If it quacks like a duck, looks like a duck and walks like a duck.…it is usually a goose.  That is how I sometimes feel when I attend certain elite dairy cattle auctions.  You attend some of these high-end auctions, and you see the top prices that some of these animals sell for, and you can’t help but be amazed.  But, something just doesn’t feel right.  You never see a complete buyers list from these sales. Heck, you sometimes don’t even see people actually bidding on these animals. And yet they get knocked down at $200,000+ for a 2-month-old? Sometimes it just doesn’t feel right.  It feels like you have been sold a lemon by a used car salesman. It just feels dirty.

The National Auctioneers Association has the following key codes of conduct that are requirements for membership:

• Members must not build unreasonable expectations about the outcome of an auction in the mind of a potential Client in order to secure the Client’s business.
• Members should conduct their business affairs so as to promote a positive image of their business and therefore the auction profession.
• Members shall provide customers with a clear understanding of all the terms and conditions of the auction.
• It is highly recommended that Members communicate terms and conditions of the sale in written form prior to the commencement of the bidding.
• Members should, to assure better service to the seller and to prevent misunderstandings, enter into written agreements or, at a minimum, clear oral agreements that set forth the specific terms and conditions of the engagement.
• Members have an obligation to conduct their business affairs in a professional manner, developing their contract forms with this Article in mind.
• Members must ascertain all pertinent facts necessary to implement a professional marketing campaign.

For the most part, some elite dairy cattle genetics auctions in North America are like the Wild West and only choose to adhere to these codes when it suits them.  Things like full disclosure of buyers lists (a must for a public auction), no reserve or agreed upon minimums on lots unless publically disclosed prior to the auction, all monies must be paid out in full at time of sale unless mutually agreed upon by all parties prior to the sale.

There are some egos in the dairy cattle breeding industry that are as big as or even larger than real estate mogul, television superstar, and author Donald Trump. One of the things that has made Donald so rich is his ability to identify and close lucrative deals. The challenge is that in the dairy industry we have some who think they are Donald Trump, but their actions are more similar to a used car salesman.

Personally, I have the theory that ­­the bigger the “show” someone has to put on, the bigger the scam is that they are trying to hide. When the numbers makes sense and the potential investment pencils out well (Read more: The Bullvine Dairy Cow Investment Calculator), you don’t need to put on the extravaganza and make it into a “party” to get people to attend. Discerning investors will attend because that is exactly what good investors do. They buy investments that will make them money.   They don’t need to be plied with booze or schmoozed with parties to get them to open up their wallets. The smart investments do the talking for them.

Don’t get me wrong. There are often times at these sales where the investment makes sense.  That is why you see many AI companies coming and buying these animals.  They have penciled out that the cost of acquisition for these females, combined with the cost of producing elite bulls from this purchase, is a wise investment for their organization.  That is because they have done the math and realize that in the long run the cost of this program combined with the ability to control their own product development is cheaper than continually sourcing their bulls directly from seed stock producers (Read more: SHOULD A.I. COMPANIES OWN FEMALES?,  WHY GOOD BUSINESS FOR A.I. COMPANIES CAN MEAN BAD BUSINESS FOR DAIRY BREEDERS and MASTER BREEDER KILLED IN TRIPLE HOMICIDE).  Unfortunately, in the long run, it is actually a bad thing to sell to these companies as they will be buying less and less from seed stock producers as they produce their own bulls.

For the past few years, I have been writing about this very issue and how it will kill the seed stock industry. (Read more: WAS THE GENOMIC INVESTOR BOOM NOTHING MORE THAN A BIG PONZI SCHEME?, WHO KILLED THE MARKET FOR GOOD DAIRY CATTLE? and HOW I KILLED THE DAIRY CATTLE MARKETING INDUSTRY)  However, this past week I was reminded why things may not entirely become controlled by the A.I. industry and other genetic corporations.  As I was visiting Oakfield Corners Dairy for a Bullvine TV Interview (Oakfield Corners Dairy (OCD) – Dairy Breeder Video Interview) prior to their Spring Sensation Sale (The Oakfield Corners Dairy Spring Sensation Sale) I was reminded that all is not doom and gloom for seed stalk producers. There are certain types of seed stalk producers that will not only compete with the large AI companies, they actually have a competitive advantage over them.  That is because they have a cost effective recipient pool. OCD milks over 6,000 dairy cattle. Even the large AI companies cannot compete with that when running their programs that cost upwards of $5,000 per live calf.

The other factor that became evident when I was chatting with the Lamb family, and the team at OCD is that they are just great quality people.  There was no sense that I was being “sold” a bill of goods.  They are great salt of the earth people, who are smart business people running a great business.  I was not being plied with booze, or being talked into joining some buyers group that never materialized.  And that’s probably why when one of the highest GTPI (+2765) heifers, OCD Delta Missy,  did not get knocked down at some ridicules price like $1,000,000 or even $300,000. Instead, she was sold for $190,000 to the Progenesis program from Ontario.  There was not some buyers group that needed to be pulled together after the sale, there was not some deal that had to be worked out afterward.  There was a clear, smart investment at a good price for all parties involved.

The Bullvine Bottom Line

These events have helped rebuild my faith in the elite dairy cattle genetics marketplace.  Sure there are going to be significant challenges, in particular for those running small to mid-size programs when it comes to competing with the large operators and the AI companies.  But it reminded me that even in today’s digital age, where you can see pictures and videos of animals selling in a public auction,  it’s still important to invest with  people you know and trust.  For me ,as a result of my personal dealings, that means people like Brian Craswell Auctions, Ferme Blondin, Pierre Boulet Auctions, Norm Nabholz, MD-Hill Auctions, Kueffner Holsteins, Jeff Stephens, The Cattle Exchange, Tom Morris and Blue Chip Genetics are all people that I know and trust. I don’t get that icky used car salesman sense when dealing with them.  I am not saying that you should only use these people.  What I am saying is work and invest with people that have good reputations. If you don’t know them personally, ask someone who does.  If you don’t get a good sense about it, remember Donald Trump’s famous quote “Sometimes your best investments are the ones you don’t make”.

