Tri-State Neighbor: South Dakota Farm Newspaper

The cold wind has returned to the prairie. Many producers have already marketed their calves, while others still have calves to sell. The prices are not as good as last year when they were at all-time highs, but most ranchers should still find them profitable. The buzz word in agriculture for the past decade has been “value-added.” There are several simple procedures which add value to calves.

A marketing study was conducted by Iowa State University which collected data from 105 sales on 20,000 calves from October 2005 through February 2006. The researchers grouped cattle into five categories:

1. No weaning or vaccination claims;

2. Weaned but not vaccinated;

3. Vaccinated, but without a 30-day weaning claim;

4. Vaccination and 30-day weaning claim, but no certification;

5. Certification of vaccination and at least 30 days weaning.

The data showed considerable differences in the perceived values of the animals in the study. Uncertified vaccination and weaning claims added $3.40 per hundredweight to calves over no preconditioning claims. Calves with third-party weaning and vaccination certification earned premiums averaging $6.15 per hundredweight.

For years we have wrestled with the cost of a vaccination and 45-day weaning program. Researchers estimate the total cost of preconditioning and weaning calves for 45 days at $61.85 per head. During the weaning period the calves advanced in weight from 500 to 600 pounds. The price paid for these weaned calves resulted in $35 increased value per head. This is about a 5 percent increase in value. This report is available online at www.iowabeefcenter.org/content/IBC30.pdf.

We have been monitoring prices at several local auction markets in our area. We have found similar price differences. If we use calves which have no vaccination or weaning claims as our baseline, we find:

Weaning increases value by about $5 per hundredweight.

Vaccination increases value by about $2 per hundredweight.

Certification age and resource verification increases value an additional $2 to $3 per hundredweight.

This $10 per hundredweight premium may be the profit in a calf crop in future years.

The certification of age, source, vaccination and other management practices are best verified by a third party. A veterinarian with a working knowledge of the specific ranch is the best qualified person to verify a producer’s procedures. Many livestock markets have protocols which allow the producer to certify processes conducted on his herd. These processes are not standardized for the industry because having “all the vaccinations” means different things to different ranches.

As the overseas markets re-open, there is more demand for age- and source-verified cattle. Producers with complete calf books who market animals born on their ranch probably qualify for the programs. The USDA has certified many different programs which register market calves to verify age and source of the animals and sometimes vaccination. The USDA symbol is present on the documents and requires some additional paperwork. It is similar to verifying acres and yields in USDA farming programs.

Premiums are available for complete management systems. Many feedlots purchasing calves feel more comfortable with a third party verifying the process performed on the calves. The entry of the USDA into the verification of age and source also creates additional verification possibilities. Visit with a veterinarian and begin the process of adding value to calves through third-party verification. In the future it can only improve the herd’s bottom line.

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