API coverage of the 2010 BIF Research Symposium & Annual
Meeting
For more information contact: Shauna Hermel, Angus Productions Inc. editor, at 816-383-5200 or shermel@angusjournal.com
Adding Value to a
Retained-Ownership/End Product Marketing System
by Barb
Baylor Anderson
COLUMBIA,
Mo. (June 29, 2010) — Ten Missouri cow-calf producers decided a decade ago they
wanted to learn more about how to add value to their cattle by finding out how
their calves performed beyond the farmgate. Through a handshake agreement, the
producers created NEMO Premier Beef Marketers. Today, they report, returns from
retained ownership are greater than they would be selling calves at the sale
barn.
“We wondered
whether retained ownership was a smart option,” says Imogene Latimer,
veterinarian and beef producer, who helped organize the group with the help of
the University of Missouri Extension Beef Team. “We’ve only lost money per head
in one year out of 11 on both steers and heifers. Over the years, our
value-added profit per head has averaged $37.65.”
Producers
in the group use similar genetics and vaccination schedules and are enrolled in
age- and source-verification programs. On commingling day, calves are weighed,
sorted, frame-scored and tagged. The group has marketed more than 5,000 cattle,
averaging more than 400 head per year.
NEMO
Premier Beef Marketers has worked with a number of feedlots over the last few
years, but today sends all of its cattle to one lot. They generally maintain
about 50% retained ownership of the calves, finance feed through the lot and
may or may not handle their own risk management any given year. They receive
data that is incorporated into future herd decisions.
For example,
the Latimers have a herd of about 200 head of commercial cows that from
2000-2004 yielded 60%-65% Choice calves. Natural sires were selected to improve
the data. In 2006, the Latimers decided to also try timed artificial
insemination (AI) on 90 head. The AI worked so well that in 2007, they
artificially bred more cows. By 2008, the Choice percentage had climbed to
79.7˘, and was more than 80% Choice in 2009. So far in 2010, the percentage is
84.
“We have
higher percent Choice and higher carcass weights for higher gross carcass
values,” she says. “The cattle must perform well in all areas for higher profit
potential.”
Latimer
cites as possible risks the health of the animals, the potential for high cost
of gain, financial penalties with non-conforming carcasses, inopportune
marketing windows and working with producers who may have unrealistic
expectations of the program. But she adds that the benefits far outweigh any
concerns, as they gather valuable data on the cattle they raise and improve
profitability, as well as gain experience with other segments of the beef
industry.
Latimer
spoke as part of a producer panel during the first general session of the 2010
Beef Improvement Federation (BIF) symposium. Themed “Gateway to Profit,” the
42nd annual research symposium and annual meeting was hosted by BIF June
28-July 1 in Columbia, Mo.
Pictured
above: Imogene Latimer
Editor’s Note:
This summary was written under contract or by staff of Angus Productions Inc.
(API). To request reprint rights or photo permission contact Shauna Rose Hermel, editor, at 816-383-5270.
PowerPoints are posted with permission of the presenter and may not be
reproduced in whole or in part without the express permission of the presenter.