Not sure how much to spend on that great 2 year old or heifer?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.

It is a fact that dairy farmers do not need to own animals of documented and high genetic merit in order to produce milk. Many very successful milk producers use sires of more than one crossbreed to rotationally cross their herds. Purebred breeders planning to be profitable in the future should have a clear plan for how they intend investments in high genetic merit animals (aka purebreds) to augment the revenue from their farm.

Go Big or Go Home

The Bullvine has published articles on how to invest wisely in dairy genetics. Bruce Jobson’s article Roybrook Revisited on the famous Roybrook Herd contains Roy Ormston’s thought that “all breeders need to invest in the highest quality seed stock they can afford and life is too short to start with poor stock”. Andrew Hunt’s article “6 Ways to Invest $50,000 in Dairy Cattle Genetics” identifies that the best return on investment (+47%) comes when you invest $20,000 to $25,000 in the two best high genomic heifers you can find from top families. His second best (+38%) is the purchase of the very best, high genetically ranked, two-year-old. ALL other alternatives will yield a negative ROI.  In purely financial terms, you get more for your money by investing only in the best.

 The $10,000 Question

Pennsylvania dairyman John Kiser got the idea to poll dairy breeders on what how they would invest $10,000 in breeding stock.  He posted the following question to the over 3,000 members on The Milk House discussion group.

You have $10,000 to invest in cattle/embryos or semen. Which would you choose?

1. Buy 50 embryos from genomic heifers” (basically high production commercial cattle)
2. Buy 20 embryos from an Excellent cow to make show calves
3. Buy 1,000 straws of semen from various bulls hoping to cash in later (like the folks selling Goldwyn semen)
4. Buy one young foundation type of cow

Although John called it a hypothetical question, actually it is very relevant. It covers the choices that every breeder faces when investing to improve the genetics in their herd.

The Top 4 Investment Choices

Here is a summary of the first fifty-two responses to John’s $10,000 question:

1. Embryos from genomic heifers (15%)
2. Twenty embryos to make show calves (39%)
3. Invest in 1000 straws hoping to cash in later (10%)
4. Buy one foundation cow (36%)
5. (10 responses selected an option other than those offered)

Clearly the majority of respondents from the Milk House survey are not thinking along the same lines as Master Breeder Roybrook and The Bullvine’s recommendations when it comes to getting returns from their investment in genetics. They fall more in line with another Bullvine article “Master Breeders are not Home Run Hitter’.

 Fantastic Opportunity? Or Waste of Money? How do you spend genetic investment dollars?

Although all dairy operations expect a return on investment, when it comes to genetics, the $10,000 question produced a variety of answers in targeting that goal. It is important to weigh the options in terms of success rate. We will look at them ranked on popular choice and then consider the financial implications.

Buy 1000 straws of various bulls hoping to cash in later: Many respondents mentioned that with the quick turnover of bulls these days this practice no longer made business sense.  One person suggested that ‘elite young sires start out at $100+ and likely with only one in fifty, at best, possibly being in demand in 3-5 years this was sure fire way to have a significant negative ROI.

Embryos from Genomic Heifers: Many commented that they, as yet, did not have enough confidence on genomics to go that route. Although many that did not select this option did say it may well be the best choice for the future. No respondents mentioned it, but investing in embryos from multiple heifers spreads the risk and gives the best opportunity to get a high outlier. Some did mention that $200 per embryo seemed low for unsexed embryos from top heifers, but they recognized that bargains could be had. After all, 2400 to 2500 gTPI heifers can produce 2700+ gTPI calves when mated to elite sires.

Buy a young foundation type of cow:  A popular choice for respondents, this option left open to respondent’s interpretation what a foundation cow is. Assuming that would mean a cow with pedigree, production, classification, cow family and genetic appeal it is a practice many breeders may be most comfortable with when it comes to building the genetic level in their herd. It also has the limiting factor, as some respondents mentioned, of having only one cow and cow family for the herd. As far as ROI, The Bullvines calculations, referred to previously, show an ROI of -77% for this option.

Embryos from an Excellent cow to produce Show Calves: The fact that this was the most popular choice identified that the majority of group members responding were thinking in traditional terms of breeding and generating revenue. None mentioned that only the very best show calves now command the top dollars and that many showy calves from Excellent dams sell in sales for under $3,000. Remember it cost $2,500 to get a heifer to milking age. For what is happening to sale prices consider reading An Insider’s Guide to What Sells at the Big Dairy Cattle Auctions and An Insider’s Guide to What Sells at the Big Dairy Cattle Auctions 2013. Another fact mentioned by one respondent was the fact that putting all your eggs in one basket (one Excellent cow) may not be the wisest decision.

Other Options: 20% of respondents mentioned that they would use the $10,000 differently with the majority preferring to purchase two high genomically indexing heifers that have the indexes and are sound for conformation but they could be the least fancy heifer of a flush. And yes a couple of respondents mentioned using the dollars elsewhere including for other farm improvements or farm family purposes.

Keys to Genetic ROI Success

Success is not something that is automatic when it comes to breeding a top individual animal or an entire herd. Where once breeders determined their success in terms of a single individual animal, success has now moved to where it is not only about animals but also about business success (ROI).

