Industry Technology Feature:
Setting the Standard

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Betty Jo Gigot, Editor and Publisher

Eugene Schwertner always told his people, “Never over promise and never over sell.” Through the years – 60 of them – Eugene’s company, Capital Land and Livestock, has tried to do just that, while providing one of the most complete service-oriented livestock dealer networks in the country.

One of Eugene’s best efforts for the good of his customers was to bring high quality bulls into southeast Texas, selling them to the cattlemen who provide raw product for his company. Through the years, the quality of cattle available in auction markets has improved dramatically, providing a solid base for the area’s economy.

A natural progression
Part of the business plan at Capital Land and Livestock is to provide a product that has the best chance to make a profit, even after it has been delivered. If the staff has seen illness outbreaks, they will recommend extra protection before the cattle get on the truck and, when rapid tests for PI-BVD (animals persistently infected with bovine viral diarrhea) became affordable, Capital moved swiftly to establish a lab and offer testing.

“If we can provide you with a way to get better performance, we are good to go,” Jim Schwertner said. “We know that any chance to increase our customers’ bottom line benefits us.”

Schwertner sees the elimination of PI animals from the herd as one of the most positive advancements to date.

“I am so excited,” Schwertner said. “If we can get those animals out of the population and eliminate exposure to BVD, we can have an affect on cost of gain, morbidity and mortality. Even better, we can positively affect performance. I am doing it on all of my cattle, and our cowboys are seeing a difference in incidence of illness. The new testing procedures give us a chance to offer a superior product to our customers.

Buyers are offered the option to have cattle they have purchased PI tested before they are loaded on the truck. By the time animals reach their destination, the results are back and the new owner is notified if there are any that have tested positive.

Schwertner estimates a return of $20 per head if PI animals are removed before going into a feedyard or stocker operation.

Because cattle coming into Capital are back tagged, if an animal tests positive, staff attempt to notify the farm of origin. A national individual animal identification program will make the process much easier, according to Schwertner.

New enterprise
After setting up the PI lab at Capital Land and Livestock, Schwertner looked into the possibility of providing testing across the country. Putting together a partnership with a group of industry leaders, Gold Standard Labs was born. Cattle feeders E.C. Brookover, Dan McWhorter and Don Oppliger joined Schwertner in the project.

Heading up the team is Chris McClure, a 15-year veteran of the industry, who headquarters out of Hereford, Texas. The company currently has three labs, with plans for 12 to 15 across the cattle-feeding area. Right now they are concentrating on cattle going into feedyards, but are making plans for the dairy, stocker and eventually cow-calf segments, where the infection starts.

“It is fun to be on the cutting edge of the beef industry,” McClure said. “This is the most exciting thing I have seen in 40 years, and has the potential of improving producers’ bottom line.”

Gold Standard is using IDEXX Laboratories technology. Plus, IDEXX provides hands-on training their lab technicians.

“What I like about the IDEXX people is that they are the industry leaders, and, as time goes by, will keep up with developments and advancements in the field,” Schwertner said.

As Eugene said, “Never over promise or over sell,” but offer every option to the people who keep you in business.

 

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June / July 2006