Lotfeeding

JBS launches $15 price incentive for pre-vaccinated feeders

Beef Central, 09/12/2015

JBS Australia has established a $15 price incentive for pre-vaccinated feeder cattle that meet company requirements.

The premiums will apply to feeders purchased from  January 1 next year for supply into the company’s Caroona, Prime City and Riverina Beef feedlots in NSW that have been suitably pre-vaccinated for protection against Bovine Respiratory Disease.

southern-young-cattleJBS Australia’s feedlot manager James Palfreeman said the move rewarded producers and offered increased flexibility in marketing their livestock, while assisting JBS in managing the leading cause of morbidity and mortality among grainfed cattle in Australia.

At a time when the Australian beef herd is approaching a 20-year low, and finished grainfed prices are at record levels close to 600c/kg for delivery early next year (see Beef Central’s most recent breakeven report), there is a compelling argument for grainfed supply chain managers to invest in such pre-vax programs to optimise feeder performance.

“Statistics suggest that up to 65 percent of all cattle illness and mortality in Australian feedlots is the result of BRD, so it made sense to us to financially reward producers for establishing the immunisation of livestock against BRD with a simple, widely-available and cost-effective vaccine prior to induction at one of our NSW feedlots,” Mr Palfreeman said.

Efficacy of the vaccine is improved when applied in a low-stress environment, and with current technology requiring two doses for optimum protection, an on-farm application of the first dose sufficiently prior to feedlot induction will greatly enhance the welfare and overall health of cattle in any at-risk feedlot population.

JBS Australia plans to administer a booster shot of the vaccine at feedlot induction, and complete the immunisation process once the livestock have suitably adjusted to the feedlot environment.

In order to be eligible for the financial premiums, producers will have to meet the treatment window as stipulated by JBS Australia and Coopers Animal Health for the Bovillis MH+IBR vaccine, and will be required to supply bottle identification, expiry date and batch number information as proof of the application, as part of question nine on the National Vendor Declaration.

“We believe this pre-vaccination process will be well received by our producer suppliers and easily incorporated into other on-farm management programs to improve the overall protection of livestock against BRD,” Mr Palfreeman said.

The pre-vax price incentive will not apply in the company’s northern grainfed supply chain, supplying cattle into Beef City near Toowoomba.

Producers wanting to learn more about the JBS pre-vaccination program can learn more form their JBS livestock buyer, click here to access.

  • Stand by for a follow-up on the pre-vaccination trend in feeder cattle tomorrow.

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Comments

  1. Troy Cooley, 14/12/2015

    Appreciate your concern over the risk of ‘non-application’ in this honour-based system, Brian – but surely any corner-cutting would very quickly be exposed in the mortality/morbidity/growth rate performance of the cattle. A feedlot buyer might get caught once, but is hardly likely to repeat-buy feeders that have supposedly been vaccinated, but present with BRD at suspicious levels in the feedlot. Also, it’s hardly JBS’s ‘idea’ – other feedlots have been offering similar or better incentives most of this year.

  2. Brian Gray, 12/12/2015

    Tom,
    Its good you agree, but as of your calculation is an extra $7.00, in the pocket, not $15.00 offered. And as your know the all important cost of product, varies per head depending on what product is required. For the better results we have found, is one shot on arrival, and one shot No more than 21 days prior to feedlot entry & induction, this way the feedlot induction vaccine works as a booster.
    As I mentioned above and I agree it improves health on farm. Yes the vaccine would be given at some stage at pre weigh, however it still has a cost factor attached. I doubt after all costs are calculated, $7.00 net, nor the $15.00 would be close to CPH. Tom, I am of the opinion, and its only my opinion, a fairer incentive to producers would be a bonus type payment after those cattle have been feedlot finished without any BRD sickness nor anything that may cost the finisher valuable time & money associated with finishing the animal. Each producer can negotiate his – her deal with their contract to supply.
    As with any cash type bonus and how many times has it happened..?, those who want to be dishonest & fiddle the system Will. But with a incentive per each animal neg..! at the end of the feedlot period its a Win Win for all concerned. Batch numbers of product are good for the honest guys, but how does anyone know if it was given to those animals stated. This also has whiskers on it, as know one knows anything until an steer goes down, then each and anyone cries buyer beware. As I said, its a great Idea from JBS, it just needs to be fine tuned, to protect all.

  3. Tom Brown, 10/12/2015

    Brian,

    Wouldn’t a backgrounding operation be processing/ weighing feeder animals at some stage. The vacc can be given between 2 weeks and 6 months before feedlot entry, and also improves health onfarm. So for the sake of giving an extra shot, it could be approx $7hd more in your pocket.

    It doesn’t seem like the insult you are carrying on about.

  4. Brian Gray, 09/12/2015

    How many times have we seen this type of producer incentive come & go. JBS like many feedlots are blissfully unaware of the producers & backgrounders cost. Its just not the cost of the product, but then start adding product applicators, & the like. Staff or WAGES, WComp, then super, and the like, then depending on what product is used, perhaps you might have to double the handling cost, all this, for a huge $15.00 a head
    Do the sums, and $15 bucks wouldn’t cover the cost once all is added.
    In my opinion if a company or private feed lot has agreed to purchase your cattle, it should be PLUS the first or paddock backgrounded induction cost. Or if agreed at least make an effort to pay for the Induction product. Yes its a good idea to follow up with the second dose at point of feedlot entry.
    Its common knowledge that the correct animal health induction and properly backgrounded cattle are paramount before feedlot entry. But to come out and offer $15.00 only per head, is a insult to the producers intelligence. Background producers are working on slim margins as is, backgrounding companies take all the risks. I doubt there will be a stampede to JBS just for that $15.00 bounty. How many times have we heard that feedlots will only buy yard weaned cattle, with the correct product induction. Then when we all see the same feedlot buyers purchase cattle through the sale yard system, they are prepared to pay the same, or in some cases more for cattle that have only seen man twice in their life times, net alone be vaccinated backgrounded correctly.
    As I say, we need a agreement with each load of cattle ordered & purchased, any perhaps if those ordered cattle have all the correct vaccinations, and do exceptionally well in the feedlot, great lets see an extra payment of some kind for supplying the correct cattle for their requirements. Sorry fella’s its a start to a great idea, but $15.00 bucks just won’t get us excited.

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