NEWS
Mountain Top Prices
Mon Oct 20, 2014 10:51 AM CDT
(Page 1 of 2)
Blake Francis (left) and Jerry Roberts maximize the profit potential of their smaller herds by being members of the Mountain Cattle Alliance. (DTN/Progressive Farmer photo by Mike Boyatt)

North Carolina's mountain cattle producers have always been an independent bunch. But a new alliance is proving to them that producers who sell together make more money.

In a preconditioned sale this year, the Mountain Cattle Alliance (MCA) of western North Carolina sold several truckloads at historically high prices. Steers averaging 665 pounds earned $2.33 per pound, while those averaging 700 pounds brought $2.23 per pound. Those steers at 820 pounds brought $2.11 per pound. In comparison, 700-pound steers sold at the local sale barn the previous day earned an average $1.83 per pound -- $280 per head less. That's more than enough to warrant a little teamwork.

"Most of us don't have enough cattle to market truckloads," said 25-year-old MCA member Blake Francis, of Waynesville, N.C. "Now that we're commingling calves with our neighbors and selling truckloads, the results are eye-opening."

MCA started with just 15 members, including Blake, in 2010. Since then, the group has grown to include 50 producers across eight counties. In 2013, MCA marketed 24 truckloads of feeder calves valued at $1.75 million.

GROWTH THROUGH NECESSITY

In some ways, adversity inspired the creation of the MCA. In 2004, the primary livestock market in Asheville, N.C., closed, leaving producers without a local sale barn. Cattlemen in the western part of the state were forced to haul calves to livestock markets in Tennessee or South Carolina. For many, the round-trips of more than 100 miles through mountain roads were expensive and stressful, both for the men and the animals.

Hauling cattle creates shrink, and shrink costs money in lost pounds. The amount of loss varies, but on average, young animals lose 3% to 6% of their body weight on a 100-plus-mile trip; on a 600-pound steer priced at $2.20 per pound, that pencils out to a loss of between $39.60 and $79.20. Throw in sheets of ice covering highways or blinding thunderstorms and hauling cattle is no picnic. In addition to shrink and the stress of travel, Francis said it bothered him that his beef checkoff dollars were being collected in Tennessee or South Carolina instead of his home state.

So the MCA was born, and like most alliances, members developed a set of guidelines they agreed to meet for cattle sold through the organization. MCA calves are weaned, vaccinated and preconditioned for at least 45 days. Calves are vaccinated with the Zoetis SelectVac program. The cost of vaccines, dewormers and identification tags is approximately $8.66 per animal. All producers selling cattle in the alliance are Beef Quality Assurance (BQA) certified.

After a 7- to 10-day weaning period, calves gain 2 pounds per day on average during preconditioning. Daily feed costs average $1 per head (depending on each producer's ration), but a gain of 55 pounds during the preconditioning period is worth approximately $110.

Calves are filmed at their home farms with these videos then used across the country by Southeast Livestock Exchange (SELEX) to market the animals. Buyers make their bids in a monthly SELEX tel-o-auction. Sellers pay a 2% sales commission.

MCA's largest sales are in the fall. Sellers bring their cattle to either the WNC Regional Livestock Center, at Canton, N.C., or the Rutherford County Livestock Center, near Rutherfordton, N.C. Here they are loaded for delivery to buyers.

"Instead of a six-hour round-trip to sell calves, our hauling trip now takes 15 minutes," Francis said.

  PREVIOUS |   1    |  2  | NEXT 
Related News Stories
Frozen Beef Stocks Up; Pork Stocks Down
DTN Closing Livestock Comments
DTN's Livestock Quick Takes
DTN Before The Bell-Livestock
DTN Closing Livestock Comments
DTN Before The Bell-Livestock
DTN Closing Livestock Comments
WTO Rules Against US COOL
Ebola Hits West Africa Hard
Ask The Vet