Northeast Texas Sale Operator
Likes Preconditioned SpecialsBy David Bowser
SULPHUR SPRINGS, Texas There was a time when a
rancher would unload his cattle at the sale barn, they
would run the bovines through the ring, and by the next
day, the cattle would be on their way to a feedyard
somewhere.
But in a world that is rapidly becoming more complex,
the livestock marketing segment of the beef industry is
stepping up to face those complexities with improved
marketing techniques.
Working with the Northeast Texas Beef Improvement
Organization, or NETBIO, Joe Don Pogue, owner of the
Sulphur Springs Livestock Market, has conducted three
special sales since November 1998, in an effort to group
small bands of cattle into uniform lots and guarantee
buyers that all the cattle in the sale met certain health
and preconditioning standards.
At their first sale almost a year ago, they had 17
different people who bought 2500 calves. Each of the
animals had been certified as having had their
vaccinations, were castrated and dehorned, and producers
provided information on the animals' background including
dams and sires.
Pogue says the idea for such sales came from a sale
barn in Iowa. A representative of the sale barn came to
Sulphur Springs a couple of years ago and talked to the
organization about it. The Sulphur Springs sales
developed from there.
Working with NETBIO, Pogue has conducted three of
these sales to date, selling some 7000 head. Next month,
just about a year after his first sale, the Sulphur
Springs Livestock Market will host another one.
The requirements for the cattle include vaccinations
90 days prior to the sale; they must be weaned, on feed
and water troughs 45 days before the sale, and a second
vaccination 30 days prior to the Nov. 10 sale. The cattle
have to be castrated and dehorned at least 30 days before
the sale.
The required vaccinations include a seven or eight-way
clostridial (black leg) administered under the skin
in the neck, not in the muscle; respiratory
viruses (IBR, PI3, BVD and BRSV); hemophilus somnus given
in the neck, and pasteurella hemolyticum, again in the
neck.
The IBR/PI3 must be a modified live virus. Two doses
are required for both the IBR/PI3 and hemophilus somnus.
The hemophilus somnus vaccine can be combined with the
clostridial vaccine.
The pasteurella hemolyticum vaccine must be recognized
as leukotoxin type. It may be combined with pasteurella
multocida. The dose required is dependent on label
recommendations.
"All the calves in the sale have to have their
booster shots," Pogue notes.
If the veterinarian doesn't give the shots, he says,
the producer has to keep up with the brand name of the
vaccine used.
Perhaps most important, all this must be documented.
Each producer has to maintain a record of the vaccines
including the brand name, components, lot or serial
number, dates administered and location of injection.
Other vaccines such as for lepto and medications such
as deworming or implants are not required, but the
producers are encouraged to consult their veterinarians
concerning such actions.
The calves will be classified as preconditioned or
freshly weaned.
"The preconditioned calves must be weaned at
least 45 days before the sale," Pogue says.
They will take calves fresh off the cow, but they
won't be co-mingled with the pre-conditioned calves.
"So far, we've had very, very few calves that
weren't preconditioned," Pogue says. "I would
say less than 150 head out of 7000."
Both the preconditioned calves and the freshly weaned
calves will have to have their vaccinations, be certified
by a licensed veterinarian and have a NETBIO
identification tag.
"You put an eartag in their ear that says NETBIO
on it," Pogue says. "It has my phone number
under there. The number on that tag corresponds back to
the producer. That way, if you sold 40 calves and they
got co-mingled and these calves all got off somewhere and
got sick, they can call me back and tell me what tag
number was in their ears, and I could go back and see who
sold those calves."
The eartags identify the calves in the program and
give the stocker or feeder a way to trace them back to
the producer.
"We're trying to keep up with the calves and
where they come from and make sure everything is done
right," Pogue says. "That's why we want to see
the BIO tags on their ears. When they get to the feedyard
or to the stocker operation, they know where these calves
came from and can watch the performance on them."
Of the 7000 calves in the three sales Pogue has had so
far, he's only had one person call requesting information
on the health protocols used.
"I've had one callback on a group of calves that
went to an operation in Oklahoma," Pogue says.
"He wanted to know what the vaccination program on
these calves was."
After checking the eartags, it turned out that the
calves that got sick came from 12 different producers,
but this was the only group of calves that got sick.
Pogue says the man admitted that he put the calves out
with 500 others he put together from a variety of places.
The buyer put them through the chute and doctored
them, Pogue says, and they straightened up.
"That's the only question I've had on any calves
that have gone through one of these sales," Pogue
says. "I've talked to several of the buyers; they've
been tickled to death with the health on them."
Pogue says documentation of the health and management
of these calves is important to the sale since it assures
the buyers of the quality of the cattle going through the
ring.
The Sulphur Springs sale barn will record and issue
the ID tags to the certifying veterinarian. The vet in
his certification will record, among other things, known
breeding information. A copy of the veterinarian's
certification will go to the sale barn.
