of around 1200 to 1300 pounds.  But I would have to clarify this would be an F-1 cow that brings hybrid vigor for added performance and breed back, have her be on a ranch that has average production capabilities (so really about 80% of the country with the really arid parts being excluded). I would breed to her a Performance tested bull of the breed of your choice with traits that are most important to you and your customer. Now if we get into what this bulls adjusted Yearling Weight is, that is a whole different topic. For now lets just say he needs to be above average. 

     If your steers finish in 14 months at 1400 pounds average, grade Choice with a  YG 2 carcass, you have hit a nice spot for your customers.  Once you hit this, you may like them so much you will become part of the minority that really does make more each year on average by retaining ownership.  And you will sure fall into the camp that thinks government intervention on negotiating your own deal with at market time is an unhealthy thing. But there I go again starting a whole different topic.

                                               Mark

 

1.  What do You want to do?

2.  Does Anyone want to buy it?

3.  Can You deliver the goods?

4. Will it cash flow?

5.  Do You still want to do it?

      I think this is a good time to take a short break on my Commodity Beef Series and reflect on a few things.  I have a couple more areas to cover, but I thought this may be a good place to share with you some questions I have had to answer the hard way and now use when I do consulting for Seedstock Breeders who are developing a program.

     As in all ventures you should always clearly define what it is you really want to do.  Not just where you hope to end up, but also what it is you want to do in working towards that goal.  Many times we look to the goal and forget that the majority of any trip is not the destination, but the time, costs, and effort it takes to get there.  Accomplishments are fleeting, but the days we spend getting there (or not getting there) make up our life and affect those around us.  Once we fully have thought this through, its time to ask the next question.

    Does what ever it is that we so passionately want to produce match what other cattle producers are looking for and actually willing to pay us real money for?  If you are like me, after I truthfully answer this question I have to modify the path and goals I just finished setting. 

     Next comes two hard truth questions:  Can we truly produce and deliver this wonderful product we want to spend our days toiling over and is it good enough for others to seek us out and spend their hard earned money on?  Do we have the resources and know how to accomplish this to the degree that it cash flows in time for our bank account and livelihood to survive? 

     I am really not trying to depress anyone out there. Some of you may be thinking if we really work the above questions hard enough we would have never started anything out of the norm. 

    I would suggest that to get anywhere in life while doing what we really want, we have to take some risks and will never have all the answers before we set out. But we owe it to ourselves and families to think these things through before we get too deep and pro-actively help ourselves as much as we can in planning so we have a chance to succeed.

    We are now at question 5.  After you have clearly defined what you truly want to do, then modified it to fit your customer, then changed it some more so you can actually deliver the goods, and then tweaked it some more so your don't go broke, you have to go back to question #1.  After you have reworked your original intent to be realistic, you may not even recognize your original goal.  So you have to ask yourself if this is still what you want to do?

     If you are even close to answering yes, I would encourage you to plow onward. Look around the country until you find someone who is accomplishing what appears to be your goals. Buy breeding stock from them or model your operation similar to theirs.  If they are ethically the kind of people you want to associate with, spend as much time with them and work with them as much as you can.

                                                                Mark

 

July 12, 2010

Commodity Beef Part II

    There are two things in the cattle business I firmly believe in.  One is that we must purposefully and realistically choose a direction for our ranch that will keep us in business.  And we must deliver to the consumer a product that promotes itself long after consumption.  Unfortunately, these two things do not always seem to be in balance.  Producers do not always get paid more at selling time for raising a good product for our end customer, enabling us to be profitable and to stay in business.

     As Business Coordinator for Angus America I was fortunate to be a part of one of the rare ventures that was beneficial to all parties involved.  The quality cattle that earned a premium were good enough to allow for both the packer and the seller to both get a piece of the pie on a consistent basis during the seven years I was allowed to design the pricing grid to do just that.  

     But even then, I had to realize and regularly remind myself and others that a big part of the premium in doing things right in terms of genetics, management, health, etc, did not realize its full reward in just price paid at the point of sale.  If price reward was the only intent for doing things right you will be let down.  No matter what kind of pricing arrangement you have, sooner or later that will change.  People are involved in pricing arrangements.

