Brian Bertelsen, U.S. Premium Beef (USPB) vice president, spoke at the Beef Improvement Federation’s recent online symposium, covering everything from hot carcass weight to quality grade targets. This article shares the data that shows what’s really possible.
The many challenges the beef market is facing today are serious short term problems but are not indicative of long term trends. Price and demand signals will also realign as the pandemic subsides. The interrupted flow of cattle and boxed beef has implications now impacting the pricing structure on a carcass value basis.
Packers pay nearly $8 million per month in Certified Angus Beef® brand premiums, according to a recent survey. Those record high dollars come at a time when there’s been record quality through the system, too.
CAB continues to pay producers who target the brand. Up to $92M in 2019 was paid back to feeders and producers. Steer and heifer carcass weights are at record highs, averaging 904 lb. the first six weeks of 2020.
Paul Dykstra covered the value in feeder calf marketing at the Cattle Industry Convention touching on seasonality, quality, health, and relationships and how it all circles back to profit building.
This year has started out with record highs for fed steer/heifer carcasses grading Prime. How much will the market demand and at what premium can it support? We haven’t reached the ceiling yet.
Cattlemen always try to lower cow cost while improving returns. Paul shares what pays in your cow herd and why you want above average cows to hold onto. CAB premiums averaged $116/cwt. in 2018 and 2019.
In this edition of the CAB Insider, Paul Dykstra shares fed cattle prices are up $2 this week. Tyson Finney plant is back to harvesting. USDA Choice grade percentages are still dropping, emphasizing consumers demand for quality beef.
There has been a 7.4% increase in heifers harvested this year, while steers are down 0.4%. History shows fed heifers post higher marbling scores on average, yet we don’t see that reflected in the recent marbling trend.
Disappointing cattle prices loom like storm clouds. A third of producers are losing money, while others get by with modest returns and worry about those thunderheads. There are silver linings, of course. Consumer demand for high-quality beef is stronger than it’s ever been.
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