Where's the money?

Getting paid for preconditioning and so-called Vac45 or Vac30 programs hasn't always been the case. It still isn't in some cases where cattle aren't marketed at special preconditioning sales.

“We occasionally have Vac45 type sales,” says Joe Bell, Amarillo (TX) Livestock Auction manager. “These types of special preconditioned-cattle sales are usually what's needed for ranchers to obtain the premiums (from a vaccination or grower program).”

But with such a widespread industry, Bell says being able to gain a large premium from TPV can be difficult. “It can be hard to obtain a price much above the current market,” he says. “If a buyer goes to a ranch when the market is $1/lb., he likely won't want to pay $1.03 or more.

“In many cases, the value of preconditioning may already be built into the cash market. You like to do things to get the market price. If you don't, you're going to get discounted,” Bell says.

The better calves showing up at a typical auction are likely familiar to the auction owner or manager. That might be enough to bring the highest premium to regular buyers, who trust the manager's judgment or are also likely familiar with the herd.

Bell says that since so many cattle trades are made at the ranch, guaranteeing certification through the feeding stage may be difficult.

“We need to see more education throughout our system to improve the certification process,” he says. “There are a lot of little holes in the industry.”

Claims that cattle have been vaccinated and preconditioned, as well as the vaccination program, are usually listed on sale lots broadcast through video and Internet auctions. Many feedyards offer certified beef safety and quality assurance programs, from which reliable information on cattle is needed.

“Our feedyard members try to obtain as much treatment information as they can on cattle,” says Ben Weinheimer, Texas Cattle Feeders Association (TCFA) vice president who helped establish TCFA's Beef Safety and Quality Assurance Program. “By having this information, feedyards can know not to duplicate treatments to provide good cattle management and be cost effective.”

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