     While marketing will always remain crucial to our profitability (the biggest dollars are always in the buying and selling), good management pays big dividends in so many other ways that don't escape us nearly as easily.

     Investing in good genetics can seem expensive to some, but in the long run using poor genetics is much more expensive.  Percent calf crop at weaning, weight gain and efficiency, (to list just a few) are greatly affected by genetics and drive all producers profitability, even if they don't retain replacement females or retain ownership past weaning.  The same can be said of good health and overall responsible management.  We have to realize a big part of our premium for doing things in a quality manner is realized in the production process.  This is an every year thing, while hoping and planning for someone else to pay us more at selling can be extremely elusive.

     And to add to the "premium" good management brings you  the same investment in genetics, health, and a focus on the ideal end point of our product usually leads to a better product for our customer, the consumer, to appreciate and want to buy again, even if we don't get paid more for it.  An increase in per capita beef consumption makes a bigger pie for all of us to at least be able to try to position ourselves to cut a bigger slice.

                                                Mark

July 7, 2010

Commodity Beef

     When I worked in the packing plant, it really struck me how a single packing plant kills 5000 cattle a day and most ranchers I knew raised maybe 300 head a year. No matter how important those 300 head seemed to the person who raised them, they were a mere blink at the packing plant.

     You can talk all you want about grids, programs, contracts, etc, but individual producers and their cattle are generally barely noticed by packers, even if the cattle are exceptional.  The sheer numbers say this is the way it is likely to be and will be, that’s just life.  If you want to get noticed by the packer for your cattle it is more apt to happen if your cattle cause them a problem, then you have their attention.  Of course this is not the kind of attention any of us are looking for.

     Due to the imbalance of size between suppliers and packers, the packers develop a commodity mind-set.  Even with large feedyards that can supply blocks of cattle, the consistency of desired traits the feedyards can amass from their suppliers does not enthuse packers.  So partly out of necessity the packers have a commodity mind-set for the huge bulk of their business.  And they do like it that way.  They can buy all their cattle each week at a commodity price and sort them for value adding opportunities after they are safely in their possession and graded in their sales cooler. And there are a lot less details in their day to day business to worry about if they wait until this point to identify the higher value carcasses.

     Even if you were a feedyard that could gather a supply of enough high quality cattle to drive a product line for a packer and on a consistent steady basis with a particular trait the packer is looking for, the packer would still not be all that interested.  Because then he would be reliant on you and you may bolt to a competitor for a better deal and leave him with a product line he has developed his customers for and now can’t supply.  He would have to pay you a bigger premium to keep you.  Like I said before, the packer would rather buy what he needs at commodity price and sort through and find what they need for their premium markets and then keep the profit.

       And after all, they are the ones that built and invested in the product line to make it a premium price, so they intend on keeping any profit it may bring.  They are careful to develop product claims that can be met within their regular mix so they can always deliver to their customers. They look for any type of claim they can make to get a consumer to feel they are getting something special and pay a bit more for which creates profit opportunities for the themselves.  And I really do wish them well, they are one of my customers and I need for them to be successful so I can be too.    

     So how do we raise the cattle we want to and still position ourselves to an advantage that keeps us viable?  And how do we do our part to profitably make a positive impact for the beef industry?  Bear with me and I will try to tackle that in the next couple weeks.

                                               Mark

Weekly Blog, June 21, 2010

Locally Grown Branded Beef

     Most every producer I know believes in the quality of product they produce and most every producer I know laments their profit margin. So it is only a logical response that some consider developing their own branded beef program and by-pass the packer and retailers.

     Fact is most packers have developed and added more product lines than we would dreamed 15 years ago.  One would think this would drive more premium opportunities to fill these specific needs.  However,. the unexpected happened instead (even though we should have all seen it coming). 

     What I observe is the larger packers have developed product lines that have label claims that can be fulfilled through buying finished cattle at commodity prices and that they can identify and sort with in their own coolers after harvest.  So just when I thought this would lead to higher quality producers having some premium opportunities,  we are stuck in the same old commodity price blues.

