n0633-072 ©2012 cri central livestock association a...

Conserving Feed and Forage – Weigh Your OptionsBy Jeff Reed, Vice President, Central Livestock Association

September 20121

MarketingsHappy Labor Day! Harvest has started, or is about to begin, throughout much of our trade area. Corn and soybean yields are expected to vary greatly this harvest due to early summer flooding followed by drought conditions that dominated most of the 2012 growing season. Some yields will be above average, while others will depend on crop insurance to make things work. As livestock producers, poor crop conditions have left many of you scrambling to make the best decisions for feeding livestock at affordable prices. For the first time in years some of you will need to buy grain and forages in order to feed livestock.

Nutritionists, veterinarian/pharmaceutical support teams, feeding equipment suppliers and of course Central Livestock staff should be used during these challenging times to enhance your bottom line. While feedstuffs are in short supply, your agricultural suppliers can provide advice and ideas to help keep your herd profitable. Reducing feed waste is one of the fastest ways to keep your livestock operation healthy and lucrative when forages are in high demand. New feeding equipment technology may not pay when hay is $50/ton, but what about $120/ton or $150/ton? Implementing vaccination and complete herd

health programs presents the biggest opportunity for returns when livestock prices are strong, and feed costs are high. The next 12 months are critical, so take advantage of the livestock input resources available to your operation.

It takes many producers a lifetime to build a high quality breeding herd or flock. Taking a step backwards and having to replace high quality seedstock later can be really expensive. We believe some excellent opportunities for livestock profits will return once the current, drought-driven sale of livestock passes. Even though the beef cow herd expansion appears to be delayed once again by the 2012 drought, domestic and export meat product demand continues to look strong.

The fall special feeder cattle sale season is upon us and in this edition of Marketings, you will find articles highlighting Central Livestock’s hedging program, and a feature article reviewing ways to add value to your feeder cattle. As always, one size doesn’t fit all. Contact your local Central Livestock staff for help tailoring a management and marketing plan to fit your individual needs.

We are in business to help you market your livestock in the best possible way. We thank you for the opportunity to serve.

in this issue2 Hedging for Profits2 Stockman’s Supply 3 Special Sales Schedule3 Market Reminders4 Photo Contest Winners5 Scholarship Winners5 Industry Events6 Value Added Feeder Cattle7 VIP Report Card and

Qualifications

Editor: Brenda SisungContributing Writers: Jeff Reed, Bob Young, Jessica Johnson-DeGroot, Brenda Sisung

Send comments or suggestions to: [email protected]

MISSION STATEMENTProvide products and services as effectively as possible to maximize the profitability of members and customers worldwide while maintaining a strong cooperative.

Central Livestock Association PO Box 419 South St. Paul, MN 55075

ADDRESS SERVICE REQUESTED

PRSRT. STD.U.S. PoSTage

PaIDShawano, wI

54166PeRmIT no. 72

Central LivestockAssociation

A Company of Genex Cooperative, Inc. 2012


A Company of Genex Cooperative, Inc.

©2012 CRI N0633-072

Radio Market

Reports are now

available on the

Central Livestock

website

Follow us on Twitter:

@clateam

Vaccination Identification Program Central Livestock understands beef producers’ concern for the health of our livestock and the sustainability of the beef industry. We would like to do our part in helping you ensure the health of your livestock through our Vaccination Identification Program (VIP). In an effort to identify and certify vaccination programs we ask that you complete the following form when participating in Central Livestock’s VIP.

Use our VIP Report Card to certify your cattle vaccinations:

Veterinary Certification: Vaccines given by a veterinarian with their signature.

Producer Certification: Vaccines given by the producer with the producer’s signature.

Beef Quality Certification (BQA): BQA certified. All requirements of the BQA program have been met.

Castration: Method used should be stated. Knife castration is preferred.

VIP Plus: To qualify for VIP Plus, your cattle must have been vaccinated at least three weeks prior to sale date with a respiratory virus, Clostridial and Pasturella product.

