The day commercial producers sell their feeder calves is quite possibly the most important day of the year. A large percentage of their annual income is on the line. Everything needs to be right. Hopefully, the market is strong and the marketing venue as well as the agent you selected for the job has worked hard to connect with potential buyers.
There are many things to think about when preparing for this important event. Has the producer provided all relevant positive information that accurately reflects the attributes of his or her calves? For instance, has detailed information about the calves’ vaccination program been provided? Buyers like to know and regularly pay more for weaned and vaccinated calves.
The next important question pertains to genetics. Do the calves’ genetics rank as poor, average or at the top of the bell curve? The truth is most commercial producers don’t know where their genetics rank. So, they market their calves without objective genetic information.
A “missed opportunity” might best describe feeder calves sold without genetic information and millions are sold this way each year. Buyers struggle, because they have no way to assess the calves’ potential for growth and carcass traits. Your feeder calves may be some of the best around but without objectively determined genetic information accompanying them into the marketplace, no one will know. Furthermore, genetics are important, determining 35% to 40% of performance and financial outcomes in the feedlot and on the rail.
That brings us to the concept expressed in the title of this article. Most producers don’t even consider using genetic information as a marketing tool–but they should. If your genetics are above industry average for growth and carcass potential, you have a favorable story to tell. Buyers will reward you by paying more for your calves.
The first step is to determine where your genetics rank. There are two ways to make this determination: summarize seven to 10 years of EPD history on the bulls you’ve used in your herd or test some of your cattle with a commercial DNA test like Igenity Beef. Either method is suitable for finding where you rank on the industry bell curve. You might discover your genetics are above average or you may find that improvements are needed by investing in bulls with higher genetic merit.
Here’s the ideal situation: With help from a third party, you discover the genetics in your latest calf crop rank in the top 35% of the industry for post-weaning traits. Objective data has been used in making this assessment, removing guesswork and ambiguity. You now have information worth sharing with prospective buyers. It could be as simple as including a statement like, “This group of feeder calves has been objectively verified to rank in the top 35% of the industry for growth and carcass genetics.”
As they read the sales description, buyers understand your cattle have above-average genetics for traits that affect their bottom line. You have added value to your cattle by communicating your genetics to prospective buyers. Buyers will tend to react favorably to this message and in most cases, bid more aggressively. Your genetics are now working for you on sale day, instead of just sitting in the background.
Final note: This article outlines two steps a commercial cow-calf producer may take to ensure their genetics work favorably on sale day. The first step is discovering how your herd’s genetics measure up. If those genetics rank above average, add this message to the sale description of your feeder calves, allowing buyers to assess their value more effectively. If the discovery portion of this exercise reveals below-average genetics in your herd, take action to improve your genetics before publicly sharing the information when marketing your calves.
Source- Red Angus Association of America
