Gayle Smith

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March 4, 2011
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Darrell Wilkes: Documentation means more premiums for cattlemen

"They're black and they've had all their shots" is not enough any more for ranchers marketing their calf crop. According to Dr. Darrell Wilkes, manager of ABS Beef Supply Systems in Parker, CO, the cattle market is dictating more documentation. Wilkes spoke to cattle producers, feedlot operators and veterinarians at the Nebraska Cattlemen's Classic in Kearney during Cattle Feeders and Veterinarian's Day.

"There are fundamental, irreversible changes occurring in the beef industry," Wilkes explained. "The cattle market is rationalizing. Some cattle are worth more than others. In the good ol' days, all same-class cattle sold for the same price. You might see a $5 per hundredweight (cwt.) spread on calves and a 50-cent/cwt. spread on fed cattle.

"Things are different today," he continued. "After a decade of growth in demand, and a change in consumer product mind set, the price spread among same-class cattle is larger than ever. There can be a $25/cwt. spread on calves and a $100/cwt. spread on fed cattle."

Wilkes added that while the value-added market is headed upward, the commodity market is headed downward. The emergence of branded beef programs, grid marketing (electronic grading), name brand health programs, name-brand genetics, documentation and verification for export programs, and supply chain marketing have changed the way cattle are marketed.

"They're black and they've had all their shots" is not enough any more for ranchers marketing their calf crop. According to Dr. Darrell Wilkes, manager of ABS Beef Supply Systems in Parker, CO, the cattle market is dictating more documentation. Wilkes spoke to cattle producers, feedlot operators and veterinarians at the Nebraska Cattlemen's Classic in Kearney during Cattle Feeders and Veterinarian's Day.

"There are fundamental, irreversible changes occurring in the beef industry," Wilkes explained. "The cattle market is rationalizing. Some cattle are worth more than others. In the good ol' days, all same-class cattle sold for the same price. You might see a $5 per hundredweight (cwt.) spread on calves and a 50-cent/cwt. spread on fed cattle.

"Things are different today," he continued. "After a decade of growth in demand, and a change in consumer product mind set, the price spread among same-class cattle is larger than ever. There can be a $25/cwt. spread on calves and a $100/cwt. spread on fed cattle."

Wilkes added that while the value-added market is headed upward, the commodity market is headed downward. The emergence of branded beef programs, grid marketing (electronic grading), name brand health programs, name-brand genetics, documentation and verification for export programs, and supply chain marketing have changed the way cattle are marketed.

"They're black and they've had all their shots" is not enough any more for ranchers marketing their calf crop. According to Dr. Darrell Wilkes, manager of ABS Beef Supply Systems in Parker, CO, the cattle market is dictating more documentation. Wilkes spoke to cattle producers, feedlot operators and veterinarians at the Nebraska Cattlemen's Classic in Kearney during Cattle Feeders and Veterinarian's Day.

"There are fundamental, irreversible changes occurring in the beef industry," Wilkes explained. "The cattle market is rationalizing. Some cattle are worth more than others. In the good ol' days, all same-class cattle sold for the same price. You might see a $5 per hundredweight (cwt.) spread on calves and a 50-cent/cwt. spread on fed cattle.

"Things are different today," he continued. "After a decade of growth in demand, and a change in consumer product mind set, the price spread among same-class cattle is larger than ever. There can be a $25/cwt. spread on calves and a $100/cwt. spread on fed cattle."

Wilkes added that while the value-added market is headed upward, the commodity market is headed downward. The emergence of branded beef programs, grid marketing (electronic grading), name brand health programs, name-brand genetics, documentation and verification for export programs, and supply chain marketing have changed the way cattle are marketed.

"They're black and they've had all their shots" is not enough any more for ranchers marketing their calf crop. According to Dr. Darrell Wilkes, manager of ABS Beef Supply Systems in Parker, CO, the cattle market is dictating more documentation. Wilkes spoke to cattle producers, feedlot operators and veterinarians at the Nebraska Cattlemen's Classic in Kearney during Cattle Feeders and Veterinarian's Day.

"There are fundamental, irreversible changes occurring in the beef industry," Wilkes explained. "The cattle market is rationalizing. Some cattle are worth more than others. In the good ol' days, all same-class cattle sold for the same price. You might see a $5 per hundredweight (cwt.) spread on calves and a 50-cent/cwt. spread on fed cattle.

"Things are different today," he continued. "After a decade of growth in demand, and a change in consumer product mind set, the price spread among same-class cattle is larger than ever. There can be a $25/cwt. spread on calves and a $100/cwt. spread on fed cattle."

Wilkes added that while the value-added market is headed upward, the commodity market is headed downward. The emergence of branded beef programs, grid marketing (electronic grading), name brand health programs, name-brand genetics, documentation and verification for export programs, and supply chain marketing have changed the way cattle are marketed.

"They're black and they've had all their shots" is not enough any more for ranchers marketing their calf crop. According to Dr. Darrell Wilkes, manager of ABS Beef Supply Systems in Parker, CO, the cattle market is dictating more documentation. Wilkes spoke to cattle producers, feedlot operators and veterinarians at the Nebraska Cattlemen's Classic in Kearney during Cattle Feeders and Veterinarian's Day.

"There are fundamental, irreversible changes occurring in the beef industry," Wilkes explained. "The cattle market is rationalizing. Some cattle are worth more than others. In the good ol' days, all same-class cattle sold for the same price. You might see a $5 per hundredweight (cwt.) spread on calves and a 50-cent/cwt. spread on fed cattle.

"Things are different today," he continued. "After a decade of growth in demand, and a change in consumer product mind set, the price spread among same-class cattle is larger than ever. There can be a $25/cwt. spread on calves and a $100/cwt. spread on fed cattle."

Wilkes added that while the value-added market is headed upward, the commodity market is headed downward. The emergence of branded beef programs, grid marketing (electronic grading), name brand health programs, name-brand genetics, documentation and verification for export programs, and supply chain marketing have changed the way cattle are marketed.


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Tri-State Livestock News Updated Aug 14, 2012 03:59PM Published Mar 4, 2011 11:14AM Copyright 2011 Tri-State Livestock News. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.