Betty Jo Gigot, Editor and Publisher

Roy Brown, CEO of Cattle Empire, proudly displayed graphs comparing his company’s costs of gain and conversions against other cattle-feeding entities across the country. He pointed out that, not only were they highly competitive with the rest of the industry, but each of the three feedyards under his control were performing at the same level. Brown says consistency is the key to success, and he and his management team have made it their mantra in every aspect of the company.

An interesting ten years
Brown reflected on the years since joining his father, Paul, in running the massive enterprise. Returning in 1995 after working as a bankruptcy attorney, Brown has seen many changes.

“Paul built the machine,” Brown said. “Since then we have filled in the infrastructure, hiring people who fit in a changing world. Paul Brown officially retired this summer.

The company runs on a team concept, working on communication in all parts of the organization, looking for results and consistency.

“Top management has lunch together every Tuesday,” Brown said. That team includes Ron Shortridge, CFO, Nick Chestnut operations manager, three yard foremen and Brown. Cattle Empire’s three yards are strictly operational. All business affairs are handled in the main office where cattle are bought and sold, and all purchases made.

“In the last four years we have had a number of challenges,” Brown said. Their customer base totally changed with attrition and loss of equity, so the company stepped up to feed larger numbers of cattle. The border closures, BSE, fear of FMD and even 9/11 have had major effects on management. Surviving it all, the company has charged ahead, looking for opportunities along the way.

Cutting edge
The industry has closely watched a study conducted by the company’s consulting veterinarian, Bill Hessman, on costs related to persistently infected bovine viral diarrhea (PI-BVD) cattle in the feedyard.

The results have brought about a number of changes for the management at Cattle Empire, where, after the first test was completed, 100 percent of the cattle received are now examined for the virus using a 24-hour test. Upon arrival, cattle are processed, ear notched and tested. Any cattle that test positive are placed in an isolation pen with a three-foot barrier. The cattle stay in isolation until their withdrawal time is up, and then are sent to slaughter.

Brown and his team have found that PI-positive animals will never get well and will, very likely, pass BVD to others by shedding the virus into waterers, through nose-to-nose contact or even by spreading infection in the working chutes.

“We have found the 30 head that pass through the chute after a PI animal will have more morbidity that the 30 ahead of it,” Brown said. “The amazing thing is that 70 percent of PI cattle never show any signs, even the ones that are in the isolation pens, waiting to be slaughtered. One of the most persistent ones that we found was one of the best looking black white faces you have ever seen.

“We expected to see our return in death loss, medication cost and morbidity when we implemented this testing procedure,” Brown said. Much to their surprise, they found it in performance, conversions and gains, enough so that they have gone into the program full blown.

The Search for Excellence
In one test, a blind group was set up with no one, not even the cowboys, knowing with pens had PI animals present. Within 40 days they could tell which pens were which.

“You know you are on to something when you can convince a cowboy,” Brown said.

Changing strategy
Cattle Empire management staff found their niche years ago, working with light cattle. For many years, a number of growers close to the property backgrounded cattle for the company. In a change of strategy, a 30,000-head addition at one of the company’s locations was split into two parts, using half of the new space for finished cattle and the other for a growing facility. The company now uses only one or two outside operators, putting the rest of their incoming cattle, from 370 lbs. and up, into the new facility.

“Cost savings have been substantial,” Brown said. “We save on medication costs by using our less costly supplier, feed costs are less and the cattle stay on the same feed ingredients and rations all the way through. The growing pens have their waterers placed in the middle of the pen and are on medicated water for the first five days after arrival.

“Our nutritionist used to tell us that we lost 30 to 60 days with a change in location and ration.” Brown has seen evidence of that. Cattle coming through this integrated program finish two to three weeks sooner.

Looking to the future, Brown and his group certainly fit the model, searching for excellence in an ever-changing industry.