Study Shows FCCP Tags Provide Added Value in Marketplace | TSLN.com

Study Shows FCCP Tags Provide Added Value in Marketplace

The Red Angus Feeder Calf Certification Program (FCCP) has long been recognized as a leader in the beef industry and university research has now quantified the added value this program provides for beef producers. In a recent study completed by Kansas State University, FCCP-tagged Red Angus calves marketed through Superior Livestock Auction's video sales, sold for significantly higher prices. From 2013 to 2016, FCCP-enrolled Red Angus calves sold for $3.38 more per hundredweight over non-tagged, Red Angus-influenced calves that were only identified by breed description. This equated to more than $20 per head on a 600-lb. feeder calf.

Gary Fike, Red Angus Association of America director of commercial marketing, said that this third-party research verifies the value delivered by the FCCP program. "This is real-world data. The marketplace determines value, and that added value is determined by the assurances that the FCCP-enrolled calves provide," said Fike. "Previous data from Superior has shown that Red Angus calves command higher prices than other breed types. Now we know, that within the realm of Red Angus-influenced calves, certification of breed type, source, and age, extends that value even further via FCCP. Buyers are willing to pay more for that guarantee."

The study included a total of 1,412 lots of beef calves representing 131,975 head to quantify the effect of Red Angus age- and source-verification programs on the sale price of calves selling through 94 Superior Livestock Auction's video sales from 2013 through 2016.

Now 23 years old, this USDA-verified program continues to be popular with farmers, ranchers, and cattle feeders. The oft-called "Yellow Tag" program continues to set records for growth. In 2016, calf enrollments increased 27 percent compared to the previous year. Double-digit growth is continuing in 2017, with February enrollments being the highest in history for a single month, with 35,700 tags issued. FCCP enrollment is free and the only cost is for the 99¢ dangle tag or $3 EID-dangle tag combination.

“This is real-world data. The marketplace determines value, and that added value is determined by the assurances that the FCCP-enrolled calves provide. Previous data from Superior has shown that Red Angus calves command higher prices than other breed types. Now we know, that within the realm of Red Angus-influenced calves, certification of breed type, source, and age, extends that value even further via FCCP. Buyers are willing to pay more for that guarantee.” Gary Fike, director of commercial marketing for Red Angus Association of America

Cattlemen using Red Angus bulls can call to enroll their calf crop by answering a few simple management questions. Contact Chessie Mitchell, tag program coordinator, at chessie@redangus.org, or call (940) 387-3502 Ext. 2, to enroll in the program.

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–The Red Angus Association of America

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