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$Profit™ - The Next Generation of Cattle Evaluation
Why $Profit helps:
Today, ranchers have too much data to study. With over 20 traits, buying the best bull has become really confusing. We
have actual weights, adjusted weights, ratios, and then a host of EPD’s. Every bull is good on some traits and weak on
others. The challenge is figuring out how each of those traits is going to impact your bottom line. We wish we truly knew
which bull would make the most money from birth to slaughter, but most of the time, we end up guessing.
Back in 2005, Leachman Cattle started working with the BIO group out of Canada. The goal was to come up with one
number that sorted the bulls on their bottom line impact. Since 2005, Leachman’s have calculated and selected for $Profit.
Through test herds, cooperator herds, and feedlot performance data -- $Profit has been proven to work.
The same technology used to calculate $Profit is now being used by Verified Beef to estimate the value of feeder calves.
Verified Beef will certify the Relative Market Value of your calves through their Reputation Feeder Calf program. This pro-
gram uses $Profit to predict the value of the calves in the feedlot and on the rail. This will allow you to earn premiums on
genetically superior calves.
How $Profit works:
$Profit assumes that the average commercial bull will have 100 progeny over its lifetime. Let’s compare a $10,000 $Profit
bull to $6,000 $Profit bull (the average 2008 born Angus bull). The predicted difference between the bulls is $4,000 or
about $40 per calf. The model assumes that you keep 30% of your heifers and that you retain ownership on the remainder
and sell the finished animals on a grid. We realize that many don’t retain ownership, but with the Reputation Feeder Calf
program, you can get paid and sell at weaning. Feedlots have already proven their willingness to pay premiums for supe-
rior $Profit calves.
What traits are included in $Profit:
$Profit includes nearly every trait that impacts profitability. The effect of most traits on profit is fairly simple to understand.
Here is the list of what is included:
Revenue Traits
• Calving ease = more calves
• Weaning & yearling EPD = more weight
• Fertility (days to conception) = more weight
& more calves
• Carcass weight = worth more up to 1050 lbs.
• Marbling = valued based on the grid premiums
• Ribeye area = value as impacts yield grade
• % Retail Product = more yield
Cost Traits
• Cow mature size = bigger eats more
• Cow intake = more intake costs more
• Feedlot feed efficiency = cost of gain
Some traits are not so easily characterized as more is better for $Profit. Milk, for example, is a good thing until you get too
much. In the $Profit model, each pound of milk EPD over +25 has a more negative effect on fertility than it has a positive
effect on weaning weight. There are a few traits not yet included in $Profit: longevity, structure, and disposition. These
traits are important but difficult to express in dollars.
Index selection has been proven to work in chickens, pigs, and dairy cows. There is little doubt that it can accelerate the
rate of genetic improvement in beef cattle as well. That is why we have decided to provide $Profit to our bull customers.
The technical team at BIO consists of Dr. Steve Miller, Dr. Peter Sullivan, and independent consultant, Brian Pogue. Dr.
Miller helped design the $Profit simulation model. Dr. Peter Sullivan calculates all of the underlying EPD’s for the Leach-
man program. Each month, Dr. Sullivan analyzes the database and updates our $Profit predictions. Brian Pogue works
to ensure data integrity and model accuracy. This great team excels at generating the $Profit index exclusively for Leach-
man Cattle of Colorado.
Bio is a company with a mandate for genetic improvement. Their science is leading edge in a number of different areas.
BIO has estimated Across Breed Comparison EPD’s on commercial and seedstock cattle in Canada since 1988. Eco-
nomic simulation models have been used to generate indexes since 1996. BIO works in conjunction with the Centre for
Genetic Improvement of Livestock (CGIL) at the University of Guelph in the development of new technologies for beef
cattle improvement. For further information on BIO or CGIL visit their websites:
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