Success in the Flesh

Abundant in rich soil and row crops, the north-central Ohio town of Ashland sees its fair share of Angus cattle. Ashland is also the home of a unique packer: compared to the larger industry plants in the West, family-owned and CAB-licensed E.R. Boliantz Packing Co. offers a different view to the folks who walk through its doors.

Recently a group of 22 high schoolers visited the plant, and walked out with a brighter perspective of the industry they already love.

Students from R.G. Drage Careeer and Technical Center observe carcasses being processed. — Students from R.G. Drage Career and Technical Center observe carcasses being processed.

Accompanied by CAB meat scientist Dr. Phil Bass, the local tech class toured the plant and took a close look at the carcass results of cattle they fed while enrolled in their high school course.

“They have already chosen to have a career in agriculture, so it’s just really neat to see such a young group of folks with determination, ready to go in and grow the agricultural community,” Bass said.

After exploring the live side, students made their way to the cooler to see if their own animals met CAB’s specifications.

CAB’s Phil Bass discusses the brand’s 10 specifications as they apply to cattle the students fed.

“We started out looking at the harvest process,” Bass said. “We explained everything that goes on, all of the food safety measures and humane handling things, all the steps that it takes to turn a live animal into a carcass.”

The tour ended in the fabrication room where sides were broken down into primals and subprimals.

More than the fun, more than the camaraderie was the honor of educating the future generation, Bass said of his main takeaway.

“I love visiting with students who don’t realize all the different avenues that you can take with an animal science or agriculture background,” Bass said. “You can go into food science or the production side. It’s more than just being a veterinarian.”

Amidst the rows of carcasses, students were engaged, willing and ready to listen and learn. Challenged with the task of stumping Bass, they asked their fair share of questions from, “What do packers do with the udders” to “How many cuts of meat come off of each animal.”

Students enjoyed trying to stump Dr. Phil with the most difficult questions.

Asked whether any students wanted to follow in his footsteps, Dr. Phil chuckled and said indeed, many were inquiring about which colleges to attend.

As far as agriculture is concerned, I say the future looks bright.

Thanks for allowing me to tell your story,

Laura

A recipe for high-quality beef

I’m a meat-and-potatoes kind of girl. I like a good steak on the dinner plate. But what if I told you the key ingredients for that juicy steak aren’t found in a magic marinade or dry rub?

Our first stop on the recent CAB Master of Brand Advantages (MBA) tour was just south of White City, Kan., home to some superior Angus genetics as well as the 2012 Farm Mom of the Year, Debbie Lyons-Blythe. (You may also remember she guest blogged right here last year.)

Recognize Debbie? She was featured in Monsanto's "America's Farmers" ad, which debuted during Super Bowl XLVIII. — Recognize Debbie? She was featured in Monsanto’s “America’s Farmers” ad, which debuted during Super Bowl XLVIII.

Aside from her full-time duties as mom and purebred producer, she writes a blog titled, “Life on a Kansas Cattle Ranch.” Haven’t heard of it? Look it up, you won’t be disappointed.

Every spring, when conditions allow for it, cattlemen (and cattlewomen) in the tall grass prairie use controlled burning to disrupt the natural progression of prairie grass into forests. This method kills the emerging shrubs and scrubby trees and removes the old, dead grass that holds very little nutrition.

Producers like Debbie don’t burn because they are all pyromaniacs, but because pasture health is important to raising high-quality beef.

Blue indigo, the plant pictured above, is used by Debbie as an indicator of good pasture health.

“Environment and genetics go hand in hand,” says Debbie. She explained this to MBA participants through a story about her identical twin boys.

They came from the same embryo, so they hold the same genetic potential. But at the age of 3, one of the boys became very sick when his digestive system stopped utilizing nutrients, halting his growth.

Without the proper nutrition, he became much smaller and lighter weight than his brother. His digestive disorder eventually cleared and he began to grow again. The twins are now 18 with a difference of less than ¼ inch in height and 10 pounds in weight.

