One producer taking advantage of 101 Livestock's source verified (SV) electronic ID (EID) program is Dave Azevedo, who runs cows and stockers near Salina, CA. He also feeds vegetable residue as a pre-finishing ration, selling 1,500 head/year through 101 Livestock Market.
Azevedo says a pen of his 980-lb., SV steers brought $92.75/cwt. in late May, a $50/head premium over his costs.
Mike Jorgensen, Greeley, CO, travels central California each spring buying for feedlots in Colorado, Utah and the Midwest. He says two of his best yards have asked about SV cattle, even though they aren't quite set up to handle EID.
“I expect they'll be set up to handle them when the summer runs begin — and they'll have an outlet for the beef,” he says.
“Besides being a good thing for domestic markets, I think EID will be mandatory for getting beef into the export markets,” he adds. “More feedlots across the country will come online very soon to handle SV cattle.”
SV with EID appears to be raising the bar for everyone, says 101's owner, Jim Warren. The marketing system really accelerates, he explains, when you couple pre-sorted cattle and auction-style competitive bidding with the vaccination protocol, SV and EID.
And, he says SV and EID are changing marketing dynamics — often benefiting the smaller feeder.
“In the past, big outfits could pay the most for calves,” Warren explains. “Now, we're seeing smaller feeders and larger operations feeding for specific customer niches paying the premiums through competitive bidding for sorted and SV calves.”
He argues that SV using EID may give the production and marketing alliances a run for their money.
“This is the first development in my 30 years in the cattle marketing business that's returning the producer significant and honest value for quality cattle,” he says. “Once we get to where we can get carcass information back to the producer, auction markets using this technology will be formidable competition for other marketing approaches.”