Some keys to being successful in the future are likely to include:

1. Be prepared for the industry to change as much in the next five years as it has in the past twenty years. The demand for genetics will be focused on the top 1 to 5%.
2. Have a documented plan covering genetics, marketing and finances as measured by profit. (Read more: What’s the plan?, Flukes and Pukes – What Happens When You Don’t Have a Plan)
3. Your plan needs to be dynamic, fit your farm, include the continual incorporation of new technology and contain a chapter on human resources to achieve the plan.
4. A business plan for genetic ROI success also includes using opportunity, consideration of risk and keeping costs under control.

The Bullvine Bottom Line

The sale of genetics from your herd in the next few years will change if it has not already done so.  It will be about selling superior not average genetics. Investing for your future returns from genetics needs to be all about business.

Not sure how much to spend on that great 2 year old or heifer?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.

What do you do today if there is a choice of three high genomic full sisters in a sale? To become the successful buyer here is what do you need to do?

Homework Required

Very definitely before going to the sale you need to research the national data file to get the facts. Don’t get only the pedigree but also the dam’s performance, the sire’s indexes, the number of and indexes of the siblings. And it does not stop there. You need to decide if the animal you may buy will give you the opportunity to achieve your goal. Bidding without having a goal and plan and knowing the facts is dangerous. Not physically dangerous, but dangerous from an investment point of view. This homework will pay big dividends in time.

Step One – The Plan

Decide what your plan or goal is in buying.  Do you want the animal for improving your herd, for breeding top indexing progeny, for selling embryos … etc? You decide. Play it as if you are the manager of a major league baseball team. Will your decision on the player’s contract (aka animal) you purchase enhance your team’s chances of winning the World Series? I always admire how cool and confident 99% of the baseball managers are. They have a plan for the game and for the year and they stick to it.

In setting your plan, you will need to decide which piece of information is most important for you. Is it TPI, LPI or NM$? Or does the pedigree have cow family or show appeal? Or is it high genetics for Health & Fertility or longevity that you want to add to your herd? Are there any minimum index values that you will not go below when purchasing? Does the conformation of the animal you are purchasing matter? Be fully prepared.

Step Two – Know the General Sales Details

Check out on-line or using a hard copy catalogue what is listed about the sale lot. And what the terms are for payment. Very definitely you need to know the animal’s health & vaccination status. In the future we will need to know the health status of all animals at the sale. As biosecurity and the health status of animals is becoming more important every day. The Bullvine strongly suggests that you wear clean clothes to the sale and most definitely clean footwear or plastic boots over your footwear. We can’t be too clean.

Step Three – Check Every Animal Detail

Now it is time to get down to the nitty gritty details.

Check to make sure you know if the sire stack and the cow family qualify according to your plan. If you are looking for something novel or non-inbred, make sure those criteria are met. Do an extensive check of all the dam’s progeny. Are there other full sisters not offered in the sale and what are their indexes? You do not want to have a choice of the three poorest full sisters with the seller having the best ones that will be competing with you for selling embryos. Also check out the half sibs for their genomic indexes. They may be high and the competition for selling embryos.  Check not only the performance of the parents but also the gTPIs or gLPIs.  Personally I like to carefully review the DGVs (Direct Genomic Values) of the sisters and compare them. DGVs are the basis on which every animal’s index is built.

If you are wanting to operate in the elite of the Holstein breed, you will need to be thinking of only buying animals over 2400 gTPI, over 3000 gLPI or over 700 NMS, over 2.0 PTAT / +9 CONF, below 2.90 SCS, above 3 Productive Life / 108 Herd Life and above 1.0 Daughter Pregnancy rate / 105 Daughter Fertility for black and white horned animals. As yet few if any polled or red animals have reached these levels but it will not be long before that occurs.

Step Four – At the Sale

Now you are ready to attend the sale with your research file and chequebook in hand. Remember the clean clothes and footwear. Do a thorough inspection of all of the full sisters present. Try to imagine what they will look like as they grow. Will they make at least GP83 and 9,000 kgs in their first lactation? We all know that heifers go through many stages before they calve but feet, legs, stature/mass, strength of topline, pin setting,… are all body parts that can be judged at any stage of life. Make sure you ask for any updates to the catalogued information. Often those details are crucial when you are deciding to bid or not or what level you are prepared to bid to.

Everyone has their own techniques they use when bidding. Some want to know who they are bidding against. Others like to bid quickly or slowly.  There are almost as many techniques as there are bidders. Do whatever works for you.

While at the sale make sure you network with breeders and marketers.

International Intrigue 2013

In preparing for this sale Lot 2 stood out for me. It was a choice of three Cashcoin females from the Lot #1 MS C-Haven Oman Kool, a high indexing fresh VG87 first lactation Man-O-Man and the #2 protein cow in North America. The sire stack was Cashcoin x Man-O-Man x Shottle x BW Marshall x Patron x Aerostar. All well respected sires. These three full sisters were very early Cashcoins. The indexes were not in the catalogue as the calves were very young but it was reported that the genomic information would be available on sale day. My last minute research before leaving for the sale showed that there were about seven Cashcoin x Kool daughters but none had genomic results in the CDN data system. As you would expect all seven have exactly the same PA LPI when I looked them up.

MS C-Haven Oman Kool VG-87-2YR

When I got to the sale Kool was there and she looked awesome – what a mammary system and she was milking 111 lbs per day. However the calves were not present being less than two months old and likely not old enough to be health tested to enter Canada. The genomic information was available and they very very similar and high. The ranges in indexes were gTPI 2418 to 2426, gLPI 3357 to 3413, NMS 789 to 809, Productive Life 4.8 to 6.2,  DPR 0.2 to 0.9 and PTAT 2.72 to 3.00. The update sheet said the buyer would get the 2^nd choice from the three. I wondered how these three compared to the other four. I tried logging into CDN and find out the DVGs for the other four but I could not find out that information. The question, at sale time, being would potential buyers have enough facts to feel confident to bid, knowing that these three were like peas in a pod for their indexes but where did they rank compared to the other four. I had done my homework but would have liked to know more.

