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Programs
Programs for fed cattle
Programs for feeder cattle
Carcass Data Collection
Carcass data collection and analysis is the first step to value-added fed cattle marketing.
If you don't know what your cattle are doing "in the beef" you don't know what they are worth.
CVB helps producers in our area line up carcass data collection and evaluate the results.
If you haven't collected carcass data with us in the past, we may be able to get a reduced fee for your first data collection.
A Carcass Data Report showing complete carcass data is tied to the individual animal ID and includes carcass weight, quality grade, yield grade, marbling score, fat thickness and ribeye size.
Percentage retail product and kidney-pelvic-heart fat percentage may also be included.
We are currently getting carcass data from ConAgra (Monfort) at Grand Island, NE; Excel at Schuyler, NE;
IBP at Dennison, IA or Joslin, IL and Greater Omaha.
In the past we have gotten data from Nebraska Beef and also from Moyer Pack (Mopac) in Pennsylvania. We are making arangements to be able to get carcass data from IBP at Dakota City, NE.
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Evaluating Grid Marketing Options
If you have carcass data on your cattle we can help you evaluate their potential on various grids.
Although many grids are geared toward high percentage choice cattle, there are grids that put more emphasis on yield grade.
There are grids that will fit both types of cattle while not paying the highest premium for either.
If your cattle aren't as consistent as they could be that might be the way to go.
Finding the grid that will pay premiums on your cattle is important, but it is equally as imortant to avoid discounts.
Most premiums per 100 weight range from $1 to $6, but discounts are usually $15 to $25 and more.
One discounted animal can easily wipe out the premiums you earn on several head.
You may also pay more in freight to reach your grid market.
Serious evaluation of your profit potential is a must before you "try out the grids."
If you don't have past carcass data you may still be able to assess the grid potential of your cattle.
Knowing the breed mix of the dams is helpful.
The breed of sire as well as any carcass EPDs or ultrasound data should be considered.
Any past carcass or ultrasound data from the bloodline of that sire would be useful.
Management factors such as feed program and implant strategy will affect the carcass also.
The more we have to look at, the better we can evaluate the potential of your cattle.
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Grid Pricing Step by Step
Step 1 - Establishing the base price for average cattle purchased
The formula for the grid must be compared to a price paid in the country.
This price might be the in the beef price quoted without grade and yield premiums.
Most grids use a weighted-average price from the week prior to delivery of the cattle.
USDA Agricultural Marketing Service lists feedlot sale prices on the web daily, and calculate a weekly weighted average price each Friday.
Some of the grids in our area use the Nebraska Weighted Average as a starting point to figure their base price.
Look at the state where you wish to check prices (Kearney, NE; Des Moines, IA; Dodge City, KS).
There are different classes of cattle listed - some formulas average all the cattle, some choose a particular class (65% Choice and above, etc.)
Step 2 - Establishing the spread between Choice and select
The value differences between Choice and Select change constantly.
In a gegotiated grid, you must check this spread each time you schedule cattle.
In formula priced grid, the Choice/Select spread is adjusted each week.
One company may calculate this spread a little differently than the next.
You can find Choice and Select boxed beef cut out values on the web.
Step 3 - Adjust the base price to the Choice, Yield Grade 3 level
When you are delivering cattle into a Grade and Yield price structure, the first premium to evaluate is the price you are quoted for Choice, Yield Grade 3 cattle, compared to the price you could receive for selling on a cash basis with no grade guarantees.
Negotiated grids will quote a price from your buyer for Choice, Yield Grade 3 cattle.
Formula grids will use plant grade information to adjust the base up to Choice price.
This adjustment is often called the plant clean-out or clean-up.
this may be calculated by taking the percentage slaughtered in the plant that is not choice, and multiplying times the choice/Select spread.
(Example - 60% choice in plant, $10 CH/SE spread, Choice adjusted by .4 x $10 = $4.00 addition to base for Choice cattle in grid).
The clean-out might also include adjustments for other factors in the specific plant - YG 4's, Dark Cutters, Hard Bones, etc. - all of these defects make choice cattle without defects more valuable than the average.
Step 4 - Calculate the premium and discount adjustments from the Choice base
Each carcass will be individually valued based on adjustments form choice, Yeild grade 3.
Premiums and discounts for Quality grade, Yield grade, weight, and other factors will determine the final value for each carcass.
