AUGUST 2015 contributing articles by Wes Ishmael
Dear Cattle Producer:
A branded bull is one that is the product of industry-leading genetic evaluation and selection, accompanied by unsurpassed customer service, marketed and delivered by a nationally-recognized program with a long-standing reputation for standing behind their products and services. Commodity bulls, on the other hand, are a product of the unknown. There’s little or no data to describe what the bulls’ genetics are capable of providing. They’re offered by bull sellers rather than seedstock providers. Most times, you buy them, you own them without much help if there is a problem, no matter what the fine print may say in the catalog, if there is a catalog. I believe distinction between branded and commodity bulls is increasingly important as the cost of both varieties increase with the value of calves. Moreover, I believe it’s critical to consider bull value—which includes cost—rather than cost alone. You’ll see on our Leverage Points header - the tag line: Adding and Retrieving Value with Genetics and Service. This was the founding mission of Seedstock Plus. It’s what continues to drive us. First, we strive to provide unmatched bull VALUE. In other words, we work to provide you more in the way of product and service for the dollars you spend to buy our branded bulls. This includes the balance, predictability and reliability of the bulls and females themselves, as well as the new and ongoing customer services you can see summarized on page 2. Next, we consider it a privilege to work with our customers to retrieve the value they add to their herds with Seedstock Plus genetics. You can read about a couple of examples on page 6. Likewise, we’re always excited to think creatively with our customers about developing solutions to their unique needs, see page 4 for examples. In other words, the primary driver of Seedstock Plus is providing our customers with the genetics and services that enhance their ability to add and retrieve VALUE. The cost of Seedstock Plus bulls, the raw price, is being driven by the added VALUE. We continue to draw new customers and benefit from an extraordinarily high level of repeat business. We appreciate and never take for granted the loyalty of our repeat customers. We understand they are the folks who helped build our program and continue to help it grow. As for new customers, one of the things we find most exciting is that many of them are also new to Gelbvieh and continued on page 8
Keeping Value-Added Genetics Affordable available to describe the potential of the genetics we use and sell. In addition to the data recorded and reported to the American Gelbvieh Association that is used to calculate EPDs for our Gelbvieh and Balancer cattle, we also take ultrasound measurements of all of the cattle we develop. We utilize DNA technology to profile the animals; this DNA is also incorporated into Genomic-Enhanced EPDs, which provide higher levels of prediction accuracy for younger animals. Additionally, Seedstock Plus records a variety of phenotypic data that are not currently used in formal genetic evaluation, but further inform our knowledge of bull lines and cow families so that we can better serve our customers.
Calf and feeder prices will likely continue near recordhigh levels through the next year, despite the gradual transition lower due to cyclical national cowherd expansion. At Seedstock Plus, we recognize this also means higher bull prices for our customers. That’s why we are proud of new and ongoing efforts to increase the value of what you buy from Seedstock Plus, while maintaining prices at the most affordable levels possible. Increased volume of bulls—We’re adding 50 more bulls to our fall offering in Missouri. We’re also establishing a sale in Kentucky featuring 2-year-old bulls (Blue Grass Stock Yards at Campbellsville Nov. 6). We didn’t reduce our culling criteria to increase the offering. Seedstock Plus members stepped up to the plate to develop and test more bulls.
AI Resources—Keep in mind that Seedstock Plus Genetics, a partnership entity to Seedstock Plus, continues to test and offer semen for both proven Balancer and GelbRetrieving Added Value—Besides adding pounds and vieh bulls, as well as a few promising young sires that meet value to your market calves, we know that Seedstock Plus our narrow selection specifications. Artificial Insemination bulls can also help you build replacement females for your becomes more affordable as bull costs increase, making it own herd, the kind demanded by others in the industry. In an alternative that needs to be considered, especially when addition to helping customers market their calves through it comes to building replacement females in your herd. direct trade and at auction as part of our long-standing Custom Solutions—We’re always willing to work with Market Assistance Program, look at page 6 to see how our customers to find solutions to their specific needs. On some of our customers are growing their bottom line by marketing Seedstock Plus-influenced females through our page 4 of this issue of Leverage Points, you can read about an exciting trial program we’re conducting with Tucker special commercial sales like the one scheduled for Nov. Farms in Kentucky to reduce the number of months he has 21 at Kingsville Livestock Auction in Missouri and at to feed and maintain bulls while having the opportunity to Blue Grass Stock Yards in Campellsville, KY Nov. 6. maintain or reduce his annual bull costs. Besides creativity, RFI testing—Seedstock Plus has tested 550 bulls and it speaks to the kind of trusting relationships we’re proud to females each year for residual feed intake through our own help develop. GrowSafe systems in Missouri and Arizona. We’re in the Warranties and Services—Seedstock Plus members conprocess of adding capacity at both locations. The premise tinue to subsidize the cost of free trucking (or credit when is simple: if you can increase the feed efficiency of the you haul purchases home yourself) and the cost of our exherd 10-15% you can run the same number of cows with tended bull warranty program. Even though these represent fewer inputs or more cows with the same inputs. While more cost each year, Seedstock Plus members continue to this information is important to some of our buyers, it’s critical to Seedstock Plus to comprehensively evaluate the believe, in addition to convenience, it’s one way they can help buyers hold the line on bull costs. Remember that in economically important traits of the genetics we use and addition to the volume and genetic quality, Seedstock Plus provide. also offers guaranteed sight-unseen purchases and marketComprehensive Genetic Evaluation—Since the begin- ing assistance. ning, Seedstock Plus has taken advantage of every tool
2
Seedstock Plus Fall Bull Sale
October 17, 2015 * 12 noon Joplin Regional Stockyards, Carthage, MO Selling 200 Gelbvieh & Balancer Bulls!
