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AdvertisementGenetics, management lead to higher quality beef
Through genetics and management, beef producers have moved toward producing higher quality beef, but continual decisions have to be made to continue on that path, according to Mark McCully, assistant vice president of production for Certified Angus Beef. McCully talked about the economics of quality beef production in the feedlot, during the Feeding Quality Forum held recently in South Sioux City, Neb. "Specifically in the past two years, we have seen an increase in the amount of higher quality beef available to consumers," he said. "Choice beef has increased 59.7 percent, Certified Angus Beef (CAB) has increased 19.8 percent and Prime beef has increased 2.8 percent." Choice beef production in the U.S. has increased by one billion pounds in the past two years. McCully said there are many factors involved in the grading improvements and many things beef producers are doing right to get the higher marbled meat. "Originally it was thought that distillers grains were hampering quality grade, but we now know that feeding distillers grains at moderate levels can actually help the quality grade," he said. Other factors he noted in the increase in quality grade included great feeding conditions, the right genetics with nearly 63 percent of cattle being black-hided, the higher percentage of heifers on feed, compositional endpoint changes and more consistent U.S. Department of Agriculture grading procedures. The estimated sales of CAB have continued to increase on a yearly basis, as well. "The demand for CAB has outpaced that of USDA Choice. In tough economic times during 2009, CAB price decreased, but to a lesser degree than Choice, suggesting brand resilience in the marketplace," he continued. "Since 2005, CAB has added nearly a half billion dollars to the beef industry at the wholesale level versus the product being sold as Choice." McCully noted the distinct difference in what is left to be sold as USDA Choice after the other meat is taken out of the Choice grade to be sold through branded programs. The 2005 National Beef Quality Audit showed high Choice meat consists of 9 percent of all Choice meat; average Choice is 26 percent of the Choice meat and low Choice is 65 percent of all Choice meat. Of that, 12 percent of the high and average Choice meat is left after meat is sorted for the USDA branded programs, and 88 percent of low Choice meat remains. The higher quality carcasses are paid a grid premium as well, with the Prime premium being paid $12 more, CAB an additional $4, Choice/Select carcasses paid $8 with nearly 60 percent being Choice average, and a $7 discount on yield grade 4 or higher carcasses. He also noted that CAB carcasses tend to weigh 20 pounds more on average than a carcass that doesn't qualify for the CAB brand. McCully referred to the Tri-County Beef Test in southwest Iowa, which has given CAB and others in the beef industry some excellent data to understand the economics of feeding high quality beef. An analysis paper by Iowa Beef Center Director John Lawrence is also available on assessing the cost of beef quality at www.iowabeefcenter.org. "It has been found that marbling is still the most important performance and carcass trait even with higher corn and cattle prices, so we must learn how to continue to feed beef to attain that higher grade," he said. Looking forward, McCully said it is important to know the cost-value relationship in your operation. Calculating input costs and endpoint sales can help producers understand what they need to do to get their beef fed to make more money in the end. Producers need to know the value of feeder calves, attain optimal use of growth technologies and use a marketing strategy that maximizes income. Jennifer Bremer can be reached by phone at 515-833-2120, or by e-mail at jbremer@hpj.com. Advertisement
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