The Golden Calf
In the past few years, accounting for your actual costs of production hasn’t been that
necessary. $150 feeder calves has sent the most inefficient producers smiling all the way
to the bank. But, all good things must come to an end and the peak of the cattle cycle has
pasted. Recent year’s high prices have been matched by high input costs and in a
forgiving, elevated market this works out fine. However, producers who don’t find a way
to curb their input appetite and optimize their output will find themselves put out of the
business.
As technology is developed with the sales pitch of making our
lives easier and less complicated, it seems we have never been
busier. There is an endless list of bells and whistles that we could
add to our production schemes to “add value” to our calves. As
margins get tighter in the cow/calf sector, producers will be forced
to carefully examine what truly adds value to their bottom lines
and what are simply added costs. It is easy to create “golden
calves,” not in a biblical sense, but calves with so much input costs that they would have
to be golden to recover it.
We live in a production environment where we synchronize cows with 4 hormones and 4
trips through the chute, pay someone $20 a head to AI and then clean-up with a $5000
commercial bull. We pay someone to preg. check, haul the opens to the sale barn in a
$50,000 truck and $15,000 trailer, burning $3.00 fuel. We calve in a barn near the house,
creep feed the calves, fenceline wean’em, VAC-45’em, shoot’em, pour’em, and EID’em so
they can qualify for BQA, QSA and PVP programs. They get weighed on our digital scale
in our hydraulic squeeze chute, implanted, and we pull DNA samples to sire identify them.
Then, we breeding soundness examine and ultrasound our bull battery, pelvic area
measure our heifers and test them all to see how many stars they carry. After all this, we
accept the risk of retained ownership and pay $6 a head to get complete data back so that
we can try and do a better job next year.
Don’t get me wrong, technology is great and the world will continue to advance whether it
makes life easier or not. The point is every adaptation of technology should be
accompanied by a partial budget which incorporates all the inter-relationships involved to
determine its net effect on your bottom line. You need to only attend an NCBA trade show
to recognize that the service, pharmaceutical, and feed industries and middle-men take a
significant portion of margins out of the beef industry. Many of their products have merit,
but not all products will add the same value in all environments or marketing strategies
and at some point you hit the wall of diminishing or impossible returns.
But, it’s about more than just loosing money and watching the rich get richer. It’s about
loosing a way of life. We’ve managed to take something so basic, and pure (cow/calf
production) and turn it into something exceeding complex and busy. The “successful”
farmers and ranchers today run so hard that they are nearly impossible to reach, other
than on their cell phones. Working seven days a week, 14 hours a day so they can pass
the ranch onto the next generation while missing out on watching the next generation
grow up. High-input practices are making us servants of our cowherds. If I wanted that,
I’d milk cows for a living.
Sewell Wright, an esteemed animal breeder, said in 1920:
It is often believed today that successful breeders have some sort of mysterious
methods of which others are ignorant. Instead, the principles of the successful
breeder have been exceedingly simple…The difficulty is not so much in knowing
the principles as in applying them.
As commercial producers continue to grasp at technology and search for the silver bullet,
it is astonishing that they simultaneously ignore the benefits of crossbreeding. The single
most profitable decision that a commercial producer can make is to run a maternal
crossbred female and terminally cross the mature cows. I recently read a quote from a
successful single-breed, seedstock breeder suggesting crossbreeding is a tool only useful
in poor environments or for poor managers. The arrogance of believing there are no other
cattle of other breeds worthy of crossbreeding to will rapidly change the breed structure of
this industry faster than one can imagine. In times of tight margins, it will be the providers
of products and services who truly have their customers’ best interest at heart that survive
to pass it onto the next generation.
Durham Red Demand Growing Faster Then Projected
The concept of a 100% British composite apparently struck a cord with commercial
cattlemen across the country. As composite seedstock rapidly gains approval in the beef
industry, maintaining highly efficient females and progeny with the ability to grade a high
percent Choice seems to have great appeal. Until now, commercial cattlemen who have
invested heavily in high marbling genetics have been reluctant to utilize composite
seedstock for fear of Continental influences decreasing their percent Choice.