• • • • • • • •
Guaranteed Sight-Unseen Purchases! Let us help you find the bull to fit your program and needs! Free Trucking on every bull to anywhere! No fine print! The best disposition & soundness sort anywhere! Extensive Data & EPDs! All Bulls Are Semen & Trich Tested! Over 100 RFI tested bulls will sell in this sale! Sale will be available on the internet @ www.dvauction.com Videos of ALL SALE BULLS on website the week before the sale!
Seedstock Plus Influence Bull & Commercial Female Sale
November 6, 2015 * 7 p.m. * Bluegrass Stockyards, Campbellsville, KY Selling 35 - 18 month & 2 year old bulls & 100 Females out of or bred to Seedstock Plus bulls
Seedstock Plus Influence Commercial Female Sale
November 21, 2015 * 12 p.m. * Kingsville Livestock, Kingsville, MO Selling: 300 Females out of or bred to Seedstock Plus bulls
To view on-line catalogs and videos: www.seedstockplus.com Contact Seedstock Plus at:877-486-1160 or email: john@seedstockplus.com
Developing Solutions to Unique Customer Needs with cows,” Tucker explains. “With this new model we are turning out bulls of the same age and similar size. We use the bulls a single season, sell them and start with a fresh set next year. I think this will allow us to have newer genetics each years and to add different genetics.” In the meantime, there’s at least six months Tucker Farms doesn’t have to feed and manage bulls or worry about them figuring out ways to get into trouble or get themselves hurt. Though Tucker Farms isn’t currently planning to expand, he points out that having bulls fewer months opens up more carrying capacity. For perspective, Tucker Farms typically runs around 300 mama cows—they have only a spring calving season. Normally, they wean calves in the fall and then market the following February or March weighing 850-900 lbs. Between quality and reputation, these feeder cattle routinely top the sale. Historically, Tucker bought Angus bulls, good ones. About a dozen years ago he wanted to introduce more hybrid vigor and decided on Gelbvieh. He started experimenting with bulls from various breeders. Ultimately, he heard about Seedstock Plus and added them to the mix. “Over the years, I bought more and more bulls each year from Seedstock Plus. I’ve always been satisfied with the bulls and the way John Burbank does business,” Tucker explains. As Tucker gained confidence in Seedstock Plus, he experimented with the sight-unseen program, letting Burbank buy a few bulls for him and send them his way. Between being at Tucker Farms enough to understand their specific needs, and by virtue of knowing more about the bulls developed through Seedstock Plus than any buyer could know, Tucker says, “He bought me better bulls than I would have been able to buy myself.” So, Burbank began buying more and more bulls for Tucker Farms sight unseen. He bought and delivered all of the bulls for this unique trial sight-unseen. “Those bulls got here and came off the trailer looking like they’d travelled 60 miles rather than the 500 or 600 miles between here and Missouri,” Tucker says. “They unloaded calmly, got a drink of water and a bite of hay.” “I like the idea of knowing when we’ll buy bulls and when we’ll sell bulls. We also have the opportunity to get a little better bull each time,” Tucker says. “The big reason we are able to do this is that we and Seedstock Plus have developed a relationship that enables us to try this.”
