Branded Beef Programs From Gencor Foods

Gencor Foods Inc. (GFI), formed in 2003, is a division of Gencor, a farmer directed AI cooperative based in south western Ontario. Gencor purchased the former MGI processing facility in Kitchener (now Gencor Foods Inc.) for two reasons: to provide an Ontario solution to the cull cow crisis resulting from BSE export bans, and to establish an integrated link in the meat industry from the farmer's gate to the consumer's plate. The operation of this federally inspected beef processing plant helped producers get more value for their animals during the cull cow crisis and continues to be a critical element in the cow processing sector.

Figure 1: Gencor Foods Inc. logo

After concentrating on the processing and marketing of cull cows, Gencor Foods is now undertaking initiatives in the fed cattle sector to enable the plant to run at full capacity and also diversify the business. Development of the "gate to plate" production/marketing concept has culminated in Gencor Foods offering three unique fed cattle branded beef programs to producers:

1. GFI Premium Angus Beef
2. Laura's Lean Beef (A and AA focus)
3. GFI Natural Harvest Beef (AAA focus)

GFI Fed Cattle (UTM) Lease Hook Program

GFI developed the lease hook program as a way to establish a relationship between the plant and committed producers. The hook fee, which the plant uses to offset borrowing and market development costs, is considered an operational expense for producers. GFI pledges to treat lease hook holders as if they are 'owners' of the business. Producers have the option to use a treasury hook ($17/hd) or purchase a 3 year UTM (under thirty months of age) hook for $15/hd/year (total $45). The ultimate goal for GFI is to run a long-term successful producer directed business.

GFI Premium Angus Beef Program

This program has been running successfully since the fall of 2006. The GFI Premium Angus Beef brand is designed to consistently provide a tender and flavourful product for consumers. We are pleased that this product has replaced US Choice beef in some retail outlets.

Figure 2: GFI Premium Angus Beef

 

Program Criteria (in brief):

1. All cattle must be at least 51% Angus breed purity (black or red). This will be evaluated by visual assessment and/or genotype testing by Gencor Foods.
2. This program excludes the use of these specific growth implants: Component TE-S/TE-H (Elanco Animal Health), Synovex Plus (Wyeth Animal Health) and Revalor S/H/200 (Intervet). All other implants are allowed, but must be used according to label recommendations.
3. All animals to be fed a minimum of 500 IU of Vitamin E per head per day for at least 100 days before slaughter.
4. Base rail price established weekly. Target carcass weight 600-900 lbs with no discounts for heifers.
5. 3 cent premium for AA YC 1, AA YC 2, AAA YC 3 carcasses; 6 cent premium for AAA YC 1, AAA YC 2 and all Prime carcasses.
6. A $17 or $15/hd hook fee will be deducted.

Laura's Lean Beef Program

Laura's Lean Beef (LLB) is the largest 'Natural' Beef brand in the US market. LLB has been in business for over 20 years and in 2006 had retail beef sales over 110 million. LLB has been active in Western Canada for the past two years. Gencor Foods will provide federal processing and act as the supply agent for Eastern Canada. We are very excited to work with an established brand such as Laura's Lean Beef!

LLB is looking for high yielding, lean cattle to grade A or AA for their program. Cattle that work well generally have at least ¾ continental genetics in their breed makeup. Breeds that do well in their program include: Limousin, Charolais, Piedmontese, Simmental, Gelbvieh and Blonde d'Aquitaine. GFI and/or LLB procurement staff will be available to inspect all cattle before they begin the finishing phase.

Laura's Lean Cattle Specification (in brief):

1. Excludes the use of antibiotics, ionophores and growth hormones for the entire life of the animal.
2. Excludes the use of animal byproducts in the feeding program.
3. Cattle must be age and source verified to birth. Affidavits will be used to track and certify animals on the program.
4. Cattle must be fed 500 IU of vitamin E/hd/day for 100 days prior to slaughter.
5. Cattle must be under 30 months of age at slaughter.
6. Cattle must be fed Tasco-14 ™ at 2% ration DMI for the last 10 days before slaughter. Tasco is a seaweed product that has been shown to reduce E. coli shedding in manure.

Laura's Lean Beef Premium Potential for Producers

LLB recognizes the importance of cow/calf producers to this program. Cow/calf producers supplying a minimum of 35 calves qualifying for the LLB program will receive 35% of the finisher's bonus grid on those calves. The cow/calf producer will also get a detailed carcass report of the calves supplied.

• Weekly rail price for both steers and heifers. LLB will add a premium of 10 cents/lb over the base price.
• LLB will also apply the finisher's bonus carcass grid. The grid is designed to reward A and AA carcasses with high meat yield.
• LLB will also pay up to $30/hd trucking to Gencor Foods.
• LLB will pay the GFI hook fee of $17/hd.

   

Gencor Foods will begin processing cattle for LLB once we acquire a minimum of 20 head of finished cattle per week. GFI will work with producers to help facilitate arrangements to supply LLB cattle.

Figure 3: Processed Carcasses

GFI Natural Harvest Beef Program

GFI Natural Harvest has very similar criteria as Laura's Lean, but the desired carcass grade is AAA. This program does not have specific genetic requirements for continental breeds. GFI will automatically take all AAA carcasses out of the LLB program and market them in the Natural Harvest Program.

GFI Natural Harvest Cattle Specification (in brief):

1. Excludes the use of antibiotics, ionophores and growth hormones for the entire life of the animal. Note: Deccox® (Alpharma) will be allowed to be used as a coccidiostat.
2. Excludes the use of animal byproducts in the feeding program.
3. Cattle must be age and source verified to birth. Affidavits will be used to track and certify animals on the program.
4. Cattle must be fed 500 IU of vitamin E/hd/day for 100 days prior to slaughter.
5. Cattle must be under 30 months of age at slaughter.
6. Producers must attend the OCA Quality Starts Here/VBP training workshop. Prior to shipping cattle into Gencor Foods producers must successfully complete the on-farm audit from OCA Quality Starts Here/VBP.

GFI Natural Harvest Premium Potential for Producers

The desired carcass grade is AAA with a hot dressed weight range of 600-900 lbs.

• Weekly rail price for both steers and heifers.
• Premium of 10 cents/lb over the base price.
• A $17 or $15/hd hook fee will be deducted.

We will begin processing cattle for the Natural Harvest program at the same time as we begin processing cattle for LLB. GFI Natural Harvest is designed to compliment LLB and to help provide producers with better returns on these 'natural' AAA carcasses. GFI will work hard to develop the Natural Harvest brand and increase the premium potential for producers.

For additional information or complete program details visit our website www.gencorfoods.ca or call the GFI Procurement Department 1-866-744-7182.

 

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