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Adding Value TO YOUR CATTLE:

Adding Value TO YOUR CATTLE:. The ABC’s of Marketing Your Cattle. Expanded Access in Japan. 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%)

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Adding Value TO YOUR CATTLE:

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  1. Adding Value TO YOUR CATTLE: The ABC’s of Marketing Your Cattle

  2. Expanded Access in Japan • 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

  3. China Potential • 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)

  4. CASTRATING AND DEHORNING • 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.

  5. 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.

  6. 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.

  7. 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

  8. Vaccination PROGRAMS

  9. WEANING PROGRAMS

  10. GENETICS AND BREED INFLUENCE

  11. Disposition

  12. Disposition

  13. MARKETING PROGRAMS

  14. Methods of MArketing • Sale Barn or Auction Sale • Private Treaty • Internet Auctions • Video Auctions • Retained Ownership

  15. Methods of MArketing • Weighing Conditions • Shrink • Commission • Consignment Fees • Details, Details, Details….

  16. Methods of MArketing • Shrink 550 550 x 5% x 2% 27.5 lbs 11 lbs $160 cwt $44 less $17.6 = $26.40 per head or $ 4.80 per cwt

  17. Thanks

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