MS C-Haven Oman Kool VG-87-2YR

Since the sale I have done some checking and I found that the three offered were #3, #4 and #5 based on gLPI of the Cashcoin x Kool daughters. All are within 46 gLPI of each other.  The second choice of these three is only 120 LPI behind the #1 and 62 LPI behind the #2.  Of course the end to the story has not been written and I do not know which of these three full sisters the buyer took. But I know how the calculation formula for  gLPI indexes works and with all seven of the Cashcoin x Kool daughters so close it will depend very much on their own performance as cows that will identify which one is the best.  The buyer likely made a very good decision having paid the very reasonable sum of $18,000 for the second choice of the three offered at the sale.

The Bullvine Bottom Line

In general full sister are not as close as the three Cashcoin x Kool’s above. Often there is clearly one that stands out.  The key is to do your homework and the vast majority of the time you will get an animal that will fulfill your needs.  Buying on genomics indexes is quite accurate and it will become more accurate as more animals are genomically tested and then performance tested. It is quite simple in the end. Buy the sister that most closely meets your needs.

Not sure how much to spend on that great 2 year old or heifer?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.

Spring is in the air and it seems to do things to people’s heads.  Maybe it’s being cramped up in the barn all winter, or maybe it’s because we start a new show season and much like the start to a pro sport everyone thinks they still have a chance at this point.  With that in mind, The Bullvine decided to take a closer look at some of the sales coming up and find out which consignments caught our attention.

Genomic Giants Sale

April 3^rd – Victoriaville QC Canada – More details and catalog

With over 40 to be offered that have a gPA LPI of over 3,000 or a gPA TPI of over 2,500, there is no question that this sale is going to attract a lot of attention.  In fact there are even three heifers in the sale that have over 4,000 DGV LPIs.  With so many outstanding individuals in this sale, there are sure to be some great buys and many wise investments.  Here are the lots that, on paper, caught our eye.

• T-GEN-AC SUPERSIRE RUTH – Lot 3
  Supersire x Observer x Bolver
  From the same family as the popular TAG sires Domain and new release Determine, at 2619 gTPI and 3757 gLPI Ruth numbers well no matter how you look at it.  She was the #3 gTPI female on the March genomic run and is the #2 Supersire in the breed.  That also makes her the #12 gTPI female in the world.  These high numbers combined with a strong family flush history makes Ruth a money making machine.
• T-GEN-AC MOGUL SHIMMER – Lot 8
  Mogul x Shottbolt x Boliver
  Sure to attract the interest of many, including the A.I. companies, this Mogul is also from the same family – Domain and Determine.  Her DGVs are off the charts at +4179 DGV LPI.  That is 559 points above her gPA LPI.  While I would like to see her dam’s DGVs be higher than her gPAs there is no question that this heifer will be in demand with her extreme fat and the fact that she is the #2 Mogul in the breed.
• EDG CT UNO CINERGY – Lot 1
  Numero Uno x Watson x Justice
  Being in the top 10 gTPI heifers in the world pretty much gives  you a license to print money.  Combine that with the strong family flush history and here is a rare opportunity to get into the genomic powerhouse De-Su breeding at the very top and you have a great package.  Her dam Chart Topper is due in May and looks great at Bryhill (Read more: Bryhill International Genetics: 10 Big Steps To Following Their Dream)
• KERNDTWAY EHRDT DALLAS – Lot 44
  Earnhardt P x Observer x Shottle
  There is no question that polled is hot (Read more: Polled Genetics – Way of the future or passing fad? and $10,000 a dose Polled Semen) and Dallas is a polled heifer believed to be the #4 GTPI Polled heifer in the breed.  While I would love to mate this heifer to some high health and fertility sires, Dallas has strong type numbers and outstanding production that will certainly have her in high demand for sons to service the massive commercial market that many A.I. companies covet.
• T-SPRUCE MOGUL 7260 – Lot 36
  Mogul x Planet x Shottle
  For those of you who don’t think good plus is good enough (Read more: Is Good Plus Good Enough?) this lot may not be for you.  However, as this sale has proven before, it is certainly good enough for the genomic market (Read more: Janardan – The Making of a Genetic Super Star and TAG’s Genomic Power Sale Averages an Outstanding $30,167).  This may be a sleeper lot that if her dam could ever jump up to VG status could prove very profitable. Strong production with solid type helps this heifer to be among the top 10 gTPI *RC in the breed.
• Other lots to watch for
  • EDG MIST UNO MYLIFE – Lot 2 – The #11 gTPI female in the world.
  • LACTOMONT NIKOTA SARGEANT – Lot 6 – DGV LPI over 4,000
  • JOSEY-LLC UNO SANGARIA – Lot 16 – Over 3,000 DGV LPI Red Carrier
  • T-SPRUCE MAYFIELD 7251 – Lot 43 – Could be the #3 *RC polled female in the breed.
  • CLOVIS MOGUL SPECIAL – Lot 71 – DGV LPI over 4,000

Crackholm Spring Fever Sale III

March 29^th – Saint-Hyacinthe QC Canada – More details and catalog

Also in Quebec there will be another outstanding installment of the Spring Fever Sales managed by David Crack Jr.  Crackholm  Holsteins.  Not to be outdone by the Genomic Giants Sale, this sale also has many high genomic females and also features some show-winning animals as well.

