Buy, raise, feed the best

We continue to feature groups of cattle that really hit the mark in this “On target” thread. Find out what our recent intern uncovered about this lot:

Learning from the past to improve performance, Galen Reece of Sawyer, Kan., bought a variety of cattle over the years before shifting to high-quality cattle with proven genetics.

Recently a harvest group of 36 steers he bought on Superior Livestock Auction and fed at Pratt Feeders made better than 94% CAB and Prime. They also performed exceptionally well in the feedlot, gaining 4.05 lb. per day with a 5.40 conversion rate of feed to gain.

“In our 40,000-head-capacity feedlot, his cattle are in the top 10% to 15%,” says Pratt Feeders manager Jerry Bohn.

Reece stresses the importance of bulls with the genetics to produce high quality, and makes it a practice to buy only calves sired by Gardiner Angus Ranch bulls. Along with the added value of premiums and greater efficiencies, Reece says the cattle generally have better health as well.

“It doesn’t cost much more to own a really good calf,” Bohn says. “And the benefits at the end more than offset the upfront costs.”

Taking that to heart on his ranch, Reece started his own herd a couple of years ago using the same brand of genetics, while continuing to buy from repeat sources on the video auction.

On target

“Thirty-aught-six, you know? Like the gun.” The year was 2006 and I was getting the lowdown on all CAB Supply Development programs.

But I was just out of college and didn’t want to appear like the naïve gal that I was (or still am depending who you ask), so I just nodded my head. I didn’t want to say that I knew the difference between a squirt gun, a BB gun and shotgun, but that was about it.

So I went back to my desk and did what every not-wanting-to-show-a-weakness journalist would do: I Googled it. And I learned two things: 1—CAB didn’t get any red flags about a new hire searching guns on her computer (thought about that one after-the-fact!) and 2—It doesn’t matter what the gun looks like, it’s just a darn good metaphor.

For what you ask? Well, cattle feeders with precise aim. We have a Thirty-Aught-Six (30.06) program that honors pens of cattle, fed at partner yards, that reach 30% brand acceptance with less than 6% outliers. You know, those cattle that hit the target.

Each month we publish a listing in the Angus Journal that honors those feeders with pens that meet that criteria. Even though we like those numbers, sometimes it’s the stories behind those charts that really get us excited. Sometimes we have to play to detective, uncovering those gems, but as we do, we want to share them with you.

So here’s our first installment of “On Target”, as authored by former intern (now CAB employee) Emily Krueger:

Setup for success

Shaw, Landon — Landon Shaw, McPherson Co. Feeders

It’s no surprise to Landon Shaw, assistant manager of McPherson County Feeders, Inc., that Steve Humphries’ cattle made the cut for the 30.06 list earlier this year.

Nearly 44% of Humphries’ 73-heifer pen qualified, with more than 76% finishing at Yield Grade (YG) 1 or 2.

A regular customer at the feedlot since the mid-1980s, Humphries has an eye for superior genetics, and his exceptional health management sets those cattle up for success, Shaw says.

“Everything he’s fed with us has been high-quality cattle, and he focuses on getting them ready to feed,” says Shaw. “His herd health program is phenomenal. Every pen we get, we treat an incredibly small percentage of cattle that he sends to us and they’re always ready to grow.”

The heifers came to McPherson weighing 715 pounds (lb.) and reached 1,150 lb. with an average daily gain of 3.4 lb.

Humphries agrees genetics and health played a large role in his the success, and adds that the fescue grass around Maysville, Ky., where his stocker operation is located, allows him to feed his cattle efficiently with little to no supplementation.

“Our grass in this country is super good,” he says. The veteran cattleman knows where to find the best quality Angus cattle and keep them on track for feeding success: “That’s how we make money.”

———————————————————————————————————-

May your bottom line be filled with black ink,

~Miranda

Headed the same way

George said I didn’t have to print any pictures of him or print any of what he said.

Sorry George. It was just too good not to.

Meet George and Lorretta Epp, the righthand man (and woman) at Guggenmos River Ranch.

When I planned to visit the family ranching and feeding operation in the Nebraska Sandhills, Larry Guggenmos wanted to be sure the couple could make it to the interivew, too.

