SELECTIONS FALL 2023
3 u POCKETS OF PROFIT POTENTIAL 6 u REDUCE HORMONE AND ANTIBIOTIC USE 9 u MYCOTOXIN PROTECTION RESEARCH 10 u THE JONESES AND GENETICS 12 u TARGETING GENETIC MARKET NEEDS 14 u BXD CARCASS CALLOUTS
CONNECT. LEARN. ADAPT. DRIVE. David C. Thorbahn, President and C.E.O., Select Sires Inc. Many describe the dairy industry as a small, tight-knit community, albeit anything but small geographically. This community spans the globe with farmers across the nation and around the world constantly finding opportunities to connect, learn, adapt and drive their business. Dairy farmers are knowledge seekers and each year I attend World Dairy Expo for a similar purpose – to connect with the industry, learn from experts and listen to customer experiences as they adapt and drive their business. I found two common themes in nearly every conversation I had during my week in Wisconsin: sustainability and data. Both are open-ended topics with various interpretations, but they are two topics that were brought up by industry colleagues and farmers alike. We can define sustainability and data six ways to Sunday but let’s focus on how Select Sires is addressing and applying these important topics. How is your genetic strategy influencing sustainability? Select Sires looks at sustainability from a genetic perspective by assessing the productive efficiency, fertility, health and fitness of the cow. Herds with healthy, longer-living cows earn a better return on their
investment. Lowering your cull rate has far-reaching benefits, from money to methane. In fact, earlier this summer Select Sires’ Colin Beal, Ph.D. and Chuck Sattler evaluated a life-cycle assessment to compare the impact of culling rates on greenhouse gas emissions and the review was astounding. They captured an opportunity to reduce methane emissions 4.2% when lowering cull rate by 7% in a 2,000-head Holstein dairy. Read the entire article by scanning the QR code. Healthy, longer-living cows may be the goal, but how will you reach that goal? Select Sires will create and implement a plan customized to your dairy. For many years, genetic development has focused on sustainability and the current lineups are equipped with high-ranking sires that transmit these sought-after health and fertility traits. Select Sires has the industry’s highest Holstein average for Herd Health Profit Dollars® (HHP$®), the most sustainability-focused index. What drives genetic progress? There is an abundance of data gathered from today’s dairies. Working with your Select Sires team to sort through that data and identify the best applications and strategies is imperative. Just like dairy farmers are knowledge seekers, Select Sires’ consultants learn from their colleagues around the world. They engage in high-level trainings to provide you with the most intuitive and innovative solutions. On page 12, Rick Ellerbrock proves that data drives genetic progress and demonstrates how Select Sires connects strategy to return on investment so dairies can make informed decisions. On each page of this magazine you’ll find new ideas and concepts to enhance your dairy and drive your business. Contact your Select Sires representative today to access these valuable tools and services. u
GENETICS ARE SHAPING SUSTAINABILITY. A smaller carbon footprint and greater milk components are both possible with HHP$.
Did you know genetic progress equals greater sustainability? Select Sires’ Herd Health Profit Dollars (HHP$) index is designed to lower your dairy’s carbon footprint. From feed efficiency and increased components to disease resistance, fertility and beyond – sires that excel for HHP$ can improve sustainability while cultivating more profit.
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IDENTIFYING POCKETS OF
PROFIT POTENTIAL Cole Mark, Director of Consulting and Profit Strategies, CentralStar Cooperative Inc.
The dairy industry gets more competitive and operates on tighter margins by the day. While we are seeing farms exit the industry, there are many dairies that are not only surviving, but learning to thrive in this climate. What strategy or attributes set these elite operations apart? If you ask the managers of these successful farms, they will offer up their own unique secret sauce of tips and tricks that drive their profitability, but years of research done by Zoetis and Compeer Financial has revealed six common threads between the most profitable operations. Continue reading on page 4.
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IDENTIFYING POCKETS OF PROFIT POTENTIAL, continued...
Top Six Factors Affecting Profitability 1. 2. 3. 4. 5. 6.