• DE-SU 1912 – Lot 1
  Mogul x Oman x Ramos
  Similar to the Genomic Giants Sale, lot 1 in the Crackholm Spring Fever Sale III is right from the heart of the De-Su program.  This heifer is a sister to the former #1 gTPI heifer in the world, De-Su 1438 sired by Shamrock.  Their dam Clear-Echo M-O-M 2150 is the #5 gTPI cow on the locator list (12/12). This rare opportunity will not go unnoticed as she sells ready to flush and her outstanding components combined with strong type will make her in demand the world over. Also selling in the sale (lot 5) is the Peoti sister to EDG CT UNO CINERGY lot 1 in the Genomic Giants Sale who has a DGV LPI of 3855, which is 200 points over her gPA LPI.
• WELCOME MOGUL PATTS – Lot 6
  Mogul x Bookem x Jose
  This heifer really is the complete package.  Her gPA TPI of +2479 combined with a gPA LPI of +3651 makes her attractive no matter what base you are looking at her from.  What really makes her stand out is her DGV LPI of 4069, making her one of the rare few over 4,000 since CDN introduced its new regression formula.  Her dam is fresh and looks good at Welcome-Stock farms. This heifer is higher than her pa’s in every major category.
• CLEAR-ECHO MCCUTCHEN 2820 – Lot 3
  Mccutchen x Man-O-Man x Lauden
  Coming in as the #1 LPI Mccutchen in the world will certainly attract attention.  This fancy Oct 2012 is also within 2 months of the oldest McCutchens, something not to be lost on many looking to get ahead in the genomic race.  While this heifer does have outstanding DGVs, you may want to make sure that you protect her on health and fertility in each mating as her sire stack and genomic test indicate this is her biggest area for improvement.
• LOOKOUT PESCE M HONEY – Lot 8
  Mayfield x Man-O-Man x Shottle
  Honey’s dam COOKIECUTTER MOM HUE who recently scored VG-88-2YR could very well be the #1 LPI cow, or at least a top 10 LPI cow in Canada come this next round.  This Mayfield daughter has outstanding numbers including a DGV Conformation of +21.  Combine that with a family that has proven to flush well and is in demand and you have an outstanding money making machine.  Also selling are her AltaSuplex, Cobra and Epic sisters.
• WELCOME-TEL OBSERV SAINT – Lot 12
  Observer x Socrates x Boliver
  For those of you looking for something that is already milking there is Observ Saint.  From the same family as Super, Obersv Saint is a potential top 50 LPI cow in Canada.  She is fresh since January and gave 38.2 kg of 5.5%F and 3.0%P on her first test.  She has balanced breeding values, but you may want to protect her on type especially rump and dairy strength, as both her sire stack and genomic test indicate this.
• CRACKHOLM WIND HAILEY & CRACKHOLM WIND HELLO – Lot 23 & 24
  Windhammer x Baxter x Hailey
  Adding a little spice to the genomic mix are many family members of the great RF GOLDWYN HAILEY EX-97, 2012 World Dairy Expo and Royal Winter Fair Supreme Champion.  Highlighting the bunch are Wind Hailey and Wind Hello, the Windhammer daughters from the VG-86-2YR daughter of Hailey.  Given the type potency this family has proven to produce (read more.  Dominate Expo Quebec) combined with the Windhammer these heifers are sure to be impressive.

Vente Nationale de Printemps

April 3^rd – Victoriaville Quebec – More details and catalog

Held in conjunction with the Quebec Spring Show, the Vente Nationale de Printemps is certainly a sale you will not want to miss.

• SUMMERLIZ MAN O MAN LAUSYA – Lot 1
  Man-O-Man x Shottle x Champion
  This VG-2yr sells fresh since August 13.  This heifer has the potential to be a top 100 gLPI cow and comes from a family that has flushed well in the past.  While she may not be a top 10 gLPI cow, she will certainly be a great seed animal in any breeding program.
• CALBRETT NUMERO UNO BRIN – Lot 8A
  Numero Uno x Superstition x Talent
  Brin’s Dam,  Rainyridge Super Beth *RC VG-86-CAN 2yr, is the #2 *RC CTPI Cow in North America and the #3 DGV LPI *RC cow in Canada.  Combine that with the fact that Beth’s dam is none other than the great Rainyridge Talent Barbara EX-95 (Read more: Lasting Legacy –  A Tribute to Rainyridge Talent Barbara) and you have one extremely marketable package.
• MS MOVIESTAR MOGUL MIMI – Lot 16
  Mogul x Planet x Shottle
  With an extremely popular sire stack, Mimi is a sister to the hot new release sire MR MOVIESTAR MODEL from Jetstream Genetics.  The Productive Life, Health Trait blood lines of the Wesswood-HC Rudy Missy family pours the best into this heifer that is extremely balanced.  Add to that a family that flushes extremely well and you have a money making machine.
• LOOKOUT PESCE MOGUL HAPPY & LOOKOUT PESCE HONEY – Lot 11a and 11b
  Mayfield x Man-O-Man x Shottle
  Honey is a full sister to lot 8 at the Crackholm sale, so you will certainly have the opportunity to see just what these heifers are worth before sale day.  With the highest LPI heifer from Hue selling for $130,000 at the 2012 Planet Holstein Sale (Read more: The Planet Explodes at World Dairy Expo – 2012 Planet Holstein Sale Recap) and Hue herself selling for $200,000 at the Sale of Stars (Read more: Genomic Stars Shine at Sale of Stars) this is certainly a family that is in demand.
• JOLICAP MOGUL WIKITA – Lot 14
  Mogul x Observer x Shottle
  This heifer is the complete package and her 2^nd dam UFM-DUBS SHERAY EX-USA is the former #1 CTPI cow in the breed.  This heifer has outstanding balance to her index and offers an outstanding opportunity to build around that as the family has proven to flush well.
• RAYON D’OR SHAW EMILIA – Lot 19A
  Shaw x Shottle x Justice
  Talk about combining two of the hottest genomic families in the world.  On the paternal side you have the great Ammon-Peachy Shauna VG-87-2yr (Read more: Ammon-Peachy Shauna: 2012 Golden Dam Finalist and Charting the right course at Seagull Bay Dairy) and maternal side you have WABASH-WAY-I SHOTTLE EMBER VG-86 1^st Calf, dam of MR LOOKOUT P ENFORCER +3837 gPA LPI and MR LOOKOUT P EMBARGO +3467 gPA LPI.
• Other lots to watch for:
  • MS APPLES UNO ADELE – Lot 3 – Uno from KHW REGIMENT APPLE-RED
  • T-GEN-AC LAYNE RUSSIA – Lot 20 – Super Layne from the same family as Domain.
  • LOOKOUT PESCE PNDE KARMA – Lot 25 – Epic from MS C-HAVEN OMAN KOOL the extremely promising Man-O-Man daughter now housed at Bulterview Genetics.
  • STE ODILE MODEL CRISTAL – Lot 32 – Sudan Cri x from #1 GLPI Cow in Canada, LES091 BAXTER MODEL RUBIS VG-87.
  • JACOBS GOLDWYN CHARM – Lot 40 – Full sister to Robrook Goldwyn Cameron EX-92, All-Canadian & All-American 2011 & 2012, Res. Intermediate Champion 2012
  • VALLEYVILLE SANCHEZ VERNIE  – Lot 45 – Full sister to Valleyville Rae Lynn VG-892yr (Read more: The 2012 Breeder’s Choice Awards – Tanbark Trail Edition and Quality Holsteins – Well Deserved Congratulations )

