March 3, 2000

A packed house and above-average prices paid at Jordan Cattle Auction’s second Premium Stocker and Feeder Sale in San Saba in January suggest that buyers are willing to reward those cow-calf producers who can verify their calf management practices.

A little over 4,000 head of weaned cattle once again commanded premium prices, according to Ken Jordan, the family-owned auction’s general manager.

"We were very pleased with the results. Most of these cattle are going to grain fields in Oklahoma and to feedlots," Jordan reported, indicating that the premium sales are definitely a trend. "We continue to have inquiries. Some producers come to watch, others to participate. That’s why, right now, we’re booking another sale for March 30, and we’ll probably have another one in the summer."

At the very first sale, in November 1999, some 5,300 head of value-added cattle from approximately 90 producers within a 450-mile radius of San Saba averaged between $8 and $12 cwt. more than non-weaned calves, depending on weight.

In order to be included in Jordan’s premium stocker sales, calves must have been weaned 45 days prior to the sale under a prescribed vaccination schedule. It must also bear an electronic ear tag with a transponder that links the calf to its health background.

According to Jordan, all cattle involved in the premium sales must meet specific sale guidelines and certification criteria.

"All steers have to be knife-cut, dehorned and given either subcutaneous injections or intramuscular injections in the neck area," he said. "Cow/calf producers must certify that they’ve used only specified vaccines and dewormers and will have to show receipts for the pharmaceuticals."

All vet treatments are entered into a database provided by AgInfoLink. Buyers have access to it and can add their own records.

"If an animal gets sick or has another problem, we can follow up easily," Jordan said. "We’re pushing this verified-process concept pretty hard because it adds value. You build a reputation over time, and with these tight controls, buyers’ expectations should be better. Hopefully they’ll be back for more."

The cattle in the sales undergo a weaning program that prepares calves for optimal performance on grass or in the feedyard. In preparing for the two recent sales, staff downloaded health information on each consigned calf into the auction’s computer. Next, calves were weighed, sorted and resorted as to weights, breed types and body scores.

"We keep the range narrow (75 to 90 lbs.) so there will be more consistent performance in stocker operations and feedyards," he said. "More uniform going in is more uniform going out."

Uniform truckloads of cattle are then offered to buyers.

"The purpose of this kind of sale is to provide the consignor of one head the same premium prices that operators of load lots normally receive for following good management practices for the calves’ weaning and for offering more uniform pens," Jordan explained, adding that another result is the creation of a good supply of "market preferred" calves.

Jim Schwertner, president of Capital Land & Livestock Co., a volume buyer at the November sale, believes Jordan’s concept is the wave of the future for all cattle sales.

"Buying cattle whose background is verified by the Jordans or any other auction market is very important to us," said Schwertner. "It makes the calves easier to sell because it’s easier for us to tell our buyers the story of the cattle. Plus the fact that they were offered in truckloads makes it a much more efficient sale."

Schwertner, who is also president of the Texas Cattle Feeders Association, suggested that another advantage of the trace-back system used by the Jordans is that it makes buyers aware of the producers of better cattle and the regions from which they come for future reference.

In addition to achieving higher prices than non-weaned cattle, the consigned calves brought $2 to $4 cwt. more than a typical sale featuring backgrounded cattle. That, according to Leslie Callahan of eMerge Interactive, a Sebastian, Fla. company, is proof that the industry is ready to support this kind of sale.