Recommended Vaccinations include:

Respiratory Viruses: IBR, BVD, PI3, BRSV (example-Pyramid 4, Bovishield 4)

For Clostridials: 7-way, may contain Haemophilus (example-Fortress 7, Alpha 7)

For Pasteurellas: P.Hemolytica, P.Multocida (example-One Shot, Once PMH, Pyramid4+Presponse)

Please return the completed VIP Report Card when delivering your cattle to all Central Livestock market locations. Your VIP Report Card and information will be reviewed, and announced or displayed in the auction ring while your cattle are being sold. A copy of your VIP Report Card will also be issued to the buyer upon request.

When you choose to participate in VIP, you have taken the first step to building a strong reputation for your cattle. We encourage you to start on this program, continue to use it, and watch your cattle premiums grow.

If you have any questions about this program please contact your local Central Livestock market:

• Albany (800) 733-6828 • Zumbrota (877) 732-7305 • South St. Paul (800) 733-1844 • West Fargo (800) 733-4620

Albany (800) 733-6828 • Zumbrota (877) 732-7305 • Rock Creek (320) 629-1122 • West Fargo (800) 733-4620CENTRAl lIVESTOCk ASSOCIATION • www.centrallivestock.com • South St. Paul (800) 733-1844

2 7

Hedging for Profits By Jessica Johnson-DeGroot, Central Livestock Feeding Program Manager and Bob Young, Central Livestock Operations and Hedging Manager

VIP Report Card and Qualifications

Central Livestock Association VIP Report Card Producer Name ________________________________________________ Address ______________________________________________________ City ______________________________ State _______ Zip __________ Phone Number ________________________________________________ Producer Signature _____________________________________________ **Veterinarian Signature _________________________________________ **Age and Source Verified via EIN_______ **VIP Plus_______________ **Beef Quality Assurance__________________________________________ **Special notation will be made in the sale catalog and at the time of the sale on Veterinarian Certified, BQA,

Age and Source Verification and VIP plus. See back of this form for details on qualifications for VIP plus.

It’s very important to list the product name of the vaccine or wormer and the date of administration – not the age of the cattle.

Viruses Product Name

Month/Day/Year Given

Clostridial Product Name


Implant Product Name


Dewormer Product Name


Castration Method


Haemophilus Product Name


Pasteurella Product Name


Birth date range: First calf born

Last calf born

Other Month/Day/Year Given Weaned Month/Day/Year

Store HoursMonday 8 a.m.-7 p.m.Tuesday 8 a.m.-5 p.m.

Wednesday 8 a.m.-5 p.m.Thursday 8 a.m.-5 p.m.

Friday 8 a.m.-5 p.m.Saturday 8 a.m.-Noon

CHECk OUT OUR STORE INVENTORYGates

Ear TagsGloves

Bale FeedersTwine

Forks & Shovels

Feed BunksSawdust

Fencing Supplies

Creep FeedersMineral Feeders

Cattle Oilers

Hog & Cattle PanelsScrapers & Brooms

Insect Sprays, Bait & Tapes

Water TanksMilk Replacer

“Hot Shot” “Smidley” “Real Tuff” “Behlen” “Trail Hand” “Rol-Oyl”

Real-Tuff SkiRTed Bale feedeR Real-Tuff HaySaveR Common SenSe Single Bale feedeR

Hay Saving Round Bale FeedeRS

Zumbrota Stockman’s Supply

www.centrallivestock.com

Conveniently located at the Central Livestock Zumbrota Market

Call (507) 732-7860

Volatile livestock prices have always been a challenge for producers when it comes to making decisions on marketing their livestock. Many of Central Livestock’s customers utilize our hedging program as a tool to alleviate some of the stress. When you hedge livestock, you lock in a selling price and therefore take away some of the risk involved with raising livestock.

A key to successfully hedging livestock is knowing your cost of production. To calculate breakevens you need to know what it costs to raise those animals from start to finish. These are considered expenses, which will include the initial cost of the livestock, feed, yardage, veterinarian bills and labor. Other than the purchase cost of the livestock, feed will be the largest expense. For accurate calculations know the type of feeds that will be fed, cost, an estimate of the

average daily gain and number of days on feed until market. Knowing the number of days on feed will provide the month to market your livestock and determine when to hedge them. After costs are estimated, you can calculate the breakeven selling price. Then the most important calculation is determining what profit margin you are satisfied with and be able to continue feeding livestock in the future.

