The information age has complicated raising cattle.
Producers complain they receive reams of data from feedlots or packing plants but most of it is meaningless, said John McKinnon, beef chair at the University of Saskatchewan.
A three-year research program initiated at the university is tracking beef cattle’s performance from birth to slaughter and promises ranchers practical information they can use.
“One of the things you find right off the bat is what it is costing you to produce a pound of calf,” said McKinnon.
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The project started last year and works with 30 producers, several packers and feedlots capable of recording performance data at every stage of an animal’s life. The largest herd contains 800 breeding cows.
The information is compiled into a simple-to-understand computer program and should help people make sound marketing decisions.
Information on the first run of calves born in 1998 has been completed. The 1999 group is still moving through the system.
The program can analyze the benefits of retained ownership, grid programs and contracts, all of which can maximize profits.
Retained ownership means producers hold onto their cattle longer and may have them custom fed at a backgrounding operation or feedlot.
Grid pricing means producers are offered a base price for their carcasses with later price adjustments. That could mean a premium for better quality or discounts if quality falls short.
Some participants have already made adjustments in their herd because they realize the best looking cow may not be the most productive one in the herd.
The centre wants to see the program evolve into a service that cattle producers are willing to buy.
The program compares data on calving information, birth weights, health records and matings. A critical factor is matching calves to the right cow so information could be correlated to bull and cow crosses.
Each producer received his personal data along with averages gathered from all the participants. “Gold” target levels developed by veterinarians and beef extension specialists were compiled to show areas for improvement.
Four tables were compiled listing reproduction performance, calving distribution including calving periods and length of season, production performance, weight measures and financial performance, with a total return on investments, as well as cost of production figures.
Six packing plants and 11 feedlots were in the program. All participating cattle wore electronic ear tags to follow them through the system. Cattle from this program have run through Western Feedlots in Alberta, which offers its own grid marketing program in co-operation with Cargill Foods at High River.
Western Feedlots vice-president Dave Moss said this kind of program initiated in 1997 appeals to hands-on producers who tend to use more information at the farm level. The company provides summary information derived from individual results to the 50 cow-calf producers involved.
“It passes premiums on right back to the cow-calf sector,” he said.
However, this kind of system requires good records such as breeding information.
“You don’t gain much by having individual data if you don’t know which bull bred which cow,” he said.
Additional information
Describing the Western grid as a better way to do business because it deals directly with ranchers, Moss said most people do not know how their cattle fit into today’s market demands.
Under this program, producers receive a performance index so they see how their cattle worked in the feedlot compared to others. They also get information after slaughter.
With reports from the feedlot and packer, producers can factor in conditions on their farms and figure out what they can afford to produce.
“I tell them this is just one piece of the pie. You’ve got to take that with what western beef development is doing and look at the economics of the cow to maximize your dollars,” he said.
While no one has made wholesale changes to their herds, some are evaluating their cows in terms of birth and weaning weights.
“We don’t advise people to completely dump a breeding program,” he said.
In comparison
Here are some estimated average prices for alfalfa and alfalfa mixtures per ton to compare with the websites.
In Saskatchewan, alfalfa is priced at $52.46 per ton and an alfalfa mixture is set at $56.60 per ton.
In southern Alberta, alfalfa is estimated at $72.56 per ton and an alfalfa mixture at approximately $77 per ton.
Estimates for Manitoba are unavailable.