     Internet Cattle Sales has several clients who have opted to overcome this by developing their own Branded Beef Products.  If you can put all parts of this into play and that's really the business you want to get into it is do-able.  But you will find yourself learning a lot of new things like: how to get a label approved, what red meat yield really is, what the difference between state and federal inspection and how that affects your marketing, how much it costs to get small numbers of cattle processed compared to the large packers and why, how important whole carcass utilization is, and people skills in dealing with your final customer.

     With all that said, I did not mean to discourage any one from giving it a try.  I just like for people to know what they are getting into before they make a decision to pursue something new.  And I don't think a branded beef program is not a good fit for most people.

     I do believe for some there is a real opportunity shaping up.  Home raised beef processed at your local locker plant can make for a product superior to what consumers can buy at most retail stores.  Many things drive this, but I am not going to get into that long list now.

     The locally grown food market is really getting to be important to a lot of people.  And I don't think it is going to change any time soon. So if you have considered your own marketing your own branded beef but don't know where to start or how, give us a call and maybe we offer you the help you need to proceed.

                                                     Mark

Weekly Blog, June 14, 2010

Adding Value with Age and Source Verification

     As I stated in the prior column, premiums are seasonal in the Source and Age marketplace.  Level of premiums for feedyards is driven by supply and demand.  Export demand is good and on the rise.  Seasonal supply is driven by calving seasons and subsequent management.

     For those of you who have recently weaned your fall calves and still have them I would strongly suggest you consider getting them Age and Source Verified and tagged as such. Most feedyards actively look for  this class of feeder cattle.  Also stockers and background yards have a pretty good appetite for them as well.  Summer born calves you are running as yearlings also fit VERY well for the Age and Source market.

     Setting up your calves is fairly simple.  First off you need to have a documented first born date on your calf crop, which was recorded on that date.  Remembering your first calf came on Labor Day and writing in in a calving book or calender now doesn't count!  Individual dates are nice, but not required.  A calving book, day planner, diary (be careful what else you write on that day as you will have to provide a copy of that day to your PVP provider!), Big Chief tablet, or wall calender all work for forms of recording calving records.

     Second, your calves need to have proper Identification and Segregation to ensure only calves you birthed and can be attributed to your calving records get enrolled.  If you buy pairs or stockers, they cannot be enrolled as your AV calves, and if you co-mingle them with your home raised calves prior to applying some distinguishing ID then you can't enroll your home raised calves either.  A brand or ear tag (ear notches don't qualify), or pasture or pen segregation of your home raised calves from any other source of calves is required for you to enroll your calves.  Year round calver's must be able to define weaning and calving management to ensure your calves fit provided calving dates.

     If you have an interest or any questions on this process give me a call at 402-705-3907.  I could do a ranch set up with you over the phone (takes about 20 minutes) and you could order tags through Samson PVP the same day if you want.

     For AV premiums your customer may recieve, cattle need to be harvested by one day less than 21 months of age.  So a September 1 Labor Day born calf needs to be harvested before Memorial day a year and a half later to fit (or by May 31 to be exact). A May 1 born calf would need to be harvested by January 31 a year and a half later to qualify for export value. 

     Calves born in the spring and put on feed in the fall pretty much fill the market place during the Mid May through August finished market.  I am not saying you should reject Source and Age Verifying your spring born calves, just be aware of the demand in comparison to your cost (which is still minimal).  Last week I still saw $15 per head premiums in the finished market on Age and Source Verified finished cattle.

     The best way to capitalize on your adding Age and Source Value is to retain ownership. If you have hopes of realizing the full premium while selling to a feedyard, this just does not happen.  The feedyard still stands the risk of the Export Market being closed or his Packer customers losing Export privileges.  But if your customer is getting a $30 to $45 per head premium at harvest and you are positioning them for that, I would not be afraid to price your 6 weight calves $2.50 to $4.00 per cwt higher.  At $3 per cwt you would get an $18 premium and still leave them room to profit as well!  After costs you would net about $15 per head in your pocket.

                                                 Mark

Weekly Blog, June 2, 2010

Age and Source Verification

     As I mentioned last week I am a Field Rep for the Samson Process Verified Program (PVP). Samson is one of the leading Third Party Validators for Age and Source (AV) and for Non Hormone Treated Cattle (NHTC) Verification.  These programs make cattle eligible for export to Japan (AV) and Europe (NHTC). 

