Matt Caldwell
Association Perspective
Don't leave money on the table.
In today's record cattle market, even the bottom end of the calf crop will bring a lot of money. So why go to the trouble of keeping records and tagging calves? If you are selling load lots of calves and you aren't taking advantage of age- and source-verification programs, you are leaving money on the table.
Data collected by Superior Livestock Auction and Pfizer show a $2.58-per-hundredweight (cwt.) premium for AngusSource® calves over calves that are not age- and source-verified. If you are selling one hundred 600-pound (lb.) calves, this would equate to a $1,548 return on a $150 basic tag cost. With the cost of feed, fuel and fertilizer, we don't need to let that money lie around.
The driving forces behind record cattle prices are a weak U.S. dollar fueling our export market coupled with limited supply. The U.S. Meat Export Federation (USMEF) reports that so far 2011 beef exports to Japan are up 93% over 2010 numbers. As long as Japan won't accept U.S. beef over 20 months of age, there will be a significant premium for cattle that qualify. This qualification needs to go through a USDA-approved process-verified program (PVP) such as AngusSource or Gateway.
An often overlooked use for AngusSource is to promote commercial Angus females of known genetics. Eventually, high prices will drive U.S. cow herd expansion, and there will be a huge demand for Angus females that are verified for source and genetics. The AngusSource/Gateway cattle listing is free of charge to users of the program and is emailed weekly to a list of buyers. This is a great tool to showcase the EPD levels of bulls you purchase.
It is truly amazing what Angus cattle can accomplish today. Not only is Angus the maternal breed of choice, but Angus cattle also gain and grade better than cattle of any other breed. The AngusSource Carcass Challenge (ASCC) illustrates the potential for Angus genetics today. In 2010, the top five pens of cattle in the challenge were all greater than 90% Certified Angus Beef® (CAB®) and Prime. The value of those kind of cattle to the industry is huge.
Don't hesitate to contact any of the AAA regional managers if we can be of assistance.
Editor's Note: Regional Manager Matt Caldwell covers Region 6, including the states of Kansas and Oklahoma. Click here to find the regional manager for your state.
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