IGS Feeder Profit Calculator ™ Highlights Profit, Reduces Risk International Genetic Solutions offers free, thirdparty validation on feeder calves.
hen profit-focused genetics combine with superior calf management, the producer has done the hard work. Still, that leaves little guarantee on sale day. The IGS Feeder Profit CalculatorTM seeks to minimize such risk. Using the IGS Feeder Profit Calculator, cattlemen are able to provide sire information, regardless of breed, as well as preconditioning, weaning and health data in exchange for a Total Relative Value that compares the profit potential of their calves to the industry at large. That value, indicated on a formal certificate, can be used for producer benchmarking and buyer insight. Superior Livestock Representative Clint Berry says such technology is in line with what he sees for buyer demand. “We sell cattle in all capacities, all formats, but the one thing we see continued pressure on is cattle that offer flexibility to the buyer, that gives the buyer a chance to have some value-added options,” Berry says. “If he can recapture from that purchase price, he can recapture a profit on his side. Whether those are export verification programs or cattle that simply grow and grade better in the feedyard on his side of the business.”
“Producers get paid to have better cattle. It’s common to see spreads of $20-$40 at market from additional information and value-added programs,” Berry says. At present, he adds, there’s no ceiling. “As we move forward, the genetic key in that is becoming more and more prominent for producers who are wanting to sell at the top of the market,” he says. “Being able to verify those genetics and have a record of those genetics is the key difference.” As a third-party validation tool, the IGS Feeder Profit CalculatorTM satisfies that need. Buyers who pay a premium on a set of calves will look to recoup those and add additional profit down the road at harvest. “In our format, they might buy a calf in July, that ships to them in October, that doesn’t die until April of the next year. There’s a lot of time frame between the day that he made the decision to do the bid price, and the day that he recaptures his monetary value,” Berry notes. By leveraging what is there on the front end, success is more likely to follow. “Having flexibility and having a security blanket, you might call it, for a buyer to know this set of cattle is better than the average goes a long way when you want to demand a premium for your cattle on the market,” he says. The IGS Feeder Profit Calculator is offered to all cattle producers at no cost, and is available for mobile use through the App Store.
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Commercial producers wanting to learn more can visit with the marketing staff at the American Gelbvieh Association at 303-465-2333 for Gelbvieh and Balancer inquiries. Additional information can also be found at internationalgeneticsolutions.com. FF