Central Livestock customers using our hedging program not only ease some of the stress of marketing livestock for themselves, but it also gives their lenders some additional peace of mind. Central Livestock takes care of the futures market variability when the hedges are put in place until the livestock are marketed. This allows for more flexibility in your operating line of credit with your lender.

Customers that hedge their livestock are required to be able to fill a contract. One fed cattle contract consists of 40,000 pounds or 30-32 head of finished cattle. One feeder cattle contract equals 50,000 pounds with a feeder base of 800-825 pounds each. Finished hog contracts are based off 40,000 pounds of carcass weight or about 200 head of hogs.

If you are interested in hedging your cattle or hogs or have questions about the program contact Bob Young, Central Livestock Hedging Manager, (651) 343-3703 or contact him at the Zumbrota market (877) 732-7305.

Central livestock Association Special Feeder Cattle Sales ScheduleZumbrota MarketSpecial Feeder Sales Thursday at 10 a.m.• September 6, 2012

• September 20, 2012

• October 4, 2012

• October 18, 2012

• November 1, 2012



• December 6, 2012

• December 13, 2012 –Bred Beef Cow Sale


• January 10, 2013

• January 24, 2013

• February 7, 2013


• February 26, 2013 –Bred Beef Cow Sale

• March 7, 2013

• March 21, 2013

• April 4, 2013

• May 16, 2013

Rock Creek MarketSpecial Feeder Sales Wednesday at 10 a.m.• September 5, 2012


• October 3, 2012

• October 17, 2012

• October 31, 2012





• January 9, 2013

• January 23, 2013



• March 6, 2013

• March 20, 2013

• April 3, 2013

• May 15, 2013

• June 19, 2013

• July 17, 2013 –Customer Appreciation Anniversary Sale

• August 21, 2013

West Fargo MarketCattle Sales Every Wednesday at 10 a.m.• September 12, 2012 –Big Iron Sale

Sheep Sales Wednesday at 8:30 a.m.• September 5, 2012


• October 3, 2012

• October 24, 2012




Fall Round-Up Horse Sale • October 26, 2012 - 11 a.m. Tack Sale - 3 p.m. Horse Sale

Albany MarketSpecial Feeder Sales Wednesday at 10:30 a.m.• September 12, 2012

• October 10, 2012



• January 9, 2013


• March 13, 2013

• April 10, 2013

• May 8, 2013

1. The North Dakota State Board of Animal Health has relaxed importation requirements for Minnesota-origin cattle from all areas of Minnesota, except for what was formerly known as the Bovine Tuberculosis (TB) Management Zone. Cattle from Minnesota (with the exception of the former management zone) are now treated the same as cattle from most other states. Specifically, all cattle can now come directly to the Central Livestock market in West Fargo, N.D. from the majority of Minnesota without needing a TB test, CVI or individual identification. Sexually intact cattle may need to be identified upon arrival. However cattle from the former Bovine TB Management Zone, small area in northern Minnesota, will continue to need a negative, whole herd TB test and a 60-day, negative TB test for individual animals. With regards to cattle that are not destined for a federally approved market, all sexually intact cattle (as well as dairy and rodeo breed cattle) that are coming to North Dakota still require a CVI and official identification.

2. As of August 1, 2012 ALL breeding bulls sold at the Zumbrota market MUST BE semen tested by Anderson Vet Service or by another certified vet within 30 days of sale. A certification of testing must be presented when unloading.

3. As of September 5, Rock Creek will have regular sales on Monday and Wednesday. Monday sales will remain at 9:00 a.m. with Wednesday sales beginning at 10:00 a.m. with cows, fed cattle, feeder cattle, hogs then sheep.

Market Reminders:


6 3

Marketing livestock rather than just selling them is the easiest way to add value. Marketing is all about working in advance to make as many bidders interested as possible. Selling is about simply expecting buyers to be interested.

Identifying the most economical marketing strategy that fits your cattle is the hardest part. Many options are available to producers to add value; whether you perform one, three or all of them is up to you.

DehorningOne of two practices can be used to dehorn calves, bloodless dehorning or mechanical dehorning. No matter the method performed, dehorned cattle look more uniform, feed better, take up less space at the bunk and are less likely to injure or disrupt other stock feeding.

