Feed Lot Magazine Online, A Good Safety Program Can Add to a Feedyard's Profits

"Most of the time, good safety goes hand in hand with good profits," says Randy Van Norden, who is in charge of the safety program at Caprock's feedyard in Leoti, Kansas. Getting injuries under control can have a direct effect on the bottom line, he says.

Derrell Havins, safety manager at Texas Cattle Feeders Association agrees. "When injuries occur, they are very expensive. Your insurance goes up. Your workers compensation goes up. And that's money right off the top. If you have a good safety program, you'll typically cut down on accidents and injuries."

Havins helps TCFA member feedyards develop and enact safety programs. "There are potential problems in all areas of the feedyard. The mill can be a dangerous place. The shop and the hospital, too. I help feedyards set up safety programs where they can conduct monthly or quarterly safety workshops, depending on the size of the yard."

Caprock's safety program was developed with input from TCFA, the Kansas Livestock Association and Cargill, Caprock's parent company.

"Developing a strong safety program is not some magic thing," Van Norden says. "It's a long path of hard work. We don't want people to get hurt. Our company really cares, and there's no sense in taking risks."

Van Norden says Caprock conducts monthly safety inspections of the entire yard. "We identify anything that needs attention. Then we prioritize the problems based on the severity of it." Caprock also involves the employees to encourage safety across the yard. "We just completed our Safety Week, where there is a heightened level of safety across the yard. There are extra employee activities and additional safety meetings, and when employees complete these activities, they earn safety bucks. At the end of the week, we auction off over $3,000 worth of merchandise that can be purchased with their safety bucks. There are enough prizes for everyone, and some even buy color televisions, turkey fryers and tack."

Van Norden says employee involvement in the safety program really cuts down on accidents.

AzTx Cattle Company has a similar safety incentive program, according to Safety Director Michael Kitten. "Each quarter, every AzTx yard is allotted a certain amount of money per employee to cover injury costs and pre-employment physicals. Whatever money is left at the end of the quarter is prorated as a bonus on the first paycheck following that quarter. So not only safety, but also turnover, affects how much employees receive. The money is not awarded if it is all spent, or if there is a lost-time accident at the yard."

Kitten says that peer pressure with fellow employees helps make the program work. "They take some responsibility for the safety of their entire crew. If one of their fellow workers gets hurt, they know it directly affects their pocketbooks."

Every 250 days that an AzTx yard completes without a lost-time accident, the company does something special for the employees. "Sometimes we purchase watches for the entire staff. Other times we cater a steak dinner. In fact, Garden City Feed Yard completed 814 days at the end of March without a lost-time accident. We are in the process of deciding on employee rewards for them. That's over two years without a lost-time accident."

"Most of the big feedyards have tremendous safety programs," says Havins. "We support all member yards any way we can. We have a library with videos they can use in their safety training. I've also developed a safety handbook they can use in conducting safety meetings."

Havins also helps yards by conducting inspections using OSHA standards. "I inspect feedyards just as OSHA would do it. We try to prevent accidents from happening so that OSHA doesn't come to the yard. We want to protect management as well as the employees." Havins also teaches CPR and first aid.

A good safety program can directly affect a company's bottom line, Havins believes. "So it is definitely beneficial to have a good safety program that cuts down on accidents."