Somatic Cell Count Energy Corrected Milk (ECM) Per Cow Death Loss Net Herd Replacement Costs Pregnancy Rate Heifer Survival Rate
If there’s a secret sauce that offers your dairy an edge, you should certainly pursue those extra dollars. However, mastering these six factors will garner long-term success. I always like to start with the low hanging fruit, so let’s focus on net herd replacement costs and ECM.
Current herd size Cull rate
38%
Projected replacements needed for the next 23 months
1,138 Hd
Heifer inventory
1,284 Hd
Surplus/Deficit
146 Hd
Cost of unneeded surplus (assuming $2,200/hd raising cost)
$321,200
Target cull rate
32%
Surplus heifers at target cull rate
324 Hd
Cost of unneeded surplus at target cull rate (assuming $2,200/hd raising cost)
$712,800
Far-reaching impact of too many heifers Right-sizing heifer inventories through selective culling or beef x dairy strategies is not a new topic. Yet, it still remains a challenge for some dairies. The data above, from one of my customer’s herds, stresses the importance of inventory management. This 1,500-1,600-cow herd, which includes dry cows, is not in expansion mode. With this dairy’s current herd size and cull rate, they still have a surplus of 146 heifers, which will cost them more than $320,000 to raise. We uncover something even more shocking by digging into the cull rate. This farm is experiencing something that has become very common. Their breeding strategy was creating too many females and as the springers began calving, they culled older cows to make room for the fresh heifers. This strategy increased their cull rate and also increased the herd’s percentage of cows in their first lactation. If we compare the inventory to the number of heifers needed at a target cull rate of 32%, the expense expands to more than $700,000 to raise those additional heifers. 4 u
1,564 Hd
This data set provides a snapshot of the current situation, but it’s also important to look at the finer details and factor in things like heifer non-completion rates. Remember, your Select Sires team is ready to help you sort through these details and create a strategy for your individual dairy. Herd demographics and the effect on ECM Next, we review the impact of this dairy’s high cull rate on ECM per cow. When I hear ECM per cow, my mind instantly evaluates cow comfort, quality forages and transition cow management. However, it is important to take a step back and consider how the demographic of our herd affects ECM values.
It’s not breaking news that mature cows produce higher volumes of milk compared to two-year-old cows. Sometimes we are guilty of overlooking how many two-year-olds are in the milking string when a surplus of fresh heifers drive mature cows out of the herd in an effort to make room. Below is a comparison of this same herd with their current demographics and resulting production on the left. The right side reflects the target scenario. By driving down the cull rate and What if... the cull 589 Hd L1 (38%) @ 26,012 lbs EC305 500 Hd L1 (32%) @ 26,012 lbs EC305 milking a larger portion of mature rate and %L1 cows, the herd could increase the + 975 Hd L2+ @ 30,333 lbs EC305 + 1,064 Hd L2+ @ 30,333 lbs EC305 decreased to 32%? hundredweights (cwts) sold by 448,957 cwts annually 452,803 cwts annually nearly 4,000 per year. This shift Comparison of × $19 Milk Price × $19 Milk Price in strategy is worth an estimated percent first $73,000 and the number grows as lactation cows from = $8,530,183 annually = $8,603,259 annually milk prices rise. 38% of the milking +$73,076 herd to 32%. Tailored to your dairy When we combine the improvement benefits of these two factors and look at the annual 324 Hd x $2,200 = $712,800 3,846 lbs Lost Production opportunity cost associated, the numbers are astounding. It’s critical to point out that I didn’t choose net herd replacement costs and ECM /23 Months x $19/cwt to review per cow at random. These two factors are correlated because they are directly influenced by breeding and heifer inventory strategies. = $371,896 Annually = $73,076 Lost Revenue Years of research has repeatedly shown that net herd replacement costs and ECM are extremely consequential to a dairy operation’s profitability. = -$444,972 annually These situations are complex and no two farms are alike. Select Sires can help tailor a strategy to fit your dairy’s specific needs. Reach out to your Select Sires representative to begin creating your most profitable strategy. u
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REDUCE EMISSIONS ONE GALLON AT A TIME. Mastitis hurts your profits and the environment. Research shows that a cow with a case of mastitis has 6% higher emissions per gallon of milk during that lactation compared to a cow without mastitis1. Select Sires’ Herd Health Profit Dollars® (HHP$®) index places 4-5 times the emphasis on mastitis resistance traits compared to other indexes. Leverage the best sires for HHP$ to lower your carbon footprint while boosting your herd’s health and your bottom line.
