Drew Feller
Association Perspective
The benefits of video auctions.
Summer grazing season is in full swing. Are you driving through pastures looking at your outstanding set of feeder cattle wondering, “How will I fetch my premium price? How do I get my cattle in front of the largest crowd of buyers possible?”
As a producer, you have put in the time to keep your cattle healthy and the money to invest in top Angus bull genetics. Why wouldn’t you want to get your product to as many buyers as possible?
There are a variety of options available to sell your cattle. Video auctions have established a value in the marketplace of feeder-cattle sales. These video sales have taken regional livestock auction barns and brought them to the national level. Buyers seeking outstanding feeder cattle that fit their individual needs can now find these cattle all over the United States.
Video auctions
Video markets have established an efficient way to create a national livestock auction market, which, in turn, creates true price discovery for your product. The platform allows your ranch to get your product in front of thousands of active and competitive bidders. It is a great opportunity for buyers and sellers to connect from different regions of the country.
The platform offers producers a number of advantages:
- Cattle are sold without leaving the farm or ranch.
- Cattle are filmed and shown to buyers in the environment of your choosing. (Pasture, corral, backgrounding lots, etc.)
- Stress on cattle is minimal, reducing shrink.
- You can market your cattle on a national level.
- The seller determines the delivery date and weighing conditions.
- The seller can sell for future contract delivery or immediate delivery.
- There are no freight costs for the seller.
- It reduces risk and allows sellers to utilize forward contracting.
Ranchers or sellers aren’t the only beneficiaries of the video-auction format. Feedlot managers and cattle buyers also have distinct advantages with the platform. Many feedlots have grown to trust the video auction platform and rely on it for finding high-quality feeder cattle. Cattle buyers can find a large volume of feeder cattle at one location using video auctions, and video sales have connected buyers and sellers like never before.
Buyers of online video markets can benefit from many advantages:
- High volume of numerous weights.
- High volume of steers or heifers.
- Cattle often meet requirements for program cattle, including AngusSource®, non-hormone-treated cattle (NHTC), Global Animal Partnership (GAP) 1, GAP 4, natural and third-party verified.
- Top-quality genetics from reputation ranchers.
- Auctions are not spontaneous, so you can plan delivery/marketing.
- Cattle come straight from the ranch.
- Many cattle come in load lots.
Additionally, cattle selling with a strong reputation and/or a verification program have proven to be in demand for buyers during video auctions. AngusSource verification offers a USDA Process Verified Program (PVP) for Angus-sired calves that documents source, group age and a minimum of 50% Angus genetics. During a recently attended video auction, program cattle like AngusSource were highly sought after by feedlots and cattle buyers.
The recent opening of foreign export markets in China have proven to increase a high demand for program cattle on the summer video auctions this year. Producers who want to fetch these premiums and be eligible will have to plan ahead to have their cattle enrolled in a third-party verification program. AngusSource or Gateway programs allow you as a producer to be eligible for these premiums. Plan ahead before selling your calves at auction. If you have questions or want more information on the AngusSource program, please call 816-383-5100 or email angussource@angus.org.
Editor’s Note: Regional Manager Drew Feller covers Region 7, including the states of Colorado and Nebraska. Click here to find the regional manager for your state.