ProfitSOURCE: Delivering the Difference

The ProfitSOURCE^® lineup is vast in options but consistent in product. TD Beef, the first and largest ProfitSOURCE-aligned partner, put trust in the system and immediately started paying dairies $35 per day-old calf over non-ProfitSOURCE calves. This trust wasn’t blind, though! The sire lineup’s genetic merit indicated the calves would be more profitable with exceptional growth, size and marbling. Now their trust is backed by data, providing a new level of consistency and precision. With advancements in genetic insights and data-driven decision making, dairy producers are reshaping the future of dairy farming, with measurable results and lasting success.

An ongoing effort of nearly three years, Select Sires’ robust performance database – made possible by commercial traceability with partners – is up and running, and records have been pouring in. With this data we aren’t just tracking progress, we’re driving it. With more than 65,000 records included in this specific analysis, ProfitSOURCE TD-tagged calves saw advantages both in the calf ranch and at harvest. They were 16% less likely to die in the growyard than non-ProfitSOURCE calves. That equates to a 2.24% reduced death rate. In an already high-risk market of raising calves from such a young age, ProfitSOURCE helps lessen the risk and justifies the premium associated with buying these calves, even when day-old prices are nearing or surpassing $1,000. Usually with lower risk comes lesser rewards, however, with ProfitSOURCE that is not the case. Not only are more of these calves making it to harvest, but they are also making more at harvest. Figure 1 shows that TD Beef- sired calves are expected to average $71 more than non-ProfitSOURCE calves on a grid pricing scheme on which the majority of TD Beef calves are harvested.

To give these numbers more perspective, let’s assume a dairy has decided to elevate their profit potential by retaining their beef on dairy calves. Let’s say they create and raise 1,000 day-old calves over a one-year period. Let’s also assume that non-ProfitSOURCE calves have a death rate of 10%. Using the reduction in death rate of 2.24% and the expected grid pricing on account of stellar carcass performance from the previous figure ($2,666 for ProfitSOURCE and $2,595 for non-ProfitSOURCE), the resulting difference is a $122,552 increase in revenue per 1,000 resulting ProfitSOURCE calves. There is always risk involved with raising calves to finish, especially when they are day-olds, but when done properly with the right genetics, the reward is plentiful. 

With data driving confidence, more calf growers and feeders in other regions are partnering with ProfitSOURCE to procure reliable-performing calves that bring value to their operation – which means they can deliver more value back to the dairy, too. These partners are willing to take the risk that goes with sourcing value-added calves because they can depend on the quality to better their bottom line in the long run.

From the Pacific Northwest to the central plains to Texas and beyond, ProfitSOURCE partners are now commonly offering $35 more per ProfitSOURCE-enrolled and tagged calf than for a non-ProfitSOURCE calf. If you’re marketing 120 day-olds within a month, that’s $4,200 more in your pocket at pickup than if you weren’t leveraging ProfitSOURCE. For the year? That’s more than $50,000 in added revenue. One regional ProfitSOURCE alignment also provides cost-covered Select Sires and Agrarian calf health products to the dairy in order to boost calf health prior to pick up, all while juggling a competitive calf market and ensuring your success at time of sale.

Whether you are a dairy selling day-olds, raising calves to higher weights, or retaining all the way to finish, ProfitSOURCE’s elite genetics, market access, and dependable service on-farm are there to deliver the difference.