Mostert et al, 2019.
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HANKE FARMS REDUCES HORMONE AND ANTIBIOTIC EXPENSES WITH COWMANAGER Management efficiencies have a significant impact on a producer’s bottom line. Even small adjustments can create more flexibility in the monthly budget and improve cow health. The Hanke family of Hanke Farms in Sheboygan Falls, Wisconsin learned early that if you take good care of the cows, the cows will take good care of you. This focus on animal well-being, coupled with the opportunity for increased productivity, led the Hankes to install CowManager® on their farm in 2022. Hanke Farms milks just under 1,000 Registered Holsteins with a rolling herd average greater than 100 pounds. With 1,280 CowManager sensors, they ensure 100% coverage of the herd. Focusing on reproduction and overall animal health, the Hankes implemented the fertility and health CowManager modules.
90% LESS PGF
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REDUCED PROSTAGLANDIN USAGE BY 90%
Herd health report “Preventative and proactive treatment” is the motto that the Hankes live by. They recognize that they may work with more cows early, but preventing illness and health events in the long run is paying dividends. Through this preventative approach, the Hankes have seen a significant reduction in hormone and antibiotic use and expense, resulting in an annual savings of $34,138. This pencils out to approximately $36 per cow, per year. Of particular note, prostaglandin (PGF) use in the heifer herd has reduced by a whopping 90%. “Hanke Farms’ implementation of the CowManager system was a game changer,” says Scott Hecker, CowManager specialist, CentralStar Cooperative. “The savings from reduced labor and pharmaceuticals is improving their bottom line, while the gained efficiencies in getting cows pregnant is a major win.”
PER $36 COW PER YEAR
SAVINGS ON HORMONE AND ANTIBIOTIC USAGE
$34,138
ANNUAL SAVINGS SAVINGS MADE POSSIBLE BY CowManager
Reproductive performance Not only have the Hankes seen a savings in pharmaceutical costs, but their reproductive performance has improved while reducing the labor needed to get cows pregnant. Prior to installing CowManager, 80% of all rebreeds within the lactating herd were the result of timed A.I. (T.A.I). Today, that number is at 40%. Natural heats prior to CowManager sat at 16% visual, but now 60% of the cows are bred resulting from CowManager alerts. For the heifer herd, the farm was averaging 42% heat detection rate (HDR) based on visual heat detection and the current detection rate has climbed to 73%. Creating labor efficiencies While the Hankes may be spending more time with animals up front, the long-term labor savings and flexibility in labor management contributes to the farm’s bottom line. Less time is spent administering shots to cows and heifers while heat detection is increasing. “Fifteen years ago, it was all collars. Then, when they came out with the ear tag system, I really liked that idea,” says Doug Taylor, herd manager, Hanke Farms. “Having a tag in the ear is a lot easier. There are no collars to loosen and pinch fingers and I’m not tied to specific times in the parlor with pedometer systems. If we need to cull a cow, I can just remove the CowManager tag and reuse it for another animal, unlike the bolus systems. There’s no way to recover that bolus when the cow leaves the farm which means lost money. With CowManager, I can set the headlocks and work with animals as my schedule dictates – there’s just so much more flexibility in management with this system.”
CowManager slashed rebreeds in half from 80% to 40% for the lactating herd.
CowManager alerts helped increase the HDR for heifers from 42% to 73%.
Contact your Select Sires representative to talk about CowManager. There are promotions available for new and existing customers, including 0% financing and 25% off the nutrition module. New customers can benefit from three months of CowManager software absolutely free. Learn how you can streamline management efficiencies in your herd today by leveraging CowManager. u
AHEAD OF THE HERD TOGETHER
THE FUTURE
IS IN THE EAR Your cows’ ears are full of data. CowManager ear sensors measure ear temperature combined with behavior, giving you actionable insights about the health, fertility, and nutrition of your herd. Catch sick cows days before they show clinical signs and never miss a heat. Know exactly which cows to focus on – and why. www.cowmanager.com
SPECIAL OFFER
3 MONTHS
FREE
SOFTWARE FOR NEW CUSTOMERS FROM OCTOBER 1 DECEMBER 31
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FOCUS ON THE FUTURE.
