Beef on dairy premiums

Higher Premiums

3 STEPS TO SECURE HIGHER PREMIUMS FOR BEEF X DAIRY CATTLE 1 CALF CARE 2 TRACEABILITY 3 MARKET ACCESS

by Lauren Kimble, ProfitSOURCE supply chain logistics, Select Sires Inc.

No matter a dairy’s size, location or breed preference, a beef x dairy (BxD) strategy is a viable source of profit. It is no secret that a beef-cross calf can bring over $100 more than a dairy calf. Previously, packers were pressed to sort through beef, dairy and beef-cross cattle. However, the recent influx of crosses into the U.S. beef supply chain has pushed packers to identify superior and inferior BxD cattle, too. In fact, as presented at the 2022 Midwest American Society of Animal Sciences (ASAS) meetings, BxD cattle of known, elite genetics strongly outperformed commodity BxD in average daily gain (ADG) and dry matter conversion in the feedlots, as well as in percentage of carcasses graded Choice on the rail.

Cheap cleanup semen just won’t cut it anymore, but how do we ensure the packers know what they’re getting? How do we influence the chain so that these higher prices at the end of the line are reflected in what is paid to the dairy producer at the beginning? This is where Select Sires’ ProfitSOURCE® program comes into play. The program emphasizes three key needs to garner the best return on your investment. From calf care at birth, identification and record-keeping for confident traceability and strategic partners for secure market access, ProfitSOURCE is the industry’s most complete program for value-added BxD and straight-bred beef embryos.

CALF CARE

ProfitSOURCE BxD calves have an edge over commodity calves when it comes to care. Proper colostrum management means a more vigorous immune system for life and lower risk assumed by the calf ranches. ProfitSOURCE calf care requirements build trust, so the premiums paid by the calf buyer to the dairies remain high. For more information about Select Sires’ elite BxD calf care products, check out our Herd Management Solutions portfolio.

TRACEABILITY

Program calves have a significant advantage over commodity calves in traceability. Herds enrolled in specific supply chain programs enter calf EID and parentage, and calves are then known through their lifetime. As consumers demand the farm-to-table story, our partners are willing to pay more for a calf of known, elite genetics. What’s more, we can use data collected throughout each calf’s lifetime to determine how our genetics perform, whether it’s health, efficiency or carcass merit. This in turn allows us to build an elite lineup of BxD genetics tailored to both the dairy and our partners’ needs.

MARKET ACCESS

Supply chains are not one-size-fits-all. ProfitSOURCE offers many options to fit the needs of the dairy and make the most out of each pregnancy. Whether it be enrolling in a defined supply chain, or using our elite genetics independently and selling on the open market, ProfitSOURCE has an option to complement each dairy.

Remember, our unique partnerships set us apart from the rest of the industry and provide consistent market access for the long haul – so if your dairy is located in a region of the U.S. where a program is available, it is a strong option. Not to worry, though – the ProfitSOURCE tags are recognized on the open market too, with calves performing well everywhere from local sale barns to Superior Livestock video auction.