Some men prefer boobs and others legs. The debate has gone on since the stone ages. Modern photography can enhance either choice – or both. But when it comes to photo enhancement in dairy cattle, technological advances in the past 15 years have really ramped up the discussion. Through programs like Adobe Photoshop graphic designers can pretty much create anything you want. Where do you draw the line? What is acceptable? What is not?
Changing Backgrounds
First let’s take a look at what’s possible. The ability to remove a background has been many breeders dream. Now they can picture their cow any time of year when the cow is at her best and without any bad weather or safety issues.
The right background can be an art form to do effectively. Let’s look at how different backgrounds can change how a cow looks. The picture below is the photographer’s final image sent to the breeder after picturing inside the barn (Please note: cow used will remain nameless since it is irrelevant to this discussion and that in no way was the picture of the cow herself ever touched or altered).
Very nice picture of an outstanding VG-2yr old. But let’s take a look at how changing the background can affect the look of the picture.
Let’s say we wanted to make the cow look taller. Well then we would lower the horizon on this image.
Notice how the cow looks taller, and also that it does not accentuate the fact that she is a little shallow in the fore rib.
Now let’s say we wanted her to look like a show winner. We could simply place the cow at one of the major shows backgrounds.
And then there is the ever-so-trendy, stick them in front of a mountain scene.
All effects have their merits and can greatly enhance the image of the cow.
Shine vs. No Shine
Another effect that has become extremely popular in recent years is the ability to enhance the colour saturation and add “shine” to the images. Here are the exact same 2 pictures with just the saturation and the colour range enhanced.
Notice how the enhanced picture on the right jumps out at you with more clarity and detail and her udder shows much greater veination. The cow herself was not altered in anyway, but enhancing the tonal range that is already in the image, you are able to make sure all the details that make that cow great show up.
The Bullvine Bottom Line
Ultimately it comes down to the ethics of the designer or photographer who is working with the image. My position has always been, as long as the cow herself has not been altered then it’s okay. Please understand in all these images the conformation of the cow has not been changed in any way. That means changing backgrounds and enhancing shine are where we draw the line. In an era where social media and breeders chat is easy and instantaneous, having an image of a cow that the cow cannot live up to does not do anyone any good. That means you need to work with the greatest photographer, not the one that is great in Photoshop, but rather that one that understands how to get the best possible original image.
What are your thoughts? Please share in comments box below.
Now I know the title may sound cheesy, but there are actually some important lessons that many breeders can learn from Lady Gaga when marketing their dairy cattle. She speaks to her audience with understanding and connects with them in a very personal way. Instead of just saying here is my song now buy it, Lady Gaga is relentless on building her brand and making sure she has a message that resonates with her audience.
The following are some lessons many marketing lessons dairy breeders can learn from Lady Gaga:
Don’t be afraid to have an opinion
Lady Gaga regularly speaks out on any issue she feels passionate about. In doing so, she not only keeps herself in the public eye but she is attracting the right kind of people for her type of music. Remember a couple of years back when she wore a dress made out of meat? Yeah, she probably ticked off more than a few animal rights groups, but her flaunting about in that dress made the news for several days. The point is, Lady Gaga is not afraid to take a stance on an issue and make sure that everyone knows it. In the dairy cattle marketing world, that means make sure you have a position that your buyers can understand. If that means you are going to be the greatest source for genomic cattle than be so. Talk it up! Alternatively, if that means you are going to be the source for great show cattle, than make sure your market knows. Stand up and stand out! You cannot be the jack-of-all-trades who does everything ok but nothing special. You need to make sure that your prospective buyers know why you are special and what you stand for.
Leverage the power of social media
Lady Gaga has over 20 million Twitter followers and over 48 million Facebook fans. That does not come by accident. She works very hard to engage her community. She personally tweets directly to her fans and is always engaging them in conversation. She understands that the power of her brand is to engage her community. A lesson many dairy breeders need to remember. Dairy farming has always been about community. It’s probably the greatest thing that keeps most breeders so passionate about their work. The biggest change is how social media, especially Facebook has taken the community online. The numbers of breeders that are on Facebook is outstanding. While they maybe got on Facebook for family or personal reasons, it’s hard for them not to let their passion for breeding great cattle show. You need to leverage the power of social media to join the community and engage them. In doing so you will probably find the greatest source for information as well as reward for the work that you do.