The Quest for Success Sale

March 22^nd – Marion WI, USA – More details and catalog

Not wanting to  focus only on Canada there are also some great opportunities to be had south of the border.  Leading the way is The Quest for Success Sale hosted by Bella-View Holsteins.

• T-GEN-AC MOGUL LYANNA – Lot 66
  Mogul x Observer x Socrates
  Catching our eye pretty quickly is Lyanna with her outstanding genomic test results highlighted by her gTPI of 2421 and gLPI of 3485 and an impressive DGV LPI of 3849. With no Man-O-Man, Goldwyn, or Shottle, Lyanna certainly has a lot of options in sire selection (Read more: 12 Sires to Use in Order to Reduce Inbreeding).
• A&M-BUSHMAN SUNBURN-RED – Lot R1
  Contender x Advent x Skychief
  Wanting to have something for everyone this sale also has a nice selection of red animals on offer.  Highlighted by A&M-BUSHMAN SUNBURN the HM All-American Red and White spring calf and maternal sister to the 4x All-American, MD-Hillbrook Sunburst-Red-ET EX-92.
• GOLDEN-OAKS COLT POPPY-RED *PP – Lot R15
  Colt-P x Mitey P x Redliner
  For those of you looking for something a little different there is GOLDEN-OAKS COLT POPPY-RED the homozygous polled Colt-P from the Perk Rae Family (2012 Golden Dam Finalist).
• Other lots to watch for
  • L-L-M-DAIRY S S PHAWN – LOT 2 – gTPI +2476 gLPI +3178 DGV +3343
  • WEBB-VUE CAMERON 6611 – Lot 3 – •#5 GTPI Cameron daughter
  • REGANCREST MOGUL DANCER Lot 26 – GTPI +2366 GLPI +2939/ DGV +3293
  • T-GEN-AC MOGUL ROSSI – Lot 63 – GTPI +2384 GLPI +3015/ DGV +3223, Dam is a maternal sister to the dam of Lot 1 DE-SU 1912 in the Crackholm sale.

Tag Sale at Co-Vale

March 19-25 Preble NY, USA –  More details and catalog

Continuing on from the success of the 2012 Co-Vale tag sale, the following lots that caught our eye.

• First North American Choice form Decrausaz Iron O’Kalibra*RC EX-94-SW – Lot B
  Certainly catching our eye for a long while now has been O’Kalibra (Read more: The All European Championship Show: The greatest SHOW on earth and Decrausaz Iron O’Kalibra Wins Grand at the 2013 All European Championship).  Not only is O’Kalibra one of the greatest show cows in the world today but she also comes from an outstanding pedigree.  She is from the same family as Dudoc Mr. Burns and Granduc Tribute.  This calf will be the 1^st heifers available from O’Kalibra available here in North America.
• Also catching our eye are:
  • Lot A Choice of full sisters to 2012 All American 4yr old T-Triple-T Gold Prize EX-92
  • Lot 18 MD-Dun-Loafin Lau Elly-  Full sister to MD-Dun-Loafin Lauth Elli All-Canadian & American Fall Calf 2012
  • Lot 28 Jacobs Sid Beauty – Pine-Tree Sid from Jacobs Goldwyn Brittany EX-95, 1st 4yr-old Royal Winter Fair 2011

Milk Source Tag Event

March 22^nd – 23^rd Kaukauna WI, USA –  More details and catalog

For those of you wanting to get a little color with your show ring winners there is certainly the Milk Source Tag Event highlighted by Blondin Redman Seisme (2 Time WDE and RAWF R&W White Grand Champion), Budjon-Nitzy Destiny Red and Dupasquier Contender Whitney.

The Franchise Kind II

March 25^th Syracuse NY, USA – More details and catalog

If red and white Holsteins are not enough, or you prefer Jersey, you certainly do not want to miss the 3^rd installment of the Franchise Kind sale.  Highlighted this year by Page-Crest Excition Karlie (All-Canadian Senior 2-Year-Old 2012), Woodsview Excitation Tracy (2nd Jr 2yr old WDE’11 and 3rd Jr 2yr old RAW ’11) and South Mountain Socrates Lavish (Show results) this sale is certainly going to be one of the top Jersey sales of the year.  Watch tomorrow for interview with sale co-manager Dusty Schirm.