"Where it says it has to be certified by a
licensed veterinarian, that's a little bit
misleading," Pogue says. "A lot of people I
know like to work their own cattle. That's fine."
Producers can work their own cattle, Pogue says, but
they do have to be certified.
"We try to get the vet or the owner of these
cattle to fill out a small information sheet before the
sale," Pogue explains. "We know how many calves
we've got for the sale, but we'd like to know a little
bit about the breeding, a little bit about the operation.
We'd like to know a little bit about the cows you have,
the kind of bulls you have and the estimated weight of
the calves so we can get out some information to our
buyers."
The cattle will be weighed upon arrival and sold on
their initial weight less a two percent shrink.
They will be sorted by type and weight with the other
cattle in the sale and sold in uniform lots.
"We sort these calves as you bring them in,"
Pogue says, "and you can't believe how many
different kinds of calves there are."
"We do weigh them as fast as possible,"
Pogue says. "We've got two sorting crews. They get
the cattle sorted up and get them to the scales as
quickly as possible."
The cattle are sorted by type, weight and quality.
"We try to get them within 50 to 75 pounds weight
variation in each individual group," Pogue says,
"then they're co-mingled with other producers'
cattle and offered as uniform lots when they come through
the auction ring."
He says what he's after is selling truckload lots,
50,000 pound lots of cattle.
"We've had several, but we've had smaller groups
also," Pogue says.
The cattle will be sold in groups.
"You get paid for what your calves weigh,"
he says. "If my calves go on the scale and weight
500 pounds and I put them in a particular lot and they
bring 80 cents a pound, my calves bring $400. If you're
my neighbor and you brought in your calves and they're
just like mine only they're 25 pounds heavier but they're
in the same lot, your calves sold for 80 cents a pound
also, but you get paid for what they weigh, 525. They're
not sold on the average weight."
All the cattle in the same lot will be sold at the
same price to the highest bidder. The selling price for
each lot will be multiplied times the initial weight of
each calf less the two percent shrink to determine the
gross sale price of each producer's calves within the
lot.
"These calves are spread out from local places
all the way to feedlots in Oklahoma and Kansas,"
Pogue says. "We want to make sure that these calves
have been handled the way they're supposed to be for the
sale so we can have a branded product."
He says that when buyers come to a NETBIO
preconditioned calf sale they know what they're buying is
preconditioned.
"We want to keep a good reputation," Pogue
says, "and that's the main reason for these
vaccinations and the reason for the vet
certification."
Pogue says he'll continue to have his regular sales,
both for beef cattle and dairy cattle, but those sales
will be separate from the preconditioned sale.
Pogue notes that there is no extra commission for the
special sale.
The only extra charge is for the eartag.
"We just charge the producer for what they
cost," Pogue says.
The price of the tag is taken out of the sales check.
Producers don't pay for the tags when they get them.
The auction puts the cattle on feed after they arrive,
are weighed and sorted.
"We put them on good, comfortable hay," he
says.
To date, Pogue has been happy with the results of the
sales.
"We've been very fortunate to have three good
sales," Pogue says. "Last year, the cattle
market was kind of tough all year long. We got a good
spurt in November. Our first sale was in the middle of
November. It was just almost unbelievable to me what the
cattle brought."
He says that so far, they've seen two to seven dollars
a hundredweight over the market.
"People say, 'have you got any proof of
that,'" Pogue says. "We have weekly sales and
I'm in the market every day. The only proof I have is
what I see."
On their last sale, he says, a producer brought in a
group of nice 600-700 pound black cattle for their
regular sale and they sold one at a time.
"These heifers brought 65 to 69 cents a
pound," he recalls.
The following Wednesday they had their NETBIO sale,
and a neighbor brought in the same kind of cattle.
"He had a group of 660 pound black heifers,"
Pogue says. "They brought 77 cents a pound."
Pogue says the time and effort the producers put in
preconditioning the calves should pay off.
"I've been in this business 24 years," Pogue
says. "I started out in this business as an
auctioneer when I was 16 years old. I've seen things
change a whole lot. Looking into the future, I see things
changing more."
He sees the special sales as a way to meet the
changing needs of the feeding industry.
"These feedyards out here where we've sent cattle
for years straight out of the sales," Pogue says,
"they don't have the help they used to have. They
don't have the cowboys. They don't have the labor to get
these calves straightened out like they used to."
Pogue says there are already several feedyards that
aren't taking any outside cattle unless they're
preconditioned.
"I think we're going to start seeing this narrow
down more and more and more," he says. "If
we're going to survive, not only the producer, but the
sale barn as well, we're going to have to do things a
little bit different."
He says he's already seeing fewer bidders on freshly
weaned calves.
"Order buying companies don't have the orders
they used to have for these calves," he says.
"We sell these cattle daily to a smaller number of
buyers every day."
Pogue says the buyers are trying to find
preconditioned cattle and larger groups of them.
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