Volume VII Number 1
January/February 1999


Study Shows Buyers Pay More for Value-Added Calves

Cattle producers who managed their calves according to a specific health and management program earned about $21 per head more at sale time than those who marketed unweaned, unvaccinated cattle, according to a 1997 study conducted by researchers at Colorado State University.

In fact, calves that were handled according to the VAC (Value Added Calf) 45 program, brought $3.89/ctw. more than calves that had not received a virus vaccination at some time prior to the sale and were not weaned, noted a Pfizer Animal Health news release. The study included more than 200,000 calves sold through Superior Livestock Auction sales. At an average weight of 540 pounds, the VAC 45 calves realized a $21/head advantage.


The VAC 45 program is similar to the Pfizer Animal Health Select VAC/Wean VAC program, in which calves receive specific vaccinations prior to and at weaning, and are then held at least 45 days after weaning before marketing. Cattle handled according to Superior Livestock's VAC 34 program, similar to Pfizer's Pre VAC program, brought an average of $1.61/cwt. return, or approximately $8 per head more than cattle not in a health program. This program does not require the 45 day backgrounding period.

These type of returns outweigh health input costs according to Dr. Ken Odde, senior technical services veterinarian for Pfizer Animal Health. "There was about an $8.00/head advantage for calves enrolled in the VAC 34 program and the average cost of product for those cattle was $3.50/head."

The study conducted by Colorado State University animal scientist Mike King quantified data on 1,723 lots of calves sold through 10 video auctions conducted by Superior Livestock Auction between June and October 1997. King observed, "Calves that qualified for either the VAC 34 or VAC 45 program also sold for significantly higher prices compared with calves that had received a virus vaccination at some time prior to the date of sale, but did not meet the requirements of a value added health program and were not weaned."

In conclusion King said, "The results of this study add support to previous work indicating that cattle buyers are willing to pay more for beef calves that can be documented to have specific value added health programs near the time of weaning."

King's thoughts are echoed by Feedyard Manager Mike Briggs of Briggs Feedyard in Seward, Neb., who says, "I buy 4,700 calves per year and cattle that are vaccinated are worth more to me than non-vaccinated cattle. In fact, I won't buy cattle that aren't preconditioned." Briggs' comment is an example of what is happening in the industry according to Odde.

"Buyers are really dictating the direction that the programs are going. We've seen substantial growth in the VAC 34 and VAC 45 programs because the marketplace is interested in those calves," said Odde.

Producers interested in learning more about these types of programs should contact their veterinarian or a Pfizer Animal Health representatives. For a copy of the Superior Livestock Auction study, send a written request to Pfizer Animal Health, 650 J Street, Suite 100, Lincoln, Nebraska 68508.

 








  

   
   

   


   

   		
  
   



  

    




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