AngusSource and Gateway

Sara Snider Talks About Association’s Value-Added Marketing Avenues

 

September 10, 2009

 

Sara Snider grew up in Buckley, a small town near Traverse City, Mich., where she spent her early years on a diversified farming operation. She completed her college degrees in animal and agri-science at Michigan State University, one of the top agriculture schools in the country. Snider’s deep appreciation for the rural lifestyle grew out of her experiences there and at home. She also learned the importance of being progressive in marketing and production practices to ensure the economic viability of farm and ranch families.

Today, Snider serves as director of American Angus Association®’s AngusSource®, one of the industry’s leading process verified programs (PVP). She believes it is an important way to offer value-added marketing to producers.

“Our number one priority is our customers and a big part of that priority is helping them add value to their Angus-sired calves through AngusSource.” says Snider.

With several excellent PVP’s available, a wise cattle producer has to make a decision that’s best for their business. AngusSource is distinctive because it’s a verification program for cattle that’s run by an association, and not a corporate entity. So why does, and should a producer choose AngusSource?

To help determine why a producer should rely on the Association for a verification program, we turn to AngusSource director, Sara Snider for answers.

Q. What is AngusSource?

A. AngusSource is a USDA PVP for Angus-sired calves that documents the source and age of cattle that are a minimum of 50% Angus genetics. The program offers marketing assistance in addition to providing documented information.

AngusSource offers coverage at the ranch and the feedyard level. The ranch program can be used by producers who are marketing feeder calves. The feedyard program is for farmer feeders and commercial yards that market finished cattle directly to the packer. All calves enrolled in the feedyard program must first be enrolled in the ranch program prior to calves leaving the ranch of origin.

Q.With other PVP’s already in existence, why did the American Angus Association initiate AngusSource?

A. The Association has strong industry relations and commercial program departments. We are dedicated to helping our members’ customers by providing programs and services. AngusSource focuses on marketing Angus-sired calves and provides a way to add additional value through source-, age- and genetic-verification. By increasing marketing opportunities, we hope to help producers receive a full return on the genetic investment they’ve made in registered Angus bulls.

Q. Apart from being a breed-specific Age and Source Verified (ASV) program, what makes AngusSource different from other ASV programs?

A. The Association’s commitment to customer service is one distinguishing feature of our program. For example, we receive feedback from producers, who have used other programs, about how much they appreciate the personal attention and the willingness of our staff to help them understand the program and work with them to enroll and market their calves.

The Association is dedicated to providing the programs and services that will help producers be successful with their Angus genetics. In order to use AngusSource, producers must be using registered Angus bulls. This means that they are customers of our members – or maybe they are even members themselves. So, we have a vested interest in helping them enroll and increasing their marketing options.

A producer wanting to enroll in AngusSource is more than their enrollment fee, a producer I.D., or a paycheck– they are an important part of our Association; we want to help them in any way possible.

Q. Take me through the registration process, step-by-step.

A. Producers read through the AngusSource manual and then submit the completed enrollment form. They then undergo training and complete the calf enrollment through a simple phone interview, followed by submission of records. In some cases an on-site ranch review is required for enrollment. Official AngusSource program ear tags are then custom-printed and issued for each calf enrolled.

Verification certificates are generated to document the source, age and genetics of the enrolled calves. Producers have the opportunity to document additional health and management information and can use the AngusSource internet cattle-listing site to advertise their calves. The online listing service and weekly e-mails are viewed by more than 600 potential buyers.

Q. These programs mean added work and expense. Why should an average producer enroll his or her cattle in an ASV program?

A. Data collected from Superior Livestock June-September 2008 indicate that cattle enrolled in age- and source-verified programs received $2.08 per hundredweight (cwt.) more than calves that were not ASV. The data also suggested that calves enrolled in AngusSource had a $1.29-per-cwt. advantage over other ASV programs, bringing the total value of AngusSource enrollment to $3.37 per cwt.

These dollars provide an advantage for producers. In fact, producers utilizing quality Angus bulls that want to add additional value to their Angus-sired calves can do that through AngusSource. Enrollment in the program provides access to new markets as well as the opportunity to document their genetics and differentiate their Angus-sired calves from other black-hided cattle. In today’s industry, information is the key to added value. AngusSource provides producers with an avenue to document information that is valued by buyers and increases their marketing opportunities.

Q. Is there a connection between AngusSource and Certified Angus Beef?

A. AngusSource and Certified Angus Beef LLC (CAB) are two distinct programs developed to help producers gain more benefit from Angus genetics. However, the connection between the two is that enrollment in AngusSource can genetically qualify cattle for the opportunity to supply the Certified Angus Beef® brand – provided, of course, that the other ten carcass specifications are met on the rail. Those specifications are:

1. Modest or higher marbling

2. Medium or fine marbling texture

3. "A" maturity for each, lean and skeletal characteristics

4. 10 to 16 square inch ribeye area

5. Less than 1,000 pound hot carcass weight

6. Less than 1 inch fat thickness

7. Superior muscling (restricts dairy influence)

 8. Practically free of capillary rupture

9. No dark cutters

10. No neck hump exceeding 2 inches

In other words, calves that do not meet the 51% black-hided spec, but are enrolled in AngusSource and verified to be a minimum of 50% Angus genetics through the AngusSource program can now supply the brand and garner the CAB premiums through our packing plant partners. In most cases these calves will be smoke-colored calves out of Charolais-influenced cows or red-hided calves.

Q. Does enrolling in AngusSource make your cattle Country-of-Origin Labeling (COOL) compliant?

A. Enrollment in AngusSource can be used to substantiate COOL claims. However, the industry has pretty much set a standard of utilizing affidavits. What this means is that while the source – ranch of origin – of the calves is verified and documented by enrollment in AngusSource, most likely producers and feeders marketing AngusSource calves will still need to complete the COOL affidavits.

Q. What is the Gateway program?

A. Gateway is a new second-tier program of the AngusSource PVP. We introduced Gateway to provide a source- and age-verification-only option to producers; essentially, we have created an opportunity for more producers to capitalize on the value of documented information.

 

An example of a potential Gateway customer would be a commercial producer whose cows are out on shared pasture during breeding season. While this producer may use registered Angus bulls, they aren’t able to enroll in AngusSource if their cows were exposed to non- registered Angus sires during breeding season. However, this producer can take advantage of the benefits of age and source-verification by enrolling in Gateway.

 

Producers using Gateway can rely on the trustworthy services offered by the Association’s AngusSource department, and eliminate the hassle of having to search for another ASV provider.

 

It’s important to note that producers who enroll their calves in Gateway have access to the industry-leading customer service and marketing support provided by the AngusSource department. Feeders, with coverage through the AngusSource feedyard umbrella, can market Gateway calves alongside their AngusSource calves directly to packers as age-verified.

 

###