What does the future hold if antibiotics and reproductive hormones begin to disappear? Healthy cows will bring good fortune to your operation. Use an index that reduces health events and prioritizes fertility to prepare for the best and most profitable future. Secure your legacy by using Select Sires’ Herd Health Profit Dollars® (HHP$®) index to create the best cows for your future. 8 u
HOW ARE YOU PROTECTING YOUR COWS FROM MYCOTOXINS? Larry Roth, Ph.D., PAS Vice President of Nutrition, Agrarian Solutions
Several products are marketed for their ability to bind mycotoxins and thereby protect food-producing animals from their harmful effects. Recent research has raised concerns about the inability of these products to adequately sequester mycotoxins, and may in fact reduce the availability of amino acids and vitamins. Independent research studies A meta-analysis of 68 peer-reviewed research studies¹ was recently conducted to determine the percentage of mycotoxin adsorption by various mycotoxin binder products (MTB). The analysis found that mycotoxin adsorption is highly variable, with aflatoxin being the highest and deoxynivalenol being the least. In addition, activated carbon (charcoal) was the most effective MTB across mycotoxin type; however, considerable variation in pore size exists due to source and processing. Earlier research² evaluated adsorption by the MTB for vitamins and amino acids. When the waterand fat-soluble vitamins D and E were incubated together, the MTB adsorption averaged 35% for the water-soluble vitamins and 37.2% of vitamin E, while minimal vitamin D was bound. The researchers incubated the amino acids lysine, methionine, threonine and tryptophan together with the MTB and found that 19% of the amino acids were bound.
What does this say about your mycotoxin protection strategy? The studies show that common MTBs are ineffective for adsorption of most mycotoxins. The data also showed that MTBs did bind water-soluble vitamins, vitamin E and amino acids. Knowing this, rations that include common binders should be adjusted to account for the reduced availability of vitamins and amino acids. These independent studies show that there are sacrifices when using common mycotoxin binders. For mycotoxin protection, Agrarian Solutions® recommends probiotic products Select DTX Concentrate and Select BioCycle Plus Concentrate. These products provide powerful protection from mycotoxins without tying up valuable vitamins and amino acids that are essential to cow health and ultimately, milk production. u 1 Kihal et al (2022). J. Anim. Sci. 100:1-14. Kihal et al (2020). J. Dairy Sci. 103:3125-3132.
2
Select DTX™ Concentrate is a concentrated form of Select DTX. It is a unique direct-fed microbial product formulated with L-form bacteria. Select DTX is designed specifically for feed challenges caused by molds and their metabolites.
Select BioCycle Plus™ (BCP) Concentrate is a concentrated form of Select BioCycle Plus. It is a complete product that combines the benefits of Select BioCycle and Select DTX and is recommended when there is a combination of breeding, production and herd health problems stemming from molddriven problems.
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THE JONESES AND GENETICS CREATING A GENETIC STRATEGY THAT KEEPS YOU AHEAD Rick Ellerbrock, Eastern Training Service Program Manager, Select Sires Inc. “Keeping up with the Joneses” is commonly used to compare your success to your neighbors. Many dairy farmers compare their benchmarks with herds down the road and across the country to see where they stand or how they can improve. The desire to one-up the Joneses is only natural and typically becomes a goal for progressive herds. Producers are often familiar with industry benchmarks for production, reproduction and general business objectives, but most aren’t as familiar with industry averages for various traits and indexes. One sure-fire way to stay ahead of the genetic curve would be to use NxGEN® sires in your breeding program. NxGEN members are granted early access to the industry’s best genetics, ensuring that your herd’s genetic level is “keeping up with the Joneses” – most likely exceeding the Joneses. Creating a complete strategy Many Select Sires customers have implemented strategies to help manage their heifer inventories. There are three components to a strong strategy:
Figure 1 is an example from a herd based on Net Merit (NM$). Genetic performance in the heifer groups began improving after the herd began using NxGEN sires. Their genetic merit experienced another boost when the herd began ranking their animals by genomic data and using that information in their breeding strategy. Is NxGEN the right fit for your herd? A common misconception of NxGEN is that it is cost prohibitive. Take these factors into account before you shy away from enrolling.
