What A Hoot

<a href="http://www.theprairiestar.com/articles/2006/12/11/ag_news/updates/update37.txt" >Study shows preconditioning beef calves pays</a><br />n<br />n<blockquote>Findings from an 11-year study published on Nov. 1 in the Journal of the American Veterinary Medical Association (JAVMA) show producers who precondition beef calves at the ranch of origin consistently receive more per hundredweight for their calves than producers who do not precondition.<br />n<br />nIn fact, calves in the most intensive certified health program received premiums ranging from $2.47 per hundredweight in 1995 to as high as $7.91 per hundredweight in 2004. According to the study sponsored by Pfizer Animal Health, data compiled by Colorado State University and collected through Superior Livestock Video Auctions shows that beef calves in the two most intensive certified health programs sold for significantly higher prices than similar calves that were not in a certified health program, had not been vaccinated against respiratory tract viruses and were not weaned before delivery.</blockquote><br />n<br />nThis story strikes me as hilarious. Pfizer Animal Health is promoting a study that says if you spend big bucks on their medicine you will make more money. Why should I believe them? Are they going to publish a study that claims it doesn't do any good? No. <br />n<br />nThis study only considered calves sold through <a href="http://www.superiorlivestock.com/">Superior Livestock Auction</a>. I will be the first to admit that I have noticed pre-conditioned calves on the Superior Livestock Auction bring more money than calves that weren't pre-conditioned. But what are your costs to get that premium that Pfizer says you get in their study?<br />n<br />nI don't have access to all the numbers but selling through Superior you have a "taping fee" of some amount, about $50. Then when you sell Superior gets about 2% or more of the sale price. If you then consider the costs of the vaccine you have to buy to pre-condition, are you making any money or not. The times I have penciled it out, the price you get to pre-condition is at best a break even proposition and at worst you lose money from what you can get for not pre-conditioning.<br />n<br />nI believe if you take everything into account you don't make that much more to pre-condition. I have always been able to get top dollar right here on the ranch through private treaty without the expense of pre-conditioning so guess what, I don't bother. Do you blame me?<br />n<br />n<strong>Remind people that profit is the difference between revenue and expense. This makes you look smart. Scott Adams</strong>