Ranching and Technology: An Interview
Ranching and Technology with Dr. Prestegaard (6/24/25)
Introduction
Jacqueline Prestegaard, a PhD in nutrition, discusses her research and insights on technology in the beef cattle industry with a group of entrepreneurial leadership students.
Animal Monitoring Sensors
Dr. P shared a keychain resembling a sensor used to monitor cow movements with an accelerometer (like a "cow Fitbit").
From her Master’s research in dairy cows
Not being used at TAMU
Different sensors serve different purposes based on individual goals.
Cow Manager is popular in the dairy industry for monitoring animals (measures ear temperature combined with eating, rumination, and activity).
Some sensors are single-use and not swappable between animals, raising questions about pricing and producer collaboration during development.
Feasibility and Return on Investment
Startups often lack basic understanding of ranchers' needs and economic feasibility.
Dr. P often thinks, “Did these businesses ever even talk to a farmer??”
Ear tags from companies like 701x and Herdx may have too high a price for realistic cost-effectiveness in many producers POV.
(Dr. Herring suggested a 5% improvement might entice producers, but management styles vary).
Producers focus on dollars per head or dollars per 100 weight (100 pounds) due to selling calves by weight.
Decisions to vaccinate or castrate calves are based on expected financial returns.
Dollars/100 weight is the primary concern for profitability of the calf.
Financial Considerations
Most cow-calf producers have small herds (e.g., 30 animals).
Cattle farming is often a secondary income source or hobby, with many losing money.
Some enter ranching due to financial means or generational land turnover.
Average age of producers is around 65-66, but new, younger entrants are more open to technology.
Current Market Conditions
Current market prices are high due to low supply from recent droughts.
Sulphur Springs auction reports (available on their website) indicate steers over 500 pounds fetched around 1,975. This means, for a 500 pound animal times 3.95.
The US cow herd numbers are low, and rebuilding will take time due to the two-year cycle from calf birth to its own offspring.
Opportunity for better feed optimization
More people are retaining heifers (young female cows) to grow their herds.
Feed Efficiency and Record Keeping
Feed costs represent about 60% of operating expenses.
There's a misconception that “more feed equals more weight gain.”
Genetics play a role: some cows eat a lot without gaining weight efficiently. Input doesn't always equal output.
Record keeping and technology can help track animal gains and health metrics for better management.
Technology Adoption in the Beef Industry
Beef industry is lagging behind dairy in innovation, efficiency, and tech adoption.
Dairy farms are fewer but larger, while the beef industry has many independent business owners.
700,000 independents here who all like to do their own thing; wide variation.
Price and ease of use are key factors for technology adoption.
RanchPot monitors water tank levels, which is simple to install, and useful for remote monitoring.
King Ranch does not partner with them
Checking water and fences consumes much time for ranchers. Water monitoring is critical to keep the animals alive.
BranchSense is a similar company to RanchPot.
Sensor Capabilities
Sensors can track head movements to infer grazing activity.
Different movements for chewing/drinking, walking, resting or lame
Opportunities for Improvement
Beef industry's perceived inefficiency presents opportunities for innovation.
Record keeping is often manual (pen and paper), and excel applications are rare.
King Ranch is apparently still bookkeeping mostly offline for breeding
Artificial insemination (AI) is used by only about 10% of beef producers compared to over 95% in dairy, revealing opportunities to improve breeding through better tracking.
Generational Differences
Older generations resist change and advice from younger family members.
Dr. P came here from Illinois to be a cattle nutritionist, yet her family farm back home has never asked her for a custom ration or any new info.
Newer entrants without agricultural backgrounds are more open to trying new technologies.
Interest in saving the hard manual labor, time, and money associated with this expensive pastime
Pain Points and ROI
Data collection and proving ROI are crucial for tech adoption.
Time savings is a significant factor in the value of technology.
Automating processes can ease the burden on ranchers.
Safety and Liability
Geofencing can improve safety and reduce liability, alerting owners to escaped animals.
Virtual Fencing
Virtual fencing can train livestock to stay within boundaries, as mentioned by Dr. Herring.
Halter, a virtual fencing company, is valued at a billion dollars and is currently pioneering virtual fencing technology that uses sounds to guide them.
The original virtual fence, Vence, was bought by Merck but innovation slowed.
Vence collars are battery-operated with limited GPS, while Halter's solar-powered collars offer real-time GPS.
Though cows are STUBBORN and may spook into the opposite direction, Halter's technology apparently allows ranchers to utilize auditory cues to effectively redirect their movement without physical barriers, improving the management of grazing patterns.
Virtual fencing enables managed grazing and sustainable pasture rotation to better manage potential soil erosion, etc.
Sustainability Concerns
Cattle are sometimes viewed as unsustainable due to methane emissions (UN SGDs).
Some governments in the EU are considering taxing farmers for cattle methane emissions.
Methane emissions from cattle are typically measured using educated guesses based on modeling.
Ceres Tag claims to measure methane emissions per animal at a high cost of $300 per sensor.
Dr. P does not believe their models can actually support this, though!! Unreliable measures taken, so best tag can offer is a guesstimate.
Majority of methane emission comes from cow burping (front end).
Other sustainability aspects, like grazing management and drought resilience, are more pressing.
Data Integration and Traceability
Data integration is lacking; platforms don't communicate effectively.
RanchBot integrates with some platforms like Cattlemax (recordkeeping software).
Traceability is a mixed bag, with varying concerns across countries and industry segments.
Traceability is the law in Australia.
People gripe that “Australia won’t buy our beef” and cite political reasons, overlooking the fact that we can’t account for the origin of all our cattle to slaughter and beyond, which undermines our credibility in the global market.
Animal health is a primary concern driving traceability efforts - especially for disease prevention and control.
USDA tags are required for breeding animals crossing state lines.
Industry Structure and Incentives
The beef industry is not vertically integrated, with animals changing hands multiple times.
Lack of traceability hinders incentive programs, as the producer in Kentucky who had the calf might not be rewarded even if they have incredible health and death metrics.
Breeder is a company using blockchain to encrypt data and incentivize traceability; encrypting the data helps to alleviate rancher's concerns of “handing their data to the government.”
Sensors and Animal Behavior
Accelerometers in ear tags can detect head movements to infer grazing and digestion.
Sensors can measure temperature to detect stress and illness.
A&M tests various sensors.
Advice for Talking to King Ranch
Ask about their daily activities and challenges.
Inquire why they haven't adopted more technology perhaps (tactfully, of course) while subtly asking what forward thinking items they are trying to implement to improve the investment that is cattle.
King Ranch engages in very profitable wildlife and hunting leases in addition to their brand revenue.