Be Different
Lady Gaga has built her brand by being different. Not because she wants to be something she wasn’t. Actually, it’s the exact opposite. Lady Gaga is was not afraid to be herself and promote not just how she is cool and hip, but rather how she is different. Many dairy breeders are too afraid to stand out as different and they just become one of the many. With so many breeders wanting to market their genetics these days, you need to make sure that you have something unique to offer the marketplace. Embryo transfer and especially IVF has caused a flood of top genetics into the market place. Knowing how you are different and letting other breeders know how you’re different can make a big difference in your profitability. What’s your difference?
Produce killer product
Gaga writes amazing music. She doesn’t produce a huge amount of music, but everything she does is done very well and is worth talking about. The same is true for your breeding program. There is no substitute for breeding great cattle. With genomics and the increased access to information (such as Holstein.ca, cdn.ca, locator lists, etc.) great cattle can always be found. You can have the greatest marketing in the world, but if you don’t have great genetics to offer, it will not have the same effect.
Gaga and the PR and marketing experts behind her did not reinvent the wheel. They just took what works best and used it to their advantage. The same is true when it comes to marketing your breeding program. You don’t need to reinvent the wheel, what you need to do is use the tools that are out there to make sure your marketplace knows who you are, how you’re different and why they should buy from you. Determine what you stand for and the larger impact it has on the market outside of the individual animals you have for sale. What Lady Gaga teaches us is that it’s important to stand out in the crowd!
Patty Jones has a passion for cows and for people who share that passion. “I work with a lot of new young farmers. I tell them off the bat what they need to do.” And she says they listen and pay attention. No doubt they recognize that with nearly forty years of experience photographing between 60 and 65000 cows, she knows what she’s talking about. Even longtime clients of Canadian Livestock Photography occasionally forget details. Patty says the young guys know this is important. “I wouldn’t be working if I didn’t help my clients make money. They’re not just taking pictures for the hell of it”! She is sincere about what everyone is aiming for. “If I can help farmers, especially the younger guys, to get going and make a little bit more out of their investment. What the heck? That’s what I do it for.”
ARE YOU READY FOR YOUR CLOSEUP?
Once the preparation details have been discussed Patty hopes to arrive and find the heads have been tied up they are all cleaned and everything goes ahead on schedule. If picture taking is new to the breeder Patty has a couple of suggestions: “Pick out the top mother cows.” Looking at the changing industry she adds” Nowadays, of course, pick the genomic heifers.” What a change this has made in the industry and for Patty. “My business has really increased in photographing heifers because of genomics.”
PATIENCE IS A NECESSARY VIRTUE
The secret to great pictures according to Patty comes down to “Patience”. Patty is emphatic about this and gives an example. “Daughters of Goldwyn have taught a lot of people patience.” This is a lesson learned over time. “Twenty years ago we wouldn’t have known what to do with them. Today we know the secret. Patience!” She says she even practices this while waiting at stop lights. “Waiting for five minutes … Patience is a virtue.”
GET THE PICTURE
Good photography is taking the same old picture, cow, situation … and looking at it from a different angle. “Good pictures have always been the key to cattle marketing.” Wherever breeders talk marketing they are told a picture is worth a thousand words. “A lot of farms like Roybrook and Glenafton knew the importance of pictures and made good use of them.” She feels the industry knows it isn’t a choice. Just do it.
A NEW PERSPECTIVE
Stepping back from the camera lens Patty points out that there are some changes in the perspective of the modern dairy farmer that she thinks are good for the longevity of the cattle breeders themselves, “The biggest change that I see with the young guys is that I would call them smart farmers. This is not to say that previous generations were not smart. But these new guys are not focused on fourteen hour days of manual labour. We will have a lot healthier and older farmers. As it has with cameras, mechanization has come into play. Modern farm families see that it is very important to be able to get away. Kids, wives and husbands need that time away to get renewed.” She supports this by quoting advice she gave a young farmer who complained that relief milkers can be awfully expensive. She pointed out, “So can losing half the farm!” “Stop and smell the flowers” is something that she preaches and tries to practise.