Debbie with four of her five kids, (left to right) Tyler, Allie, Eric, Debbie and Trent. Looking at Tyler and Eric now you would have any idea that one of them was sick. — Debbie with four of her five kids, (left to right) Tyler, Allie, Eric, Debbie and Trent. Looking at Tyler and Eric now you wouldn’t have any idea that one of them was sick.

“Because of our experience, I believe wholeheartedly in genomic testing of our breeding stock,” says Debbie. “We can work hard on the environment, but without the proper genetics, we won’t make much progress in the quality of the beef we serve. On the flip side, we can spend good money on high-quality genetics, but without good pasture and feed, the genetic potential may go unrealized.”

I was an active 4-Her for 11 years. Baking for the county fair was always a very delightful task. (That was sarcasm if you didn’t catch it. And this WILL come back around to cattle…)

One year I remember being so excited to bake a loaf of banana nut bread by myself. I followed the directions carefully, but when I took it out of the oven it looked horrible. It looked so bad I think my mom was scared to even feed it to the dogs. Retracing my steps, I learned that I forgot to include the bananas.

Like my banana nut bread, our cattle have a recipe for success. Imagine that their grazing environment is the banana and the other ingredients are the genetic traits we select. If you forget to put in the banana or stir in some old, dead grass and mix in some brush, then all the other ingredients don’t matter.

Nutrition for grazing cattle is especially important during late spring to get body condition scores where they need to be for breeding. — When pastures are properly cared for the nutrition they provide is perfect for grazing.

It takes both environment and genetics to raise high-quality beef, so next time you are planning pasture rotations or nutrition plans remember not to skimp on the “banana.” It’s pretty important to the recipe.

-Kaitlin

Cattle and chefs, bulls and Miami

As a native Floridian, one may find it interesting that I rarely venture south to the populous city that is Miami.

As a ranch kid, one likely understands.

Sysco_0

Long revered as a city booming with cultural flare and taste, Miami is vibrant and exciting. But home to many cattle, it is not.

As a girl who likes to keep her sights set on a cow trail, I often choose my rural town over the hustle and bustle of city life, but when a certain bovine made his way to the sunny streets, I did, too. For I go where the cattle go.

Sysco_1

Meet JD. Weighing in at 2,620 pounds, he strutted his stuff down the streets of Miami, dismissing any and all preconceived notions of what it means to look good in black.

JD was the answer to what seemed like a crazy question at the time.

What if an Angus bull could make an appearance at a Sysco food show in the metropolis that is Miami?

“We jumped on the opportunity,” said Maggie O’Quinn, CAB executive account manager. “What better way to tell the story of our unique history, breed heritage and cattle production in the state of Florida?”

Sysco_3 To a crowd of more than 1,000 restaurateurs, JD was the piece that made the puzzle complete. The show stealer helped chefs, restaurant owners and operators later tell the beef story to their interested customers. Food show guests not only got to meet JD but were able to spend time with local Florida Angus ranchers, ask questions and sample CAB product.

Chef Peter Vauthy, Red, The Steakhouse, says he likes having a connection with the people involved in putting the steaks on his table.

Peter Vauthy, CAB Brand Ambassador and Executive Chef at Miami’s Red, The Steakhouse, said bringing the two ends of the production spectrum together is an on-target strategy.

“There’s a trend where people want to hear a story behind a product,” he said.

Always amazed by the sheer size and magnitude of cattle, Vauthy said it’s the respect he has for the ranchers that always stands out the most.

“They show a lot of love for their animals, and then on my end, I show the same amount of care and dedication by the way the beef is aged and the way it’s cooked,” he shared. “It’s a lot of respect. Respect for something that’s been treated with the utmost care from start to finish.”

