Sara Snider
The Source
It's time to think about marketing!
For many of you, spring calving is in full swing. Although all of the calves may not be on the ground, it's never too soon to think about marketing. We are months away from the beginning of the 2010 fall feeder-calf run; however, there are ways you can begin adding value to your entire calf crop today.
The industry has changed. In today's marketplace, the most valuable thing you have is information. Good recordkeeping is imperative, but the key to getting paid for that information is to document it through an approved system. That's where AngusSource and Gateway come in. Do you know what calves were born on your operation? Do you keep calving records? If you answered yes to those two questions, you are halfway through the process of adding value to your calves.
AngusSource is a USDA process-verified program (PVP) for Angus-sired calves that verifies source, age and a minimum of 50% Angus genetics. Gateway is a second-tier verification option that verifies source and age only. Enrolling in one of these programs is one of the easiest ways to increase the demand for your calves and open doors to new marketing avenues.
Source verification
Traceability through the production chain is becoming increasingly important. Although the value of this information isn't easily quantified, large companies like McDonald's and Wal-Mart have made very public statements that in the future they expect the product they purchase to be source-verified.
Source verification through AngusSource or Gateway is simple. Both programs require that calves be enrolled by the ranch of origin. That is, you only can enroll your home-raised calves. As the ranch of origin, you are verified as the "source." If you purchase any outside calves, make sure they are identified in a unique way that easily distinguishes them from your home-raised calves.
Age verification
It's hard to pick up an industry publication and not read something about the Japan export market and age verification. In order for product to ship to Japan, it must be harvested from animals that are 20 months of age or younger. This age has to be verified through an approved system that begins with the rancher and continues all the way to the packer.
To enroll in AngusSource or Gateway, at minimum you must keep a record of your first calf born. You will submit a copy of these records during your enrollment. AngusSource and Gateway verify "group age." All calves enrolled together as a group will share the birth date of the oldest calf in the enrollment group. If you have a long calving season, tagging each calf at birth and keeping individual calving records will allow you to enroll your calves in groups with a smaller age spread, which can help when marketing. If you calve for longer than six months, you will be required to keep individual calving records.
Genetic verification
The bulls you turned out last year will have a big impact on the base value of your calves. Angus cattle are in demand through all segments of the industry due to their performance in the feedyard, on the rail and, ultimately, on the consumer’s table. If you are using registered Angus bulls on your operation, AngusSource can help you capitalize on your genetics. The genetic component of AngusSource makes it the premier verification program in the industry. It takes age and source verification to the next level.
AngusSource verifies that all calves enrolled are sired by a registered and properly transferred Angus bull. When buyers see your AngusSource calves, they will know they are guaranteed to be at least 50% Angus.
Enrollment in AngusSource and Gateway is relatively simple and very cost-effective. There is a $50 fee per group of calves enrolled plus the cost of program-compliant ear tags. When it comes time to market this fall, you will have the opportunity to customize your verification certificate to include additional health, management and marketing information. This certificate is then posted to the online listing site, and information about your calves will reach more than 600 potential buyers.
An analysis of video auction data from the fall of 2009 showed that source- and age-verified calves sold June-September 2009 earned an average $1.57 more per hundredweight (cwt.) than non-verified calves. Calves enrolled in AngusSource garnered an additional $1.08 per cwt., bringing the added value to $2.56 per cwt. — a nice return for the low cost of enrollment and a minimal time investment.
It is never too soon to think about marketing. The records you keep today can add value to your calves and be turned into additional dollars when you market this fall. Contact the AngusSource Department (816-383-5100) today to learn more about this opportunity.
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