     Cow Calf Producers, Back-ground yards, Feedyards, Yearling Stocker programs, and Auction barns can all be set up for Age and Source through Samson. 

     As you begin thinking about marketing calves this fall many will tell you that you need to get your calves Age and Source Verified.  The average premium paid can make it worth your time and expense.  But I would also add that if you expect to get any type of value you need to position yourself for it. 

     Feeders only get a premium if the packer pays them for it.  Premiums are seasonal due to supply variations which are driven by calving seasons.  And remember that export markets can close and feeders are leary of paying too much more for AV feeder calves as there is no guarantee of the market being there when calves you sell them are fat.

     The best cattle to set up for AV are the ones that will hit a finished market between September and April.  In recent years, calves born in late February and March which are harvested June through August, more than exceed packers needs for AV cattle and premiums dry up quickly.  So early spring calves that can be put on feed early fall and late spring and summer born calves that can go to grass as yearlings have more AV value potential.  Of course Fall born calves work very nicely in an AV program.

     If you are selling on a video sale you can get set up now as a ranch and list your calves as source and age verified if they qualify.  If you sell at an auction barn I recommend that you consign them to a special sale that has other AV cattle.  I don't see alot of premium paid for cattle just thrown into a regular sale.

     The best way to ensure a premium is when you sell private treaty and only set up your calves when your buyer is willing to pay you for it.

     One of the nice things about PVP programs are that cattle from one PVP can be enrolled into other PVPs with minimal cost. For example, if you have Angus Source AV tagged cattle they can be enrolled as AV by a feedyard which uses the Samson PVP.

     If you have any questions on AV or NHTC give me a call.

                                           Mark

                                           402-705-3907

Weekly Blog, May 24, 2010

Background

     For those of you who have gotten in the routine of choosing to spend part of your week looking to see what is new on ICS, I sincerely appreciate your interest.  The type of things posted here are the result of what I see as valuable in the cattle industry and are from sources who are contacts I have made over the last several decades. 

    As you are taking the time to browse this site, I thought it may be of interest to you to know what my background is.  Over the next months blogs I will sprinkle in some of the things that I have been exposed to and how it dictates what ends up on ICS.

     My professional career includes B.S. degrees in Animal Science and Agricultural Education from the University of Nebraska at Lincoln where I graduated in 1987.  I went to work for Excel in Friona, TX as a Production Foreman.  I had the unique opportunity to fill the role of relief pitcher for whatever department had a foreman on vacation, a shortage of management, or some type of problem that required extra attention.  As a result, I was able to spend time in every nook and cranny of the packing plant and gain an understanding of that business.  This never ceases to be of value to me.

     I worked for a year and half in the packing plant before taking a position within Excel as a Cattle Buyer. 

     I spent the next 2 years in Ft. Morgan as a buyer trainee. The majority of this time I was the cattle scheduler for both the Ft Morgan and Sterling plants.  The rest of the time I spent in the country learning to trade.

    Next I bought finished cattle for 7 years out of Hastings, Nebraska.  This central location allowed me to buy and ship cattle to Schuyler, NE, Dodge City, KS, and Ft. Morgan, CO.  I bought cattle in the cash market both on a live and dressed basis, contracted, and gridded cattle.

    An opportunity to be the Business Coordinator for Angus America came along and I did that for another 7 years.  This was a partnership venture between Excel and Scotch Cap Angus Ranch from South Dakota.  We gridded cattle, collected carcass data and worked with individual breeders, cowcalf producers and feeders to build a supply of quality cattle that had enough added value that it could be shared between the packer and producers.

    Then for 3 years I was the Executive Vice President of the Braunvieh Association of America. The carcass premiums earned by Braunvieh cattle had long been catching my attention at the packing plant and the maternal strength that came along with made this a breed I could believe in and work with. 

     During this time and up to present I have been a Field Rep for the Samson PVP, dealing mostly with Age and Source cattle, doing Ranch Evaluations and Feedyard Set up and Training.

     For the past year and half I have lived the American dream and been self employed.  I started ICS about one year ago.

                                                   Mark

First Weekly Blog, May, 2010

     In various positions I have held, I've had the chore or opportunity (not sure which one it is) to write a column or newsletter on a regular basis. 