Heifer inventory management Increased value of calves sold from terminal matings (beef x dairy) Mating the herd’s highest ranked females with high-ranking sires Without the third component, the herd is only managing inventory and the premium received from saleable calves. The genetic component of the equation can be easily overlooked when developing a strategy because it takes five years to truly see that return on investment. It’s also important to keep in mind that as herds right-size their heifer inventory, there will be a finite number of replacements available each year. Less replacements coupled with a lower culling rate yields older cows. Herds with more aged cows are at a higher risk for lost revenue from health events. Focusing on elite genetics and selecting the best sires for health, mastitis resistance, fertility and productive life is critical.
Figure 1: NM$ by Birth Year
800
TO P
640
u
There are volume discounts that are easily summarized by our genetic strategy calculators.
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NxGEN offers some of the youngest and highest ranked sires from the Select Sires, Accelerated Genetics and GenerVations lineups.
u
Genetics can be challenging to quantify when we want to compare benchmarks with our neighbors. With NxGEN, you are guaranteed to be using the most elite sires and earlier than ever before. This early access can drive your genetic progress and profit! RA
NK
HE
RC ALC
EN
UL
50
%
MA TIN
GS
NxG
IFE
ED
LACT = 0
ATO R
LACT = 1
480
LACT = 2 LACT = 3
320 NM$
LACT = 4 LACT = 5
160
LACT = 6 0
LACT = 7 LACT = 8
-160
-320 2014
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2015
2016
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2018 Birth Date
2019
2020
2021
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2023
Figure 2: NM$ Sire Selection Tool Proposed Current Sire Group Sire Group
Average NM$
(Net Merit Dollars)
Average SCR
(Sire Conception Rate)
$920
$1,165
0.0
0.2
Total EXTRA value of improved genetics and SCR per bull in the PROPOSED group
$45.47
$50 $40 $30 $20 $10 $0
Total EXTRA Value Extra genetic NPV due to SCR Value of improved SCR NPV of improved genetics
Note: Using bull groups (10+ genomic bulls or 6+ daughterproven bulls) increases Reliability of the bull group for any trait. The number of NxGEN sires with an SCR score may vary/be limited due to their age and early release status.
Assumptions Used: Current Conception Risk: Current Abort Rate: Current Pregnant Cow Cull Rate: Current Heifer Loss Rate (to calving): Percentage of Females:
40% 5% 5% 10% 48%
Comparing the cost benefits When forecasting your herd’s future success, it’s important to consider what a sire is bringing to the table. Be confident that the sires you choose will increase the genetic level of the herd. Several years ago, Penn State University’s Chad Dechow, Ph.D. outlined the value of $100 of NM$ while comparing the costs of high-ranking versus lower ranking sires and considering Sire Conception Rate (SCR). Select Sires has since developed a tool that uses this study to help illustrate this value. For the example listed
(Figure 2), I have compared a herd that is using a group of sires averaging $920 NM$ to the average of the current NxGEN lineup that averages $1,165 NM$. This example shows that utilizing the NxGEN lineup could provide an additional $45.47 per unit of value. Modern dairies are managed with the utmost scrutiny. The ultimate goal is to have the most productive and efficient cow in each stall. Your Select Sires team can help create a strategy to achieve this goal. Boosting your genetic performance will keep you ahead of the Joneses. u
HHP$® Distribution for Select Sires’ Active Holstein Proven and Young Sires - August 2023 45
NxGEN sires average (+1,200 HHP$) Select Sires active proven and young Holstein sires average (+982 HHP$)
35 Industry active proven and young sires average (+743 HHP$)
25
15
5 < 500
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650
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950
1,000 1,050 1,100 1,150 1,200 1,250 > 1,300 11 u