CALL PATTY. PATTY’S CALLING
A world traveller who gets to know new countries from the very best location – people’s barns and kitchens.” How did she get these opportunities? “I never had specific goals but as I look back on my career, I can see that everything built on ability and passion. Everything has led me to where I am today. I live for this. Every morning I wake up and wonder what I’ll see today.” She recalls doing a picture for the Pope at his summer residence. She explains, “Special arrangements had to be made. After the third time that I crossed the helicopter pad I asked myself, “How many Popes have stood on this same spot.” Awesome she admits but not the most memorable ever because she says, “Hopefully I haven’t had it yet!|
BULLVINE BOTTOM LINE:
Patty points to a career that is still evolving and teaching her new things about people, places and cows:
“SHOOT! THIS IS WHAT I WAS MEANT TO DO!” Patty Jones
You wouldn’t breed your top genomic cow to Rudolph. So, why are you marketing your cattle the same way you did 10 years ago?
That is the biggest question I am having trouble understanding. Genomics has revolutionized the breeding industry but, for the most part, nothing has changed in the way most breeders, and especially most breeder magazines are marketing cattle.
Ten years ago marketing was largely print media based. Technological developments have changed the way people buy things. This does include the way buying cattle. According to Google over 12,000 people search for terms related to the dairy breeding industry. More importantly than that, over 4,000 people per month search for terms such as dairy cattle embryos, Holstein embryos, Holstein semen, dairy cattle genetics That clearly shows that they have the intent to buy genetics.
Here are some examples of breeders who are embracing change and doing it right:
Avonlea Genetics
Avonlea Genetics keeps an active and up-to-date website that has the latest news. More importantly they also do a newsletter to keep their followers up to date on what is going on as well as upcoming consignments or sales.
La Ferme Gillette Inc.
Keeps an active Facebook page where they are always updated on recent events at the farm as well as letting fans and potential customers get to know the people behind the name.
Ferme Jacobs
Ferme Jacobs really gets it. They have started using the power of video and YouTube to show potential buyers just how their animals walk and look. It’s does not have to be a big fancy production. A simple video shot on your smart phone can do the trick. Never under-estimate the power of video.
The Bullvine Bottom Line
These are just a few of the examples of how you can adopt your marketing to stay in touch with your marketplace. It does not mean you have to spend huge dollars. Each of these potential marketing channels are very cost effect. Some cost nothing more than your time. The big thing to remember is that times have changed. There are more ways to market your cattle than just some big expensive print ad, that is out of date in no time and barely remembered by most of your potential buyers.
When it comes to marketing dairy cattle, Pam Nunes leads the way. Pam became the driving force behind this part of the business at Ocean View Genetics because of her background as owner and designer of Westwynde Communications. “Since my company is an advertising firm, the marketing aspects for Ocean View pretty much became my job over the years. Marvin and Daryl always advertised in the World and believed in marketing, but as time and my company evolved I took on a larger role in the different aspects from advertising, showing and even sales.” They were happy to make, milk and take care of the cows and let me handle the marketing.” For the last sixteen years, Pam and husband Daryl worked together to take strings out to the shows, put on the Harvest sales and helped evolve the marketing into what many people think of today as Ocean View.”
THE WOW FACTOR
The impact of great advertising has had a very positive effect on Ocean View. “I’m always amazed at the number of people who comment on our advertising. It’s good to know it gets noticed.” Getting noticed is the bottom line in the cattle business. “I remember the year Lindy Sheen went to Expo, and it was interesting how many people knew the cow at a glance. These were people not from our area who could have only ever seen her in print ads. That’s when you know advertising can be powerful.”
A HORSE OF A DIFFERENT COLOUR
Powerful advertising is everyone’s goal. We put a lot of worry, time, consultations, proofing and reviewing into ad creation. Pam says there can be a lighter side too. “The funny thing is that so often our own ads are thrown together. Kind of like the shoe makers kids with holes in their shoes. There have been some instances where our ads actually started as horse ads and I needed an idea quick because our ad was due. So voila – out goes the horse and in goes the cow!”