No wonder. They all sat around the kitchen table finishing each other’s sentances when talking cowherd goals.

“I never understood somebody who says, ‘I don’t care about the meat.’,” George said. Shaking her head, Loretta added, “Then where are your cattle going to end up?”

I don’t think their paycheck is directly tied to some grid payment or cattle performance goal. That’s when it became clear to me that having “good help” is about a whole lot more than finding hard workers or folks who pay attention to detail.

These cattle are the result of a shared vision.

It’s about a shared vision.

The cowherd records–the pedigrees, the history, special notations–all 400-some of them are displayed on the office wall. But there’s hardly any need. George and Loretta know those cows like they’re their kids.

“George can remember their mothers and their grandmothers. Cows and pedigrees are his thing,” Larry says. Today Larry spends most of his time on the feeding end of the cattle equation. As I told you Monday, that combination of genetics and managment is producing loads that reach nearly 80% CAB and CAB Prime.

I heard, “We’re a good team,” two or three times during my visit.

We know that’s a good feeling. We’re glad folks out in the country share our passion for the end product, too.

May your bottom line be filled with black ink,

~Miranda

What grumps?

Monday I told you cattle feeders aren’t scary people.

To some, that may seem like an odd comment, but I make it because I wonder why producers with questions about their feeding options don’t just call a feeder.

Not only are they not scary, they’re also generally very willing to help. Now in some circles, feeders are painted as profit-robbing, practically villainous beings just a step above a beef packer. (You may remember I had something to say about that, too.)

But back to the feeders. I visit with quite a few each year, and I’ve never met anything but good, hardworking, down-to-earth folks. My story trip last week built up my body of proof.

Meet the father-son combo of Gary and Lane Darnall. They welcome calls from ranchers at their feedyard in western Nebraska.

Gary and Lane Darnall, Darnall Feeders, Harrisburg, Neb.

In fact, that’s usually how the whole process starts, with a phone call about whether or not it makes sense for them to send their cattle to the feedyard.

“We’ll start working on forecasting and what it looks like. We put together a snapshot of what we think those cattle will make money-wise and how we think they’ll perform based on what we know of those cattle or what the owner has told us of those cattle. That will probably stimulate a couple more phone calls,” Lane said.

And they welcome that, as Gary added, “We want to be honest with that rancher or that retained owner so he feels confident in that decision.”

So there are a couple of feeders who want to talk regularly with ranchers. That sounds the opposite of the curmudgeon some make that segment out to be.

Another person who is more of an antonym to that term would be Tom Williams of Chappell Feedlot.

Tom Williams, Chappell Feedlot, Chappell, Neb.

I visited with Tom and his wife Cindy earlier that day and they echoed that spirit of customer service and total willingness to help. They talked about the way they sort cattle, the experts they work with and the data they return to those who place cattle with them.

But one thing I think any customer could appreciate is the passion he brings to his job.

“It’s easy for me to go talk to ranchers. It’s fun because I like cows and this way I get to work with a whole bunch of cowherds to some extent.”

And a whole bunch of customers, too. He aims to help them add more premiums to their pocketbook, but notes it’s about more than just extra black ink.

“It’s the pride. There isn’t a good cow person out there that isn’t damn proud of their cows.”

And he likes making sure they good reason to be.

May your bottom line be filled with black ink,

Miranda

When it rains, it pours…

…and that’s OK in OK.

Gary and I were in Chickasha, Oklahoma to put on our second annual “Backgrounding for Quality” seminar with our friends from Pfizer Animal Health last week. The weather was not pretty… it’s safe to say that I’d classify the precipitation as pouring more than once during that day. But after we spent so much time talking about the drought (over and over and over again…) in the southern US this past year, I could hardly complain about the moisture we encountered.

Now, I may have said an unkind word or two about the timing of that moisture last week, but what can you do but shrug and go on with the show when you’ve planned an outdoor field day that forecasts “100% chance of rain?”

So when the wind, rain and cold settled in at Chickasha, we settled in the White Brother’s Cattle Company’s shop with some heaters instead of our original outdoor plan. There was plenty of hot coffee, a brave and hardy crowd and a line up of top-notch speakers.