Canadian National Convention Sale – Taste of Ontario

April 10^th Ancaster Ontario, Canada – More details and catalog

Rounding out the major spring sales is the Taste of Ontario sale held in conjunction with the Canadian National Convention.  Highlights include daughters of many of the great show winners including

• Lot 1 – MS APPLES UNO ASPIRE – Uno from KHW REGIMENT APPLE-RED
• Lot 4 – DUCKETT-SA WNDBRK FUJITA – Windbrook from HARVUE ROY FROSTY
• Lot 5 – JACOBS GOLDWYN CANDY – Full sister to Robrook Goldwyn Cameron VG-87 2Yr, All-Canadian & All-American 2011 & 2012
• Lot 6 – BOULET WINDBROOK CLOTY – Windbrook x Boulet Goldwyn Chalou EX-95 2E 2*, Champion Bred & Owned WDE, Madison 2012 H.M. All-Canadian 2012, Res. All-American 2012
• Lot 8 – QUALITY MOGUL FIXI – Mogul x Shottle x Goldwyn x Quality B C Frantisco EX-96 3E 18*, Supreme Champion 2004 & 2005, believed to be the highest index member of the Frantisco family

The Bullvine Bottom Line

With all the excitement around a new year, it is easy to get caught up and make investments that you may regret later.  It is always best to do your homework and invest wisely.  These lots are the ones that caught our eye and are sure to help spur on the spring sale madness.

Not sure how much to spend on that great 2 year old or heifer?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.

Early in my working career, working as a dairy cattle improvement specialist, I was invited to take part in a dairy producer education day with the theme of “Which is your most profitable cow?” That morning program had been organized by an Agriculture Agent in an area not far from my home farm. This effective educator had had a long career as a County Agent, specializing in farm bookkeeping and the use of records on the farm. His plan for the day was to have a variety of speakers who would bring varying points of view on cows that could make a profit. The day had over 150 people in attendance. He had done a good job of getting the crowd out. He wanted producers to go home with ideas on genetics, feeding, management and record keeping. I, personally, learned a great deal from the points of view shared by both the speakers and the crowd.

Is it the show kind?

The lead-off speaker was a well known showman who two years previously had purchased a tall, deep bodied, sharp chined, good uddered four year old cow with feet and legs that were not the best. He had worked with the cow to get her to walk just right in order for her not to show off her questionable feet and legs. He had done such a good job that the previous year she had been Grand Champion at the Royal, All Canadian and eventually her daughters would also do very well at Madison. Everyone in the crowd knew what he had paid for the cow, as she’d been purchased at a public auction. So the excellent showman and cow developer described how he would be able to sell sons of her to AI and daughters and granddaughters to foreign countries. That for him was his most profitable cow, yet for the vast majority in the crowd they could not personally identify with this showman. Buying cows in the rough and developing them was not in their expertise. The speaker did not get any questions.

Is it the balanced kind?

The next speaker was the sire analyst from a successful AI coop, who had recently been designated as an Official Judge and who would go on to be a very successful international dairy cattle judge. He spoke about bulls that can consistently sire daughters that can win in the show ring and at home can produce very good volumes of milk with a minimum of 3.8% butterfat. His speech mainly dealt with how a sire analyst uses his knowledge to search the breed office records before he goes on-farm to check out all members of the family of young sires already on the ground and that could pass health tests to enter into the young sire sampling program. Many in the crowd were interested in his presentation as dairy cattle breeders always want to know who the next hot bull is. However the producers present did not go away with any gems of knowledge on which would be the bull they should start using. Balancing strengths and limitations gives an average but not necessarily profit.

Is it the index kind?

At that time, nearly four decades ago, cow indexes for production traits had just been produced by genetic researchers and were starting to be used by some early adopters. So the third speaker was a recent college graduate whose family farm had decided to invest in two cow families that had placed cows at or near the top of the index list. This speaker, although not long in the tooth as a cattle breeder, was eager, entertaining and informative on what he had learned in buying into the cow families. He spoke of BLUP and the need to treat all cows in a herd in a like manner for accurate indexing. However few in the crowd comprehended the value or benefit of cow indexing or how that could be translated into cow profitability. From the questions asked of this speaker, it was obvious that there were more doubters than believers in the crowd. By the way, this speaker through sound business and breeding decisions and the use of ET has developed an excellent herd of high performing cows earning him a Master Breeder designation. But, on that day, his speech did not resonate with the crowd on what should be their most profitable cow.

Can you use a pencil to calculate?

I was the fourth speaker on the program. Newly out of graduate school where I had developed the “Dollar Difference Guide to Dairy Sire Selection” I was to speak about that new listing service. I focused my presentation on how to use the guide when selecting proven bulls to produce profitable cows. The formula was similar to the present day Net Merit index only it did not include traits beyond milk and fat. The Dollar Difference would eventually be replaced by the Canadian LPI system for ranking both males and females. I received many questions both in support and questioning how dairy cattle could be bred using just numbers and not the human eye. In fact the crowd all on their own debated the merits of selecting for yield only, selecting for the balanced Canadian kind or the merits of selecting only for the recently adopted Canadian Holstein true type model. To say the least I learned much that day about delivering a speech, about getting the crowd involved in the discussion and how to react as a speaker to both support and criticism. Yet, in the end, I likely did not help producers when they went home to breed profitable cows.

What works in the barn?

