How can local producers get involved in value-Based marketing, how do the programs work, and how will it benifit me the producer?

Cow-calf Producers getting involved with Value-based marketing.

Cow-Calf producers in Emery and Carbon counties are getting involved with alliance programs. This is positioning them to sell cattle on a value-based marketing system instead of on a commodity system. Cow-calf producers who become involve with alliance programs are able to sell high quality cattle at premium prices. When marketing cattle on a commodity system, the good cattle have to subsidize the mediocre cattle. These alliances allow the producer to obtain feedlot and carcass data from their cattle in order to make genetic and management improvements in their herd. This then positions the producer to sell feed yards, packers, and ultimately the consumer a high quality and consitant product, and receive premiums for doing so. Two such programs in this area are AgSpan and Power Genetics.

Power Genetics' local representative is Clyde Magnuson. The alliance uses proven genetics from bulls that are provided by the company enabling producers to grow cattle that will "fit" the market which is also provided by Power Genetics. Once the cattle are delivered to the packing plant they are sold on a grid system and the final product is then sold as branded products like "Sterling Silver Choice", "Certified Angus Beef", and "American Pride." Consumers then are able to purchase and enjoy these superior products from stores like Safeway and Sam's Club. The producer receives a premium price by preconditioning the cattle which includes vaccinating and deworming with the right products, providing good nutrition including minerals, and bunk training them for 45 days post weaning. Premiums are also received by simply having the right cattle to sell. Producers receive feedlot and carcass data along with help interpreting the information, enabling herd improvement. What is one of the biggest struggles for the company? it's providing enough cattle to meet the demand for a high quality product. Power Genetic needs 4000 cattle per week going through the slaughter plant. (More information is available at www.powergenetics.com )

AgSpan uses a demand driven system, rather than the traditional commodity driven system. Feed yards specify the type of cattle they are needing and will offer a bid price for these cattle. There are over 45 different "branded" programs that are available to feeders in marketing their beef. These programs use many different breeds and have a different end products in mind. Branded programs include; Certified Angus Beef, Certified Hereford Beef, Coleman Natural Beef, Lean Limousin Beef Co., Gelbvieh Alliance, US Premium Beef and many more. The idea is to match the type of cattle that is in demand with the type of cattle a producer is growing. AgSpan creates access to these value based markets to the cow-calf producer. From there AgSpan provides to the producers; Feedlot performance data, Carcass data, economic impact of animal health programs, and timing/availability data. They then help producers interpret the information in order to make improvements where necessary. If a producer's cattle do not fit into the available grid systems as well as they could, then the information is used to make the necessary genetic and management changes to fit a system that will work best for the producer and his cattle. The information is available to the producer only , however, pooled data is also available for comparing or benchmarking your data with everyone else's. A unique aspect of AgSpan is the use of a certified veterinarian. The AgSpan certified veterinarian verifies that the cattle meet the buyers specifications, including; genetics, nutrition, animal health programs, source and history of the cattle, as well as other cattle characteristics. This step adds validity and value to the cattle being sold, and is something feed yards have been asking for. The AgSpan certified veterinarian in this area is Glen L. Jensen, DVM.   More information www.agspan.com

Sharing and utilizing information is critical to value-added beef production, as well as improving the overall quality of the beef that is offered to the consumer. Source verification increases pride and a desire to produce a quality product. It also helps identify and improve weak spots in the system. Alliance programs are a win situation from the cattle producer all the way through the chain to the consumer. The largest obstacle today is obtaining enough of the right cattle to meet the demands of the consumer.

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