Oceanview Mandel Zhandra EX-95-2E EEEEE Gold Medal Dam, Dam Of Merit
WHEN IT WORKS EVERYONE CAN NAME THAT COW!
You always want to attract attention with your marketing. Pam’s ads are good at that and she points to Mandel Zandra to illustrate. “She has been the easiest cow to ever work with over the years. She captured a lot of attention in the show ring with her style and it transmitted not only to her photos but also her offspring. She has 12 Excellent daughters so far. She lives in Wisconsin now and will turn 16 in March. She was the subject of many photos this fall during Expo. We had her in a pasture with 10 of her grand-daughters. It never failed that when people drove in they asked if that was her. We even had a gentleman from Japan show us the screen saver on his phone…it was Zandra. If she had never been shown or advertised I doubt anyone would know the name today.
YOU’VE GOT TO STAND OUT FROM THE CROWD
Having said that, Pam knows the time it takes to stand out. In the cattle business most ads are done by the publications still. They can usually spend about an hour on an ad with all they do. “Our ads usually average three to five hours. A magazine can’t spend that amount of time on each page they have. I am happy to say that I am really seeing more effort put into ads these days on the cattle side and there are some magazines now that do a great job with their ads.
Pam’s years of experience have added up to some clear ideas about what works.
YOU CAN’T HAVE A GOOD AD WITHOUT A GOOD PHOTO “I also think you can’t have a successful ad without a great image. Making sure you have the cow looking the part and lots of help and a great photographer will make all the difference in successful photos. You can’t have a good ad without a good photo!”
MAKE THEM WANT MORE
Once you`ve got good photos! Make sure you get an eye-catching ad developed to go with them. Remember…the purpose of an ad is to attract the reader’s eye enough to get them to read it…and want more.
REMEMBER. THE COW IS THE STORY
“A pet peeve of mine is if it’s unreadable. You can have the greatest looking ad but if you can’t READ it – it’s a failure. Too often you see design overwhelming the subject. That’s always a recipe for disaster. It’s not a showcase for Photoshop effects or crazy backgrounds or fonts etc – it’s about the cows!
K.I.S.S. and TELL
Modern cattle advertising now needs to go one step further. It’s time to kiss and tell. K.I.S.S. Keep it simple stupid. Pam feels strongly about this. “Keep your ad simple and put the detailed information on your website. Don’t try to tell them the entire history of your animal in the ad. It defeats its purpose.” The telling part happens on the internet. These days websites are essential to selling. For effective advertising, remember K.I.S.S. and TELL.
IT ALL COMES DOWN TO DOLLARS AND COW SENSE!
Use what you know to decide where your advertising dollar is best spent. Just like you shop around for the best corn or hay prices – do your homework on your advertising dollars too. Don’t be afraid to try different advertising venues and find out what ones work. Ask people where they saw your ad when you get calls or emails.” Use what you know to decide where your advertising dollar is best spent. With websites these days you can track where your traffic comes from. With print ads there is no way to easily measure your return, but if you do your homework you can get a feel for where you get the most response.
SUCCESS SELLS!
You know when your advertising is working because the success is right there in the sales’ figures. Pam reports. “Our last two Harvest sales were exciting events to plan and execute. We did all the marketing and event planning for them, as well as lining up the fitting crew and deciding what the farm would consign. We’re super pleased with the number of success stories that have come from these sales with Reserve All-Americans and even 94-pt cows having gone through the ring.”
ON THE MOVE
Today Pam and Daryl have started “OCEAN VIEW GENETICS”. “We look forward to continuing the same path we have been on, only in Wisconsin.” And what a path that has been!
The accomplishments the Ocean View herd has made over the years are huge with over 330 Excellent cows that carry the prefix, 90 Gold Medal Dams and 11 cows over 300,000 lifetime. Pam sees more tributes in the future. “I think you’ll hear stories for years to come about success with animals purchased in Marvin’s dispersal on May 2nd. It’s going to be an opportunity to buy foundations.” Looking ahead she adds, “Although we’re not involved in the sale, we plan to attend and possibly add a few more cows that we weren’t able to buy before our move to Wisconsin.”