     Now, with ICS I have the same opportunity (or a chore on some days), but I think when its on a web site, its called a blog.  I could be wrong on my terminology of what its called.  Just like many of you who have websites, I have come to the realization pretty quick that cowboys in general are not techy enough to really have websites. But then again, if we paid attention to all the qualifications "required" to do parts of what we do on any given day, we would never even be allowed to leave the house. 

     At any rate, what I hope to accomplish in this space (after this week anyway) is to include content that brings some value to you that read it.  It may be some info on a breeder or business I have visited and passing on my thoughts about how they have a value adding service or program you may want to consider, or an observation on some industry related topic that may effect you in some way and may have either some built in benefit or cost you should be aware of. 

     I do intend to do this on a weekly basis and will attempt to keep it just short enough you will read it and have content of value.  Hopefully I have achieved at least one of these goals my first time out.  But thats dependant on your definition of what "short" is.

                                                                        Mark

Our Focus is Representing

Quality Cattle and Programs that will add value for

“Real World” producers.

Browse our site to find the Cattle or Services to add value to your program.

Denver Futurity Invitational Sale

       A top group of Braunvieh breeders were selected to each consign one lot each to begin this excellent sale and exciting program.

     Sale lots each come to their new owner with a chance to win next years Denver Futurity money. Futurity money will be awarded to the highest placing individual out of 2012 Denver Invitational Sale animals.

    The sale will be held Tuesday night, January 10, 2012 at 7PM MST at the Double Tree Hotel. 

     Auction will begin as a Silent Auction during a Social Hour.  At the conclusion of the Silent Auction, the lot with the highest amount bid starts the sale with bidding starting where the last Silent Bid left off.  Any bidder on any lot is eligible to bid during the live Auction.  Only registered buyers who have bid during the Silent Auction are allowed to bid during the Live Bidding.  Once a Silent bidder has bid one time on any lot, they are eligible to bid on that lot or any other lot during the Live Sale.

     Phone in bids will be accepted.

     To view sale lots visit the Cattle Sale page.

Function and Performance Cattle

        Bodine's 9th Ave Cattle Co and The Freeman Ranch are co-hosting their Production Sale in Hiawatha, Kansas on November 19.  This sale is centrally located to give as many buyers as possible the opportunity to purchase and ship from their showcase sale with ease.

    Both programs have bred, tested, and culled for the last 10 years to reach this point. Emphasis on structural correctness, low birthweights, quiet disposition, and bloodlines with efficiency and growth have been the focus for both breeders.

     Bodines 9th Ave Braunvieh is located in Voltaire, North Dakota and the Freeman Ranch is at Yoder, Colorado.  If you've ever been to either place you will know that both locations bring unique and often harsh environments that force producers to use only the most functional and hardy genetics.

     The genetic opportunity in this offering is substantial. Visit our Cattle Sale page to view the catalog.

Ridgefield Farms Defines Integrated

     If you looked up "integrated" in the dictionary you may find a picture of Ridgefield Farms, Brasstown, North Carolina.  A cattle producer could not be more directly involved from genetics to end product than they are.  Ridgefield Farms Seedstock operation is one end of their business, Brasstown Beef is the other.  From their mating decisions to selling the resulting beef to restaurants and grocers years later, and making the cowherd and feedyard work in between, no decision is made without having ripple effects through their entire operation.

     With this much going on for them, it all has to start with data.  Past carcass and feeding performance from years of feeding out calves in the Midwest which were purchased back from bull customers has given Ridgefield an understanding of what financially makes sense.  And their own branded program now puts them very close to their customers barometer.  Brasstown Beef is marketed locally to upscale resorts such as the Biltmore Estate, trendy restaurants in the mountain vacation areas of Murphy and Asheville to Whole Foods Grocery stores to high end eating establishments in Atlanta.

      Ridgefield begins by reproducing what they know will work.  Live calves raised by good mothers, steers that gain efficiently and hang up lean hi marbled carcasses aren't just a loosely talked about goal, these things are a requirement at Ridgefield.  Miss out on one part of this and their integrated business can't deliver their product.  Most of us can sell a weaned calf any where and no matter his quality someone will buy him.  Ridgefield does not have this luxury.

