by James I. Sprague, Nutritionist
What is a “benchmarking?
Benchmarking occurs all across the cattle industry. Cattle feeders
use feedlot close-out information to evaluate profit and loss of pens
within a feedyard; the next step is to evaluate performance compared
to other yards. The use of these comparisons are often called “benchmarking.”
The word benchmark is an expression from engineering/surveying work.
It gives the surveyor a starting point of reference. The procedure
of comparing close-outs becomes a “yard-stick” (pun intended)
to evaluate performance of individual pens and the over all feedlots
performance
Sources of feedyard information
One of the large data bases for evaluating a feedlots performance
compared to other feedlots is the Benchmarking Performance Program®
from VetLife. There are also several feedlot close-out summaries available
that can be used for evaluating a feedlot performance and make comparisons
to industry averages. The monthly summary from Dr. Mark Hoelscher,
consulting nutritionist from Hereford, Texas, who uses close-outs
shared by feedlots in Texas, Oklahoma, New Mexico, and Kansas, is
a valuable resource. Another is Kansas State University’s “Focus
on Feedlots.” The KSU data base is a monthly summary. Dr. Ron
Hale collects the Kansas data from eight feedyards from western Kansas.
He reports there is a great interest in the data not only by feedlots,
but by nutritionists and consulting veterinarians. Iowa State University’s
farm management program is also a possibility for valid data. The
ranch to rail program at Texas A & M is a valuable source of comparative
information. Most sources of information are valuable but do not have
the depth of information as the VetLife program.
Using comparative data
The obvious use is to compare a feedlot to others in the industry
for management and production changes. Another use is to evaluate
management decision and proposed plans based on good historical data.
Pete Anderson of VetLife explains that their data is used extensively
by their customers and clients to make management decisions. The VetLife
system records considerably more inbound/outbound cattle information
than other data bases. They record not only inbound management factors
such as steer, heifers, cows, bulls, weights, genetics, and many management
and endpoint categories, but they are also able to obtain and record
carcass information. The VetLife program appears to be a valuable
tool for their clients to make decisions.
Total industry benchmarks
The beef quality audit provides benchmarking for the industry and
is sponsored by the National Beef Association. This, and other audits
should be analyzed to check for progress in problem areas, as well
as to highlight situations that need further attention. The latest
beef quality audit indicated some progress of carcass value. We have
moved most of the injections away from the high value areas of the
carcass. We have reduced E. coli contamination of carcasses. We have
also reduced the hide damage from branding.
However in my opinion, we get a failing grade for feedlot death loss.
Feedlots are still running over one to two percent of the cattle placed
on feed. This is evident from the data of Dr. Hoelscher and the Kansas
monthly report. But there is light on the horizon. The industry is
trying to encourage the virus vaccines be administered back at the
farm or ranch before the cattle are shipped to help reduce feedlot
respiratory disease and mortality.
The industry has made measurable progress in reducing defects. The
beef quality audit process has proven to be an effective tool in identifying
problem areas and publicizing strategies with which the industry can
attack quality and consistency issues.
What is in it for us?
We can only make progress if we can measure where we are now. Accurate
close-out information and further evaluation is the way progress can
be achieved for an individual feedlot. Sharing information with data
bases is important. The feedlots that share information are to be
complemented for allowing their information to be used to help other
feedlots.
A feedlot’s performance records are a valuable tool to market
the feedlot services to potential customers, but recognizing that
personal contact and follow-up are key points of getting and keeping
customers along with competitive performance. ©
Dr. Sprague welcomes questions or comments on his articles. He can
be reached at 316-283-8692 or by writing him at 625 Grandview Avenue,
Newton, Kansas, 67114.
