Herdquitter Blog

We believe… cow-calf producers should be encouraged to be all they can be.   That is what motivates and drives us here at Pharo Cattle Company.  That is what gets us up in the morning.   That is what brings us together.   Once you see and understand what is possible, you can’t help but share those possibilities with all who will listen.   We believe the future of most family farms and ranches will be dependent on their ability to break away from the status quo, herd-mentality way of thinking.   The sooner, the better.

We are in the middle of our AI breeding season at PCC Headquarters in Colorado.   For those who don’t know, AI is short for Artificial Insemination.   This will be an intense, 10-day project that will include lots of time on the back of a horse.

Six-year-old Braylee Pharo has been helping us – or, perhaps I should say, we have been helping her.   In the picture below, Braylee is herding some heifers home to be bred.   She said, “I can get them.   If I need help, I will raise my hand.”   She did raise her hand once – but it wasn’t really necessary.

Tyson Pharo and Kit Pharo

Deanna Pharo

Pharo Cattle Company is on the verge of something really, really, REALLY BIG – a Game Changer like no other!   We started sharing bits and pieces with our customers in March.   This is the first mention of it, however, to rest of the world.   This is EXCITING times TWENTY!   In the last few months, all of the pieces of the puzzle have miraculously been falling into place.   Many PCC customers will soon be receiving a premium of $75 to $120 per head on their calves.   There isn’t another program that will even come close to paying premiums like this.   We are extremely excited to be able to share the entire story with you.   If you are a cow-calf producer, this could totally change the future of your business.

Tyson Foods (one of the big four packers) asked Cactus Feeders to help them create a source for a domestic (made in the USA), grass-finished beef product.   I’ve been told three major retailers have expressed a serious interest in this new grass-finished product.

This grass-fed movement is consumer driven.   Growth in the grass-fed beef sector has been averaging around 25% every year for the past 14 years.   I hesitate to say this – but cow-calf producers are often the last to know what is going on.   This happens because most of them are inundated with mainstream, herd-mentality ways of thinking.   Truth be known, there are HUGE premiums being paid for grass-fed beef – much bigger than most producers can imagine.

Consumers perceive grass-fed beef to be healthier than beef produced in a feedlot.   If you have been paying attention, you have seen many examples of grass-fed beef being heavily promoted in supermarkets, fast food joints and upscale restaurants.   Unfortunately, much of the existing grass-fed beef is not finished (highly marbled).   Therefore, it does not provide a good eating experienced.

Cactus Feeders knew they would have to start out with the right genetics.   They also knew mainstream genetics were not efficient enough to work in this production model.   After doing some research, Cactus Feeders decided Pharo Cattle Company has the easy-fleshing, low-maintenance genetics required – and in large enough numbers to meet the growing demand.   Pharo Cattle Company is currently selling 800 to 900 bulls per year in four different states.   In January, Tres Hess from Cactus Feeders contacted me and explained what Tyson Foods was wanting to do.  

Suffice it to say, I was ecstatic.   However, there were many unanswered questions.   They were talking about numbers in the 10,000 to 20,000 range.   That’s impressive – but where would we finish so many animals?   How would we create a consistent and uniform product?   I was about to say, “Thanks, but no thanks,” when Cactus Feeders decided they wanted to partner with Pharo Cattle Company in the production of this grass-finished product.   They have access to many, many irrigated circles that could be used to finish cattle on grass and other green forages.   Properly done, this will create a very consistent and uniform product – year after year after year.

About that time, Tim Goodnight from PCC Headquarters took the reins on this exciting project.   This is right up Tim’s alley and fulfils a vision Tim has had since he became a member of the PCC management team.   Under Tim’s leadership, this project is sure to be a huge success.   Tim communicates with Tres Hess from Cactus Feeders almost on a daily basis.   They have been working out all of the possible kinks.

Everyone involved, from Tyson Foods to Cactus Feeders to Pharo Cattle Company, thought it would be best to put together a trial run.   Tim went to work to procure 120 steers that are high-percentage Pharo genetics.   He also helped Cactus Feeders set up a workable grazing system that involves daily moves.   The 120 PCC steers arrived at Cactus Feeders in Texas on May 25^th.   The folks at Cactus Feeders were very impressed with the cattle.   They said these steers would be just as profitable in the feedlot.   Of course, we already knew that.   It was good, however, to have the people at Cactus Feeders see what we are all about.

Cactus Feeders added two groups of ten head each of some mainstream genetics that Cactus considers to be among the best they have fed.   In just two weeks, the people at Cactus noticed the PCC cattle were literally walking away from the other two groups.   No comparison!   As time goes on, the PCC cattle continue to out-perform the other two groups.   Most status quo producers do not understand the true benefits of low-maintenance genetics.