     To ensure Ridgefield's success they have implemented a genetic program based around data and crossbreeding Braunvieh and Angus.  The blend of of a continental and an english breed adds a lot through Hybrid Vigor, but gives up no ground in marbling as both breeds are of course known for this.  The Braunvieh part of the equation keeps the muscling ensuring red meat yield which is all important if you sell your beef by the pound at retail.

     After years of feeding out cattle in the Midwest, feedyard profitability has been crucial to Ridgefields sustainability.  This has led them to being one of the first Seedstock producers to put in a GrowSafe system to measure Residual Feed Intake.  After several years testing they now feature Herd Sires with a lot of data behind them.  Braunvieh bulls like Unitas and Ulysses (pictured above) were valedictorians of their calf crop at Ridgefield, as was Ridgefield's lead Angus Herd Sire Focus on Profit (pictured below), who was the high indexing bull at Midland last year and Genesis who is still the top tested bull in the Braunvieh Bull Test Program.

     Ridgefield will be hosting their Annual Bull Sale April 16, 2011 at the farm near Brasstown, NC.  For more information go to the Cattle Sale page.

Schurrtop Angus & Charolais;

40 Years of Unequalled Discipline

applied to Real Vision...

Equals Unmatched Real World Results

     The Schurr Family has worked at not just raising bulls to sell, they have worked 40 steadfast years to breed for function and purpose so that every year they can offer the best real value in bulls their resources can produce.  Early on, deciding what to produce was simple, and using the available tools they found seemed logical to them; but sort through all other bull programs and just try to find another that has shown their discipline to logic over time and you will not find their match.

     The results today are the same as they have been for decades.  The Schurrtop Sale offers bulls that are backed by and in turn can produce cattle that are industry leaders for function and performance.  This is based on the realization that you have to intentionally Test and Breed for bulls that truly Add Value for their customers.  Bulls that produce top progeny in the feedyard and the market place. 

     The decision to produce bulls that could produce more of a better end product was a simple one.  And logic said to get there using the same genetics that are superior performers in bull tests, and win performance and carcass contests as steers was an easy decision. The measuring tools used most effectively have been the Midland Bull Test in Montana, the Great Western Beef Expo (GWBE), and the Beef Empire Days Live and Carcass Contest.

     Sticking to a philosophy of in herd tested genetics and adding herd sires of only tested bulls with superior results while ignoring fads and and "in vogue sires"

has taken discipline. 

     Selecting a top bull or two every year from the very best at Midland give them sires that have excelled  against nearly a 1000 other bulls each year that were already tops in their own contemporary groups at home from hundreds of herds.  Selection is driven by the data along with visual appraisal for structural function, with little emphasis put on pedigree.  Once genetics for the long haul are identified and prove they can reproduce themselves at home, then they become part of the storied pedigree collection that is maintained by Schurrtop.

           Schurrtop participated at the GWBE in Sterling, CO for more than 15 years.  Although the GWBE has not been held the last couple years, successful participation put them ahead of the curve for identifying Feed Efficiency genetics. The progressive contest fed competing sire groups of five separate from each other and tested for efficiency, gain, and carcass value. Testing several sires every year gave Schurrtop a yearly measuring stick of where they were and where they needed to go to improve.  The Feed Efficiency data and in herd progress in particular has now proven invaluable as the rest of the world has now started to see the value in measuring and breeding for it.  As Residual Feed Intake (RFI) as developed, selection criteria of new herd sires now includes RFI requirements. Over 2/3rds of Schurrtop sires today are proven low RFI outliers.

     In the carcass quality area, the Beef Empire contest is a yearly national litmus test which Schurrtop has won on numerous occasions.  And they don't just win once and stay home, they throw their name and reputation in front of the world every year.

     Combine pursuing national pressure and competition against their genetics along with the fact that Schurr's feed a lot of their bull customers cattle at home in their own feedyard, the integrity of their program is not left in question.  Putting belief in investing in their own genetics speaks loads to customers while further testing their program.  In addition the learning curve re-learned on a yearly basis what truly works and what truly drives real value for customers as well.

     To maintain such a program over decades has taken an appropriate attention to the mother cow.  With out pressure put on structure, disposition, udders, maternal traits, and especially fertility, a program could never  hope to reproduce the kind of maternal replacements for their herd that have kept them in the bull business for decades.