TARGETING MARKET NEEDS You can never step in the same river twice. In other words, the world is ever-changing. This rings true for genetics as well – the genetic pool is always evolving – and producers are continually updating and developing their breeding philosophies to create the best animal possible to meet their management goals. The implementation of genomics accelerated genetic progress and allowed for greater control over desired genes in the dairy industry. Select Sires’ Aggressive Reproductive Technology™ (ART™) program minimizes generation intervals while creating sires that meet the needs of the modern dairy cattle producer that might otherwise not be met with popular breeding strategies. By acquiring elite females and partnering with top genetic herds around the world, ART can widen the genetic pool, reduce the trend of advanced inbreeding and produce more high-ranking sires at a faster rate. The program can also develop bulls who satisfy specific niche genetic needs that might not be a priority for traditional breeding programs. The program grew by 40% in 2022 and will transfer an estimated 15,000 embryos this year, resulting in approximately 5,000 live calves. Diversity of genetics is of utmost importance for ART. Roughly 40% of Select Sires’ Holstein sires are ART graduates, with 60% acquired from dairy producers across the United States and Canada. We know that often the main goal of U.S. dairy producers is to breed elite, high-ranking females as they are the animals who make farmers the most money. However, as a global company it is imperative to be cognizant of traits that may be more attractive for international markets or that may align with specific management styles, such as Polled genetics and grazing bulls. Slick genetics have experienced increased focus over the past five years as well, developing bulls with a greater heat tolerance for use in grazing herds or herds in Select Sires works closely with Jersey breeders to develop tropical environments. sires that meet the needs of niche markets and prioritize As you seek out the most optimal genetic solutions for your herd, remember the important industry traits like health and wellness. Select Sires lineup and the ART of fine breeding. u
SPECIALTY SIRES
7JE1800 RENFROW S-S-I VICTORY DASHIELL RENFROW-ET • No. 9 JPI™ proven sire in the breed • No. 1 CW$™ proven Jersey sire in the Select Sires lineup • No. 4 DWP$® proven Jersey sire in the Select Sires lineup • First Jersey ART daughter-proven graduate
VICTORY 56085 RENFROW 61184 {5} (VG-84%) RENFROW daughter, Victory Farms LLC, Revillo, SD 12 u
POLLED SIRES By sourcing and developing high-quality Polled genetics, Select Sires is providing a management solution without compromising genetic gains. Other benefits of Polled genetics include animal welfare, elimination of dehorning tasks and management, and consumer confidence.
14H016592 BOB ROSS-P LARS-ACRES M BOB ROSS-P-ET
• An easy-to-use sire due to his unique sire stack that complements Polled lines. • Mastitis ResistantPRO® and udder-improving traits • Develop healthy, profitable cattle for the next generation of your herd • Six generations of ART breeding
S-S-I ZIPIT 11293 11891P-ET (EX-90-EX-MS) Third dam of BOB ROSS-P
SLICK SIRES Heat stress is a challenge for dairy farmers around the world, with many using different cooling systems to help tackle hot and humid seasons. In some regions and operations though, the solution isn’t quite as straightforward. Take grazing herds or tropical environments for example; year-round exposure to extreme temperatures and humidity can be difficult to manage using environmental control measures alone. At Select Sires our mission is to provide slick genetics in the most advanced genetic merit package possible.
9HO16227 CHIP S-S-I CONWAY CHIP SLICK-ET • No. 1 GTPI , HHP$®, CM$ and DWP$ slick gene sire in the Select Sires lineup • Boosts long-term profitability and adds components • Increases your herd’s ability to tolerate heat ®
PROGENESIS TANGO FANCY (VG-85) Fourth dam of CHIP
XD SIRES Select Sires’ XD program offers the best of Holstein and Jersey genetics in a simplified approach to producing high efficiency cows for your milking string. You can expect efficient component production while keeping body size in check.
7XD5 UR TIGERWOODS UR DOUBLE CROSS SSI TIGERWOODS-ET • Jersey x Holstein cross with more than 240 daughters in his production proof • No. 1 HHP$, NM$, CM$, Milk and CFP with positive DPR • A2A2 Beta-Casein and AB Kappa-Casein • Elite Sexed Fertility™ sire for added confidence
S-S-I SUPRSIRE MIRI 8679-ET (EX-90-EX-MS-GMD-DOM) Dam of UR TIGERWOODS
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CARCASS CALLOUTS
UNDERSTANDING THE VALUE OF QUALITY Lauren Kimble, Manager of ProfitSOURCE® and Low Carbon Technologies Supply Chains, Select Sires Inc.