Executive Chef of Joe's Stone Crab, André Bienvenu, and colleagues visit with Roy Petteway, Petteway Citrus & Cattle, to discuss Florida ranching. — Executive Chef of Joe’s Stone Crab, André Bienvenu, and colleagues visit with Roy Petteway, Petteway Citrus & Cattle, to discuss Florida ranching.

O’Quinn echoed those sentiments.

“So many people travel to that area and their very first impression of our brand is made right there in a steakhouse in Miami,” she said. “We have such an opportunity to tell our story, not only to customers in South Florida, but our customers from all over the world. For those international customers to come to the food show and meet with a rancher from right there, three hours north of Miami, it means everything for us as we grow our global brand presence.”

A leader in finance, commerce and entertainment, the famous city tops the list in many categories, but when it comes to agriculture and beef production, Florida as a whole ranks, too.

“Perhaps there’s a lot of people who think there’s beaches on one side and beaches on the other and nothing in the middle except Disney World,” JD’s owner Roy Petteway said. “I think a lot of people forget that there is a great deal of land between the two sides of the state that produce a substantial amount of agriculture in its heartland.”

Sysco_6

So as the sun set and the crowds parted, JD made his way back home to his ranch, and I followed suit, but not short of a memory that will last a lifetime. One I know many will hold for years to come.

Thanks for allowing me to tell your story,

Laura

Keeping it simple

I grew up on my family’s small commercial Angus operation in southwest Kansas, so that makes me an expert, right? All operations are the same, right?

Wrong, but that is the magic behind the beef industry and the Angus breed. By tagging along with the MBA program a couple weeks ago, I learned that it’s okay not to be just like your neighbor or even your family, just do what works for you.

For more than 40 years, Bob and Becky Avery have run their Olsburg, Kan., ranch with the goal of keeping it simple.

For them it means just being ranchers, not farmers, and caring for the land. The cows run year round on more than 1,000 acres of native grassland, supplemented in the winter with purchased feed.

The Averys took us to one of the pastures that has been in the family for generations. It was Bob's father who built these ponds from a stream that Bob's grandfather used to water his cattle. — The Averys took us to a pasture that has been in the family for generations. It was Bob’s father who built these ponds from a stream that Bob’s grandfather used to water his cattle.

Bob says he loves his cattle, but they can come and go; the land gets top priority because it will be here forever.

With 140 Angus-based cows to breed this summer and calve out next spring, continuity is important. That doesn’t mean they’re afraid of change, and in fact they point to two big ones that worked.

The first was their switch from Hereford to Angus. Bob’s family goes back to the Poole Registered Hereford operation that once thrived near Manhattan, but he started breeding those bulls to Angus cows and found more dollars for Angus calves.

“Everyone wants everything to be black and financially that’s it, they just really are worth more,” says Bob. The breed organization has made his job easy, the calves so good “they sell themselves.”

This good looking calf is evidence of the high quality Angus genetics used on the Averys' ranch. — This good looking calf is evidence of the high quality Angus genetics used on the Averys’ ranch.

The other reason was the diversity in cattle type. Angus genetics can provide just what any producer wants, Bob says. For the Averys, that’s an easy keeping cow that throws good calves and has a good disposition.

Bob swears he has never had to cull an Angus cow for poor disposition, but he’s not sure if that is due to genetics or environment.

We all have that one friend who really, “thinks outside of the bunk,” and comes up with some unique and sometimes insane ideas. For Bob, that friend is Wally Olson, a former neighbor who now ranches near Vinita, Okla.

“He calls me up with these oddball ideas and I adopt about one out of every four of them, and it works really well,” says Bob.

One of Wally’s “crazy ideas” was getting the couple to switch to the Bud Williams cattle handling philosophy.

When she wasn't busy working the cattle, the Averys' border collie, Twig loved getting to know new people. — When she wasn’t busy working the cattle, the Averys’ border collie, Twig loved getting to know new people.

“I think changing the way we handle our cattle was one of the best things we did,” says Becky. “First of all, it makes the cattle calmer and they’re more trusting of us. Second of all, when we work cattle together we get along much better.”

