Adding Value TO YOUR CATTLE:
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Transcript of Adding Value TO YOUR CATTLE:
ADDING VALUE TO YOUR CATTLE:The ABC’s of Marketing Your
Cattle
Export Premiums Prior to 2003 nearly ALL tongues went to
Japan at >$5/lb premium (today $4.56/ lb in JP; $2.12/lb in US)
Short ribs/plates from ALL cattle (today ~ 30%)
Export premiums would add $20-35/ head in value
EXPANDED ACCESS IN JAPAN
1.4 billion people Per-capita income (annual):
2000: $1,000 2008: $3,000 2020 (f): $8,500 Top 15% of population: $5,000+ (150 million)
Pork : 83#/capita (US : 60#/cap) Over 759 McDonald’s (Adding 100/ year)
CHINA POTENTIAL
According to BQA Guidelines cattle should be castrated and/or dehorned prior to 120 days of age or 500 lbs.
Recommended by American Veterinary Medical Association
Surgical is most commonly used method.
CASTRATING AND DEHORNING
Why is castration a common practice?
Castration reduces aggressiveness and sexual activity by lowering testosterone levels, and modifies carcass characteristics by decreasing the number of animals with a high muscle pH.
CASTRATING AND DEHORNING
Why is dehorning a common practice?
Dehorning reduces the risk of injury to those handling cattle as well as cattle themselves, for example transporting.
CASTRATING AND DEHORNING
Now, why should I do this?
On average bulls will be discounted $5-$8 cwt versus a steer at comparable weight
$8 cwt x 550 lbs = $44 per head
On average horned cattle will be discounted $2 cwt versus a polled animal at comparable weight
$2 cwt x 550 lbs = $11 per head
CASTRATING AND DEHORNING
VACCINATION PROGRAMS
WEANING PROGRAMS
GENETICS AND BREED INFLUENCE
DISPOSITION
DISPOSITION
MARKETING PROGRAMS
Sale Barn or Auction Sale Private Treaty Internet Auctions Video Auctions Retained Ownership
METHODS OF MARKETING
Weighing Conditions Shrink Commission Consignment Fees Details, Details, Details….
METHODS OF MARKETING
Shrink
550 550x 5% x 2%27.5 lbs 11 lbs
$160 cwt$44 less $17.6 = $26.40 per head
or $ 4.80 per cwt
METHODS OF MARKETING
THANKS