Tri-State Neighbor: South Dakota Farm Newspaper

The rain has really slowed the corn harvest this fall. I swear last week it rained or drizzled four of the seven days of the week on already saturated fields. This is very frustrating because all the costs of production have escalated and we must harvest to cover expenses.

This same increased cost of production is also affecting our beef operations. Producers must do what they can to remain profitable.

Most of the periodicals are filled with theories on “least-cost production.” It is important to produce with minimal inputs, but we cannot rule out minimal expenditures which can generate returns. One item on this list is the electronic identification tag (EID).

We have placed thousands of these tags in the last four or five years. The most common comment from local marketers is “an ear tag isn't going to bring the rancher a dime more for his calf.” If you sit in the sale barn and watch, you will not see additional dollars paid for tagged calves.

If the calves carry the required paperwork for age and source verification, producers should receive increased value, but the buyer usually absorbs the entire premium. One of our cow/calf producers sold their EID'd calves for what they perceived as premium price. They followed the calves through the feedlot to slaughter and found the finisher received $40 per head in premium. This is a good return on a $2.50 investment.

It's too bad the industry has remained so segmented. We have our cow/calf producers, backgrounders, stockers and finishers. Instead of cooperating and trying to work together, each segment remains independent and attempts to maximize their profits. One way the cow/calf man can overcome this, is through retained ownership of all or a percentage of his calves.

Japan requires that beef be verified to be less than 21 months old for export. After the fall of the stock market, I was visiting with a Japanese researcher here in the states. I asked if the fall in the stock market would affect our exports. Her answer was “probably not.” She said the affluent of Japan will only eat beef produced in Japan. The meat produced in the United States would be the commoners meat protein. It amazes me that we are held to these identification standards for a product which is not top of the market.

The EID tag has also had some secondary advantages which are not measured in dollars. Several of our clients have sold calves at the sale barn which were age and source verified. Later in the spring, our client received cut-out data on the calves sold. This is the way the system should work, but so far it's been a rare occurrence.

Country-of-origin labeling (COOL) is a good reason to confirm identity with an EID tag. The basic prerequisites of the program required that the USDA not establish a mandatory identification system to implement COOL. This resulted into the dilution of the program into a non-issue.

The 840 EID (specific for USA) is a sure way to assure animals were produced in the United States. By producers' voluntary participation, they will be assured to meet any and all COOL requirements while also assuring their ability to participate in all other market incentives to the use of EIDs.

To participate in any of these programs, producers must:

€ Uniquely identify animals (EIDs);

€ Keep good records (calfbook, date of birth, etc.);

€ Become a Beef Quality Assurance (BQA) certified producer;

€ Keep records of all cattle sales.

These records should be kept for three years in case of a ranch audit.

As consumers, foreign and domestic, require more assurance of the quality and wholesomeness of the meat they purchase, it will become more important that we develop a national animal identification system (NAIS). Producers' minimal investment in the voluntary program will allow them to reap financial benefits throughout the system, more than offsetting their cost of participation. Become active in assuring the future of the beef industry.

Comments »

Comment on this story

Comments will be approved within 48 hours