Becky Avery was in love with her new CAB swag!

Reducing stress, the Averys have seen improved herd health, easy calving seasons and improved carcass quality.

By keeping it simple, Bob and Becky have learned how to get the most out of their bottom dollar.

-Kaitlin

To catch up on our coverage of the other two Kansas ranches who hosted CAB guests, read “Connections” and “Incorporating a legacy of quality.”

Incorporating a legacy of quality

Today our team coverage of the MBA class’s Kansas education continues with summer intern Nicole Lane, an Oregon native and current Kansas State University student. As the foodservice professionals broke up into smaller groups for a personal ranch experience, Steve, Kaitlin and Nicole each tagged along. Read on for Nicole’s take on Rocky Hill Ranch.

Family farms. That seems like the gold standard for many people who don’t have agriculture experience. However, the foodservice pros on a field trip for our Masters of Brand Advantages (MBA) program got to take a look at a “corporate” farm. But it wasn’t at all what they (or I) expected.

Meet Paul and Nancy Miller, 4^th generation ranchers whose family has been working the same land in the Flint Hills of Kansas since 1878. That’s a family legacy. But when there is no one who wants to be the next generation to run the operation, what is a producer to do?

Nancy and Paul Miller with Randall Debler owners of Rocky Hill Ranch.

Rather than sell their land, Nancy and Paul found Randall Debler, a determined K-State grad who wanted to become a first-generation rancher. While the start-up costs of breaking into production agriculture might deter some, Debler found a way around that obstacle.

He began working for the Millers and the partnership eventually led to the decision to turn Rocky Hill Ranch into a corporation so Debler and his wife Erin could buy the place in small shares.

While visiting the ranch outside of Alma, Kan., MBA participants got to see more than just cattle. They snapped pictures of the original homestead that still stands on the property and learned about the history of Wabaunsee County stone fences on the farm. They also saw the sustainability of cattle being produced on the same land for more than 100 years and learned about alfalfa production while watching Paul rake hay on a tractor that his father bought brand-new the year Paul was born.

What Debler fondly refers to as "The Rock Place" is the site of the original homestead on Rocky Hill Ranch. — What Debler fondly refers to as “The Rock Place” is the site of the original homestead on Rocky Hill Ranch.

“It was amazing how passionate and dedicated these people are to their trade and how precise they are with each animal,” Mark Unger, MBA class member from Performance Food Group-Middendorf, St. Louis, Mo. said of Rocky Hill Ranch.

Unger and other MBA participants enjoy Debler's humor as he explains life as a commercial Angus producer. — MBA student Mark Unger (middle) chats with Randall Debler.

It goes to show that it doesn’t matter if it’s the fifth-generation family member to inherit the land, or a first-generation hopeful buying in, passing down the tradition of raising quality beef is what matters.

-Nicole

Look for more about Debler and Rocky Hill Ranch in a future edition of Angus Journal.

More than a taste of the beef industry

Meet Kaitlin Morgan, who is joining the Black Ink team for the summer. — *Meet summer intern Kaitlin Morgan*

Each year we’re lucky to get to work with bright young students at the beginnings of their communication careers. This year we have two Kansas State University students joining the Black Ink crew for the summer. Forget the chance to “get their feet wet,”—the second day on the job we threw them right into team coverage we had guests in cattle country.

Today we hear from Kaitlin Morgan, who grew up on a livestock operation in southwest Kansas. Enjoy! –Miranda

Barren, flat and stormy; like a scene from the movie Twister. This is just one image participants of the Master’s of Brand Advantages (MBA) program may have expected with a trip to Kansas, but instead they got the bright sunshine, cooling breeze and lush green pastures of the Flint Hills.

Participants came from all over the United States including Alaska, New York and Oregon. We even had some of our partners along from Manitoba, Canada. But no matter where they came from, everyone had the same goal: to learn more about the beef industry so we can better serve the consumer.