The final speaker was a quiet middle aged man, who dairy farmed locally with his wife. They milked thirty cows in an older tie stall barn, having taken over the farm when his father had been killed in a farm accident. They were raising a family of five very bright children, two of whom were already in university. They were devoted pupils of the county agent’s farm records and bookkeeping club. I had heard many in the crowd during the coffee break time question what this man could bring to the crowd as he seldom attended cattle shows, their children’s 4H calves were always at the bottom of the class, he did not attend breed meetings and they only owned a few purebred cows. He started his speech with an explanation of how people learn and then proceed to describe his most profitable cow. She always stood in the same stall at the far end of the barn. It had a steel plate as the floor over the stable cleaners. She was a purebred Holstein classified Good 76, milked ten percent below the herd average, gave milk of 5% butterfat, ate mainly the feed swept to her that the other cows did not eat, never kicked, was loved by his children, first calved at 24 months, conceived every time on first AI service, had never seen the vet, never had mastitis and was now 72 months old milking in her fifth lactation. Well the crowd, almost laughing, thought he was joking. He wasn`t! For him she was his most profitable cow. Obviously the county agent had selected him to speak because his views were different from what all of the breed, DHI and AI recommendations would be and from what the other speakers thought to be the most profitable cow.

Lesson learned?

At the end of the day, I spoke with many producers present and the buzz was about the final speaker. They remarked on how he had made the day beneficial for them because he had shared real life practical experience with them. His way of farming meant breeding cattle, raising a family and that cows were present on farms to bring financial returns to the farm and not just to look pretty. These were all points I heard mentioned by the crowd. Yes profit is in the eye of the beholder. Dairy cows exist to feed the world. And yes every cow does not fit every dairyman’s view of the most profitable cow.

The Bullvine Bottom Line

Every farmer and every farm has their own individual situation. One type of cow is not the most profitable for everyone. But it is important that every cattle breeder takes the time to decide which, for them personally, is the most profitable cow. And then it’s equally important that they take the next step and breed for that type of cow. Your reality is the source for your profit..

What has your experience been?  Please share in comments box below.

Not sure how much to spend on that great 2 year old?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.

Over the past year there have been prices in excess of $200,000 dollars paid for high indexing genomic heifers.  For many breeders the changes that have resulted from the higher reliability that genomics provides has prompted them to invest “the farm” when it comes to buying into these potential cash cows.  However, where to invest your money and which animals are worth it and which ones are not can be a very risky proposition.  With that in mind, we compiled the following recommendations

Making the short list

While purchasing the #1 GLPI heifer may provide you with the greatest chance of getting a top cow, it is not a guarantee.  In looking at the top 10 GLPI heifers, you notice an interesting range with most having an LPI of 3200 to 3400 points, but there are some that have GLPI’s of 2300 to 2500.  You don’t have to buy into the very top of the list, but it does make it easier. Similar is true for the GTPI list as well.  Though it’s highly recommended that you purchase a heifer who has DGV’s higher than her parent average.

LYLEHAVEN LILA Z EX-94-CAN 9*

There are also cow families that seem to be increase significantly generation after generation.  One such family is the world renowned Lila Z family.  While Lila Z herself is only 1165 GLPI, descendants are currently the #1 GLPI heifer and #1 GLPI bull.  That is because generation after generation in this family seems to come to the top.  This means that you can consider purchasing embryos or heifers from animals that have a GLPI of about 2900+ or 2000 GTPI if it is a family that has proven to produce much higher genomic progeny generation after generation. But be careful don’t assume that they all will.  Check the family history.

AMMON-PEACHEY SHAUNA VG-87-2YR-USA

Lesson:  While purchasing at the top provides you with the greatest potential it is worth taking the time to see how your choice stands up generation after generation.  Certain cow families like Lylehaven Lila Z and Ammon-Peachey Shauna seem to consistently put out high genomic descendants.

Never Under Estimate the Power of the Stack

When it comes to providing the greatest reliability for your investment, nothing compares to looking at the sire stack.  One thing I have learned from your tried and true breeders is whether you are breeding for index or show cattle, nothing beats a good sire stack.  Proven sires have a much higher reliability than genetic predictors do.  A heifer’s sire stack is a great way to eliminate the hothouse effect (for more check out it’s in her genes…).

Lesson:  When investing in dairy cattle it can often be buyer beware, a great way to mitigate the risk when purchasing into cow families that you are not familiar with is to look at their sire stack.

Flush History

Nothing can make or break an investment in genomic heifers like a poor flush history.  You will make or break the bank depending on how well they flush.  As the numbers show in What comes first the chicken or the egg?  There really is no comparison when it comes to the most important factor in the profitability of your genetic and embryo programs.  In fact, for each embryo flush where a donor is able to produce over 10 eggs per flush, you will typically see 24% greater return on your investment.  It takes a rare case (1 in a million) to have a cow that flushes less than seven embryos per flush to be a profitable investment.

Lesson: as much as you spend a great deal of time researching the pedigree and looking at your potential purchase’s conformation, there really is nothing more important than her own and her family’s historical flush ability.  Take the time to make sure that the animal you are considering will be able to flush 7+ embryos per time.  If you are not sure they will, or there isn’t an available flush history on the family (strongly maternal) wait.  Look for a new animal.

The Bullvine Bottom Line

With big dollars being spent on top genomic heifers, and even more breeders wanting to get into investing in top genomic heifers, taking the time to do your homework is very important.  Investing in the correct families which have generation after generation of proven genetics can save you future headaches.  Taking the time to make sure that they are able to produce significant numbers of embryos can make you a great deal of money.  (To learn more about his read 6 Ways to Invest $50,000 in Dairy Cattle Genetics). Take the time to consider these factors and you will see the reward for it.

What has your experience been?  Please share in comments box below.

Not sure how much to spend on that great 2 year old?
Want to make sure you are investing your money wisely?
Download our Dairy Cow Investment Calculator.