DOWNSIZING for A BIG MOVE
Going from 350 free stalls to 38 tie stalls has been the biggest challenge for “Ocean View Genetics”. Recalling the process, Pam says, “It really makes us focus on what animals we add to the milking herd. Our focus will be a little different from in the past.” Of course, each decision is already providing results to look back on. “What really shocked us was that we brought an old Outside that was dry with over 250,000 and figured we’d get the calf out of her and have to sell her. She actually had the first heifer on the farm for us and is now over 290,000 and just went Excellent. She just KNEW what her job was and took right to everything without a second look.”
SELLING IS AN ESSENTIAL PART OF OUR BUSINESS
The Nunes’ are excited about their plans for the future. “We figure we need to sell twenty head a year to keep at our size. We also have both said we don’t want more than either of us can milk by themselves. When the milker did not show up in California, it was a lot cows to milk, but we did it. Now it’s much less daunting if someone oversleeps! Actually our cows surprised us with how easily they adapted to the change.” Obviously, adapting is good for cows and good for people too!
THE BULLVINE BOTTOM LINE: KEEP ON SELLING
“As we move forward, we are not going to be afraid to sell the good ones. Our plan is to keep the factories and sell the offspring that we need to allow us to stay in business.”
Pam Nunes, Ocean View Genetics
Len Vis, owner of Mapel Wood Farms, says his motto has always been: “Invest in the best and forget the rest”. It was the driving force behind his first investment in 1991 in Mark Diamonds who became the brood mare of Mapel Wood Farms and it is what led him and his partners to invest in Bombi and Lilac. “Investing in top cow families never lets you down. You may not get it this generation or the next generation but those genetics always breed through eventually.” On any measurement scale, records, show ring, progeny or the bottom line these two families represent where Len sees his farm going in the future!
TO THE TOP BABY!
Len points to the dramatic changes happening in the dairy industry not only in the past five years, but in the last year. He says, “The biggest change is that 90% of people coming to Mapel Wood are interested in heifers.” This was not previously the case when people wanted to look at cows. “I have never flushed so many virgin heifers as I have in the last year and we are getting big money for their embryo’s.” Knowing what the market wants and providing it for them is another part of aiming for the best!
COMESTAR GOLDWYN LILAC - VG 89, Goldwyn x Lila Z GLPI 2753 ALL-ONTARIO SR.2-YR 2008 NOM. ALL-CANADIAN SR.2-YR 2008
YOU’VE GOT TO “DO YOUR HOMEWORK”
In every area of running the Mapel Wood operation, Len relies on getting his homework done right. This means investing in the right people to work with. He speaks with pride about his full-time employees, Chris Naves and brother Harold Vis and that he can rely on them 100% to keep things running smoothly and sale or show ready every day. Choosing the right investing partners is more homework done right that pays off. Len says it is important for partners “to have the same philosophy, goals and commitment.” For him it has been a great experience. “My two best partners have been GenerVations, Dave Eastman, and the O’Connor Brothers, Sean and Kelly.”
DON’T DO ANYTHING ON A WHIM
When you get to the real homework behind success in the cattle business Len is emphatic. “I never go to a sale on a whim. If I’m in the market I have animals that I’ve got premarked in my catalogue.” This is only the start of the decision-making process. For him the next thing is conformation. “I look at the ones I’m interested in. If they don’t make it on conformation, they’re scratched!” He has the steps clearly prioritized. “Cow families first. Then sire stack. Then I start doing history on flush history.” Vis says there is nothing worse than buying something that doesn’t flush. You can be sure he always asks the seller about the flush history of the family. He looks at records. He thinks Holstein Canada’s free service is great. “A lot of times you just go on Holstein Canada. If you see 10 daughters from one mating, you know the family flushes.” Homework isn’t finished until he has checked out pictures. “For marketability, I like to see the dam and granddam all pictured.” Having said all that, the real test of getting your homework right is that final decision, to buy or not to buy. Len cautions, “Remember the Calf in the sales ring has to look the part. Conformation is still the most important thing when it comes down to the final bid. If she’s in the ring and you gut says something isn’t exactly right. Pull back. You’ve got to love that calf 100%!”
