Livestock and Forages News Articles
Articles published in Arkansas Cattle Business
Animal Science: Today and Tomorrow - December 2008
Pendergrass Cattle Co. Wins National Stocker Award
The Arkansas cattle industry should be proud to learn the winners of the
National Stocker Award is the Pendergrass Cattle Co. The National Stocker Award
was developed by BEEF and Elanco Animal Health to recognize
stocker-cattle operators and cattle backgrounders for the vital role they play
to ensure consumers have quality beef available every day of the year.
Though stocker cattle were always a focal point, John Frank began growing the
business in earnest when he took over management in 1972. A decade later — five
years after John Paul returned home — they built a starter yard that has since
served as the fulcrum of operation flexibility and growth. The starter yards
gave them the flexibility to run cattle on their own grass, on someone else's
grass, on grain pasture, or to take them straight to the feed yard, so it is the
hitch pin of their whole operation. In effect, it's also enabled them to run
three sets of cattle on their own ground each year rather than one like they
used to.
Not all of managing risk is managing price risk but being able and prepared
to move cattle into another production phase is very important. Having that
flexibility is another benefit of the alliances they’ve established. For
instance, several years ago the Pendergrasses established a close working
relationship with a Flint Hills, KS, ranch, so close it really functions as more
of a partnership. They run a number of cattle though an early-season,
double-stock program, normally shipping off grass in July.
The Flint Hill ranch partnership had a substantial impact on their operation.
It's allowed them to expand numbers and exploit early-season grasses in Arkansas
with some heavy feeders to market from the home ranch in June and July.
It's the feed mill John Frank built 25 years ago that makes the starter yard
and subsequent flexibility possible. As ingredient costs increase, the mill's
value grows as well. They figure the cost of the feed they mix today is 40% less
than if they bought it mixed.
Today, the feed yards they have interest in are also part of Innovative
Cattle Services and AZTX Cattle Co., a collective of independent yards that work
together to offer customers a broader range of services. Feed yard alliances
have also offered them the chance to sell feeder cattle to customers of the
yards. That’s been good to them.
Combine that flexibility with their new procurement program and they have
even more options. Though unthinkable to many stocker operators, the
Pendergrasses buy a fair volume of their cattle well in advance of when they
need them. In late July, they already had cattle contracted through October.
This buying system also allows them to manage market risks by not having to buy
cattle on the board, or all at one time.
Finding new ways, more effective ways to build feeder cattle has been both a
necessity and driving philosophy at Pendergrass Cattle Co. The Pendergrasses
have stayed with what they know - growing grass and cattle, and they’ve never
ventured very far from it. This is a very important point in their success.
Animal Science enrollment continues to increase
For the 2008 fall semester, the Department of Animal Science has 152
undergraduates including 36 students from out of state including 8 each from
Missouri, Texas and Oklahoma. The Department is graduating approximately 28 to
30 students each year and these students are making an impact on the industry.
The Department has 17 master students and 11 Ph.D students. The Department is
continuing to develop a reputation for quality undergraduate and graduate
education.
COOL is up and running
If you’ve sold cattle since September 30, you were probably asked to sign an
affidavit. The affidavit system asked the seller, who has “firsthand knowledge”
of the livestock in question, if the cattle are of US origin. Most sale barns in
Arkansas are asking sellers to sign an affidavit.
Even though COOL went into effect on September 30, 2008, the first six months
is dedicated to education and to how to become compliant with COOL. There will
be no enforcement during this time period. In addition, we may see changes in
how to become COOL compliant. That means the rules will be determined after the
“game” starts. This may cause confusion, frustration, and aggravation for
producers and sale barn owners.
One rule that needs clarification is the length of time producers must keep
records. The “rule” states records must be kept for one year from time the
product is sold. However here is the question - What is the product? For a
cow-calf producer the product is a weaned calf but from a consumer’s point of
view it is a package of meat. If USDA rules the product is a package of meat,
the cow-calf producer may have to keep records for 18 to 24 months.
If you buy breeding stock (bull, replacements, etc.) you should request an
affidavit from the seller. Producers participating in the NAIS or other
certification program (QSA) will not be required to sign an affidavit.
By: Dr. Keith Lusby and Dr. Tom Troxel
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