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Producer NewsDear Producer,
Are you ready for the new changes that are coming to the cattle industry
in the next few years? Marketing in the commercial cattle industry will
undergo some of the most dramatic changes in the next few years than
it has in the past 30 years. Value-based marketing will become a reality
because producers and feeders of high quality cattle are finding they
can make much more on a carcass merit formula than they ever can selling
for the average live or dressed price. The competition between the four
big packers has really heated up, all four have come out with formulas
and programs to help them get high quality cattle which they can no
longer get by just paying the average price. Because of this we have
been able to keep improving our formula, making it one of the very best
in the industry today. More success will come to those producers and
feeders that are changing with the times than those that don’t change.
We would like to update you on our marketing alliance GeneNet, Inc.
We know you have a number of options to sell your cattle and we would
like you consider us another option. As I visit and talk to producers
and feeders, many are not familiar with all the options available. As
busy as most of you are, it is hard to keep up to date. Sometimes it
is just easier to continue selling cattle the way you have in the past,
but please take time today to check out our program. You’ll be glad
you did!
We are very pleased to announce that Swift has given GeneNet a premium
of $3.50 for all non-black hided cattle that make CAB specks (upper
2/3 Choice etc.) called Armour Premium. With our Premium of $5.00 for
CAB , we now have one of the very best high quality carcass merit formulas
available in the industry today. Swift’s interest in acquiring top cattle,
helping to develop relationships with feeders and producers and making
sure that all the carcass data is accurately collected is second to
none in the industry today. Compare these results with any other alliance or marketing program in business today. Over 500,000 head killed on our formula have averaged $20.76 per head above the average live bid. Of this group the top 50% has averaged $42.53 per head. If you produce or feed high quality cattle you have only one choice to sell your cattle to receive their full value and that is through a carcass merit formula such as ours. We are working with over 1400 cow-calf producers, 150 Feedlots and adding new ones every day. They are producing & feeding high quality cattle and want to get their carcass and feedlot data so they can improve their herds and income. We are sourcing many of these cattle to our certified feedlots that will purchase, partner or custom feed the cattle. Over the past 5 years that we have been working with our certified feedlots, over 85% of the cow-calf producers that sold their calves & feeders to our certified lots are now custom feeding their own cattle. Our only goal is to get you and your customers as much money as we can for your high quality cattle. We are independently owned, therefore our customers are our only priority. For a program like this to really move forward we have to develop relationships and loyalty up and down the line. We feel that loyalty will happen if we are committed to getting back to you as much money as possible, providing you the best service available and offering you one of the very best formulas. The more high quality cattle we get into this program, enables us more negotiation power to get more money back to you and your customers as we strive into the future. One of the quickest ways we have been able to show feeders how well our formula will work is to have them send us a copy of what a top set of cattle did on another grid or formula. We will put that same group through our formula being killed on the same day and will be able to compare apples to apples which formula will make you more money. Over 95% of the time our formula will exceed what they received on the other formulas or grids from all the packers. The only cost you would have to use our program is $3 per head for group data, and $5 or $7 per head for individual tag data. We have a number of plants available for your convenience. Swift has plants in Grand Island, Nebraska, Greeley, Colorado & Dumas, Texas. If you would like more information on our program, please contact us. We will make it very simple for you to put your cattle through our program. Best Regards, Ken Conway, Ph.D.
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