GEN-I-BEQ SHOTTLE BOMBI VG-89-6YR-CAN 2*, Shottle x Champion x Baler Twine, GLPI +2750
MAPEL WOOD MATH
Success for Len Vis and Mapel Wood Farms means making sure that all the numbers add up! Years of experience have given him some benchmarks for investing. Investment benchmarks have changed pretty dramatically. “It used to take 1 kilo of quota to buy a good animal. Today it takes 3 or 4 kilos of quota.” He feels the right animal will pay for your quota. “When I started out in the business, if the right animal came across I would be willing to sell a kilo of quota to buy her.” He explains, “Your investment can triple in one year. A lot of guys don’t know that. Quota takes forever to pay off but buy into the right cow family you can have it paid off in no time.” That’s MapelWood math.
GENOMICS! THE NEW MATH!
For better or worse, Genomics is on everybody’s page these days. “You can’t be in the dairy business without genomics affecting you.” Regardless of all the controversy Len hears and wonders about he says, “Genomics have helped every farmer because hopefully Semex or your semen company is not buying those bulls that don’t have a chance ever to make it.” That’s the good news. He goes on, “Five years ago I did not sense Genomics was going to be this big. I don’t think anybody did. What studs thought they would be selling young sire semen for $100?” He knows it is the ongoing debate. “There are so many different army camps of people… some are all for it …. Some are sitting on the fence waiting to see.” Waiting is not a key part of Len’s goal setting.
ONE STOP TO SHOP
Len’s goal is that people will come to Mapel Wood Farms as the “one stop to shop”. He aims to be the “Wal-Mart of the cattle investing world.” The aim is to offer the best in several areas. “We want to have high genomic cows and heifers, show cows, red and white genetics, and polled genetics.” Aiming to have the best he is very enthusiastic. ”Currently we’re buying embryos from Europe and still buying heifers and cows. Just recently we just sold a six year old cow for big money.” It pays to do your homework!
STICK TO THE GAME PLAN
Len is looking forward but he points to his own history. “Diamonds was a good investment but it was three generations later that I realized what a great investment that was. Sometimes when you invest you don’t reap the benefits the next day. That doesn’t mean you just sit and wait.” Obviously Len feels you must have a timeline like he and his partners did with Bombi and Lilac. “Five years ago we had a game plan. Today we are up to 300 head. We have been buying recipients. We’re constantly flushing.” From the beginning there was a target. “We are gearing up for a sale in November 2012. Nothing has been done on a whim. We are going to see the results of our five-year game plan.”
BOTTOM LINE: Aim to be the Best!
“When you invest in the best – cow families, embryos, and heifers – your farm will rise to the top.” Len Vis, Mapel Wood Farms.
Not sure how much to spend on that great 2 year old?
Want to make sure you are investing your money wisely?
When the hammer dropped for $1.15 million for Lylehaven Lila Z EX-94 9* at The Triple Crown Sale, many in the crowd wondered was she really worth it? Or was it a marketing ploy? As someone who was involved in the marketing of the sale, many came and asked me if she really did sell or was it all BS? My answer was, “If anyone can make her worth that, it’s Albert Cormier and Dave Eastman.” When you add to that team Comestar, Whittier, ADI, and Kelser Hill, you have some pretty big names backing a big sale tag. In the end, you could argue that she is worth twice that.
Having worked first hand with Dave and Albert in the promotion and sales of Calbrett-I H H CHAMPION, I knew the potential this team had to maximize the revenue. They had a semen distribution and marketing engine that was taking the world by storm, combined with a proven track record of maximizing the revenue of top females as well.
Love at First Site
According to Albert Cormier, it was love at first sight when he saw Lila Z and her dam Laura at a Quebec show in 2003. He loved her conformation. He loved her cow family. He recognized that he had found the right cow at the right time.
In Lila Z they saw the next Skys-The-Limit Claire EX DOM 12*. Like Claire, Lila Z came from a great pedigree with generations of performance. However, unlike Claire, Lila Z came from a family of great embryo producers. Something that will make or break you in the genetics game.
With 67 registered progeny in Canada alone, you cannot really doubt her ability to flush. Lila Z has eleven sons in AI. Globally there are another 35-40.
