Current Obstacles Facing Beef Producers
Beef consumers demand high quality, safe and consistent beef. As in any business,
products satisfying consumer desires are rewarded while substandard goods are discounted.
To achieve adequate compensation, the cow / calf operator must know the quality of beef
marketed. A major obstacle is industry segmentation: calves are sold after weaning,
backgrounding, feeding, and slaughter. Information (and sometimes profit) is lost at
each change of ownership. Without performance statistics it is impossible to accurately
evaluate current genetic and management programs. Missouri Verified Beef was formed to
help overcome these obstacles.
Missouri Verified Beef Overview
Participants:
This group was created by cow / calf producers in cooperation with local veterinarians.
The board of directors makes all administrative decisions and is composed of consigners elected
by their peers. We have participants from several regions of Missouri.
Program goals:
1. Receive individual animal performance and carcass data on calves enrolled.
2. Interpret this information to make decisions to improve farm profitability.
3. Increase each participating farm's marketing power.
4. Be paid for calves based on their value.
We receive individual animal performance and carcass data to allow consigners to adequately
evaluate the calves they produce. This data illustrates the variation present in individual
calves. For example, we found greater than $300 differences in feedlot profit/loss between
calves from a single farm. Critical evaluation of the data is necessary to determine why
one calf is more profitable than another, producers are provided with reports that allow them
to utilize information collected. Marketing power is increased for each farm by pooling
calves from several farms and marketing them in 50,000 lb. lots.
Specifics:
This program functions by producers cooperating to market their calves as one large group.
Consigners wean their calves at home, then all calves from all farms are sent to one backgrounder.
All calves must be immunized and verified by local veterinarian prior to commingling.
Calves are backgrounded for 45-70 days, then marketed directly to a feedlot. All billing
and payments are performed on an individual calf basis; therefore, each producer is compensated
for the calves from his farm minus the expenses incurred by those animals.
Results:
Consigners have received individual animal performance data and utilized this information to make
knowledgeable management and genetic decisions. We also gained an average profit of $40 / head
compared to marketing the calves through traditional methods prior to commingling.
Summary
This program is a cooperative effort offering consigners opportunities not available to them as
individuals. Participants obtain individual animal performance and carcass data and utilize these
statistics to evaluate the economic impact of genetic and management decisions.
For more information please contact:
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