
By Sherry Bunting, Farmshine, November 17, 2023
MILLERSBURG, Ohio – Consumers today are doing more buying online. Dairy farmers are no different. Every dairy cattle sale today has online bidding available, and the beef industry has been doing exclusively loadlot video sales online for decades.
Today, with more volume buyers on the market for dairy replacements, particularly with U.S. heifer inventories at their lowest levels since 2004, the online medium has become more popular – especially since 2020.
Into these dynamics, Alan and Sharon Kozak of Clover Patch Dairy, Millersburg, Ohio, will have their fifth Jersey cattle production sale of the past 15 years.
Clover Patch Cornucopia V will have one key difference. The 300 head of registered Jersey cattle of all ages will sell 100% online Wednesday, November 29 from 12 to 1 p.m. EST through Kreeger and Associates at www.kreegerdairy.com
All cattle in the sale are from the Clover Patch herd, which has been a closed herd for 20-plus years and is among the top American Jersey Cattle Association (AJCA) gJPI herds in the U.S., currently 11th in the nation.
High component pounds and udder conformation are important in the Clover Patch breeding program, which Alan describes as being focused on using the best bulls in the breed, over and over.
As a grazing dairy, feeding supplemental TMR, the milking herd of 470 registered Jerseys, housed in both freestall and bedded pack facilities, produces a rolling average 20,480M 5.1 1050F 3.7 760P with SCC consistently below 140,000.
All sale animals will be genomic and A2 tested, with 98% of the herd confirmed A2A2.
Alan Kozak has worked with the Jersey breed for most of his life. He and Sharon have strived over three decades to breed them right and raise them right, to milk a herd that is healthy and productive. Alan makes the breeding decisions that produce each calf, and he is quick to credit Sharon and the farm staff for top-notch care of the youngstock.
Why are the Kozaks going totally digital this time? They are looking for volume buyers and have been considering this format since their last sale in 2020 was both on site and online.
Their past Cornucopia sales have attracted volume buyers on site as well. Two such buyers reported on how well the cattle have done for them in a recent NextGen podcast interview.
Alan got to thinking. Why not do it all online?
“On site sales are disruptive to the business. Many of the volume buyers are buying online, and it is much less work and hassle for the staff and the cattle,” Alan explains.
The Clover Patch Cornucopia V online Jersey cattle sale will feature 50 fresh and milking cows, 50 to 100 bred heifers and the balance open heifers and calves.
Cattle in a Kreeger online sale are sold mostly in groups.
“Buyers today want to buy a group of similar individuals,” Chad Kreeger observes.
“In 2020, we made the switch from live auctions to 100% online auctions, and we haven’t looked back.”
What are the keys, according to Kreeger?
“Provide accurate descriptions, good video, sell them in groups, and arrange all the delivery and proper paperwork for the buyer,” says Chad. “The seller benefits from global exposure on their sale and less stress on the dairy getting ready for the sale.”
Some things that are important for a totally online dairy cattle sale are the quality of the cattle, the ability to put together similar groups, and the commitment to deliver this quality so buyers can bid with confidence.
“If something is not 100% as was described, we pull her from the load,” Chad explains.
“My first virtual sale was 20 years ago,” Chad Kreeger reflects. “It was simply a slide show at that time. Three years later, I switched it to video. We then conducted video sales periodically as needed over the last 15 years before switching exclusively to timed online auctions in 2020.”
The focus for Kreeger and Associates, based in Cass City, Michigan, is on commercial dairy replacement marketing and dispersal sales. In fact, one week after the Clover Patch Cornucopia V, they will be doing the complete herd dispersal of 300 Holsteins and dairy equipment at Hastings Dairy near Burton, Ohio, totally online, Dec. 6.
In 2022, alone, Chad says they conducted more than 80 online cattle auctions, and through private sales combined, handled over 30,000 head for dairy producers and are on track to do this again in 2023.
With the slogan of ‘bid, buy, sell anywhere on the planet and we will handle the details’ summing up the total online experience, Chad reports that cattle have sold on their online auctions throughout the U.S., Canada, Puerto Rico, and Hawaii.
While most dairy cattle sales are hybrid on site and online, and 100% online might not be for everyone, there are many scenarios in today’s market that fit. One of the keys is to be lined up with the commercial dairy replacement market to offer groups of similar cattle, which abbreviates the length of the auction online.
“The busy life on the dairy today doesn’t always allow people to get away and sit through a long auction. Our program simplifies the process,” he says, noting that the cattle also benefit, going straight from the seller’s farm to the buyer’s farm while the price discovery of the auction remains vibrant.
To make it all work, there is a lot more upfront time spent by the team. According to Chad, the process is: take videos and pictures, prepare marketing materials and a sale catalog, load this onto the system, advertise and promote, and load out.
As for the buyers, says Chad: “It has never been easier to purchase cattle and have them delivered to your door just like a pair of boots.”
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