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From 2013-2018, producers who used the FCCP tag reaped an average premium of $2.98 per hundredweight (cwt) in comparison to producers selling Red Angus sired calves without the yellow tag. On calves averaging 600 lbs, this advantage would calculate to nearly $18 per head and $1,430 per pot load! Given this, the choice to tag your calves through the FCCP seems obvious with a minimal initial investment of just $0.99 per tag and no enrollment fee. (Source: Superior Livestock Auction Analysis: Kansas State University, Merck Animal Health, and Superior Livestock).
Buyers of yellow-tagged calves can capture more downstream value through two grid programs that are open exclusively to FCCP-tagged calves. The Tyson Choice Plus Grid, or Verified Red Angus grid as Tyson cattle buyers know it, pays premiums on upper 2/3rds Choice cattle. There are additional premiums for cattle grading Prime, and a 15% allowance for “out cattle” (heavies, Yield Grade 4 and 5, etc.), with no discounts up to that threshold. The G.O. RED, through Greater Omaha Packing in Omaha, NE, pays premiums for Yield Grade 1 and 2 cattle.
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