CastrationThere are two common ways to castrate, either with an elastic band or surgically removing with a knife. The knife cutting method is preferred because it assures the testicles are removed. It’s ideal to castrate calves when they are young, typically no more than six months old otherwise they’re more difficult to restrain, bleed more and become “staggy” looking. However, it is not recommended to castrate calves within three weeks of weaning as this too, is a stressful time.

Vaccination ProgramFollowing a sound, well designed vaccination program is a key step in any preconditioning program and it helps build a reputation for your cattle. By complying with the Central Livestock recommended preconditioning program, Vaccination Identification Program (VIP), you add value to your cattle on sale day. If you also follow the VIP Plus program there’s potential to add even more.

The VIP program recommended shots include: a combination respiratory virus vaccination for IBR, BVD, PI3, BRSV; Clostridials, typically a seven way and it may contain Haemophilius; and the Pasteurellas. Dewormer injectable or pour-on is also recommended. To qualify for VIP Plus, the calf must also be given booster shots at least three weeks prior to sale date with a respiratory virus, Clostridial and Pasteurella product. Also the VIP report card must be certified by either the producer or a veterinarian and if applicable the calf can be Beef Quality Assurance certified.

WeaningSeparating a calf from a cow can be a very stressful time so it is ideal to do this prior to shipping to market so animals can properly adjust. Weaning earlier gives cattle a chance to become accustom to feed and gain some weight, plus they become bunk broke so they are prepared to enter a feedlot. Weaning at least 45 days before selling is recommended; this presents a reduced amount of stress and maximizes the calves’ preparedness to enter the next phase of feeding.

Uniform GroupsBuyers are more apt to purchase uniform groups to fill their feedlots than multiple small groups of different cattle because of the health risk. Whenever comingling animals there is increased stress and risk of disease which can cause setbacks in the feeding process and sometimes lead to mortality. Groups uniform in color, frame, muscling, flesh and weight range typically receive higher prices because they don’t need to be segregated in the next phase of production.

Heifer Reproduction StatusIf there are any heifers in the group, have them pregnancy checked to assure they are open. All heifers should be open, the last thing a buyer wants is to have a feedlot animal that calves.

Age and Source VerifiedTo verify the source and age of your cattle enroll in a Process Verified Program (PVP,) which is United States Department of Agriculture (USDA) approved, non-biased and third party audited. PVP providers include: AgInfoLink, IMI Global and Micro Beef Technologies. Following PVP guidelines enables cattle to meet certain export restrictions so they can be export eligible to countries with age requirements on imported beef products. However, all requirements must be met and this information MUST be sent with the cattle on sale day in order for them to qualify. Cattle that qualify for PVP are considered age and source verified and can be marketed as such to add value.

Once the most economical marketing strategy is identified it is time to put it in action. Remember, in this ever changing world where the industry constantly fluctuates one thing that will never change is people will always want to buy healthy cattle. It’s what you as a producer do beyond just keeping them healthy that can add value and money in your pocket.

Adding value also includes properly communicating what types of programs you have followed. Talk with a Central Livestock field representative well ahead of sale day so they can help you develop a marketing strategy and communicate this to potential buyers. As an added bonus, consigning early gets you free advanced advertising on the radio and Internet!

Value Added Feeder Cattle By Brenda Sisung, Public Relations Specialist

LivestockFIRST PlACE “Deuce” Sue Kersten, Hugo, Minn.

RUNNER UP “Stampede” Erin Spangler, Morris, Minn.

kids and LivestockFIRST PlACE “Riley’s First Calf” Melissa Schutz, Boyceville, Wis.

RUNNER UP “Bright Beginnings” Tony Herrera, Cologne, Minn.

sceneryFIRST PlACE “Lake Superior Sunrise – After the Flood” Kendra Anderson, Winnemucca, Nev.

RUNNER UP “Hope” Kim Myers, Kathryn, N.D.

Theresa Twohey

Stewartville, Minn.

Twohey is a senior at the University of Minnesota studying agricultural education-leadership and communications. She is also obtaining minors in animal science and mass communications with hopes to work in agricultural communications and raise heifers for her family’s dairy farm. This summer she was a communications intern for the Midwest Dairy Association and has just begun her final year as a University of Minnesota Gopher.

