3 STEPS TO SECURE HIGHER PREMIUMS

News and Updates
6/20/2022
No matter a dairy’s size, location, or breed preference, a beef x dairy (BxD) strategy is a viable source of profit. It is no secret that a beef-cross calf can bring over $100 more than a dairy calf. Previously, packers were pressed to sort through beef, dairy and beef-cross cattle. However, the recent influx of crosses into the U.S. beef supply chain has pushed packers to identify superior and inferior BxD cattle, too. In fact, as presented at the 2022 Midwest American Society of Animal Sciences (ASAS) meetings, BxD cattle of known, elite genetics strongly outperformed commodity BxD in average daily gain (ADG) and dry matter conversion in the feedlots, as well as in percentage of carcasses graded Choice on the rail. 

 

By: Lauren Kimble, ProfitSOURCE supply chain logistics, Select Sires Inc.

Cheap cleanup semen just won’t cut it anymore, but how do we ensure the packers know what they’re getting? How do we influence the chain so that these higher prices at the end of the line are reflected in what is paid to the dairy producer at the beginning? This is where Select Sires’ ProfitSOURCE® program comes into play. The program emphasizes three key needs to garner the best return on your investment. From calf care at birth, identification and record-keeping for confident traceability and strategic partners for secure market access, ProfitSOURCE is the industry’s most complete program for value-added BxD and straight-bred beef embryos. 

 

3 Steps to secure higher premiums for beef x dairy cattle

1. calf care 

2. traceability

3. market access

 

CALF CARE

ProfitSOURCE BxD calves have an edge over commodity calves when it comes to care. Proper colostrum management means a more vigorous immune system for life and lower risk assumed by the calf ranches. ProfitSOURCE calf care requirements build trust, so the premiums paid by the calf buyer to the dairies remain high. For more information about Select Sires’ elite BxD calf care products, check out our Herd Management Solutions portfolio.

TRACEABILITY

Program calves have a significant advantage over commodity calves in traceability. Herds enrolled in specific supply chain programs enter calf EID and parentage, and calves are then known through their lifetime. As consumers demand the farm-to-table story, our partners are willing to pay more for a calf of known, elite genetics. What’s more, we can use data collected throughout each calf’s lifetime to determine how our genetics perform, whether it’s health, efficiency or carcass merit. This in turn allows us to build an elite lineup of BxD genetics tailored to both the dairy and our partners’ needs.

MARKET ACCESS

Supply chains are not one-size-fits-all. ProfitSOURCE offers many options to fit the needs of the dairy and make the most out of each pregnancy. Whether it be enrolling in a defined supply chain, or using our elite genetics independently and selling on the open market, ProfitSOURCE has an option to complement each dairy. 

Remember, our unique partnerships set us apart from the rest of the industry and provide consistent market access for the long haul – so if your dairy is located in a region of the U.S. where a program is available, it is a strong option. Not to worry, though – the ProfitSOURCE tags are recognized on the open market too, with calves performing well everywhere from local sale barns to Superior Livestock video auction.

 


 

Power Genetics is available to Holstein herds in the Great Lakes region and features a SimAngus™ sire lineup and a new competitive pricing contract. Power Genetics has great packer access at Cargill, marketing 5,000 head per week on their own grid.

 

TD Beef features our most elite lineup of terminal genetics. Calves are purchased as day-olds and raised at Tuls and LoneStar Calf Ranches before finishing at Friona Industries, and selling on the grid at Cargill. Due to Cargill’s and Friona’s interest in sustainability and traceability, TD Beef has requirements for entry and sharing of calf data. The program is available in select regions to Holstein and Jersey herds. While enrolled dairies have the right to sell into the TD system, they are not obligated and may pursue other marketing options.

 

Superior Wagyu is an up-and-coming addition! This program will offer elite Wagyu genetics to Jersey herds with data-sharing and traceability of importance. This chain leads right to retail, with the final product marketed under sought-after brands such as Mishima Reserve brand.

 

We’ve started to link up Friona Industries with some of our herds who can raise their crossbreds to a higher weight as a direct-to finisher marketing option. This also presents a great opportunity for herds interested in HerdFlex® embryos.

 

SimVitro® HerdFlex® embryos offer a new approach to generating high-performance beef calves on your dairy operation. With this IVF solution, you can get full-beef calves that have calving ease and deliver value through improved feed efficiency, rate of gain, ribeye area and marbling. To discover if HerdFlex is a match for your operation, check out episode 9 of The Select Sires Podcast.


ProfitSOURCE sires have been selected for crossbreeding on Holsteins and Jerseys. These sires excel for calving ease, growth performance, carcass merit, and they offer elite fertility to maximize reproductive performance. The lineup of ProfitSOURCE sires will include elite terminal beef bulls designed to meet specific genetic criteria.

 

 


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