“This is a way to simplify the process of dealing with bulls,” says Tom Tucker of Tucker Farms at Bradfordsville, KY, a long-time Seedstock Plus customer. “It’s a method to keep the bulls more uniform in size and age. I see it as a way to keep the bulls moving and not having a bull standing around here and having more chance to get into trouble and hurt himself.” Tucker is talking about a novel approach to buying and using bulls. It’s a trial undertaken by Tucker and Seedstock Plus, enabled by the lengthy history and trust they share. Briefly, Tucker bought 25 bulls from Seedstock Plus sight-unseen last spring. He used these bulls for a single summer breeding season, turning each bull out with 15-20 cows. Since the breeding season, Tucker has fed and managed the bulls with an eye on marketing them as 2-year-old bulls this fall. He’ll trich-test them beforehand, of course, put them through their Breeding Soundness Exam paces and all of the rest. He’ll sort through them, too, offering only those he’d be proud to buy and own himself. These bulls will sell in a special Seedstock Plus sale at Blue Grass Stock Yards in Campbellsville, KY Nov. 6. They will sell with full Seedstock Plus warranty and services. The sale in Kentucky will also feature commercial Seedstock Plus females, including a group of bred heifers from Tucker Farms.
Reduce Potential Loss and Accelerate Genetic Change Buying 18-month-old bulls and then selling them as 2-year-olds in the same marketing year also holds the potential for Tucker to maintain or even reduce his annual bull purchase costs, depending on the market. But, Tucker emphasizes this isn’t about economics. “This makes the purchase of bulls and everything associated with them more pre-determined,” Tucker explains. “The plan is set the day we buy the bulls that we will sell them six months later. It takes questions out of the equation, like looking at an older bull every year and wondering whether to keep him another season.” Historically, the age of bulls turned out for breeding season at Tucker Farms ranged from 18 months to as old as 5 years. “That presents some size issues and how to match the bulls up
4
continued on page 5
continued from page 4
Mutual Trust is the Lynch Pin Creating, let alone undertaking such a solution requires the kind of mutual trust borne by longstanding history, respect and commitment. “I feel very comfortable with the concept, the game plan and the bulls, Tucker says. “If this doesn’t work, it won’t be because of something either one of us did or didn’t do.” “This represents a win-win solution for Tucker Farms, Seedstock Plus and other Seedstock Plus customers,” Burbank explains. “It’s the chance to meet the specific needs of one of our long-time customers, while making 2-year-old bulls available to Seedstock Plus customers. In effect, this also expands our bull volume, which helps keep all Seedstock Plus bulls as affordable as possible.” Moreover, Burbank explains, “This is a chance to explore models of providing seedstock beyond the traditional one of buy and sell. As input costs and equity at risk continues to increase for commercial cow-calf producers, I believe we must be willing to consider anything that can help mitigate that while maintaining the integrity of our products and services.”
Seedstock Plus Among Top 10 Any listing or ranking of seedstock producers, while interesting, makes little difference. What matters is how well the products and services from each provider serves individual commercial cow-calf producers in general, and the collective industry overall. Even so, we were proud to see Seedstock Plus listed among the top 10 in BEEF magazine’s Seedstock 100 list (http://beefmagazine.com/2015-seedstock-100listing?intlink=rceoc). This listing is based on the number of bulls marketed in the previous calendar year. Our pride in the listing stems from the fact that selling so many bulls for so many years to so many customers—earning the right to stay in business—means we continue to develop and strengthen relationships with commercial producers who find value in our products and services.
Keep Your Mind in the Market Volatile commodity markets and the speed at which narrow windows of opportunity to manage risk open and close underscore the value of keeping your mind engaged in the market, no matter how frequently you trade cattle. That’s why Seedstock Plus continues to offer as a free service to its customers and members a complimentary subscription to the daily Cattle Current electronic newsletter. It offers a convenient snapshot of the previous day’s cash and futures markets for calves, feeders, fed cattle and related commodities. You’l also find pertinent market-related news. If you’re not receiving Cattle Current, or if you’d like to receive it at more than one e-mail address, please let us know and we’ll add you to the list. You can send your request to wes@cattlecurrent.com. 5
To Contact Seedstock Plus: Office Toll Free: 877-486-1160 Fax: 660-258-3508 John’s mobile: 660-734-1165 email: john@seedstockplus.com website: www.seedstockplus.com Address: Seedstock Plus 18864 Kepler Dr. St. Catharine, MO 64628
Seedstock Plus Genetics: Matt’s mobile: 660-734-2739 email: mattburbank@hotmail.com Josh’s mobile: 816-914-6053 email: jphillips44@aol.com
Increase Your Marketing Options With Seedstock Plus “Marketing heifers through Seedstock Plus really helped my bottom line,” says Tim Evert of Warrensburg, MO. “It has increased the value of our heifers by $300-$400 per head, maybe more in some cases. I’ve seen extra profit by marketing heifers through Seedstock Plus.” Evert is a longtime Seedstock Plus customer who first used Seedstock Plus bulls on heifers. “Those bulls worked really well, and I decided we should use them on our cows, too,” Evert explains. “It has made a big difference in our weaning weights.” At the time, he had Charolais crossbred and other mixed breed cows. He used mostly Balancer bulls at first but evolved to using Gelbvieh bulls on predominately Angus females and then Balancers on those calves. “One of the biggest influences Seedstock Plus genetics has made on our herd is calving ease,” Evert says. “We run enough cows that there’s lots of opportunity to get into a jam. We don’t hardly ever have to pull a calf from our heifers or our cows.” Evert has fall and spring calving seasons. He usually backgrounds his cattle and qualifies them for the MFA Health Track program. In a nutshell, Health Track criteria prescribe specific nutrition and vaccination requirements as part of a 45-day minimum preconditioning program. The program also includes data recording and reporting. “That really opened up my eyes to which cows are doing the job and which ones need to be sold,” Evert says.
