At one point or another, many cattlemen wonder: Do all black-hided calves bring the same price on sale day? How much emphasis do buyers put on the genetic value of those calves?
For about 14 years, Certified Angus Beef LLC (CAB) Supply Development has been conducting research to answer those questions.
The study, titled“Here’s the Premium,” analyzed data from 10 markets that sold more than 300,000 calves in 13,794 lots. What they discovered is positive news for those who rely on Angus genetics.
Data from nine cooperating auction markets last fall showed an all-time high Angus premium. It was $5.30 per hundredweight (cwt.) for the combination of 504-pound (lb.) heifers and 511-lb. steers sold in 660 lots, compared to non-Angus contemporaries.
In addition, data from 13 years of marketing 4.9 million cattle in 40,799 lots on the leading U.S. video auction shows a clear dominance of Angus genetics. Most of the calves sold on the video include data on breed type, which consistently affects sale price.
The study has also found that the premiums for Angus calves have grown in a near linear trend for the past 13 years. So the answer is yes, known Angus steers and heifers bring more on sale day. But to tap into that added value, producers need to provide potential buyers with an idea of how the cattle will perform — and to verify that those black hides are, in fact, Angus-sired.