Ellen Stichert

Chili, Wis.

Stichert is a University of Wisconsin River Falls student majoring in agricultural studies with a minor in dairy science. She is actively involved in the campus dairy club and recently joined the Alpha Zeta agricultural honorary society with hopes to become active in the block and bridle club. Ellen hopes to return to her family beef operation and take over the farm when her father steps down.


4 5

Central livestock Scholarship Winners

THANK YOU to everyone who participated in the eighth annual Central Livestock photo contest. Look for these photos and many others to appear in the 2013 Central Livestock calendar.

Look for Central Livestock at the following industry events: North Dakota Stockmen’s Association Convention & Trade Show September 27-29, 2012 Doublewood Inn, Fargo, N.D.

Minnesota Beef Expo October 18-21, 2012 Minnesota State Fairgrounds, Saint Paul, Minn.

Minnesota State Cattlemen’s Convention and Trade Show December 7-8, 2012 Arrowwood Resort, Alexandria, Minn.

Industry Events

WINNERS!

8th Annual Central Livestock

Photo contest

1st

1st

1st

runner up

runner up

runner up

Central livestock Association Special Feeder Cattle Sales ScheduleZumbrota MarketSpecial Feeder Sales Thursday at 10 a.m.• September 6, 2012


• October 4, 2012

• October 18, 2012





• December 13, 2012 –Bred Beef Cow Sale


• January 10, 2013

• January 24, 2013



• February 26, 2013 –Bred Beef Cow Sale

• March 7, 2013

• March 21, 2013

• April 4, 2013

• May 16, 2013

Rock Creek MarketSpecial Feeder Sales Wednesday at 10 a.m.• September 5, 2012


• October 3, 2012

• October 17, 2012

• October 31, 2012





• January 9, 2013

• January 23, 2013



• March 6, 2013

• March 20, 2013

• April 3, 2013

• May 15, 2013

• June 19, 2013

• July 17, 2013 –Customer Appreciation Anniversary Sale

• August 21, 2013

West Fargo MarketCattle Sales Every Wednesday at 10 a.m.• September 12, 2012 –Big Iron Sale

Sheep Sales Wednesday at 8:30 a.m.• September 5, 2012


• October 3, 2012

• October 24, 2012




Fall Round-Up Horse Sale • October 26, 2012 - 11 a.m. Tack Sale - 3 p.m. Horse Sale

Albany MarketSpecial Feeder Sales Wednesday at 10:30 a.m.• September 12, 2012

• October 10, 2012



• January 9, 2013


• March 13, 2013

• April 10, 2013

• May 8, 2013

1. The North Dakota State Board of Animal Health has relaxed importation requirements for Minnesota-origin cattle from all areas of Minnesota, except for what was formerly known as the Bovine Tuberculosis (TB) Management Zone. Cattle from Minnesota (with the exception of the former management zone) are now treated the same as cattle from most other states. Specifically, all cattle can now come directly to the Central Livestock market in West Fargo, N.D. from the majority of Minnesota without needing a TB test, CVI or individual identification. Sexually intact cattle may need to be identified upon arrival. However cattle from the former Bovine TB Management Zone, small area in northern Minnesota, will continue to need a negative, whole herd TB test and a 60-day, negative TB test for individual animals. With regards to cattle that are not destined for a federally approved market, all sexually intact cattle (as well as dairy and rodeo breed cattle) that are coming to North Dakota still require a CVI and official identification.

2. As of August 1, 2012 ALL breeding bulls sold at the Zumbrota market MUST BE semen tested by Anderson Vet Service or by another certified vet within 30 days of sale. A certification of testing must be presented when unloading.

3. As of September 5, Rock Creek will have regular sales on Monday and Wednesday. Monday sales will remain at 9:00 a.m. with Wednesday sales beginning at 10:00 a.m. with cows, fed cattle, feeder cattle, hogs then sheep.

Market Reminders:


6 3

Marketing livestock rather than just selling them is the easiest way to add value. Marketing is all about working in advance to make as many bidders interested as possible. Selling is about simply expecting buyers to be interested.

