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Pounds+Premiums =
Profits
An Indiana operation capitalizes on
source-and-age-verification.
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Krieger Farms, owned and operated by Mark and Jame
Krieger (rhymes with eager) of Universal, Indiana, focuses on the production
of Simmental-cross commercial cattle that consistently bring bottom-line enhancing premiums at the sale barn.
“We strongly believe in the SimChoice
program,” Mark says. “Buyers are willing to pay a premium of $10 to $15 more
per hundredweight when our calves show up with those Simmental Genetic ear
tags, just because they know that the calves are age-and-source verified. It
is a powerful and effective sales tool for us.”
And that’s not all. That value-added premium
continues to follow the cattle. Andy Allen, who moves about 3,000 heifers per
year through his feedlot at Champaign, Illinois, has bid on Krieger heifer
feeder calves and is convinced that verification is becoming more and more
significant. “Out of all the sales I’ve been to, source-and-age verified
cattle are the top sellers in the sale. I’ve paid a premium for the Krieger
cattle because they’re worth more to me and I’ve had to out-bid other buyers
to get them,” he said.
“I’m a supplier for Creekstone Farms and
I’ve realized an average premium of $42 per head. Now, Krieger cattle have
some other things going for them, too,” Allen added. “They’re healthy and
easy to get along with. I haven’t had to ‘needle’ a single calf, and have
never lost one. It makes my job a lot easier if I don’t have to spend a lot
of time in the hospital pen.”
When the Krieger calves are ready to leave
the farm, they’re hauled to Reel Livestock Center, owned and operated by
veteran cattle marketer Les Reel at Congerville, Illinois. Reel is equally
impressed with the source-and-age verification process. “It works. Andy Allen
wants every Krieger heifer he can buy — and he has a lot of competition — the
buyers fight over them. That tag results in a very nice premium, and it is
only going to become more and more important in this cattle marketing
business,” Reel predicted.
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The Verification Process
The extra work that is required pays off
handsomely. “It does take some paperwork and you have to work for that
premium,” Krieger explained.
He points out that the entire verification
process begins with healthy, quality cattle. When the calves are born, ranch
identification tags are applied. When the calves are weaned, the ranch tags
are removed and the American Simmental
Association (ASA)-designed Simmental
Genetics and EID (Electronic Identification) tags are installed.
After Krieger submits all data, including
birth dates, to ASA, the Association then turns around and sends those
records electronically to Micro Beef Technologies. “Micro Beef conducts the
audit on our cattle. Ben Tarr, Mechanicsburg, Illinois, is the Micro Beef
auditor who comes to our farm and carefully goes through our cattle and
records,”
he said. “Every time Ben comes through, we are issued a
group certificate based on the number of calves he has checked — it could be
for five head or 200 animals — until all our calves have been confirmed for
age and source.
“From that point on, our cattle are worth
more. When they have that Simmental tag in their ear, we’ve added value,
whether they’re fat cattle or feeders,” he said. “One other major benefit is
that every time an animal is harvested or transferred where they run through
a scanner, we receive an e-mail from Micro Beef, informing us about that
animal’s status. If carcass data is available we can get it.”
The Family Connection
In conjunction with other family members,
Mark and Jame maintain a time-consuming mini-conglomerate.
For instance, their Indiana Farm, which
straddles the Indiana-Illinois state line, about 20 miles north of Terre
Haute, runs a Simmental-influenced cow herd of 650 cows on 6,500 acres of
mostly reclaimed coal strip-mined land. Their labor force includes major
contributions from their two teenage children, Anna, 16, and Peter, 15. In
addition, one full-time employee, Jason Morgan, lives on the place with his
wife and two small children. “We couldn’t operate without Jason. He does
almost all of our feeding and has been with us for 13 years,” Mark said.
Jame, whose maiden name is Secondino, has
been employed in the field of livestock insurance since the 1980s, and
presently writes for American Livestock, Inc., working out of their home.
The third leg of their trio of major
endeavors involves
Krieger’s Wholesale Nursery, located at Mark’s hometown of
Bridgman, Michigan and specializing in production of small fruit plants. The
nursery utilizes two farms, which have been in the Krieger farm for several
generations, and is co-managed by Mark and his mother, Marilyn. Sadly, Mark’s
dad, Larry, passed away a few years ago after a courageous eight-year battle
with cancer.
“The nursery is about 220 miles from here
and I try to get up there as often as I can, especially during planting
season. We grow blueberries, raspberries, asparagus, currents, grapes and
rhubarb plants, selling over the internet to nursery outlets across the
country. We also harvest 65 acres of commercial blueberries. We have a
full-time crew of employees up there and they stay busy year-around,” he
reported.
Mark has fond memories of his youth —
growing up in agriculture. One grandfather had a Holstein dairy, while the
other had the nursery. His own diversified family farm allowed him to become
active in the American Junior Simmental Association (AJSA) in the early
1980s, when he became part of a Michigan team that competed with teams from
Texas and Kentucky in a friendly battle for supremacy within the AJSA
program. “Those were great years and I made friends through that program that
I still have today,” he says. He attended Michigan State University and
credits Drs. Harlan Ritchie and Dave Hawkins of the MSU Animal Science
Department for their lasting influence.