This will be the seventh class to complete the Masters’ of Brand Advancement since the programs establishment in 2010.

This will be the seventh class to complete the MBA program since 2010.

Don Ellis works in Business Development for Sysco in Anchorage, Alaska; an area with more moose than cattle. His job requires him to help train marketing associates, restaurant chefs and business owners.

“I hope to have a better understanding of where beef comes from, how it’s packed and why Certified Angus Beef is the best so when a customer asks me then I can tell them,” says Don. “I have a culinary background…I basically only know the bare bones of what beef is. I can identify it but as far as how it got to this package, I have no idea. That’s why I’m here to get a better understanding of what all that means.”

The MBA tours began at the purebred Angus ranch owned and operated by Dwayne and Debbie Blythe and their five children, where we learned about the genetics that form the foundation for high-quality beef.

Debbie Lyons-Blythe explained to the group how she cares for her yearling bulls including how they are tested, what they are fed and how they are sold.

The next day we broke into smaller groups touring commercial cow-calf operations to learn how proper management practices, such as pre-conditioning and vaccination, lead to better adaptation in the feedyards and higher carcass quality.

During the tour of his ranch, Bob Avery showed off his roping skills.

Participants were able to get up close and personal with the cattle during their small commercial operation tour at the Rocky Hill Ranch.

Randall Debler at the Rocky Hill Ranch answered questions about hormone implants and their role in the industry. — Randall Debler at the Rocky Hill Ranch answered questions about hormone implants and their role in the beef industry.

Rezac1s — Jay Rezac at Rezac Land & Livestock, Onaga, Kan., told the group, “Antibiotics are not something you want to use, but you have to sometimes.”

Dr. Dale Blasi treated us to a chuck wagon lunch on Wednesday before the groups headed north to visit the JBS Swift packing plant in Grand Island, Neb., and Eisenmenger Farms, Inc., a feedyard in Humphrey, Neb.

Lindsay Ritter is a chef for Sysco Kansas City in Springfield, Mo., but she grew up around the beef industry and her husband’s family raises cattle. However, she still found the session valuable.

“Every rancher does things differently so there’s always something new to learn,” says Lindsay. “I didn’t know much about the seedstock industry but after this program I have a better knowledge of that sector. When you’ve been on trips like this you can give a more sincere answer to the consumer because you just have that much more experience.”

No matter your background, whether you grew up with hay in your hair (as I often did) or never touched a cow in your life, everyone in the beef industry shares the same goal: to create a safe, high-quality product for the consumer.

~Kaitlin

Telling our story in Texas

It’s no secret that consumers like to know where their food comes from, but you may be surprised that those who prepare and serve it like to know too.

And it’s a good thing they do, because it would be quite the task making it to all of those CAB licensed restaurants come suppertime.

Linking arms along the supply chain, some of our CAB staffers joined 80 team members from longtime partner Saltgrass Steakhouse to gather at a Texas ranch for a day of learning and camaraderie.

Cattlemen and restaurateurs gathered at Bodey Langford’s ranch near Lockhart, Texas.

The Saltgrass folks wanted to know our story, and we were excited to tell them.

The quintessential cowboy cookery is known for blending the latest food trends with tried-and-true western flavors. Respected from foodies and cattlemen alike, the Texas-based eatery draws in consumers from all parts of the country.

With locations in five states, the business requires a fearless leader. Enter Ric Rosser, executive chef and friend of the brand. He was there to share stories and serve delicious barbeque for all.

“This is such a great event because it allows us to educate our younger managers on what happens before this product ever comes in our back door,” Rosser said. “To be able to show them the real, live animal and talk to the people who raise them, you can’t quantify that.”

The daylong training kicked off with a brand overview, followed by rotations that covered topics from genetics and prediction tools to feedstuffs and sustainability.

CAB Beef Cattle Specialist, Gary Fike, talks EPDs with the attendees.