     Raising two breeds which typically excel in different areas has brought an accountability to each breed.  Schurrs' expectation of their Angus is not just to be maternal and marble, but to stay close to their Charolais for growth and muscle. And the Charolais dams share the same environment and inputs as the Angus and have similar expectations as cows, and the Charolais bulls don't get a free pass on marbling as they are developed alongside some of the best Angus in the breed.

     Schurrtop Ranch is truly one of the Elite Bull Providers in the World.  Their attention to what drives value and the effort to exercise it makes them unique.  They know without a doubt they are doing all they can towards achieving what many of the rest of us hope we are doing.

     To view their sale catalog go to our Cattle Sales page, to visit the Schurrtop website click on:

schurrtop.com

 

Focus on the

"Extreme Middle"

at Reminisce Angus

     Bryan Mussard has worked hard to make his cattle fit the functional and productive middle of the road.  Not to be confused with "average", Reminisce Angus has long focused on hitting a specific target every time.  Instead of focusing on outliers, they have required all their cattle to meet standards of value to the extent that now their bulls-eye is a crowded place. 

     Cows have to breed, keep, and put up solid steady results every year while matching inputs used by Reminisce bull customers.  Reminisce cows are required to  run on range conditions and maintain a combination of high standards for fertility and cow function, AND accountability for what her calf does well past weaning.

     True genetic accountability is rare these days, but nothing new for Reminisce.  Tracking their own and their customers results through the feedyard and packing plant for over a decade has been a sincere and legitimate focus.  Taking the phrase "You cannot manage what you do not measure" to heart, Reminisce uses a yardstick with big clear numbers on it. Reminisce progeny have been bred to gain weight and finish with a YG2 Choice carcass and that's just what they do.

   Owning and operating a 7000 head feedyard near Dillon nicely compliments their seedstock program.  Weaning/backgrounding their customers calves and developing their replacement heifers allows Mussard to not just measure results, it helps them understand and improve results for his customers' success.

     Reminisces' yearly production bull sale gives results minded cow calf producers an opportunity to benefit from bulls right out of Reminisces' "Extreme Middle" sale the first Friday in March every year.  For more information on this years sale, visit the Cattle Sales page.

 

Marketing Your Cattle

    With marketing these days you have many options, the least of which is doing nothing and waiting for buyers to come to you.  Pro-active marketing can be challenging and expensive, but we all know what no promotion at all accomplishes!

     Our relationship with The Cattle Show has afforded us the opportunity to offer you an incredible marketing opportunity to put your program and cattle on television for a very affordable rate. 

     Promote your AI Sire or your entire program, promote your upcoming sale or offer cattle for sale right on the show.  Use the two minutes of national airtime the way it best helps you to market.  If you have a cattle ranch for sale this would be a great way to offer it to a national group of buyers.

     For more information contact us at 402-705-3907 or email us. Or click on our Services page for more information.

Samson Third Party Verification

          The Samson Process Verified Program (PVP) was one of the first program's approved to set up cattle for Japanese Export shortly after we all became all too informed about BSE.  In the 5 years since, Samson has grown from a offshoot business officing out of the Samson Feedyard Office to one of the largest PVP's and come with a National reputation for  their quality and easy to use programs. 

    Based out of Columbus, Nebraska, Samson has quietly building their services, only allowing themselves to grow at a pace that ensures doing things right for the producers enrolling calves under their umbrella. They have grown from 3 people working part time to 8 employees today.

     Today, Samsons' Source and Age Verification is only the first and second tier of their progressive PVP. A third tier offers verification for Non Hormone Treated Cattle (NHTC) for European Export and a fourth tier offers the Never Ever 3 (NE3) standard for No Hormones or Antibiotics.  In addition Unique Program Verification can be set up as well as Beef Quality Assurance Verification and Verification for Quality Feed.  For more information on what they offer go the Services page on Internet Cattle Sales.  

    

    

    

Change is in the Air...

    Watch for some exciting programing changes to be announced for the Cattle Show!  We will let you know here soon...

The CATTLE SHOW is the original cattle television program   This great show is focused on delivering educational programming. For over 7 years the CATTLE SHOW has been traveling across the US searching for the stories that ranchers want to share, the ones that can help other operations.  