Identifying the most economical marketing strategy that fits your cattle is the hardest part. Many options are available to producers to add value; whether you perform one, three or all of them is up to you.

DehorningOne of two practices can be used to dehorn calves, bloodless dehorning or mechanical dehorning. No matter the method performed, dehorned cattle look more uniform, feed better, take up less space at the bunk and are less likely to injure or disrupt other stock feeding.

CastrationThere are two common ways to castrate, either with an elastic band or surgically removing with a knife. The knife cutting method is preferred because it assures the testicles are removed. It’s ideal to castrate calves when they are young, typically no more than six months old otherwise they’re more difficult to restrain, bleed more and become “staggy” looking. However, it is not recommended to castrate calves within three weeks of weaning as this too, is a stressful time.

Vaccination ProgramFollowing a sound, well designed vaccination program is a key step in any preconditioning program and it helps build a reputation for your cattle. By complying with the Central Livestock recommended preconditioning program, Vaccination Identification Program (VIP), you add value to your cattle on sale day. If you also follow the VIP Plus program there’s potential to add even more.

The VIP program recommended shots include: a combination respiratory virus vaccination for IBR, BVD, PI3, BRSV; Clostridials, typically a seven way and it may contain Haemophilius; and the Pasteurellas. Dewormer injectable or pour-on is also recommended. To qualify for VIP Plus, the calf must also be given booster shots at least three weeks prior to sale date with a respiratory virus, Clostridial and Pasteurella product. Also the VIP report card must be certified by either the producer or a veterinarian and if applicable the calf can be Beef Quality Assurance certified.

WeaningSeparating a calf from a cow can be a very stressful time so it is ideal to do this prior to shipping to market so animals can properly adjust. Weaning earlier gives cattle a chance to become accustom to feed and gain some weight, plus they become bunk broke so they are prepared to enter a feedlot. Weaning at least 45 days before selling is recommended; this presents a reduced amount of stress and maximizes the calves’ preparedness to enter the next phase of feeding.

Uniform GroupsBuyers are more apt to purchase uniform groups to fill their feedlots than multiple small groups of different cattle because of the health risk. Whenever comingling animals there is increased stress and risk of disease which can cause setbacks in the feeding process and sometimes lead to mortality. Groups uniform in color, frame, muscling, flesh and weight range typically receive higher prices because they don’t need to be segregated in the next phase of production.

Heifer Reproduction StatusIf there are any heifers in the group, have them pregnancy checked to assure they are open. All heifers should be open, the last thing a buyer wants is to have a feedlot animal that calves.

Age and Source VerifiedTo verify the source and age of your cattle enroll in a Process Verified Program (PVP,) which is United States Department of Agriculture (USDA) approved, non-biased and third party audited. PVP providers include: AgInfoLink, IMI Global and Micro Beef Technologies. Following PVP guidelines enables cattle to meet certain export restrictions so they can be export eligible to countries with age requirements on imported beef products. However, all requirements must be met and this information MUST be sent with the cattle on sale day in order for them to qualify. Cattle that qualify for PVP are considered age and source verified and can be marketed as such to add value.

Once the most economical marketing strategy is identified it is time to put it in action. Remember, in this ever changing world where the industry constantly fluctuates one thing that will never change is people will always want to buy healthy cattle. It’s what you as a producer do beyond just keeping them healthy that can add value and money in your pocket.

Adding value also includes properly communicating what types of programs you have followed. Talk with a Central Livestock field representative well ahead of sale day so they can help you develop a marketing strategy and communicate this to potential buyers. As an added bonus, consigning early gets you free advanced advertising on the radio and Internet!

Value Added Feeder Cattle By Brenda Sisung, Public Relations Specialist

Vaccination Identification Program Central Livestock understands beef producers’ concern for the health of our livestock and the sustainability of the beef industry. We would like to do our part in helping you ensure the health of your livestock through our Vaccination Identification Program (VIP). In an effort to identify and certify vaccination programs we ask that you complete the following form when participating in Central Livestock’s VIP.

Use our VIP Report Card to certify your cattle vaccinations:

Veterinary Certification: Vaccines given by a veterinarian with their signature.

Producer Certification: Vaccines given by the producer with the producer’s signature.

