AngusSource and Gateway
Sara Snider Talks About
Association’s Value-Added Marketing Avenues
September
10, 2009
Sara Snider grew up in
Buckley, a small town near Traverse City, Mich., where she spent her early
years on a diversified farming operation. She completed her college degrees
in animal and agri-science at Michigan
State University,
one of the top agriculture schools in the country. Snider’s deep
appreciation for the rural lifestyle grew out of her experiences there and at
home. She also learned the importance of being progressive in marketing and
production practices to ensure the economic viability of farm and ranch
families.
Today, Snider serves as director of American Angus
Association®’s AngusSource®, one of the
industry’s leading process verified programs (PVP). She believes it is
an important way to offer value-added marketing to producers.
“Our number one priority is our customers
and a big part of that priority is helping them add value to their
Angus-sired calves through AngusSource.” says Snider.
With several excellent PVP’s available, a
wise cattle producer has to make a decision that’s best for their
business. AngusSource is distinctive because it’s a verification
program for cattle that’s run by an association, and not a corporate
entity. So why does, and should a producer choose AngusSource?
To help determine why a producer should rely on
the Association for a verification program, we turn to AngusSource director,
Sara Snider for answers.
Q. What is
AngusSource?
A. AngusSource is a USDA PVP for
Angus-sired calves that documents the source and age of cattle that are a
minimum of 50% Angus genetics. The program offers marketing assistance in
addition to providing documented information.
AngusSource
offers coverage at the ranch and the feedyard level. The ranch program can be
used by producers who are marketing feeder calves. The feedyard program is
for farmer feeders and commercial yards that market finished cattle directly
to the packer. All calves enrolled in the feedyard program must first be
enrolled in the ranch program prior to calves leaving the ranch of origin.
Q.With
other PVP’s already in existence, why did the American Angus
Association initiate AngusSource?
A. The
Association has strong industry relations and commercial program departments.
We are dedicated to helping our members’ customers by providing
programs and services. AngusSource focuses on marketing Angus-sired calves
and provides a way to add additional value through source-, age- and
genetic-verification. By increasing marketing opportunities, we hope to help
producers receive a full return on the genetic investment they’ve made
in registered Angus bulls.
Q. Apart
from being a breed-specific Age and Source Verified (ASV) program, what makes
AngusSource different from other ASV programs?
A. The
Association’s commitment to customer service is one distinguishing
feature of our program. For example, we receive feedback from producers, who
have used other programs, about how much they appreciate the personal
attention and the willingness of our staff to help them understand the
program and work with them to enroll and market their calves.
The Association is dedicated to providing the
programs and services that will help producers be successful with their Angus
genetics. In order to use AngusSource, producers must be using registered
Angus bulls. This means that they are customers of our members – or
maybe they are even members themselves. So, we have a vested interest in
helping them enroll and increasing their marketing options.
A producer wanting to enroll in AngusSource is
more than their enrollment fee, a producer I.D., or a paycheck– they
are an important part of our Association; we want to help them in any way
possible.
Q. Take me
through the registration process, step-by-step.
A. Producers
read through the AngusSource manual and then submit the completed enrollment
form. They then undergo training and complete the calf enrollment through a
simple phone interview, followed by submission of records. In some cases an
on-site ranch review is required for enrollment. Official AngusSource program
ear tags are then custom-printed and issued for each calf enrolled.
Verification certificates are generated to
document the source, age and genetics of the enrolled calves. Producers have
the opportunity to document additional health and management information and can
use the AngusSource internet cattle-listing site to advertise their calves.
The online listing service and weekly e-mails are viewed by more than 600
potential buyers.
Q. These
programs mean added work and expense. Why should an average producer enroll
his or her cattle in an ASV program?
A. Data
collected from Superior Livestock June-September 2008 indicate that cattle
enrolled in age- and source-verified programs received $2.08 per
hundredweight (cwt.) more than calves that were not ASV. The data also
suggested that calves enrolled in AngusSource had a $1.29-per-cwt. advantage
over other ASV programs, bringing the total value of AngusSource enrollment
to $3.37 per cwt.
These dollars provide an advantage for producers.
In fact, producers utilizing quality Angus bulls that want to add additional
value to their Angus-sired calves can do that through AngusSource. Enrollment
in the program provides access to new markets as well as the opportunity to
document their genetics and differentiate their Angus-sired calves from other
black-hided cattle. In today’s industry, information is the key to
added value. AngusSource provides producers with an avenue to document
information that is valued by buyers and increases their marketing
opportunities.
Q. Is
there a connection between AngusSource and Certified Angus Beef?
A. AngusSource
and Certified Angus Beef LLC (CAB) are two distinct programs developed to help
producers gain more benefit from Angus genetics. However, the connection
between the two is that enrollment in AngusSource can genetically qualify
cattle for the opportunity to supply the Certified
Angus Beef® brand – provided, of course, that the
other ten carcass specifications are met on the rail. Those specifications
are:
1. Modest or
higher marbling
2. Medium or
fine marbling texture
3. "A"
maturity for each, lean and skeletal characteristics
4. 10 to 16
square inch ribeye area
5. Less than 1,000
pound hot carcass weight
6. Less than 1
inch fat thickness
7. Superior
muscling (restricts dairy influence)
8. Practically free of capillary
rupture
9. No dark
cutters
10. No neck hump
exceeding 2 inches
In other words, calves that do not meet the 51%
black-hided spec, but are enrolled in AngusSource and verified to be a
minimum of 50% Angus genetics through the AngusSource program can now supply
the brand and garner the CAB premiums through our packing plant partners. In
most cases these calves will be smoke-colored calves out of Charolais-influenced
cows or red-hided calves.
Q. Does
enrolling in AngusSource make your cattle Country-of-Origin Labeling (COOL)
compliant?
A. Enrollment
in AngusSource can be used to substantiate COOL claims. However, the industry
has pretty much set a standard of utilizing affidavits. What this means is
that while the source – ranch of origin – of the calves is
verified and documented by enrollment in AngusSource, most likely producers
and feeders marketing AngusSource calves will still need to complete the COOL
affidavits.
Q. What is
the Gateway program?
A. Gateway is a new second-tier program of the
AngusSource PVP. We introduced Gateway to provide a source- and
age-verification-only option to producers; essentially, we have created an
opportunity for more producers to capitalize on the value of documented
information.
An
example of a potential Gateway customer would be a commercial producer whose
cows are out on shared pasture during breeding season. While this producer
may use registered Angus bulls, they aren’t able to enroll in
AngusSource if their cows were exposed to non- registered Angus sires during
breeding season. However, this producer can take advantage of the benefits of
age and source-verification by enrolling in Gateway.
Producers
using Gateway can rely on the trustworthy services offered by the
Association’s AngusSource department, and eliminate the hassle of
having to search for another ASV provider.
It’s
important to note that producers who enroll their calves in Gateway have
access to the industry-leading customer service and marketing support
provided by the AngusSource department. Feeders, with coverage through the
AngusSource feedyard umbrella, can market Gateway calves alongside their
AngusSource calves directly to packers as age-verified.
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