Quality Genetics Provide Strong Value-add Differential

Quality Genetics Provide Strong Value-add Differential

While improving your herd's genetics is a long-term and ever evolving goal. Now that there are more calves on the market, your genetic investment should be paying you some dividends as Certified Angus Beef's Justin Sexten shares

Sexten: "As the market declines, the differentiation or the price points between good cattle and lower quality cattle get wider. Now with an abundant supply of calves, I can now be more discerning if I'm a buyer. I no longer am purchasing high risk calves to keep the feedyard full. So I can be more selective, pay a higher price for the good cattle and potentially discount the cattle that don't meet my specifications from genetic potential and ultimately management as well."

 

Producers may document their management to get premiums, but Sexten says value is amplified when those programs are applied to high-quality cattle.

Sexten: "As the number of calves that have a value added practices added to them such as vaccination and feeding programs increases the need to have a solid genetic foundation under those calves only continues to grow as the number of calves that feeders have to choose from also increased. Investing in genetics lays a foundation — regardless of how the market goes up and down — gives you options to add and capture value later on down the road."

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