Retrieving the Added Value “The other big thing John has helped us with is marketing our open and bred heifers,” Evert says. Because of the quality of Evert’s cows and the Seedstock Plus bulls he was using, his heifer calves were prime candidates for the Seedstock Plus commercial female marketing program. These heifers are sold private treaty and also via special sales like the one scheduled for Nov. 21 at Kingsville Livestock Auction in Missouri and the one set for Nov. 6 at Blue Grass Stockyards in Campbellsville, KY. Evert had always sold his steers and heifers through Kingsville Livestock Auction and had a longstanding relationship with the Anstine family that owns and manages the auction. In fact, it was Jeremy Anstine who steered him to Seedstock Plus bulls when he was looking for the heifer bulls mentioned earlier. “John talked to me several times and said to let him know when I had heifers to sell,” Evert explains. “The first year we sold heifers through Seedstock Plus, John helped us sell them private treaty. He was involved in every bit of that. I’m not sure that’s something you’d find other seedstock providers doing, working so hard to help you market cattle sired by their genetics.” Some of those heifers ended up going to Sam Newlin at Newlin Farms in Bucklin, MO. A big part of his cattle business is buying and developing open heifers, then selling them as bred heifers or pairs. Newlin is another longtime Seedstock Plus customer. “We’d been unhappy with the Angus breed and were unable to buy the kind of bulls our customers wanted us to use,” Newlin explains. More specifically, his heifer customers wanted calves that came easy but grew fast and ended up as a calf or feeder-weight animals with traits the buyers demanded. “So, we used Balancer bulls on a pen of heifers and had wonderful luck,” Newlin recalls. “Today, all of my bulls are Seedstock Plus, one way or the other.” As time went on, Newlin also discovered advantages in marketing some of his heifers through Seedstock Plus. “We wanted to expand and I had to have somewhere else to market cattle,” Newlin explains. About the same time, Evert was encouraging him to bring back some of the Seedstock Plus heifers he’d bought and developed to Kingsville. Along with expanding his marketing area, Newlin also found that Seedstock Plus represented an extra set of ears and eyes to serve his heifer customers. “Customers won’t always tell you if there’s a problem,” Newlin explains. “I need to know what my customers are thinking and how my heifers work for them. I don’t always have time to follow up. John provides that service. John and all of the folks with Seedstock Plus do a great job of following up after the fact. Those kinds of things I really appreciate.” Besides, knowing the background of the heifers he purchases via Seedstock Plus, as well as the reliability of the bulls 6
continued on page 7
continued from page 6
he breeds them to, gives Newlin confidence that his customers will rarely encounter any problem with the heifers he sells them. When the odd problem does crop up, he’s also confident that he’ll know about it and have help in rectifying it through Seedstock Plus. This added confidence is one of the reasons Tyler Cockrell of Cockrell Hill Farms at Freeman, MO buys Seedstock Plus heifers for his family’s commercial herd. “Buying bred females always comes with great risk,” Cockrell explains. “It’s important to us to know the calving ease of the bulls that have been used to breed them, in addition to their genetic value.” Cockrell is the third generation in his family to buy Gelbvieh and Balancer bulls, first from Burbank Cattle Co. before there was a Seedstock Plus, and then from Seedstock Plus. “We always liked Gelbvieh for their milking ability and the fact that they’re more docile than Angus. Angus brings us more meat quality. So, we really believe in the mix of the Balancer cattle, and they’re easier cattle to handle,” Cockrell says. The last few years, the Cockrells backgrounded most of their calves through the winter before selling them. Aside from the fact the market continued on the upswing, he explains it gave them a chance to increase the sale weights of the expected lighter calves from heifers. Cockrell adds that knowing the background of the heifers they buy through Seedstock Plus, and the reliability of the Seedstock Plus bulls they’re bred to also provides them more options. They have more confidence in keeping future heifers from those replacements. They also have confidence to develop and market subsequent heifers from those replacements if they choose.
