by Chip Kemp
In the March Issue of SimTalk, we introduced the revolutionary IGS Feeder Profit Calculator™ and its role in providing true awareness of feeder calf profit potential. In this article, we are going to walk through the simple and straightforward process of getting an IGS Feeder Profit Calculator certificate generated on a specific set of calves.
The first step is to get to the IGS website. You can either use the IGS link at the top of Simmental.org or you can go directly to InternationalGeneticSolutions.com. The IGS Feeder Profit Calculator link can be found in the upper right-hand corner.
The second step will take you to the input form. Complete the form and submit that information for certification. You will provide contact and location information, weaning and herd health specifics, marketing weights and timelines, and of course registration numbers on sires.
It is possible that staff will reach out seeking additional information, but roughly three business days following your submission you will receive an email providing you a digital copy of your IGS Feeder Profit Calculator certificate.
Now it is time to interpret the information on your certificate. On the left side of the certificate will be all information provided by the producer. This gives confidence and knowledge to a potential buyer, knowing you are hanging your credibility on the details you provided. The buyer is able to quickly gauge your management and health practices that built value into this set of calves.
The lower right-hand-side of the certificate focuses in on five categories that are crucial to feedlot and carcass success. The star metrics reflect the ranking of your calf genetics versus the IGS database.
The upper right portion of the certificate is the true foundation and core of the IGS Feeder Profit Calculator. Using the largest genetic database in the industry and some of the elite minds in the business we have leveraged known genetics, herd health, current economic conditions, and basic accounting principles to provide the most robust indicator of feedlot profit potential to date. It breaks it down to a language we all understand — dollars and cents. Frankly, feedlot buyers want to know if a set of calves has a reasonable chance to turn a profit.
Three measures are highlighted on the certificate:
Relative Genetic Value: Predicted difference in value due to genetics between the calves being evaluated and the average Angus calves of the same sex, starting weight and management conditions.
Relative Management Value: Predicted difference in value due to management between the calves being evaluated and those same calves under the assumption of an industry average of 60% of calves being vaccinated against BRD and 60% of calves being weaned for 30 days or more.
Total Relative Value: A combination of Relative Genetic Value and Relative Management Value.
When evaluating each of the relative value categories it is important to be aware that the average in each category is zero. A $0.00/cwt means these calves reflect the breakeven potential of the average calf. There is no artificial adjustment to the base just for marketing advantage or to provide a feel-good effect. You expect the truth and the facts. So do your customers and your buyers.
On the example certificate provided, we predict a breakeven price (at the time they are sold as feeder calves) based on their predicted feedlot performance of an additional $9.84/cwt. In laymen’s terms, that means the buyer at your local auction market or through your online platform could afford to pay an extra $9.84/cwt over the average animal on that day and still come out breaking even. To be clear, the buyer isn’t looking at these calves to break even. Like you, the buyer has an eye on profit. But in this example, the buyer has true awareness, through IGS, that leads him to believe these calves are a safer bet. So is he looking to pay an additional $9.84/cwt? No. Is he willing to give $2, $3 or $4 more on a safe bet rather than risking everything? We think he is.
Additionally, a second page highlighting all registration numbers and known genetics accompanies each certificate.
It is really that simple. And you won’t pay a thing. Roughly 20 minutes of work will provide you with the most credible and trusted information available on the potential feedlot performance of your calves. Trust is the Gold Standard.
Your success is wrapped up in the value of each year’s calf crop. You’ve invested years, significant dollars, and countless hours of sweat to get the calves to this point. Why leave calf knowledge to chance? You can either Know or Guess. Choose Know.