warren weibert - the road to sustained profitability
TRANSCRIPT
Decatur County Feed Yard2361 HWY 83 Oberlin, KS 67749
(785) 475-2212
“The Road to Sustained Profitability”December 8, 2014
“What do you think they are
worth?
All of our fed cattle “top the market.” No premium. Pen
average closeout
Ranchers learn nothing about variability within the
cow herd or bull performance
1991 – 1995
Home of Certified Angus Beef “Value Discovery Project”
Awarded theQuality
Focus Award 2010
1992 – 1993National Cattlemen’s Association (NCA) Strategic Alliances Pilot Project.
15 Ranchers DCFY Excel
Safe-
wayCarcass DataFeed Yard DataRanch Data
Integrated Systems Approach
Discovered there was a $300 Spread between animals in the same lot!
“You cannot manage what you do not measure”
1994 Installed Micro Beef “AccuTrac System”: Individual Cattle Management
Precision cattle management: Data driven, results oriented, enhance productivity, improve profitability, evaluate information to implement change!
Farmers know all about precision crop production!
Why not Cattlemen? Decatur County Feed Yard did it!
Measure
Sort
Manage
Market
Benchmark
Implement
PrecisionManagement
Analyze
Improve
Many cattlemen have benefitted since 1994!
LU Ranch, Worland, WYMike Healy’s documented genetic
improvement, fed at Decatur Feed Yard
2009• Backgrounded near Worland. To
DCFY in Dec., harvest in Spring .
• FE: 5.41 HCW: 816
• Up CH: 25.6 CH:42.9
• REA: 12.5 DP: 63.10%
• ADG: 3.67 YG: 2.8
2013• Backgrounded near Worland. To
DCFY in Dec., harvest in Spring
• FE: 4.87 HCW: 862
• Up CH: 48.7 CH: 30.1
• REA: 13.4 DP: 64.42%
• ADG: 3.78 YG: 2.8
• Average Harvest Date: June 4
Plus the cows are more fertile and have greater longevity.
• Average Harvest Date: May 16
LU Ranch: How Value Has Improved(using current market prices)
*$4.75/Bu Corn and $140/CWT Fed Cattle
• Arrived 23 Days Earlier/4 lbs. lighter
• Cost $9/Head Less to Feed ($540 vs. $531)
• Added 11% Quality Grade (Choice and Higher)
• Added 3% Yield Grade 1’s and 2’s
• Added 46 lbs of Hot Carcass Weight- Gross Added Value $109.59
- Feed Savings $9.21
- Total Added Value $118.80/Head
- $29.70/Head/Year Improvement in Value
- Harvested 18 Days Earlier – (May vs June)
AVERAGE
Where does Your Herd Fit?How much genetic progress have you made during the
last three years? How do you know?
Bottom 15%: -$83 +$83 for Top 15%
Before After
DCFY’s feeding , sorting and marketing
program gives you clear feed back on a
consistent basis, year after year!
Same feeding program, same marketing grid, same packer, same
packing house, same day of the week, year after year.
PRECISION!
1 2
Video
Imaging
3
Weigh
Station
4
Ultrasound
Station
5
Processing
Chute
Automatic
individual
animal
sequencing
station
Ultrasound
measurements
of internal
tissue
characteristics
Individual
animal
processing
and sort
selection
Automatic
measuring
of external
dimensions
Automatic
integrated
electronic
scales
Sequencing
Station
ECM® MEASUREMENT STATIONS(Electronic Cattle Measurement)
Precision Cattle Management
Typical – 9 week Shipping Window(100 Head Example)
Decatur County Feed Yard
Week110 HD
Week 320 HD
Week 540 HD
Week720 HD
Week 910 HD
CloseoutSummary and Individual Animal Closeouts
For years we encouraged everyone to look at the bottom 5 – 20% of their herd
and cull the cows – Progress was slow!
AVERAGE
Where Does Your Herd Fit?Decatur County Feed Yard: Value Comparisons
Feedlot & Carcass Value Differences for a 625 lb Steer
Bottom 15%: -$83 +$83 for Top 15%
You need to retain ownership of at least a portion of your calves each year to document
improvement, (or lack thereof)
AVERAGE
How do you know unless you are feeding your calves?