For more info click on this link.

  AG Lifestyles embarks on the quest for the grand champion show animal, experience nature and family fun on the farm, and learn from the experts how to make the  most of your agricultural experience. 

For more info click here!

  BROKEN OAK RANCH

Sale Report

    Broken Oak Ranch, (BOR) Seguin, TX is the premier Braunvieh Breeder in the US. Their production offering was showcased in their annual sale on April 17 at the ranch.  

     High selling lot was half interest in the pick of their fall ET calf crop.  BOR Draft Pick was the selection at $11,000 made by a progressive group of breeders.  Bodine Braunvieh, from North Dakota, Bear Lake Braunvieh from Wisconsin, J & L Braunvieh from Oklahoma, Bagely Braunvieh from Georgia, and Diamond N from Nebraska formed a partnership on this powerful young Herd Sire out of the National Champion Silverado

and the BOR Donor DIA N Goldberry. 

     Damon Stotts from Texas bought second pick for $10,000 and will exercise his choice at weaning.

     The rest of the sale brought solid prices on solid cattle going into multiple states and two countries.

Broken Oak Ranch

Includes a Full Range of

Customer Services

    BOR is a no nonsense operation,  forcing their cattle to perform while being managed in a commercial fashion. This helps to ensure that their genetics will work at the homes of their buyers.  Sure, they flesh them up for sales, but if they didn't their sales would suffer, and as you will see they are better managers than that.

     BOR is tightly managed with their selection criteria being very data driven.  After years of ruthless culling and selective retaining of females, anyone who goes through their cows will appreciate the result.  This makes their production sales a buyers opportunity!

    Today's seedstock and commercial ranches face a lot of the same challenges to stay in existence the same as prior generations.  We also face many new ones.  BOR recognizes this and manages accordingly just like their customers must.  At BOR individual cow production and per cow costs are analyzed on a regular basis so that each is cow and the entire ranch do their part to keep BOR in the seedstock business. So even if you don't have time to manage this tightly, you can be assured that your investments from a BOR sale will contribute to your cattle operations successful future. 

     In addition to offering the very top in Braunvieh genetics to producers, BOR now offers: a Feeder Calf Program, Commercial Females, and Simbravieh genetics.  Refer to their website for more info on the many opportunities they can offer.  BOR recognizes they cannot stay in business just doing the same old things every year. As they move forward for what's best for them, they don't intend to leave their customers behind, but instead offer them the opportunity to come along with them in any area's of opportunity.   

     BOR has a top flite bull battery and an impressive donor line-up.  Silverado and Joker lead their Polled Purebred sires (both pictured at right), Lynrd Skynrd and Dozer are the top young Fullblood sires in the US, Texas Rojo is their new Red Braunvieh Herdsire, and LMC Hero is their top Simbrah sire being used to develop their Simbravieh Program.

 

Black Joker-Leading Black and Polled Calving Ease Sire

 

 Dozer-Fullblood Herd Sire at BOR

Value Adding Measurement and Expertise at

Green Springs Bull Test

     If Performance Tested Bulls developed in balanced fashion of both performing and expressing differences to select from, while still providing you with a functionally developed bull, then Green Springs Bull Test is for you.

    Cowmen who get the opportunity to see their program first hand are quick to notice how GSBT's development facility is laid out with functional results in mind.  Their lots are large and rolling allowing bulls room to travel and stay sound. The way their turf lots are set up bulls travel every day up and down hills as they move from feed to water to shade or in the case of this winter, dryer ground.

    A Truly Unique and Value Adding benefit of their Bull Test is the GrowSafe Residual Feed Intake System.  GSBT has been one of the pioneers of measuring and testing genetics for Feed Efficiency.  Their facility and experience are valuable asset to take advantage of for discerning bull buyers.  Feed Efficiency is undeniable one of the most important traits for every aspect of the cattle business. 

     The benefits and value of their expertise are showcased at their fall and spring bull sales.  Angus, Balancer, Gelbvieh, Limousin, Lim-Flex, Maine-Anjou, MainTainer, Hereford, Red Angus, Simmental and Sim Angus bulls are offered.  For more info visit GSBT Website at greenspringsbulltest.com.