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for data collection, management and communication

 

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Increasing Your Bottom Line in 2009

As harvest is winding down for some, it’s time to start considering marketing
options for those cattle that are out to grass now. It is a great time to look at
some opportunities for added income in our herd. Hopefully those calves out to
grass are gaining well for us now but soon it will be time to think about just how
to market them to get the best available value. With the cattle market ever
fluctuating, it’s important to look at adding as much value to those calves as
possible. Some good management practices can not only improve your herd but
potentially help your profit margin as well.

It’s all about marketing your cattle and seeking available opportunities to increase
your income. Some good examples of practices that can easily add value are
weaning your calves, participating in a vaccination program, and enrolling in an
age and source verification program. Providing buyers with load-size lots can
often increase value as well. It’s important to remember that no matter what
program your cattle are in, they need to be healthy, quality animals that are ready
to gain. In such a consumer driven market, we must provide top quality calves.

As producers look at creating the most potential value, here is a buyer’s
prospective. Bill Shaw, owner of Shaw Feedyard, Inc in Ashland, KS looks for a
lot of these characteristics when purchasing his cattle. He states that
“With high
feed costs, performance is worth more than ever. With $70 and over rations in
feedyards, the difference really starts to show between average cattle and top
quality cattle. I am willing to pay more for cattle that are weaned, vaccinated and
in an age and source program.”
As a matter of fact, Bill offers great premiums for
cattle in an age and source program, up to $10 a head currently.

The Marketing Options link on our website, has some helpful marketing
information. There is a feedyard directory that lists feeders willing to work with
producers on age and source verified animals. They have different finance
options, lot sizes and most will get gain data back to the producer. There is also
some information about some cooperative efforts being made. Even if the
location or program isn’t convenient, perhaps producers in your area could use
the outline for a similar program effort.

Today, there is a tremendous amount of information available at all levels of the
feeding process. Gain data and carcass data can be used to bring back better
producing calves each year. This is a win-win situation for both the cow/calf
sector and the feedlot portion of the industry. Programs such as the Beef
Verification Solution are designed to aid both in the collection and management
of data. When used correctly, this data can help you in making better herd
management decisions.

Age and source verified animals continue to be a source of incredible value.
Some packers are paying anywhere from $25-$50 per head premiums on cattle
qualifying for export to Japan. This means these animals need to be in a USDA approved Quality System Assessment program (QSA) or Process Verified
Program (PVP) and be under 21 months of age at the time of slaughter. The
Beef Verification Solution is a Verification Partner with AgInfoLink and can
provide the services of their PVP.

Information taken from the Montana Beef Network states that on a 600 pound
calf sold through Superior Livestock, age and source verification added over
$12.00. That is a tremendous value and a great return on investment!
Calculated Added $$ - 600 lb Calf

Age/source verification         $12.83
Weaned                                      $17.64
Semi-load lots                            $12.65
VAC 34/45                                 $14.81
Source: Montana Beef Network and Montana State
     Calves sold through Superior Lvstk Auctions – Summer 2007

The goal of the BVS Program is to not only provide members with National
Animal Identification System (NAIS) compliance but to offer a range of animal
identification solutions including source and age verification, Country of Origin
Labeling (COOL) compliance, and more importantly, the ability to manage and
analyze animal data for better decisions and increased income opportunities.
Lastly, as a member driven program, BVS strives to provide affordable solutions
to animal identification; always working to offer the most competitively priced
program in the industry.
 

 

 

        

 

 

For more information, contact Agriculture Solutions:
Email:  bvsinfo@agsolusa.com
Phone: 1-800-406-3053    Ext. 6141

www.agsolusa.com/bvs