Our own Gary Fike was on hand to lead an interactive seminar on genetic testing and its ability to increase the reliability of EPDs. Gary asked participants to compare two bulls from a phenotypic standpoint and then look at their respective data in order to rank calves they sired.

“You just can’t begin to imagine the impact,” Gary said.

Equally rewarding was interaction with the dozen Texas Angus Association (TAA) members who attended.

Each with their own background and experiences, together they represent what it means to be a cattle rancher today.

Members of the Texas Angus Association joined CAB staff in telling the ranching story.

“These ranchers have so much passion about what they do and how they raise these animals. We hope our managers share that passion and bring it back to Saltgrass,” Rosser said.

Current TAA president Rayford Pullen called the day an “irreplaceable” experience.

“One on one, face to face is still the best way to conduct business,” Pullen said. “Producer-consumer relations are one of the primary keys for a profitable future.”

Thanks for allowing me to tell your story,

Laura

See it to believe it

The year was 1999. Paul Dykstra walked into a packing plant in southern Nebraska and walked out changed for the better.

Eyes brighter, passion brewing, he liked what he saw.

With a background in production, he knew the live side but was captivated by what took place after the cattle left the pens.

“Aside from avoiding getting lost,” he says with a grin, “the fabrication floor was probably the most amazing thing to me. The efficiency, the speed at which that all occurs. It’s a precision operation.”

Fast forward more than a decade later and Paul is still bright eyed and passionate. As one of our beef cattle specialists, he often leads folks through plant tours all across the country. For cattle ranchers with a deep understanding of the industry, he enjoys witnessing their reactions, seeing their eyes grow in admiration as his did years ago.

“I think we understand the process very well, conceptually,” he says. “But it’s one thing to know what happens, and it’s another to view it first hand.”

Last month a group of Montana ranchers did just that. In a winter calm between production sales and spring calving, they visited with partners in the Wheat State.

“Touring the National Beef Packing plants, they gained a new appreciation for the packers in our industry,” Paul says. “A highlight was the grading, when they get the mark of what the final quality level is, that’s where the efforts of all cattle production labor come to fruition.”

Shipwheel Cattle Company, Chinook, Mont., arranged the trip to Kansas, including this feedyard.

While in Kansas, it wasn’t all packing, though. A visit to Poky Feeders, near Scott City, provided many of the ranchers the opportunity to take a look at some cattle sourced to the yard last fall. They explored the pens, feed mill, hospital and processing barns of the 70,000-head feedlot.

The farmers and ranchers from Montana took a quick break to visit with some of their Kansas partners.

Education was at the forefront as guest speakers, representing Zoetis, Elanco Animal Health, Poky Feeders and a consulting veterinarian to the feedyard discussed topics from health and preconditioning to grid marketing. Paul was on hand to discuss the brand’s ten specifications and the use of DNA technology in production herds.

“We can never go wrong with educational opportunities,” Paul says. “By increasing the understanding of ranchers, particularly from non-feeding and packing regions, they are better prepared to raise cattle that fit the system and hit the premium points. It benefits the entire chain.”

As quickly as it began, the trip came to a close and it was time to head home to a new season and calf crop. As beef people, we understand the sacrifice and determination it takes to be successful in this industry we love, but oftentimes it can help to put a mental image to what we know to be true.

Because at the end of the day, sometimes you just need to see it to believe it.

Montana believes it, and so do I.

Laura

Cattle Industry Convention sets mood

It’s the difference in heading to the salebarn with a trailer-load of calves the day prices shoot up versus the long, trek up that same highway with mature cows that would have stayed put…if only it had rained.

When the weather warms, the grass greens up and all your critters have arrived safely; when you get a new tractor for feeding or a new tool to cut your workload; when you have one of those days where everything seems to go right—that’s when the feeling comes sneaking in. Call it optimism or happiness or a light-hearted spring in your step….the term doesn’t matter, last week at the Cattle Industry Convention and Trade Show you could feel it.