Beef Quality Certification (BQA): BQA certified. All requirements of the BQA program have been met.

Castration: Method used should be stated. Knife castration is preferred.

VIP Plus: To qualify for VIP Plus, your cattle must have been vaccinated at least three weeks prior to sale date with a respiratory virus, Clostridial and Pasturella product.

Recommended Vaccinations include:

Respiratory Viruses: IBR, BVD, PI3, BRSV (example-Pyramid 4, Bovishield 4)

For Clostridials: 7-way, may contain Haemophilus (example-Fortress 7, Alpha 7)

For Pasteurellas: P.Hemolytica, P.Multocida (example-One Shot, Once PMH, Pyramid4+Presponse)

Please return the completed VIP Report Card when delivering your cattle to all Central Livestock market locations. Your VIP Report Card and information will be reviewed, and announced or displayed in the auction ring while your cattle are being sold. A copy of your VIP Report Card will also be issued to the buyer upon request.

When you choose to participate in VIP, you have taken the first step to building a strong reputation for your cattle. We encourage you to start on this program, continue to use it, and watch your cattle premiums grow.

If you have any questions about this program please contact your local Central Livestock market:

• Albany (800) 733-6828 • Zumbrota (877) 732-7305 • South St. Paul (800) 733-1844 • West Fargo (800) 733-4620


2 7

Hedging for Profits By Jessica Johnson-DeGroot, Central Livestock Feeding Program Manager and Bob Young, Central Livestock Operations and Hedging Manager

VIP Report Card and Qualifications

Central Livestock Association VIP Report Card Producer Name ________________________________________________ Address ______________________________________________________ City ______________________________ State _______ Zip __________ Phone Number ________________________________________________ Producer Signature _____________________________________________ **Veterinarian Signature _________________________________________ **Age and Source Verified via EIN_______ **VIP Plus_______________ **Beef Quality Assurance__________________________________________ **Special notation will be made in the sale catalog and at the time of the sale on Veterinarian Certified, BQA,

Age and Source Verification and VIP plus. See back of this form for details on qualifications for VIP plus.

It’s very important to list the product name of the vaccine or wormer and the date of administration – not the age of the cattle.

Viruses Product Name


Clostridial Product Name


Implant Product Name


Dewormer Product Name


Castration Method


Haemophilus Product Name


Pasteurella Product Name


Birth date range: First calf born

Last calf born

Other Month/Day/Year Given Weaned Month/Day/Year

Store HoursMonday 8 a.m.-7 p.m.Tuesday 8 a.m.-5 p.m.

Wednesday 8 a.m.-5 p.m.Thursday 8 a.m.-5 p.m.

Friday 8 a.m.-5 p.m.Saturday 8 a.m.-Noon

CHECk OUT OUR STORE INVENTORYGates

Ear TagsGloves

Bale FeedersTwine

Forks & Shovels

Feed BunksSawdust

Fencing Supplies

Creep FeedersMineral Feeders

Cattle Oilers

Hog & Cattle PanelsScrapers & Brooms

Insect Sprays, Bait & Tapes

Water TanksMilk Replacer

“Hot Shot” “Smidley” “Real Tuff” “Behlen” “Trail Hand” “Rol-Oyl”

Real-Tuff SkiRTed Bale feedeR Real-Tuff HaySaveR Common SenSe Single Bale feedeR

Hay Saving Round Bale FeedeRS

Zumbrota Stockman’s Supply

www.centrallivestock.com

Conveniently located at the Central Livestock Zumbrota Market

Call (507) 732-7860

Volatile livestock prices have always been a challenge for producers when it comes to making decisions on marketing their livestock. Many of Central Livestock’s customers utilize our hedging program as a tool to alleviate some of the stress. When you hedge livestock, you lock in a selling price and therefore take away some of the risk involved with raising livestock.

A key to successfully hedging livestock is knowing your cost of production. To calculate breakevens you need to know what it costs to raise those animals from start to finish. These are considered expenses, which will include the initial cost of the livestock, feed, yardage, veterinarian bills and labor. Other than the purchase cost of the livestock, feed will be the largest expense. For accurate calculations know the type of feeds that will be fed, cost, an estimate of the

average daily gain and number of days on feed until market. Knowing the number of days on feed will provide the month to market your livestock and determine when to hedge them. After costs are estimated, you can calculate the breakeven selling price. Then the most important calculation is determining what profit margin you are satisfied with and be able to continue feeding livestock in the future.