Getting it Right on the Front End “I got involved in helping with the bull development program when it moved to RJM Feeders (owned and managed by the Anstine family) and I got to understand a little more about what Seedstock Plus does,” Evert explains. More specifically, he got a feel for how seriously Seedstock Plus takes tracking and evaluating cattle as they’re developed. For instance, Newlin says, “People don’t often think about foot trouble, especially on bulls. It’s a serious thing. John spends a lot of time looking at the feet and legs of the bulls as they’re being developed.” It all has to do with developing and marketing problem-free bulls, but also in understanding where and how bulls will fit in different customer herds. “John and Seedstock Plus work hard to satisfy you. John doesn’t just sell you a bull, he tries to match the bull to your needs,” Evert explains. “They have a fantastic warranty program, but the quality of the bulls is such that you don’t often need it.” If a problem does occur, Evert appreciates how willing Seedstock Plus is to work with customers to make it right and not leave them hanging. “John will work with you, and he won’t leave you in a jam if you’re needing to replace a bull in a hurry,” Evert says. The same goes for the heifers sold through Seedstock Plus. Newlin explains that John helps him identify the heifers that will work best for his heifer business. His confidence is such that Newlin buys some of his heifers from Seedstock Plus via the guaranteed sight-unseen program. “They just show up. It leaves me a half-day to go get something else done,” Newlin says. He’s referring to Seedstock Plus’ guaranteed sight-unseen purchase program. Likewise, Evert buys many of his cattle from Seedstock Plus sight-unseen. When he can, though, he likes to go to the sales because he enjoys meeting the breeders who comprise Seedstock Plus. “I’ve got two bulls now that need to be replaced,” Newlin says. “I just call John and tell him what I need (heifer bulls or bulls for cows) and he takes care of it.” “John has always been a good knowledge resource for us. I can always trust that he will give us the best answer possible,” Cockrell says. “Like any good rancher or farmer, John is always looking for feedback from his customers. I think that’s what customer service is all about.” 7
Seedstock Plus Influence Bull & Commercial Female Sale
November 6, 2015 * 7 p.m. * Bluegrass Stockyards, Campbellsville, KY Selling 35 - 18 month & 2 year old bulls & 100 Females out of or bred to Seedstock Plus bulls
Seedstock Plus Influence Commercial Female Sale
November 21, 2015 * 12 p.m. * Kingsville Livestock, Kingsville, MO Selling: 300 Females out of or bred to Seedstock Plus bulls
Call Toll Free for more information 877-486-1160
continued from page 1 Balancer genetics. With Seedstock Plus, we’re confident that their introduction to these genetics will be positive. Seedstock Plus will not become complacent with our past successes. We know we must work every day to continue to earn your trust and business. That includes making continuous improvement to our genetics and services. It means providing you with continuously more VALUE for your bull dollars than our competition, whether the competition sells bulls at higher or lower prices. As you read through this newsletter you will see examples of our level of commitment to add value for our customers. These include: • Expanding the Seedstock Plus sale offering, including more volume and 2-year-old bulls. • Expanding the capacity of our GrowSafe systems to evaluate more bulls and heifers for feed efficiency. • Adding a more robust selection tool for customers to use with Genomic Enhanced EPDs. • Expanding the opportunity for customers to utilize Artificial Insemination through Seedstock Plus Genetics. • Expanding the marketing opportunities for customer calves sired by Seedstock Plus bulls or out of Seedstock Plus cows. This is in addition to how we help customers market calves and feeder cattle through out Marketing Assistance program. Less explicitly stated in this newsletter are details that have long been a part of how Seedstock Plus conducts business, starting and ending with honesty and integrity. For instance, we sort bull prospects hard, paying special attention to disposition, feet and leg structure, and going the extra mile to stand behind what we sell. We make no apologies for our belief in the power of crossbreeding and managed maternal heterosis, or our commitment to hybrid genetics. All of these are part of how Seedstock Plus continues to drive VALUE for our customers regardless of the price. If you are not moving forward in this dynamic industry, then the reality is you are losing ground. Seedstock Plus will continue to move forward to improve, do more and take care of our new and repeat customers. There is no reverse gear at Seedstock Plus. Thank You for your past and future business. John Burbank, CEO
Seedstock Plus
8