ACECROFT GOLDWYN ZULU
A 20 per cent stake in Acecroft Goldwyn Zulu tops sale at 28,000gns
Let’s look at the numbers?
When we are talking about $1.15 million, the only numbers that matter are the ones that are on the profitability column. When it comes to Lila Z, there is no shortage of that.
Using our return on investment calculator, we took a deep dive into the numbers. Let’s assume the following:
Boarding fee per day $10
Years of productive embryo production 6
Flushes per year 5
Flush strike out ratio 25%
Base cost per flush $650.00
Cost per embryo $150.00
Recipient price $1,500.00
Conception rate of recipients 45%
Sale price per embryo $5,000.00
Sale price per live heifer $50,000.00 (Very conservative considering CALBRETT GOLDWYN LIZA VG-88-2YR-CAN 2* sold for $175,000 in the ADI 2nd edition sale)
Advertising expense/year $4,500.00
Other promotion expense $1,000.00
Number of embryos per flush 20 (Flushed 21 embryos in her first flush Cedarwal, Bradner Farms and T&L Cattle when they first purchased her)
Ratio grade A/B embryos 70%
Ugly duckling rate (they can’t all be pretty) 40%
The results are as follows:
Total Revenue per flush $52,500.00
Total cost per flush $10,400.00
Total profit per flush $42,100.00
Total heifer sales per year $111,780.00
Total boarding expense $23,722.50
Total promotional expenses $26,000.00
Total Revenue $1,933,680.00
Total Profit $733,957.50
Return on investment 64%
(Please note: these are our estimates and not the actual numbers)
The Bullvine Bottom Line
When you see that Lila Z can generate $1,933,680 in revenue over 6 years, and that allows for keeping half of the females for the next generation and no semen sales, it’s easy to see why Lylehaven Lila-Z could easily have been a steal at 1.15 million. The reason? High demand combined with a prolific ability to flush. That is the magic combination when dealing with such extreme cattle.
“What’s the plan?” We hear or refer to that question several times every day. It’s the driving force when growing a business, or when you’re a resolving problem in the board room or, for those of us in the cattle industry, when you’re in the barn. People like Tim Abbott thrive on finding the answer. The owner of St. Jacobs ABC knows that having a good plan, from the barn to the board room, is the cornerstone of success in the dairy cattle business today. Whether you are starting out or have more than twenty years in the business like he does, Tim says the first step must be, “Chart a plan”. That comes first. Then, you have to “know how your investment can accomplish your goals.” He sums it up clearly, “I think you need a plan for any investment in our business.”
“One size does not fit all!” When it comes to investing in the dairy cattle business this can be modified to,” One plan does not fit all!” You have to have a plan and it has to be a focused plan. That’s where the critical differences come in for someone like Tim Abbott. “Whether it is show cattle or genomics or great maternal lines” he insists “You must have a plan for what you want to achieve”.
“Know what cattle you are focused on.” “For us we really prefer to buy cows.” He recognizes “There certainly is good money in buying the right heifer.” But he returns to his point, “At St. Jacobs ABC have focused on show animals, so milking cows are our preference.”
“Investment cows need star power.” Here Abbot continues to fine tune what St. Jacob’s is looking for. We want “a cow that can become iconic as an individual”. You might be wondering how they find that winner. Tim explains, “The cows must have a sire stack that tells us they can be great and a maternal line that has proven to be successful.” You can never have too much information. It is the basis of decision-making and good planning. “We always try to figure out how many daughters it will take to pay off our initial investment. We like to stay in the range of 10 or less daughters to get the purchase price back.”
Which brings Abbott to how important budgeting is to the planning process? “Be sure you can afford to pay for what you buy.”
“Is that in the budget?” It seems a no brainer but the devil is in the details and in the budget too! Tim cautions” You need to budget for the expenses after your purchase. IVF, flushing recips, advertising – these will add up no matter what your investment level is. Be sure you have the money for all of this.” The money and what you spend it on is the key to success. “Over the years we have spent too much on average ones.” Although hindsight is 20/20, when looking at some past decisions he says he wishes “we had stayed with the great ones.”