Central Livestock customers using our hedging program not only ease some of the stress of marketing livestock for themselves, but it also gives their lenders some additional peace of mind. Central Livestock takes care of the futures market variability when the hedges are put in place until the livestock are marketed. This allows for more flexibility in your operating line of credit with your lender.

Customers that hedge their livestock are required to be able to fill a contract. One fed cattle contract consists of 40,000 pounds or 30-32 head of finished cattle. One feeder cattle contract equals 50,000 pounds with a feeder base of 800-825 pounds each. Finished hog contracts are based off 40,000 pounds of carcass weight or about 200 head of hogs.

If you are interested in hedging your cattle or hogs or have questions about the program contact Bob Young, Central Livestock Hedging Manager, (651) 343-3703 or contact him at the Zumbrota market (877) 732-7305.

Conserving Feed and Forage – Weigh Your OptionsBy Jeff Reed, Vice President, Central Livestock Association

September 20121

MarketingsHappy Labor Day! Harvest has started, or is about to begin, throughout much of our trade area. Corn and soybean yields are expected to vary greatly this harvest due to early summer flooding followed by drought conditions that dominated most of the 2012 growing season. Some yields will be above average, while others will depend on crop insurance to make things work. As livestock producers, poor crop conditions have left many of you scrambling to make the best decisions for feeding livestock at affordable prices. For the first time in years some of you will need to buy grain and forages in order to feed livestock.

Nutritionists, veterinarian/pharmaceutical support teams, feeding equipment suppliers and of course Central Livestock staff should be used during these challenging times to enhance your bottom line. While feedstuffs are in short supply, your agricultural suppliers can provide advice and ideas to help keep your herd profitable. Reducing feed waste is one of the fastest ways to keep your livestock operation healthy and lucrative when forages are in high demand. New feeding equipment technology may not pay when hay is $50/ton, but what about $120/ton or $150/ton? Implementing vaccination and complete herd

health programs presents the biggest opportunity for returns when livestock prices are strong, and feed costs are high. The next 12 months are critical, so take advantage of the livestock input resources available to your operation.

It takes many producers a lifetime to build a high quality breeding herd or flock. Taking a step backwards and having to replace high quality seedstock later can be really expensive. We believe some excellent opportunities for livestock profits will return once the current, drought-driven sale of livestock passes. Even though the beef cow herd expansion appears to be delayed once again by the 2012 drought, domestic and export meat product demand continues to look strong.

The fall special feeder cattle sale season is upon us and in this edition of Marketings, you will find articles highlighting Central Livestock’s hedging program, and a feature article reviewing ways to add value to your feeder cattle. As always, one size doesn’t fit all. Contact your local Central Livestock staff for help tailoring a management and marketing plan to fit your individual needs.

We are in business to help you market your livestock in the best possible way. We thank you for the opportunity to serve.

in this issue2 Hedging for Profits2 Stockman’s Supply 3 Special Sales Schedule3 Market Reminders4 Photo Contest Winners5 Scholarship Winners5 Industry Events6 Value Added Feeder Cattle7 VIP Report Card and

Qualifications

Editor: Brenda SisungContributing Writers: Jeff Reed, Bob Young, Jessica Johnson-DeGroot, Brenda Sisung

Send comments or suggestions to: [email protected]

MISSION STATEMENTProvide products and services as effectively as possible to maximize the profitability of members and customers worldwide while maintaining a strong cooperative.

Central Livestock Association PO Box 419 South St. Paul, MN 55075

ADDRESS SERVICE REQUESTED

PRSRT. STD.U.S. PoSTage

PaIDShawano, wI

54166PeRmIT no. 72


A Company of Genex Cooperative, Inc.

2012Central Livestock

AssociationA Company of Genex Cooperative, Inc.

©2012 CRI N0633-072

Radio Market

Reports are now

available on the

Central Livestock

website

Follow us on Twitter:

@clateam

n0633-072 ©2012 cri central livestock association a...

Documents