We can all agree that quality is king and making high-quality products, whether that be milk or beef, is the goal. Quality is a rapidly improving target - how do we stay ahead? Through research trials and carcass data, we can put a price on performance and show you the dollar value of quality cattle as we focus on continuous improvement. Let’s break down some ProfitSOURCE results on a typical packer grid. Most beef x dairy (BxD) carcasses are paid on a packer grid. Select Sires is closely monitoring ProfitSOURCE progeny through various supply chains. Carcass performance for 7AN526 CHECK IT progeny has been impressive with 27% grading Prime at one of our commercial packing partners. Let’s group these progeny together as an example.
We will use the following grid specs, which reflect a real, current grid at a large packer:
QUALITY GRADE
YIELD GRADE
Prime: $20/cwt Choice: Par Select (-$30.62/cwt)
1 and 2: $3/cwt 3: Par 4 and 5: (-$10/cwt)
You’ll notice that the spread for Quality Grade (QG) premiums and discounts is much more dramatic than the spread for Yield Grade (YG). That is quite typical in the current marketplace. Consumers continue to demand high-quality beef and this has driven QG spreads to record highs. While these premiums have been reined in slightly, they are still intensely favoring animals bred for high Marbling – a hallmark of the ProfitSOURCE genetic lineup and highly heritable trait.
and crunch cords from “Packer B” re ss rca ca y en og pr IT’s 73 ade results Now, let’s take CHECK the grid. The Quality Gr on er th ge to ted rke re one lot ma are char ted below. the data as if they we the Yield Grade results d an , 15 ge pa on , ht e of are illustrated to the rig At $3/cwt., an averag of e ag HEAD At $20/cwt., an aver $24.95 added PER AD HE averaging 832 lbs. $172.52 added PER YG 1 or 2 on 31 head r fo averaging 862 lbs. for Prime on 20 head 0 ium to $3,450.8 e total Prime prem th g in br d ul wo is Th 33.49! or 2 premium to $7 and the total YG 1
S
YIELD GRADE RESULT
1 2 Carcasses Graded YG
29 Carcasses Graded 36 Carcasses Graded
YG 2 YG 3
YG 4 6 Carcasses Graded
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Carcasses
Carcasses Graded PRIME
Hot Weight Average
Carcasses Graded CHOICE
Carcasses Graded SELECT
R K E TI N G
?
MA
Q&A
73 853 lbs. 20 49 4
G RI D
QUALITY GRADE RESULTS
Q: What is a carcass grid? A:
A grid is a cattle pricing structure based on actual individual animal carcass merit when selling finished cattle to a packer. Grid marketing means selling fed or finished cattle with the price based on hot carcass weight, with premiums and discounts applied based on the quality and yield grade attributes of each carcass. This is the opposite of cattle sold on a live weight, or cash basis, to the packer, which are paid only based on the live weight of the cattle, with no regard to the carcass quality at harvest.
Q: What do grids reward? A:
Grids have parameters for quality, yield and branded-beef programs like Certified Angus Beef. Quality Grade is based on marbling, which is a highly heritable trait and can be heavily influenced through use of elite genetics. Premiums for Yield Grade, or yield of saleable retail meat, are less rewarding than Quality Grade. Typically they are up to $5 per cwt on the best performing cattle whereas Quality Grade premiums can exceed $15 or $20 per cwt depending on the grid, particularly with the current consumer demand for quality beef.
