In this issue
Chariton Valley Beef - on the Web
Tell your friends and fellow cattlemen that we have our web page up and running. Here is our URL if you would like to copy it to send to others.
http://www.charitonvalleybeef.com
This is just a start. We have much to add. If you have any requests please let us know. You can email us from the bottom of any of our pages. There is also a contact form you can fill out and send to us to let us know what type of operation you have and what information you are interested in receiving. This news letter will be available to download from the web. Email us to let us know if you would like to retrieve it that way, or if you want it emailed.
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Adding Value to Local Beef
Many of you realize one of the ideas we are pursuing is local beef marketing. John Finarty has been meeting with local meat processors and local producers to evaluate opportunities in local direct sales of beef. There is some interest out there, but it needs to be focused on some specific projects.
When you are starting a new value-added ag project, it helps to find out what other successful producer groups are doing. "Branding your Beliefs" is a project in Minnesota that is increasing the local direct marketing of beef for a committed group of producers. The project has an educational seminar designed to help other groups start similar marketing programs. We are interested in sponsoring this project for CVB producers if there is enough interest. The program includes five parts:
- "Preparing for Success": Overview of opportunities and obstacles
- "Pulling together your team": Assembling a winning combination from family members, peers, meat processors, legal, marketing, and financial professionals
- "Developing your customer base": Market development including customer relations, outreach marketing, order management, and new product development
- "Multiplying your impact": Working with others to expand opportunities, through co-ventures, farmers markets, group contracting, cooperatives, and other structures
- "Maintaining your momentum": Staying focused and making progress in the 12-24 months after your project begins
What we need to know is:
Are you interested in devoting time to this project?
Would you attend the seminars?
What time of the year would you like these meetings to take place?
Contact us as soon as possible if you are interested.
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Marketing Information
One location you can use to evaluate different beef prices is the Chariton Valley Beef web page, introduced in this letter. (http://www.charitonvalleybeef.com/) Diana will try to keep prices updated on that site, but you also can e-mail her directly at dianab@iastate.edu, or me at x1seller@exnet.iastate.edu, or call 515-774-2016 to ask for details on certain grids.
Many producers are trying to use the Internet as their market information source. It can work, but sometimes it is hard to find information in an easy and usable format. Here are a few locations you may want to use:
Iowa Beef Center
http://www.ibc.iastate.edu/
Has a lot of links, and a message board you can use to share ideas with other producers.
K-State Livestock & Meat Marketing Web Site
http://www.agecon.ksu.edu/livestock/
One neat deal on this site is a listing of numerous Extension market newsletters, with the links.
CBS Market Watch - Agriculture Outlook
http://cbs.marketwatch.com/news/current/helming.htx?source=htx/http2_mw
Helming Consulting Services posts comments on the ag commodity markets every business day on the CBS market watch site. This is a place to get some market analysis without paying a subscription fee.
AMS Livestock and Grain Market Reports
http://www.ams.usda.gov/lsg/mncs/index.htm
The market reports from local auction markets, and USDA weighted average prices can be found here. (Go to the reporting station for report you want.) Periodic cattle on feed reports also are linked here.
Chicago Mercantile Exchange prices
http://www.cme.com/market/prices/commodities.html
Ten-minute futures price updates - also can link to options from this site.
Livestock Market Information Center
http://lmic1.co.nrcs.usda.gov/
Designed to provide market information projections, coordinate marketing information.
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Grid Update
It is critical that producers marketing fed cattle keep ALL their options open! As we move to ownership of harvesting facilities, whether with Excel or with PBA and Jim's Wholesale Meats, we may be committed to deliver some of our cattle. At that point you also will be shareholders and have added incentives. For now, market where you get the most money!
Do not lock in on one market and never look elsewhere. Market conditions can change which outlet is the best choice. In recent weeks we have seen a big difference in the Choice, Yield Grade 3 bases at different grids, and a difference in the discounts and premiums. Contact Diana and Joe for the most current prices.
Excel
Most of you realize the new Iowa Quality Beef Supply Network (ICA) and Excel are offering a grid for members in the supply network. The current grid includes premiums for yield grade for individuals with quality grades of Select and above. There also is a freight allowance that can help if you want to ship cattle to Schuyler. This is available to the 900 plus producers who are investing in the harvest facility project. Cattle must be committed by Monday noon.
We are working on a new grid that will have some advantages - keep in contact with Joe (he is on the Grid Committee), or call Phil Core at 515-296-2266.
Excel also still offers the Angus America program - you might consider it for your higher marbling cattle. Non-black cattle can earn a $3 premium for upper 2/3 of choice. This grid does not involve the ICA project, and does not include the freight allowance.
ConAgra
The Gelbvieh Alliance and Angus Gene Net grids remain for delivery to Grand Island. These choices give you some premium and discount options, with the same base price (Choice YG 3). Starting May 1 Angus Gene Net will have a $4.00 premium for CAB and $8.00 premium for Prime. This will be one of the best markets we have for high marbling cattle.
To schedule cattle on these grids, contact CVB by noon on Monday. You will deliver the cattle about one week later. Diana is keeping prices on these grids updated each week - ask her for details.
IBP
Many local cattle are being marketed on the IBP Real Time Market Value grid. Terms of this grid can change each week. It generally has very good premiums for CAB, Prime, and Yield Grades 1 and 2, and somewhat different discounts than some of the other grids. The Choice Yield Grade 3 base may start a little lower than most of the other grids.
You should continue to contact your IBP buyer to keep updated on how this grid is moving, as well as the local in-the-beef and live bids. At times it may be one of your better options.
Greater Omaha
Greater Omaha continues to offer a grid along with their country bids. Terms of this grid may change - contact your buyer and get the details. The base price may be negotiable - you need to ask your buyer about all the premiums and discounts.
Marketing Partial Loads
Remember, to get the best premiums and avoid the discounts on the grids, you need to market the cattle that are ready, when they are ready. If your cattle are not consistent enough to send a pot at a time, you can split a load with another producer going to ConAgra at Grand Island. ConAgra will allow us to split loads and handle each separately. If you think you may take advantage of this option please call us now. We need to know when you will be selling so we can contact you in that time frame if someone from your area has a partial load.
We have a lot more options available, and the market is favorable at this time - let's hope it continues!
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Source Verification
We are currently working on following up on CVB Source Verified calves that have been sold this past season. We sent out letters to the buyers shortly after the sales and we are in the process of contacting each of them now to see what feedback they can give us on the performance of the calves. Obviously some of them will not have kept the CVB tags on the calves. We hope to track the ones that have. We may assist in marketing some of these calves on to grids and/or collecting carcass data. We will also be working with calves from the Raccoon Valley SV program.
This summer CVB will meet to discuss the future direction of the CVB Source Verified calf project. We have tags for the next season. We need to discuss ways get the tags out and the information back in a timely manner so that we can promote the calves before they are sold. We also need to get information out so that more buyers, sellers and others are aware of what the program does.
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Board of Directors
CVB is due to replace some of our directors. If you would like to nominate someone please contact us with some information on the person nominated including the county they are from. We will announce a summer meeting and post it on our web calendar at a future date.
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Joe Sellers
Field Specialist/Livestock/Beef
JS/dvb