These cattle are grazing green forages with a TDN value of 68 to 72 percent.   This is by design.   That is not much lower than a typical feedlot ration.   We expect the PCC cattle to grade no lower than USDA Choice.   Some will probably grade Prime.

We were just four weeks into our trial run when there was talk about sourcing another 2000 head for fall delivery.   Cactus Feeders and Pharo Cattle Company are so confident Tyson Foods will love the results of the trial run, they will want to ramp up immediately.   With a program like this, it is impossible to ramp up immediately.   You can’t just go out and purchase several truckloads of grass-finished cattle.   They are nowhere to be found.

Tim Goodnight is currently sourcing another 2000 head of cattle with at least 75% Pharo genetics.   He may put some big 800-pound steers in the program to help fill the anticipated gap.   Pharo Cattle Company will pay $15/cwt over the Oklahoma City market or over the customer’s local market – whichever is higher.   That is a premium of $75 per head on 500-pound calves and a premium of $120 per head on 800-pound yearlings.

We believe consumer demand for grass-finished beef will skyrocket once we provide a supply of consistent, highly-marbled, grass-finished beef.   We think it will be many years before supply starts to catch up with demand.   Therefore, we expect the premiums will likely increase in the near future.

If all goes as planned, we expect Tyson Foods will want to ramp this program up as fast as they can.   The numbers I have heard seem daunting and overwhelming – but I’m sure they are possible.   This is really exciting!   However, we need to be careful we don’t grow so fast we overlook some important details.

We believe this will be a real Game Changer for many cow-calf operations.   There isn’t another program out there that will pay premiums like this with so little required of the producer.   All they have to do is use the right genetics.   PCC customers are already the most profitable cow-calf producers in the world because of their focus on increasing production and profit per acre – instead of per animal.   Receiving a guaranteed premium for the calves they produce is like a very thick layer of frosting on the cake.

NOTE: Pharo Cattle Company has a Marketing Agreement with Cactus Feeders.   Cactus Feeders is an employee-owned company that we feel very good about.   PCC customers will not have to deal with anyone other than Pharo Cattle Company.  

From the very beginning, Pharo Cattle Company’s greatest concern has been doing what is in the best interests of our customers.   Our second greatest concern is that the cattle in this program be handled, finished, harvested and marketed under the highest industry standards.   As you know, many beef products are described in ways that lead consumers to believe the product is better than it really is.   We refuse to take part in these deceitful practices.   Cactus Feeders and Tyson Foods are allowing us to establish the standards.   Our third greatest concern is in providing beef consumers with a great eating experience – an experience that can be duplicated over and over and over.   Working together, Tyson Foods, Cactus Feeders and Pharo Cattle Company will be able to accomplish things that could never be accomplished if we were working separately.

I found the graph below in the latest Market Summary sent out by Cattle Range.  Much has happened within the last five years.   Five years ago, we were receiving record-high prices for our cattle.   Life was good!   We were ranching in the very BEST of TIMES!   What happened next was totally beyond our wildest dreams.   Prices continued to increase at unbelievable rates through 2014 and into 2015.

All good things must come to an end!   What goes up, must come down.   Even so, the prices we are receiving for our calves today are a little higher than the record-high prices we were so happy with just five years ago.   Life is still good!   If you are not making a very good profit at today’s prices, you are doing something wrong.

Unfortunately, many cow-calf producers are struggling to make a decent profit at today’s prices.   How can that be?   They continue to focus on the wrong thing.   They continue to focus on increasing individual animal production (bragging rights).   They need to make a paradigm shift and start focusing on increasing pounds and profit per acre – NOT per animal.   This is Step One of the Ten Steps To Double Your Profits.

As manager of your farm or ranch, it is your responsibility to make decisions with the next generation in mind.   You need to create a very profitable and enjoyable business that the next generation will be anxious and excited to become a part of.   Pharo Cattle Company would like to help you in this endeavor.

Quote Worth Re-Quoting –

“It is easy to dodge our responsibilities – but we cannot dodge the consequences of dodging our responsibilities.”   ~ Josiah Stamp

1. Your dog rides in the truck more than your wife.
2. You’ve never thrown away a 5-gallon bucket.
3. You have used baling wire to attach a license plate.
4. You have used a chainsaw to remodel your house.
5. You have fibbed to a mechanic about how often you greased a piece of equipment.
6. You have driven off the road while examining your neighbor’s livestock.
7. You have borrowed gravel from the county road to fill potholes in your driveway.
8. You have buried a dog and cried like a baby.
9. You wave at every vehicle whether you know them or not.
10. You have used something other than paper as toilet paper.
11. Over 80% of your clothing came from ranch supply store.
12. Your family instantly becomes silent when the weather comes on.