One of those speakers was Dale Moore, the owner and manager of Cattleman’s Choice Feedyard. Dale’s topic of discussion was “What a feeder wants,” and he knows that question from both sides of the equation. Dale and wife Mary also run a commercial cow-calf operation in Oklahoma. Here’s an excerpt from the beginning of his talk.

“What do you think feeders really want? I could give you the same song and dance about feedyards wanting high quality, weaned cattle that won’t give them any problem and will make them a whole lot of money. That’d be my whole talk.

“But I wanted to come up with something new to say to you, about what feedyards are looking for and what feedyards can do for you. When I thought about that, I kept coming back to the same thing: In all honesty, feedyards want customers. At least my yard does. I take pride in being able to feed high quality cattle and make guys lots of premiums, to improve their cowherds. We want to give our feedyard and customers lots of recognition and give them coffee shop talk. That’s what all feedyards under the CAB banner are looking for.

“We don’t get a lot of our upper Choice, CAB-type cattle at the sale barns because a lot of those cattle have to be put together with other cattle or you just don’t win the bid. So we rely on our customers for those good ones. We need customers, and we want to help them be profitable in the long term and improve their cow herd.

“So to do that, the consumer is where we all need to go back to, in my option. Consumers are demanding higher quality cattle; a better eating experience. Consumers are willing to pay for what they get, and in return they want a tremendous eating experience. That goes all the way down the line from consumers to retailer to packers to feedlots and ultimately to you guys as cow-calf and stocker operators.

“So that’s what a feeder wants: something that through all these chains, is going to provide the end result of a good eating experience, because that’s what’s paying for all of it. We get that good eating experience from high quality customers.”

“You measure profit by performance, quality, dollars… but the bottom line is about satisfied consumers.”

When it rains, it pours. And when our industry focuses on meeting the demands of our final customers like Dale focuses on his feedyard customers, it pours success back down the entire system.

To get more clips and quotes from the event, check out our Twitter and Facebook feeds from last week. Enjoy!

-Laura

What a cattle feeder wants

March 27, 2011

As a meeting coordinator, I always squirm just a little when an audience member stands up, addresses the speaker and says, “I don’t really have a question for you… more of a comment.”

You never really know what kind of tirade might come after an introduction like that.

But last Wednesday, it was a good comment. One I wish more would stand up and share. We were out at the Collinge Ranch in Hamilton, Kan., for a field day for folks in the stocker business. The session was called “What a Feeder Wants,” with Jerry Bohn of Pratt Feeders leading the discussion.

The gentleman stood up in the back of the room, and the gest of his comment was this: “I just want to say, I hope other guys understand how easy all of this stuff is. Continue reading “What a cattle feeder wants”

Traits correlated with grid premiums

By Miranda Reiman

October 19, 2009

When you get a bonus on grid cattle, sometimes it’s easier to count your blessings than to ask why.

But Tom Brink, senior vice president for Five Rivers Cattle Feeding, says taking a look at discounts and premiums can help you get more of the latter. Tapping into their database, Brink analyzed more than 300,000 cattle records for correlations with grid components. The results are based on a handful of value-based marketing options that mirror those popular in the industry.

“Southern” cattle sold in Kansas and Texas were compared to “northern” cattle in Colorado and Nebraska to show regional differences.

“The south is almost always starved for quality grade,” he says. “Because of that, when we have those southern cattle that do grade, it’s pretty easy for them to earn a sizeable grid premium.”

USDA Prime and Choice grade had a solid correlation of 0.6 to earning grid premiums in the south.

“That’s a very strong positive relationship, the strongest you see of all the different traits looked at,” he says. But that drops to 0.35 in the north.

“It’s still meaningful, that’s for sure,” Brink says, noting the moderate correlation. It’s topped by bonuses for yield grade (YG) 1s and 2s at 0.39 and discounts for heavies and YG 4s and 5s, both at -0.46, strongly negative.

“We struggle a little more with heavies and yield grade as an industry in the northern geographies, so that shows up on the negative side,” he says.