Average Prices for grids we have been tracking. (Weighted average, Choice base & Ch/Sel spread)
Sample Premium and Discount comparison for several grids.
Contact us if you need current or historical prices for one of the grids or for the AMS market reported figures.
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Optimizing Grid Results
If your cattle will fit on one of the grids, we can look at ways to optimize your return on those grids.
An ISU Field Specialist may be able to help you evaluate when your cattle should go and which grid to try. They can take a look at your feeding program or implant strategy and let you know how that may effect your results.
They can help you with long-range planning to fit the grid you want to target.
Filling a pot load will keep your shipping costs down, but you don't want to send animals that aren't ready, or hold others until they are over done.
If you can't fill a pot with cattle that are at the right point, we may be able to find another producer in your area who can help fill out a load.
The cattle should be kept separated on the truck and delivered as two separate groups.
Let us know as early as possible if you if you might want this service, so we can get you on our list.
If you raise the cattle you are selling, it is a good idea to keep track of the sire and dam identity of the calves.
We can analyze your carcass data by sire group to help your decision making process.
It's harder to build records on the dams, but you can look at groups of dams.
Classify them by breed, sire line, type or whatever it is that makes them different.
You may use these records to cull the cows that aren't producing what you want, but you may only decide to breed those cows differently.
You might target some calves for a different market once you know their potential.
Building a good set of records will give you a better picture of your options.
As you make your long-range plan to target a market, and breed cattle to that end, bull selection becomes very important.
You need to develop a good understand of EPDs and how to weigh the economic importance of different traits within your herd.
Do you know how many bulls you need? Should you put different type bulls on different cow groups?
If you run your whole herd together, can you come up with a bull profile that will work with all your cows?
How does the premium you pay for that kind of bull power, compare to the cost of providing separate breeding areas?
You probably don't need bulls that excel in every trait, but skimping on qualities you need will not only reduce the income from your next calf crop, it will reduce the potential of any replacements you keep.
The secret to success here is analyzing what you need and what it is worth to your operation.
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Source Verification
Source verification of calves is the collection and documentation of background information that should help the potential buyer determine the value of those calves. Calves are usually source verified in groups, and group information collected, verified and recorded. The information collected includes:
Genetics: The makeup of the cow herd and the breed of the sires. When possible calves are identified by sire. If possible the sires EPDs, the bloodline within the breed and his herd of origin are included.
Health: The weaning time round of vaccines and boosters are recorded along with products used and dates given. If available, serial numbers of products are included. All vaccinations back to birth may be recorded. Individual and group treatments given and site injection maps may be included.
Origin: If purchased calves are included as source verified, a group should come from a single source, where background information is passed on. There should be a minimum ownership period before purchased calves can be called source verified and some programs may only include home raised calves.
Type: This is just a description of the group of calves including; sex, age range, weight range, breed type and percentage range of dominant breed, colors and number of each color.
Management: This includes the level of ID on the calves; the method and time of dehorning and castration; the health standard (green tag, vet certified or producer certified); brand and date of implants used; pest and parasite control products, dates and methods; creep strategy; feed additives and current ration ingredients.
Documentation: Copies of sire pedigrees may document genetics. Lists of sires and their EPDs may be included. Health documentation included copies of PC certificates where available. Veterinarian's write up of the health program may be included. Copies of labels or purchase receipts will be included for producer purchased health products. Other products used may also be documented this way. Copies of producer's records on the calves may be included. Any information not documented as described above will be entered in a form or written up. The producer will sign a form verifying the accuracy of the documentation and written information provided.
Promotion
Since the goal of source verification is to improve selling price, information should be collected well in advance of sale date. Potential buyers should be targeted and sent a summary of calves selling in advance of the sale.
Follow up
Sellers of source verified calves are given a copy of the market report after the sale to compare their price to the average. If the seller is interested, and if possible, buyers are contacted and asked about the possibility of getting carcass data back on the calves. CVB can help coordinate carcass data collection where desired.
Standards
CVB has adopted a minimum quality level for source verification in most of the categories of information recorded. A CVB tag has been adopted for source verified calves. Once the standard becomes known, and the tag starts getting some recognition, we hope "CVB Source Verified" will become a term that means higher quality.
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Group Marketing
More information available soon.
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