Elanco Animal Health Incorporated (NYSE: ELAN) today announced the acquisition of a novel technology designed to help reduce production inefficiencies by classifying and sorting cattle to allow for more uniform feeding and an easier, more objective marketing experience. The ability to classify and sort cattle to ensure they are fed to optimal end weights represents a significant financial opportunity of $10-$40/head.1
The Cattle Classification and Sorting System (CCSS) was developed by Performance Cattle Company, LLC and joins Elanco Knowledge Solutions now as PENPOINTTM, adding to the existing portfolio of products designed to optimize practices and products through a matrix of proprietary data and technology delivered by industry experts. Financial details were not disclosed. No other financial assets of Amarillo, Texas-based Performance Cattle were acquired as part of this transaction.
About the system
Cattle entering the feedlot are often highly variable because of breeds, genetics, health and nutritional backgrounds. Management practices that utilize tools like PENPOINTTMcan help better manage the natural diversity within groups of cattle and manage the feeding and marketing of the animals.
PENPOINTTM removes variability using a simple, effective, and consistent science-based method that employs quantitative information to make projections. The system simplifies the difficult task of objectively measuring and sorting cattle in order to limit lost environmental inputs that impact a producer’s bottom line.
The easy-to-operate system integrates with existing feed yard operations and information systems without adding complicated record-keeping. “Meaningful healthcare for livestock is more than just medicines. It is technology and innovations that help change the way we approach protein production for the betterment of people, animals and the planet,” said Jose Simas, executive vice president, U.S. Farm Animal Business for Elanco. “I am excited to be able to increase access to this important technology throughout the US as a part of our pledge to be cattle producers’ lead partner on the journey toward net zero emissions on their farms.”
“We are excited that Elanco will bring the CCSS tool to a larger audience in the cattle industry,” said Max Garrison, President of Performance Cattle Company, LLC. “Variation and lack of uniformity of feedlot cattle is a significant challenge for producers. Cattle entering the feedlot often are highly variable because of diversity of breeds, genetics, health and nutritional backgrounds. Today’s customary cattle feeding practices result in pens of cattle that are too diverse in size and stage of maturity to return the full economic value that they should,” he added.
Performance Cattle Company principals Max Garrison and Dale Garcia will serve as consultants during the transition.
More information on PENPOINTTM is available from any Elanco representative or Technical Consultant or by calling Elanco Customer Service at 877-352-6261.
ABOUT THE CATTLE CLASSIFICATION AND SORTING SYSTEM (CCSS) Originally launched by Performance Cattle Company in 2003, the tool has been used with more than 13 MM head of cattle. A controlled research study of 12,874 randomized steers fed in 48 pens showed a significant increase in the actual net value derived from use of the CCSS. Because of improved cattle uniformity within each pen, sorted cattle produced both increased live weights and greater hot carcass weights. In addition, cattle were more consistent in size (less over- and under-weight carcasses) and maturity (less Yield Grade 4 & 5, which are subject to the biggest discounts by buyers).
ABOUT ELANCO KNOWLEDGE SOLUTIONS (EKS)
Through consultation with customers, EKS helps to define and meet a wide range of customer needs, from production and distribution to safety and regulation. By analyzing data and processes, EKS also helps uncover promising areas of opportunity.
ABOUT ELANCO
Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders, and society as a whole. With nearly 70 years of animal health heritage, we are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose™ Sustainability/ESG Pledges –all to advance the health of animals, people, and the planet. Learn more at elanco.com.
