Market Launch

By Becky Mills
Progressive Farmer Contributing Editor

These days anything with four legs and a rumen is already bringing a historically high price. So why go through the hassle and expense of signing up for another certification program? To top that record price off with another $50 per head.

Tom Brink has just announced the creation of a new program, "Top Dollar Angus". This is anything but another certification program, it is a market advantage based on genetics. To qualify, cattle must be the product of two generations in the top 25% of the Angus breed for growth and carcass traits, as measured by "$B" (Beef Value). This is an index formulated and used by the American Angus Association and expressed in dollars per head.

Brink, formerly the president of cattle ownership for JBS Five Rivers Cattle Feeding, didn't come up with the idea on a whim. "For many years, we fed 1.6 to 1.7 million head of cattle a year," he said. All of these cattle were sold on a carcass merit grid, meaning sellers were paid based on the quality and yield of the cattle after harvest. "I've spent a lot of time isolating factors that matter to feedyards," he said.

Spring of 2013, he was driving home from work and started thinking about creating high quality feeder calves to fit the specs he had spent all those years isolating. "I realized I knew how to make great feeder cattle that would succeed in the feedyard. Stack together a couple of generations of high end Angus genetics, cattle that are in the top 25% for $B. That approach will consistently create feeder cattle that are well above average."

Brink emphasized these calves don't have to be straight bred Angus. However, he said he focuses on Angus cattle because in terms of numbers they are the largest breed in the country. In addition he said, "Their use of EPDs, $indexes, A.I. and embryo transfer is widespread. They have tremendous market share, their data base is second to none and their genetic trends in growth and carcass traits are markedly positive."

The first calves certified through Top Dollar Angus were sold earlier this fall. This group of Nebraska calves, straight off the cow, were marketed through Superior Livestock Auction. A feedlot in the Top Dollar Angus network paid a $67 a head premium. Brink said he based that figure on the market for the same time of the week and for the same location, sex and weight of cattle.

Demand isn't going to be a problem for Top Dollar Angus. Brink already has a standing order for over a million head of feeder calves that fit his specs. Ranchers can market the calves anyway they choose and participating feedlots have agreed to bid at least a $50 a head premium over the average market in an attempt to buy them.

There are several ways to find out if your cattle are eligible. If you use registered Angus bulls, you can look up their $B values online at the American Angus Association web site (www.angus.org). Feeder calves and their dams need to be sired by bulls in the top 25% for $B.

Another option is to run Genemax (GMX) Focus DNA profiles on the heifers in your calf crop. If they average a score of 80% or more (on a 1 to 99 scale) on the GMX test, their steer mates qualify with no additional paperwork. For information on this testing, go to the American Angus Association website noted above.

Brink believes many herds will qualify right away. He has already certified cattle in three states. Additionally, he emphasized that an even larger number of cattle are only one generation away from meeting Top Dollar Angus specs. He explained, "It may be as simple as upgrading your bull battery. Nobody is more than two generations away."

As for costs, the certification process, provided by IMI Global, Inc., and including a Top Dollar Angus EID tag, is $2 to $4 a head. (www.imiglobal.com) Qualified cattle will then use the Top Dollar Angus brand name, and allow the group to help market their cattle, this at an additional $4 a head.

Brink said, "Our goal is to provide our customers with a net advantage of $30 to $50 per head or more, after fees, over what they could get otherwise. Differentiating high end Angus feeder cattle from generic feeder cattle is what Top Dollar Angus is all about."

For more information:

Tom Brink can be reached at tom@topdollarangus.com

IMI Global's website is www.imiglobal.com

The American Angus Association's website is www.angus.org

(VM/CZ)

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