Jame was raised on a grain and cattle farm
at Shirkieville, Indiana. Her parents, Pete and Sue Secondino, showed cattle
all over the country and in 1957, shortly after they were married, won the
prestigious International Show in Chicago with a steer appropriately named “Honeymoon.” Honeymoon was
purchased by radio personality Arthur Godfrey for a still-standing Chicago
record of $32 a pound, money they used to purchase a piece of ground to start
their farm. Incidentally, that initial land purchase was from Birch Bayh,
then a US Senator from Indiana.
At an early age, Jame and her sister, Jody,
began to carry on the family tradition of showing livestock, exhibiting in
Chicago, Kansas City and Denver, in addition to numerous local and area
events throughout the Midwest.
After earning a degree in Ag Economics from
Purdue, Jame migrated into the livestock insurance business and has been
deeply involved ever since. “We are a true Simmental story,” she commented.
“Mark and I met at the Mount Brilliant Simmental Sale in Kentucky. Keith
“Sundance” Ruff introduced us to the crowd as the ‘most eligible bachelor and
bachelorette of the Simmental breed.’ We began dating, got married 24 years
ago, and now Anna and Peter are deeply engaged in youth programs and our
farm. Anna is more into the youth programs like FFA, 4-H and the AJSA, while
Peter prefers the hands-on aspects of working with the cattle and the farm.”
In 2007, she assumed responsibility for
coordinating the AJSA National Classic that was held in Louisville. “That was
a very rewarding experience. We had a terrific group of volunteers from
several states who came forward to successfully pull that event together,”
she said.
The Cow Herd
Mark’s relationship with Simmental dates
back to his days in the junior program, while Jame’s first exposure came when
she showed 4-H steers at the county fair level.
After they were married in 1985, the young
couple moved into a house down the road from Jame’s parents at Universal. “We
rented a house from Peabody Coal Company which was strip-mining the area,
working 24 hours a day. They were reclaiming that ground as they went along,
and we started doing reclamation for them, seeding, working the ground,
vegetating it. We saw an opportunity for some low-cost pasture, so we
purchased 25 commercial cow-calf Angus pairs for $650 apiece,” Mark recalls.
“I’d previously acquired 30 head of
Simmental, primarily from Jon Callendar’s Singletree Farms at Charlotte,
Michigan, so we moved those cattle down here, too,” he said. “As soon as we
would get one group paid for, we’d buy another set of cows. When the coal
played out, we happened to hold the maintenance contract on the land. By
then, we had the resources to buy and lease more ground. We presently own
2,000 acres outright and rent another 4,500 acres.”
They have established several center pivots,
leading to a profitable hay enterprise. “Our winters are generally open, so
we don’t need a lot of hay to get through the winter,” he elaborated. “We
bale mid-sized square bales and market hay all over the Midwest, primarily to
beef and dairy farmers.” Irrigation water is plentiful, and is pumped from
huge strip mine pits to enhance production of hay, wheat and soybeans.
“Over the years, we’ve used purebred
Simmental bulls that we either purchased or raised. The F1 cross is what
we’ve gone for, combining Simmental and Angus genetics,” he said.
Krieger focuses on maximizing production of
red meat. “Our motto is ‘pounds to town.’ When we sell a fat calf that weighs
1,400 pounds, we calculate that’s an extra $200 an animal that we wouldn’t
otherwise receive. My goal is big, functional cattle. I’m aware that large
carcasses are not always that popular, but after all is said and done, we’re
selling pounds of beef.”
They need to look no further than their own
children for a viable source of Simmental genetics. Anna and Peter run a
purebred herd of 40 head, while making efficient use of artificial
insemination and embryo transfer.
“They’re producing stout, structurally
correct cattle with great capacity — those traits are absolutely necessary to
survive here,” Jame said. “The children do their chores before school every
morning and every evening. They’re very actively involved in everything we
do.”
Much of the time, the Kriegers market their
calves as feeders. If they feel a little uneasy, they’ll grow the calves out
in their own feedlot until the market is right. “And that premium is still
there, regardless of how long we decide to feed them,” he said.
Ever vigilant for more efficiency, Krieger
has identified several means of extending available feed supplies. He
stockpiles enough forage to get the cowherd through a normal winter. He
utilizes distiller’s grain from an ethanol plant and gluten from a starch
plant for his feedlot cattle. “We buy several truckloads on contract and have
our pits full by fall, utilizing a vertical mix wagon to mix the feedlot
ration,” he continued. “And we take a lot of pride in our herd health. We’re
on the Pfizer program and the calves are given all their needed shots.”
“These Simmental tags, certifying our
Simmental-sired cattle, are well worth the time and investment. The extra
premiums we receive make a huge impact on our ability to function and grow,”
he concluded.
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