Doing more with less. In the cattle business, that’s more than a nice idea; it’s the new survival plan.
“In any manufacturing system, if the number of units is reduced, the revenue per unit must increase,” said Pete Anderson, director of research for Midwest PMS, a U.S. livestock feed company. “The cattle industry must focus on maximizing revenue from each animal produced.”
Nobody likes to lose a customer, but to see a cattle feeder get emotional over the thought of a ranching client having to sell out… that’s when you know his heart is really in the business. Terry Beller, of Lindsay, Neb., can tell you the last time the Sandhills and points west received a measureable rain. It matters to his bottom line, certainly, but the owner-manager of the 6,000-head Beller Feedlot talks about ranchers dealing with drought as if one of his own children were facing a major obstacle.
We suspect many cattle producers have walked into a grocery store, seen a CAB® brand filet mignon priced at $25/lb., and were tempted to call the police.
Change doesn’t have to be dramatic and sweeping to make an impact. Bill Rishel, a registered Angus breeder from North Platte, Neb., says little gains in efficiency, functionality and carcass merit all add up.
Sick cattle are expensive cattle. Treatment is costly in itself, but the side effects of illness keep robbing through lower performance and carcass quality.
In most investment situations, you get a chance to evaluate the risk and rewards, do some research and make an informed decision. But when cattle pass through the sale barn in 30-second intervals, it’s not always easy for buyers to base decisions on anything more than appearance.
The commercial Angus world warmed to the concept of AngusSource®, with more cattle enrolled each year from 2008 through 2011. During those years, the AngusSource Carcass Challenge (ASCC) saw entries totaling 6,188 with 58.3% accepted for the Certified Angus Beef® (CAB®) brand; nearly 13% of the total made USDA Prime, according to Ginette Kurtz, AngusSource manager.
With the Choice/Select spread the same, the Prime premium is $21.71/cwt., carcass basis, according to USDA. So, Prime is worth another $184.54/head, in the meat,on top of the $47.90/head for Choice.
We use cookies to ensure that we give you the best experience on our website. By continuing to use this site, we will assume that you are in agreement.OK