It’s clear, quality adds real value, and we can breed for quality by using ProfitSOURCE sires. We can’t neglect quantity, though. Consider an analogy to milk marketing: more pounds of fat and protein solids yield more income but it’s even better in high volumes of milk. Similarly, marbling leads to a higher Quality Grade and generates more revenue on more pounds of carcass since these premiums are paid by the hundredweight. Check out the ProfitSOURCE sire lineup to find terminal powerhouses to attain both high Carcass Weight and high Marbling goals for your program. u
Q: A:
What is GeneNet® and how does it add value to ProfitSOURCE? GeneNet is Select Sires’ very own grid marketing program, offering direct grid access to small producers that would not otherwise have access to a grid with a packer. Typically, only large feedlots have access to a grid. If you are a dairy producer raising your own BxD cattle to finish, you can market your ProfitSOURCE-crosses directly to a number of JBS cattle plants through GeneNet and secure more value for your cattle than if you were to market based on live weight only. 15 u
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OUR MISSION
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Aggressive Reproductive Technologies, ART and Elite Sexed Fertility are trademarks of Select Sires Inc. Calf Wellness Index and CW$ are trademarks of Zoetis Inc., its affiliates and/or its licensors. JPI is a trademark of the American Jersey Cattle Association. Select DTX Concentrate and Select BioCycle Plus are trademarks of Agrarian Marketing Corporation®, Middlebury, IN. Products listed are merely distributed by Select Sires Inc. and manufactured or processed by the company indicated. All claims, representations and warranties, expressed or implied, are made only by the manufacturer and not by Select Sires Inc. ®NxGEN, GeneNet, the Select Sires logo, Mastitis ResistantPRO, Herd Health Profit Dollars, HHP$, ProfitSOURCE, Mastitis ResistantPRO and Your Success Our Passion. are registered trademarks of Select Sires Inc., Plain City, Ohio. Dairy Wellness Profit Index, DWP$ and CLARIFIDE are registered trademarks of Zoetis Inc., its affiliates and/or its licensors. CowManager is a registered trademark of Agis Automatisering. Total Performance Index (TPI) is a registered trademark of Holstein Association USA. 08/23 CDCB/HAUSA Genomic Evaluations. All bulls listed in this issue qualify for semen export to Canada. Photo support by Farmgirl Photography and Herdmark Media. ™
7 = Select Sires, 14 = Accelerated Genetics, 250 = GenerVations
What if some of the older cows in your herd are causing problems and costing you money? What if you find yourself with insufficient replacements to maximize cash flow? Beef prices are high and many dairies are taking advantage of the beef x dairy market. However, reality sets in when you want to sell those older, troublesome cows that have been hanging out in the sick pen, but there aren’t enough replacement heifers to take their place in the milking string. Don’t lose sight of your dairy’s replacement needs and never shy away from genetic progress – it will always be critical. Overcoming inventory and cash flow challenges begins by adjusting your current management strategies and then looking ahead by implementing the best genetic strategies for your future. Start by digging into your data and using Select Sires’ inventory calculator to confirm you are creating the right number of replacements to meet your needs in three years. While we want to create only the best quality heifers for the future, that goal is secondary to creating enough heifers to align with your management. At a minimum, the inventory calculator should incorporate the following: cull rate, heifer non-completion rate, abortion rate, age at first calving, calving interval, current and desired herd size, and conception rates, while accounting for seasonal variation. To calculate a realistic strategy, use current data, not future goals. As you work through the data you will begin to identify why you fell short of your expected number of replacements. If culling rates are higher than anticipated, look at why cows are leaving the herd and identify management solutions to keep more of the older animals in the herd while you align your
replacement numbers. Monitor mortality numbers. If there are animals that you would like to cull and mortality rates in mature animals are below 5%, this is feasible. However, if mortality rate is above 7%, you likely need to make the decision to cull sooner to prevent a negative impact on animal welfare. Pay particular attention to your transition group. Most problems in the subsequent lactation begin during the transition period, so if you address the problems before they begin, you will have a better chance of keeping those cows in the herd and getting them pregnant again – supporting your current management goals and giving you more options for your future genetic strategy. As you evaluate older animals in the herd, assess which cows are lasting and trouble free – these are the traits you want to pass on to the next generation. Mating these cows with sires that transmit elite health, fitness and reproductive traits is essential. Additional strategic improvements in management will ensure that the shortages you are experiencing today will not be repeated in the future. With intentional focus, not only will you create the right number and quality of replacements, but also the right environment for them to thrive, minimizing problem cows and maximizing productivity and profitability for your operation. u
WHAT IF...
Rebekah Mast, Vice President of Global Talent Development, Select Sires Inc. and World Wide Sires Ltd.