SG_USA_October_2020

Commercial Corner

SANTA GERTRUDIS

SANTA GERTRUDIS GENETICS HIT BIG IN NEVADA By John Ford, Association Consultant, Santa Gertrudis Breeders International

I ndustry enthusiasm for Santa Gertrudis genetics was evident this past summer in Winnemucca, Nev., during the Superior Livestock Auction Video Royale. More than 195,000 feeder calves were offered during the week-long video marketing event, including 1,045 American Red steers consigned by Santa Gertrudis Breeders International (SGBI) member King Ranch, herd No. 1. Demand for this unique blend of Santa Gertrudis and Red Angus genetics was strong. Prices for the American Red offering bumped the top of the day’s market, comparing very favorably with the amounts paid for black-hided cattle of like kind and class. The Winnemucca broadcast location provided SGBI an opportunity to showcase the breed’s genetic package to members of the commercial sector in an area of the nation well-suited for Bos indicus- influenced genetics. The team at Superior Livestock Auction also highlighted the American Red program on Superior Sunrise , a 30-minute TV show that aired prior to the auction and is viewed by thousands of cattle producers nationwide.

Purebred production serves as the foundation for the majority of SGBI members’ breeding programs, with genetic improve- ment being the focus of most operations. So that poses the question: What is the value of the American Red commercial tagging program for Santa Gertrudis seedstock producers? The American Red serves as the basis for SGBI members to develop a genetic-based, value-added production and mar- keting system for their bull and replacement female buying customers who utilize Red Angus genetics in their commercial operations. The program is designed in a manner to benefit all participants – purebred Santa Gertrudis breeders, commercial cow-calf producers, feedlots, packers and consumers. The program has far-reaching potential for improving predictability and in-turn value across the production chain. The American Red program is based on the breed’s Bal- anced Beef Index that focuses on the production of profit- able feeder cattle and quality replacement females. A Santa Gertrudis bull battery that ranks in the top 50 percent of the breed must sire animals in this program; bull buying custom- ers use this index as a genetic improvement tool as selection decisions are made. Once a group of commercial cattle meet American Red pro- gram requirements, that information can be used for any mar- keting method. For example, the American Reds marketed through the Superior Sale in Winnemucca carried the America Red label. It was noted in the auction catalog and mentioned numerous times on the block that these feeder calves repre- sented the best Santa Gertrudis and Red Angus genetics. Research has found larger groups of cattle generally receive a higher price than smaller groups. However, anecdotal infor- mation indicates producers marketing genetic-verified and identified cattle are receiving premiums, regardless of lot size or marketing avenue. Providing our commercial cattle-buying customers the opportunity to take advantage of the American Red program to improve genetic quality and add value to the bottom line is substantial. The program’s blue tag, signifying American Red, sends a message to buyers, feeders and pack- ers that these cattle perform up and down the industry chain and will hit endpoint targets. With the assistance of the RAAA marketing staff, SGBI is working to develop additional value- added avenues for Santa Gertrudis and Red Angus genetic packages. These efforts are also opening the door for SGBI to work with other Bos taurus breeds in the development of genetic-verification marketing programs. It is estimated that more than 85 percent of the cattle marketed through Superior Livestock Auction’s Winnemucca event carried a genetic-merit label from a breed association or industry certification-verification company. Santa Gertru- dis is one of the few breeds, if not the only Bos indicus -influ- enced breed, that can offer commercial cattlemen a genetic merit marketing program. That is a great tool to have in the association’s toolbox, since genetic verification of cattle is an idea whose time has come.

Why is there so much industry interest in SGBI’s and Red Angus Association of America’s (RAAA) collaborative tag- ging program? Simply put, American Reds are well suited for commercial producers who are seeking steers that fit in the value-added segment of the beef industry as well as quality replacement females that can perform in challenging environments. Since the program’s introduction in early 2020 during the Cattle Industry Convention, more than 1,550 head of American Red cattle have been marketed. Cattle feeders are very aware of the role that genetics play in downstream profitability and, with an increasing number of finished cattle being marketed on a grid, a formula or some other avenue that rewards value, the American Red feeder calf is the right combination of efficiency and profitable car- cass genetics. American Red replacement females empha- size the value of increased longevity, fertility and efficiency that fits a wide variety of environments. While the American Red program has generated a tre- mendous amount of commercial industry interest, few SGBI members are positioned to market truckload lots of compos- ite feeder calves or retain ownership through the feedyard.

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SANTA GERTRUDIS USA