We all know big birth weights can be disastrous in a first-calf heifer program because of increased labor and death loss.   However, there is a hidden cost associated with big birth weights that few ranchers have considered.

Birth weight is highly correlated to a calf’s gestation period.   Studies have shown big calves have longer gestation periods.   We’ve personally seen instances where big 90-pound calves have gestation periods that are 20 days longer than 70-pound calves.   I have heard of gestation periods in other herds that are as much as 10 days longer yet.

 The hidden cost associated with a longer gestation period is in the cow’s inability to get bred back on time.   It’s nearly impossible for a cow with an extra-long gestation period to have a calf every 12 months because there simply aren’t enough days in the year.

Based on the standard 283-day gestation period for beef animals, our start date at PCC Headquarters this year was May 16th.   Because of the calving ease (short gestation) that has been bred into our cattle, we were half done with our calving on that date.   That’s amazing!   We have always preferred calves that do most of their growing on the outside of the cow.

We are very excited to announce that Pharo Cattle Company is making plans to host its first-ever bull sale in Australia.   The demand for our low-input (high-profit) genetics has been growing by leaps and bounds in recent years.   Aussie cow-calf producers, for the most part, are think-for-themselves individuals who are not afraid to think outside the status quo herd.         

We are forming a partnership with Furracabad Station in New South Wales.   Furracabad Station has been purchasing some of the very best PCC Angus bulls.   They are mating large numbers of non-pampered, highly-adapted cows to these bulls – and letting the chips fall where they may.   They are in a hurry to create one of the best PCC cowherds in the world.

This is exciting!   This will be our very first bull sale outside the Continental US.   We are starting with a large number of bull calves – mostly half-brothers.   We will push them hard enough to force 60% out of the program.   Only the best will sell.   They will be evaluated and scored just like the bulls we sell in America.   We plan to sell them at 18 months of age in late April or early May of 2019.  

• Good Mover:  Runaway
• Spirited:  Psychotic
• Excellent Disposition:  Never been out of the stall
• Bold:  Runaway
• Well-Bred:  Sire and Dam are also brother and sister
• Athletic:  Runaway
• Needs Intermediate Rider:  Runaway
• Event Prospect:  Big, fast horse
• Dressage Prospect:  Big, slow horse
• Pleasure Prospect:  Pretty color
• Flashy:  One white sock
• Attractive:  Bay
• Free Moving:  Bolts
• Pony Type:  Small and hairy
• Arab Type:  Looks startled
• Quarter Horse Type:  Fat

Elephants have been trained and used by humans for over 4000 years.   How is it possible for a 180-pound man to restrain an 11,000-pound elephant with a piece of rope and a wooden stake?

When an elephant is very young, it is tethered to a wooden stake driven deep into the ground.   This stake is physically able to hold the young elephant despite repeated attempts to escape.   After many unsuccessful attempts to escape, the young elephant eventually believes escape is impossible.   This belief is carried into adulthood.   When the elephant is full grown, it could easily break free from the stake – yet it never attempts to do so.   This extremely powerful and intelligent creature is held captive by nothing more than its own thoughts and beliefs.

Do you suppose you and I might have a few preconceived thoughts and/or beliefs that are holding us back?   Are we tethered to some outdated tradition or paradigm from which we could easily break free – if only we knew we could?   How long will we allow ourselves to be held captive by our own thoughts and beliefs?           

We all have paradigms that determine how we live our lives and how we run our businesses.   Most cow-calf producers limit their own profit and success because they remain tethered to the “Increase Production Per Animal” paradigm.   They need to make the shift to the “Increase Production Per Acre” paradigm.   While one is focused on increasing bragging rights, the other is focused on increasing profits.   This is Step One of the Ten Steps To Double Your Profits.

Hair coat is the best indicator of animal health and well-being.   A healthy beef animal will have a vibrant-looking hair coat – slick and shiny in the summer and cuddly-looking in the winter.   In contrast, an unhealthy animal will have a dull, dead-looking hair coat.

An animal’s ability to shed off quickly and completely in the spring is a very important trait to select for.   The late Jan Bonsma had much to say about this subject.   Among other things, he said, “In selecting livestock for functional efficiency there is no single factor which can give such positive results as early hair shedding.   Animals can shed their hair early in the spring only if they are well adapted to their environment, are in good nutritional status, and have the correct hormonal balance.”

If you live in a hot, humid environment, you can start evaluating animals for early shedding as early as March.   Mid-May through early June is a good time to evaluate hair shedding in cooler environments.   Many producers in northern climates mistakenly believe they don’t need to select for hair coat.   Animals that are best adapted to their environment will be the ones with the healthiest hair coat – no matter where they are located.