“Stick with the great ones!” Tim feels that in today’s market, “There is very little middle ground. Cows are commercial or very valuable.” In the last five years genomics has had a huge impact on the cattle business. “The genomic business is fantastic right now and the upper end has great value for the next generation and embryos.”
“Weigh In on the Genomics Debate” Tim’s view on this phenomenon is “Good breeder, type cows and heifers don’t have enough value in my mind but that is reality. IVF has had a huge impact because you can make daughters so efficiently and I think that is why the middle ground cattle have lost some value.
“Where’s the focus for St. Jacobs ABC?” Abbott summarizes the key issues. “We have chosen to stay out of the genomics game and focus on cows that are like our bulls … high type, great sire stacks and good female lines.”
“Stay positive. Be careful.” “I think the good ones, whatever your focus, will continue to have tremendous value. I think people will have to be careful with IVF not to make too many daughters of certain cows and watch the market very closely”. He sees three possibilities:
Big herds that have great access to recipients will have some success for sure.
Show cows will remain very valuable
Top genomic animals will be great property
THE BULLVINE BOTTOM LINE
FOCUS ON TOP GENETICS. PLAN ON TOP DOLLARS.
“As things change with testing bulls, the value of top genetics could keep going because of the potential for breeders to have very valuable bulls. I think we will see some similarities to when there were many breeder proven bulls….the VERY top will make top dollars.” Tim Abbott, St. Jacobs ABC.
Some people may think I am crazy. Others may think I am arrogant. They could all be right! It doesn`t matter. I am tired of sitting back, depending on gossip and watching as the all the news comes in the same old way.
Maybe it’s from the years of watching risk takers like Albert Cormier, Doug Blair, and Pete Heffering, learning that you have to risk to move ahead of the herd. On the other hand, maybe it’s from working and debating side by side with my father that has developed a passion for great cattle; I can’t sit on the sidelines and not take action. Dairy breeders need a chance to have a voice. They deserve to get more than just a listing of what happened.
That is why I am launching www.thebullvine.com! We want to give progressive dairy breeders a chance to join the 21st century. Every day, we will seek to provide insight and host lively debate about the people, the cattle and the story behind the story that makes us have a passion for this the dairy industry. To prove this, we have already created “The Dairy Breeders No BS Guide to Genomics” and a great tool for when you invest “The Dairy Cattle Return on Investment Calculator.” One is easy to read the other easy to use!
“The Journal” has been an institution since I was born. At our house, it was pored over as soon as it arrived. The problem is the message doesn’t look that different from it did some 33 years ago. Throw in a few more colours, shorter hair and get rid of the bell-bottom whites that Lowell Lindsey used to wear and nothing has changed. But trust me the dairy industry and especially the progressive dairy breeder has. Computers! Blackberrys! Instant messaging! The facts are at our fingertips!
And yes I know there are more magazines out there than just “The Journal”, there is “The World”, And “International”, but one looks more like a billboard for those who will pay them the most money and the other has great insight, but is under lock and key, that makes it hard for most breeders to truly find what they want. A diary is great for looking back. What happens next is where the action is! It’s goes way beyond who you know from the cattle ring and the breeder awards. You’ve got to know what is happening on the leading edge. What makes the difference? Who knows? Who cares?
Over the next few months, we plan to add the following items:
Breeder directory
Chat forum (bring back some of the greatness that was holsteinonline.com)
Donor directory
Ultimately, we are going to let the breeders tell us what they want. Through your feedback and our advisor board we are going to seek to give the type of content that breeders want. Not what we think you want. While my odd rant article (such as this one) may be mostly the opinions of the editor, we will strive to bring you fresh perspectives:
Breeder profiles such as Morsan Holsteins
Cow family profiles such as Lylehaven Lila Z
Investment advice from experts such as Tim Abbott
In addition, there will be more great insights from such well-known experts as:
Patty Jones – on what is takes to get a great picture of your cow
Pam Nunes – on how to market your cattle
Barclay Phoenix – on what it takes for you to find the next great one
In the end, we are going to strive to give you the modern dairy breeder with twice the amount of great content with half the amount of BS. We are looking forward to the challenge.
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