Small Steps to the Big Picture | June 2011

By John Andras, The Cattleman livestock advertising

Use an Inventory to Guide Progress

With any business, you need to know what you have, to know where you stand. An inventory of your herd is crucial when planning out the year, or next 10 years, to achieve your goals and to increase profit. Whether it is knowing how much vaccine will be needed when branding, or how much hay will be needed to get through the winter, an inventory of your assets and supplies for your business is a critical part of success.

There are many ways to record an inventory. Those who are proficient with the software program Microsoft Excel can create their own inventory system. Others may choose to use web-based inventory systems that are more specifically designed for registered outfits, and go into detail with all aspects of production including semen, embryos, cows and bulls — along with expected progeny differences (EPDs) and pedigrees. The appeal of this type of system is that, with an Internet connection, absentee owners have the ability to access the inventory from anywhere.

There are also inventory systems incorporated into weighing devices. This system would work best for both commercial and registered ranches. With use of radio frequency identification (RFID) tags, an animal can be caught in the chute, weighed and electronically recorded faster than having to write everything down. And, you don't have to spend hours at the computer trying to decipher exactly what you wrote down, and manually entering it into the inventory system. Not only would an electronic system ease the process of collecting an inventory, but for those of you wanting to improve your cow herd, there are other advantages.

RFID tags are a useful byproduct of this scenario. RFID-tagged cows and calves allow you to collect data on the pounds weaned by your cows every year. If you retain replacement females, you could sort your breeding groups by heavier weaning cows to increase the amount of females who bring a big fat calf to the weaning pens every year. With the proper bull selection this should increase the amount of pounds weaned by your cows.

Using RFID tags for your inventory will also help you participate in age- and source-verification marketing programs. You may not only receive a premium for your calves with records, but, in most cases, you will be better equipped to track the performance of your cattle all the way to the rail. This creates value when it comes time to market your calves. You'll have proof of performance to justify better prices for your cattle.

Choose an inventory system that fits the way you manage your operation. Not every system will work smoothly with your program and skill level. Research what works best for you and what you want to accomplish. The most important key is to make sure you have a solid understanding of where you are with cattle production. From there, you will know where to go.