The Durham Red cattle allow commercial cattlemen to
maintain some level of heterosis in an uncomplicated breeding
system. Because they are both superb females and excellent
feeding and grading cattle, they are a viable solution for those
who have avoided the terminal crossbreeding system due to its
management complexities.
With the program still in its infancy, Durham Red calves are mostly just hitting the ground
this spring. As calls come in from Oregon to North Carolina and Michigan to Texas
seeking Durham Red bulls and females, buyers are asked to remain patient as the
product is developed. The quickest solution for those impatient buyers has been an
attempt to locate Shorthorn females in volume and breed their own.
Several sizable firms have expressed interest in developing and breeding solely Durham
Red cattle and stabilizing the composite. Look for Durham Red bulls to offer both
Shorthorn and Red Angus breeders multiple products and the ability to move more bulls
next spring. Durham Red females are demanded in large groups and will bring top of the
market prices. The Durham Red program has limitless potential as the complementarity
of these two breeds yields truly great cattle and at the core of seedstock production, that’s
what it’s all about.
Shorthorn University A Huge Success
The weekend designed to increase the understanding of the beef industry, discover the
needs of the commercial customers and spread the Shorthorn name could not have gone
better. On April 7, 8, and 9th, 42 Shorthorn enthusiasts boarded a charter bus and
proceeded to gain exposure to the commercial beef industry while having a great time.
Mimicked after “Young Guns” programs of other breeds, Shorthorn recognized that the
material is better retained if physically experienced. The landscape of western Nebraska,
the faces of the speakers and their stories are now forever ingrained in our minds.
After meeting at the recently improved ASA office and sharing lunch with the staff, the tour
stopped at the Swift and Co. beef processing plant in Grand Island, NE. A first experience
in a commercial packing plant can be an awakening moment as producers realized the
volume of beef processed daily and the true purpose of the entire beef industry. Many got
their first exposure to video grading systems and the speed and precision at which the
fabrication floor operates. Ken Conway of GeneNet provided a great presentation
covering grid marketing and retained ownership.
The next stop for the bus was at the historical Haumont Shorthorn herd near Broken Bow,
Nebraska. After decades of maintaining a primarily closed herd of linebreed genetics,
witnessing the passion with which Mary Belle Cooksley breeds cattle was enlightening.
The uniformity and quality of the replacement heifers was admirable and none of us will
ever forget her advice to upcoming breeders; “start with something good enough you don’t
have to start over and have confidence in your breeding decisions.”
The next morning began in Ashby, NE at the Rex Ranch. John Young shared their
philosophies and stringent management protocols. Calving over 90% of the 6000 plus
head herd in a 30 day window and expecting a single man to calve out 700 or more cows
was an eye-opener for many on the trip. Obviously, problem free genetics excelling in
convenience traits and lower input, maternal function are required at the Rex Ranch. The
self-contained seedstock development system and strict culling protocol was enough to
make any seedstock producer jealous. Rex Ranch is a testament to how you can force
cattle to work for you while maintaining harmony with the environment and people. Rex
Ranch did sample a Shorthorn sire this year and thus far has had a positive experience.
That afternoon was spent at Schuler Red Angus in Bridgeport,
NE. Learning more about the Red Angus breed was highly
beneficial for those interested in the Durham Red program.
However, the primary benefit was the insight gained by
interacting with a successful seedstock operator. Schuler is a
model for aspiring commercial bull sellers putting together good cattle with good people.
Butch is knowledgeable and outgoing while remaining humble, approachable and likeable;
a great combination for continued success.
Dinner that evening was hosted by Fellers Family Shorthorns in Lexington. The Fellers
family has been utilizing purebred and commercial Shorthorn and more recently Red
Angus genetics for many years. Their hospitality was over whelming and greatly
appreciated.
Sunday morning took the tour to Darr Feedlot in Darr, NE. Chris Knudsen led us on a tour
of the 30,000 head yard and bull development center. We had the opportunity to see the
131 Shorthorn proof positive steers on feed. The steers looked really good especially
considering they came in from 6 producers and had over 6 months age range. Not seeing
another identifiable Shorthorn pen in the yard really hit home how much work we have to
get done.