Bottom 15%: -$83 +$83 for Top 15%
Before After
If you do not have a baseline – You need to create one
“Four years of feeding (with Decatur County Feed Yard) has allowed us more precise culling and adjusting of our genetics program. DCFY is the most professional organization we’ve
worked with.”— Mark Turner, Rolke Ranch L.P., Franklin,
Texas
Every Herd Has A Distribution Curve and An Average for Each Trait
35
Net Dollars Return to Ranch $550 $1200
What If you Mated an Average Herdto top 1% Bulls? $32.50 / Calf
37
10 Years Progress in a Single Cross!
Net Dollars Return to Ranch $550 $1200
“We have used information we have received on closeouts to select bulls to increase quality grade and muscling. We try to identify weaker areas to emphasize improvement in when evaluating EPDs (expected progeny differences) in bulls.“Anyone who feeds enough cattle to meet the numbers requirement should feed and get individual performances to see where they are headed in the future and how to meet longer-term goals and improve the value of their calves.”— Don Musil, Musil Farms, Blue Rapids, Kansas
Satisfied Customers
“I have noticed after using Decatur over a three-year period that my closeout weights and quality have improved by 15 percent each year — which turns into dollars returned.“Using the data at closeout has made buying a better quality bull an easier check to write. I have advised friends to use Decatur and will continue. Their continuous contact and open-door policy is a great asset.”— Chuck Syfrett and Melissa S. Montes De Oca, Syfrett Ranch, Okeechobee, Florida
Satisfied Customers
“I liked the idea of electronic sorting and scanning to maximize salability for each pen full of cattle, also the closeout information. I also liked the facility — first-class, clean, neat, well-maintained. Dan, Kevin and Warren have gone out of their way to answer questions.”— Christopher Grubl, Grubl Alkali Ranch, Sturgis, South Dakota
Satisfied Customers
“If you want to make improvements in your herd, feed with Decatur County Feed Yard. You will know which cows are working for you and which bulls to be buying (or stay away from). You will be able to get away from the guesswork of phenotypical selection and be confident in knowing that the replacements you are selecting will move your herd forward.”— Kenneth M. Sears, Monte Vista, Colorado
Satisfied Customers
Decatur County Feed Yard
550-lb Calf Price ($/cwt)
J F M A M J J A S O N D J F M A M J J A S O N D
Choice Fed Steer Price ($/cwt)
Seasonal Calf/Fed Prices
Market Timing
Market Timing cont..
$(160)
$(140)
$(120)
$(100)
$(80)
$(60)
$(40)
$(20)
$-
$20
$40
$60
$80
$100
$120
$140
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
DCFY Average Profitability per Head 2011-2013
ST HF
Market Timing is the Best Hedge against Market Volatility and
creates Opportunity!
Alignment is the Industry's Future“Beef industry success stories will be about entrepreneurs who create practical,
Efficient, cost-relevant production systems that deliver consistent quality and Quantity year-round, and provide maximum protection to capital and risk”
James Herring, CEO, Friona Industries LP, Amarillo, TX
• The Cow-calf segment will need to respond to and align with up-stream demands for more consistent and valuable genetics.
Alignment is the Industry's Future“Beef industry success stories will be about entrepreneurs who create practical,
Efficient, cost-relevant production systems that deliver consistent quality and Quantity year-round, and provide maximum protection to capital and risk”
James Herring, CEO, Friona Industries LP, Amarillo, TX
• The stocker segment will need to create stable and predictable relationships that will allow forward pricing and consistent year-round demand.
Alignment is the Industry's Future“Beef industry success stories will be about entrepreneurs who create practical,
Efficient, cost-relevant production systems that deliver consistent quality and Quantity year-round, and provide maximum protection to capital and risk”
James Herring, CEO, Friona Industries LP, Amarillo, TX
• Feeders will need to align with the processing industry to create a predictable and sincere market that allows timely harvest at a predetermined consistent formula for value.
Alignment is the Industry's Future“Beef industry success stories will be about entrepreneurs who create practical,
Efficient, cost-relevant production systems that deliver consistent quality and Quantity year-round, and provide maximum protection to capital and risk”
James Herring, CEO, Friona Industries LP, Amarillo, TX
• Packers will need to successfully create predictable interface with the consumer through an effective and consistent relationship with the retail establishment.
Alignment is the Industry's Future“Beef industry success stories will be about entrepreneurs who create practical,
Efficient, cost-relevant production systems that deliver consistent quality and Quantity year-round, and provide maximum protection to capital and risk”
James Herring, CEO, Friona Industries LP, Amarillo, TX
• All of us in the beef trade will have to focus on thoughtful, consistent delivery of predictable eating experience to our eventual consumer!