Higher cattle values and lower corn prices have a lot to do with it. Mike Murphy, CattleFax analyst, said when those in the beef industry look at this chart, they feel relief.

But it was about more than that. As Jolene Brown, family business consultant, told Cattlemen’s College attendees, “In ranching, we often forget to appreciate and celebrate what we have done. Take some time to enjoy it!”

And as a collective industry, we had a lot to celebrate this year.

Take the 2013 average value of beef exports, for example. It was $242 per head, up 13% over 2012. What a win! To add an exclamation point, there is potential to grow, too. Folks on the export scene are optimistic about our chances of China opening up to U.S. beef. The Chinese middle class is expected to grow from 300 million to 640 million in 6 years.

“This demand is for real in China,” Brett Stuart, CattleFax analyst, said. “Beef has become a consumer item in China.”

Domestic demand also gives us a reason to click our heels. Even though chicken consumption will increase in the U.S. during 2014, CattleFax’s Kevin Good said, “Let’s not confuse market share with demand.”

They’re buying less beef because there is less beef to buy. Americans will continue to pay more for every pound they do buy.

That brings up the often discussed price-value relationship. Consumers have very high expectations for beef, Bridgett Wasser, NCBA meat scientist, said. “They want it to taste good…every time.”

More good news? Many of you are providing that assurance. Our fiscal numbers are proof of that: The CAB acceptance rate (how many Angus-type cattle met the 10 specifications), rose to a record 24.2% last year.

It seems there was a general consensus that we have more tools and technology and more knowledge and data on consumer preference than ever before. We are in a position to expand, and we will.

NCBA collage — There was plenty to celebrate at this year’s convention from good friends and good beef to good news!

I am optimistic about this next chapter in the beef business. Judging by the mood of most of the other 8,217 convention attendees, I’m not alone.

May your bottom line be filled with black ink,

Miranda

Expectations

“Record high cattle prices!” When you’re sharing news like that at a cattle industry outlook seminar, you’d expect the audience to be teeming with excitement.

That is if it’s a crowd of cow-calf producers.

Mark attended the CattleFax 2014 Outlook and Strategies Session last week where he said the mood was decidedly mixed.

“The audience is representative of who we work with —producers and end-users,” he says. “Depending on who you were talking to, they have a different opinion of record high prices.”

Among the ranchers there was “tons of optimism,” but cattle feeders are discouraged by the calf price predications. CattleFax expects a 550-lb. steer to settle at $190/cwt. in 2014. That compares to a previous high of $168/cwt., set in 2012. Yet, those feeders find the good news in the record high Choice cutouts (around $205/cwt.) and lower cost in terms of grain inputs.

The quality grade premiums matter to more feeders than ever. In 2013, 77.5% of cattle were sold on an alternative system versus 22.5% sold cash. Just over half of all fed cattle were sold cash in 2005.

2012_07_12_mr_Schiefelbein Farms-104-19 — Tim Schiefelbein, packer-buyer and cattleman

What’s that matter to you? Well, I think Tim Schiefelbein summed it up best a few years back when he said, “Even if you don’t grid your cattle, you do.” (Get the whole scoop on what he was talking about here.)

Basically it all points to the fact that a marketing trend like that begs better cattle. So if you provide them, you’ll be well positioned to deal with this new reality.

At the seminar, it seemed there was little for end users to feel hopeful about, Mark said, unless you count the distant effect of herd rebuilding. Cow slaughter will see sharp decreases while heifer retention is expected to go up by 140,000 head next year and 250,000 in 2015.

Still, the supply situation and price projections worry some more than others.

“I sat by one of our CAB-licensed distributors and they realize prices are high, but as they deliver a quality product, they think they can manage them,” Mark said.

Did somebody say “price-value relationship”?

It all boils down to: It’s a great time to be in the cattle business, but much is expected of you.

May your bottom line be filled with black ink,

Miranda

Success in the Flesh

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