The final stop was at K.C. Woodman’s in Kenesaw. K.C. has been using some Shorthorn
genetics in his commercial cowherd along with Simmental and Red Angus. It was a great
stop to witness the importance of maternal heterosis to the commercial cowman. When
asked want K.C. wanted in his Shorthorn bulls he bluntly said, “Fleshing ability and
moderate frame, but with performance, data, calving ease and eye appeal.” He wants the
complete package and it will take a blending of Shorthorn genetics to get it.
All in all, the tour was spectacular, educational and fun. No small part was the importance
of bonding with fellow breeders both on the bus and while bowling on Saturday night.
Here’s what some of the participants had to say about it:
“I think other organization would have been lucky to get 5 people on a trip such as this. It
seems Shorthorn breeders are ‘hungry’!!!! This trip will effect how I raise, market and
produce BEEF.” - Brad Fahrmeier
“As I compare this to other tours and conferences that I have been to, I do believe that I
will be able to apply more things from Shorthorn U.” - Toby Jordan
“Every young Shorthorn breeder should participate in a Shorthorn University. It is sure to
give participants an edge over other breeders.” - Jess Smithers
“Every aspect I found imperative to open my mind to the entire beef industry. No college
course in my part of the world could compare to this intense weekend.” - Luke Bowman
A special thanks to all our hosts and the Shorthorn Country, Mid Atlantic Genetic
Productions, Allflex and Fellers Family Shorthorns for their sponsorship.
Shorthorn Tagging Program Approved
The ASA Board of Directors has unanimously approved a two phase Shorthorn
identification ear tagging program. The programs’ intent is to provide users of Shorthorn
genetics competitive and proactive options to qualify age and source verified calves and
to provide recognition to Shorthorn influenced cattle.
The most involved tagging program will be formed in partnership with IMI Global, Inc.
Producers of Shorthorn genetics can use IMI Global's USVerified Supplier Evaluation
Program, a USDA Process Verified Program (PVP), to approve producers as Source and
Age Verified to meet domestic and international market requirements. IMI’s USVerified
program was the first USDA approved program not to require a
costly on-farm visit to verify calving records. IMI is emerging as an
industry leader in USDA process verification and offers a very
competitive pricing structure for verification and tags.
The more general “SHORTHORN” tag will be marketed in partnership with Allflex USA,
Inc. and be made available though any vender of Allflex tags via a special skew. Both
basic visual and matching pairs with EID will be available. Allflex offers a website which
allows tag buyers to print EID numbers by a number located on the bag of tags. This
allows users to print forms to write down which animals receive which EID. Buyers are
asked to only put the “SHORTHORN” tags in animals of 50% or great Shorthorn influence.
As agreements and products are finalized, more details on the tagging program will be
released. Contact ASA for details.
Free Material From ASA
The American Shorthorn Association is working hard at staying competitive as a servicebased breed association and providing tools that keep its members at the top of their
game. ASA will gladly provide the following information and promotional pieces free of
charge to anyone interested. Contact ASA today and ask for your free copies.
2006 Shorthorn AI Sire Directory – A catalog of 67 Shorthorn bulls with semen available
for purchase. It is an excellent resource for those already in the breed or purchasing
Shorthorn semen for the first time. The consistent layout and complete data make it easy
to use and very informative.
2006 Shorthorn Sire Summary – Features the new Calving Ease and Maternal Calving
Ease EPDs and the new layout allows for carcass EPDs on a greater number of sires.
The owner’s index provides more exposure and contact information for owners of bulls
appearing in the summary.
Crossbreeding Guide – An eight page, full-color pamphlet that makes a convincing case
for including Shorthorn genetics in commercial beef production.
Durham Red Flyer – Serves to promote Durham Red cattle and to provide more
information about the program.
What Does ASA Offer Me – A new piece coming soon, which points out the benefits of
being a member of the American Shorthorn Association.
8288 Hascall Street
Omaha, NE 68124
402-393-7200
www.shorthorn.org