In the south, Brink says better YG is still desirable, but it actually shows up as a negative (-0.24) correlation.

“Intuitively that does not make sense, because on virtually any grid you get paid a premium for more YG 1s and 2s,” he says. “The quality grade influence is so strong that the cattle that graded well brought back such a positive premium that it actually offset the fact they probably had a few less YG 1s and 2s.”

So what do all of these relationships mean?

Simply put, cutability and quality are both important keys to getting more dollars, but within southern cattle the quality grades are especially rewarded. Northern cattle are expected to hit those high marks and then some.

“If your cattle are grading 70% Choice, just average in the north, should you be satisfied with that?” Brinks asks. “No, you wouldn’t want to quit there, because there is more opportunity for the cattle that can do better.”

However, northern packing plants typically run 12% to 15% outs, with some weeks eclipsing 20%.

“That is a big number, to have one in six carcasses coming through as a non-conforming carcass,” he says. “We have missed the mark as an industry when we do that.”

He pointed out YG and heavies are both a genetic and feeding-management problem.

Northern cattle are more Angus-influenced, and Brink attributes the better grading to that, but he says it also brings a challenge “to keep working on those yield grades.”

Fortunately the American Angus Association measures and tracks those traits, providing dollar-value indices such as $YG and $B as producer selection aids.

“Those are tools that not every breed has, but the Angus breed does and they work well,” he says.

Just as breeders watch genetic connections to get all they want out of an animal, perhaps feeders should consider these or their own set of premium and discounts correlations to get the most out of value-based marketing.

Setting them up for success

Will Feed partners with CAB

by Miranda Reiman

January 2009

It’s all in the details at Will Feed, Inc., Cozad, Neb.

The 3,000-head feedyard focuses on managing cattle and data in tandem to return the most money and information to the rancher. That’s why the business has licensed with Certified Angus Beef LLC (CAB).

“We try to trace cattle, back to the ranch and forward to the consumer,” says Anne Burkholder, feedyard manager. “The beef industry is putting together pieces of the puzzle. I don’t think there’s one magic set of genetics or management at any one point. It’s a matter of putting those pieces together in the best way.”

The CAB Feedlot Licensing Program (FLP), a network of 63 feedyards across the country, helps with that equation. The company promotes information flow among all segments in the beef industry.

“Carcass data is very important to me; in fact, that’s why I’m licensing with CAB,” she says. The quality and yield grade information gathered from packer partners complements the yard’s extensive records on weights, gains and health. Many cattle are age- and source-verified and can be marketed through Samson Quality Systems Assessment (QSA) for added premiums.

Although Will Feed always owns a portion of each pen it feeds, Burkholder makes sure the producers know how their cattle did.

“We have to have communication up and down the industry. I don’t want to be vertically integrated, but at the same time we have to be cooperative,” she says.

Customers are encouraged to retain partial ownership to better experience the feeding process.

“It helps drive home the point that we’re in the beef business,” Burkholder says. “Even if it’s just 10% or 15%, you still have a stake in it.”

Burkholder offers to go over results with customers and hopes they use it to make decisions in the future. She does caution first-time feeders that it takes a few years of data to get an accurate baseline.

“There are so many variables that go into carcass performance, from the weather to any sickness, to the packing plants and how the cooler is managed,” she says. “If they want to follow their calves, they need to follow them for several years before they can really get a clear picture of what they have.”

The philosophy at Will Feed is in line with CAB’s goals.

“I find myself in the midst of a business that is mostly commodity oriented but I’d like to see us get away from that. I think we can do better than that and I think the money will be better,” Burkholder says, noting quality is their niche.

“We like to keep our calves healthy and happy and working for us,” she says. The yard is Beef Quality Assurance (BQA) certified, and Burkholder is very active in that cause at the state and national levels.

“We need to get the details right so we can set our people and our animals—and the beef that they produce—up for success,” she says.

The feedyard, which opened in the mid-1960s, has three additional employees. Other enterprises in the family business include an alfalfa dehydration plant and a crop farm.

For more information, contact Anne Burkholder at 308-784-2115 or visit www.cabcattle.com

Tag: Feeder

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