more


Follow us on twitter

Share the EXTRA

 

Visit these pages inside:


Click on the images below to go to the websites:

American Angus Association
Angus Productions Inc
American Angus Tag Store

 


Angus Productions Inc.

August 22, 2011
Chuck Grove

Matt Printz

Association Perspective

Adding value to your calves.

Fall is upon us. For many ranchers and cattle producers that means it is time to sell calves. Although cattle are considered a commodity, and cattle producers are "price takers" rather than setting the price they receive, there are many different practices that you can adopt that should add value to your calves and increase net return.

Many producers already practice some form of adding value, such as castrating their bull calves, which can add $4-$8 per hundredweight (cwt.). Dehorning calves is another way of adding value because it is one less thing the buyer needs to worry about after purchasing those cattle. Using homozygous polled bulls, such as Angus, is the easiest way of dehorning.

Breed makeup is another way to differentiate value of calves. Predominantly Angus calves will typically outsell cattle of Bos indicus or dairy influence. In addition, black-hided cattle may receive premiums because those cattle will have a wider array of packer programs, such as the Certified Angus Beef® (CAB®) brand, for which to qualify.

Age and source verification can also result in premiums paid. According to Cattle-Fax, those cattle can average an additional premium of $1.25-$2 per cwt. Using simple math, 50 head of steers weighing 550 pounds (lb.) enrolled in the AngusSource® program will cost $2 per head, but will receive an additional $11 per head, netting the producer $9 per head and a total of $450.

Other practices used to add value are weaning calves before selling them and incorporating a vaccination program. Once again, according to Cattle-Fax, vaccination and weaning program premiums can add $2-$10 per cwt. to the value of a calf. Also, calves that are certified natural, which the U.S. Department of Agriculture (USDA) defines as never receiving antibiotics, never fed ionophores, never being implanted and never fed feed containing mammalian protein, can receive significant premiums.

Cattle certified as "non-hormone treated" will also result in premiums to the seller; however, the cost of participating in the program is prohibitive for smaller lots of calves.

The bottom line is that we have many options to add value to our cattle, and those things that will create marketing opportunities or increase average daily gain in the feedlot will be rewarded.

Comment on this article.

Editor's Note: Regional Manager Matt Printz covers Region 13, including the states of Nebraska and Colorado. Click here to find the regional manager for your state.


















[Click here to go to the top of the page.]