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Learn how to add value to your cattle through exporting to Japan, capturing premium prices, and optimizing marketing methods. Explore the benefits of castrating and dehorning practices, vaccination programs, genetics, and marketing strategies.
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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%) • Export premiums would add $20-35/ head in value
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)
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.
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.
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.
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
Methods of MArketing • Sale Barn or Auction Sale • Private Treaty • Internet Auctions • Video Auctions • Retained Ownership
Methods of MArketing • Weighing Conditions • Shrink • Commission • Consignment Fees • Details, Details, Details….
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