Since hair shedding is a moderate to highly heritable trait, we have been observing and scoring hair coat for most of the past 30 years.   The fall of 2006, however, was the first time we put hair coat scores in our sale catalogs.  A 5-star hair coat is as good as they get.   A 3-star hair coat is about average.   If you live in a hot, humid and/or fescue environment, hair coat is a trait you should pay special attention to.   Bulls with a 4+ to 5-star hair coat will work very well in those environments.

Pharo Cattle Company has had Angus, Red Angus and Polled Hereford cattle with substantial heat tolerance for most of two decades.   For the past ten years, we have been experimenting with the creation of a slick-haired, heat-tolerant composite that would be even more suited to climates with high heat and humidity.

To date, we are most satisfied with the results of breeding our slick-haired Red Angus females to Mashona bulls.   Mashona is an indigenous breed from Africa that originated with the Shona people in Zimbabwe.   The breed was developed under natural selection without any external inputs for thousands of years in an extremely harsh and unforgiving environment.   Mashona cattle have very low maintenance requirements.   They are very fertile and easy fleshing.

Mashona cattle are highly mobile grazers that have the ability to browse.   They have early carcass maturity and finish well on grass.   Mashona excel in hot and/or humid environments with low-quality forages.   They work well on endophyte infected fescue.   They have a very high resistance to parasites and disease.   Best of all, Mashona is a Bos Taurus breed.   They are much more efficient and much more fertile than Bos Indicus (Brahman) cross cattle.

We sold our first set of Heat-Tolerant Composite bulls this past spring at our Texas Bull Sale.   The bulls were very well received.   Click on the link below to see an 18-month-old bull that is 50% Red Angus and 50% Mashona.   Notice his outstanding hair coat (video was taken in February).   This bull’s name is Diamond.   We will be using him back in our heat-tolerant program.

Diamond

From the inception of Pharo Cattle Company, we have always been very different from the status quo beef industry.   In the mid-1980s, we realized the beef industry was headed in the wrong direction at a high rate of speed.   While nearly everyone was focused on increasing the size and individual performance of their cattle, we said, “It doesn’t matter how big your cattle are or how fast they can grow if they are NOT profitable.”   We decided to provide an alternative to the “bigger is better” way of thinking.

You can’t get something for nothing.   It was not difficult to increase size and performance – but most producers failed to realize that as individual animal performance and size increase, production and profit per acre decrease.   At the time, the land grant universities and seedstock producers were leading the way.   Unfortunately, they still are.   Within a few years, most cow-calf producers had substantially bigger cows.   This forced them to reduce their stocking rates and/or increase supplemental feeding to keep their so-called “new and improved” cows in production.

Being different is seldom easy – but we knew in our heart that we were different for all the right reasons.   Therefore, we persevered.   Slowly but surely, more and more commercial cow-calf producers understood our philosophies – and broke away from the status quo way of thinking.   We went from selling six bulls at our very first bull sale in 1991 to selling over 900 bulls per year 20 years later.   We have cowherds in 12 different states.   We are developing bulls, mostly on grass, in four different states.   We have proven that our philosophies and our genetics can increase profit per acre in every environment they have been placed in.

When I came up with the Herd Quitter concept in 2008, it was not well received within the PCC organization.   Although everyone understood the message I was trying to convey, very few wanted to be called a Herd Quitter.   I wondered why.   I soon found out that most ranchers have experienced the frustrations of dealing with a herd-quitter cow.   You know the type.   Whenever you are gathering the herd, the herd-quitter cow is always looking for an opportunity to escape – usually at a high rate of speed.   She will wear out a good saddle horse.

I have dealt with several herd-quitter cows in my lifetime – and I know how frustrating they can be.   Moving or gathering a herd of cows would be an easy job if it was not for the herd-quitter cows.   If a herd-quitter cow suspects something is up, she will do everything she can to get away.   She can make you so mad that you want to rope her and drag her back to the herd.   Consider this, though… out of the entire herd of cows, the herd-quitter cow is the ONLY cow thinking for herself!   I have developed a tremendous amount of respect for those herd-quitter cows.

We use the term Herd Quitter to refer to people who have enough courage to break away from the status-quo, herd-mentality way of thinking.   It is more about thinking for yourself than anything else.   If you follow the herd and do what everyone else is doing, you will never be above average and you will never have a competitive advantage.   Dare to be a Herd Quitter.

Quote Worth Re-Quoting –

“Never forget that only dead fish swim with the stream.”   ~ Malcolm Muggeridge