fbpx

Tag: Mark McCully

Drought’s silver lining

As a cattle industry writer based in Texas, I’ve spent a good deal of the last few years talking about drought. We’ve been out of the woods since May, but the effects are lasting. Not all of them are bad, though.

Just last week, I visited a club calf breeder when the topic turned to how things have changed in the last few years. He said the drought forced him to reduce his cow herd by almost 100 head, but he now has a better, more profitable herd because of it. With only the best and youngest cows remaining, he’s poised to spend less and make more.

Supply Blog Pic 1On the commercial side, it’s more of the same — and consumers are reaping the benefits.

Mark McCully, vice president of supply, says the big story continues to be improvement in grade.

“We see weeks where the industry continues to have an all-time record high percentage of Choice and Prime, and that then coincides with record-high Certified Angus Beef® brand acceptance rates. And in the month of June, for the first time ever, we exceeded 30% CAB across the nation for the entire month,” he says.

That typically leads to the discussion of “How?” and “Why?” Tight supplies and relatively inexpensive feed, coupled with premiums and market incentives to produce a higher quality product, have encouraged feeders to feed cattle longer.

Supply Blog Pic 2Mark explains the heavier carcass weights have allowed us to offset some of that shortfall on cattle numbers. We’ve had fewer numbers, but each one of those individuals is heavier. Additionally, the drought left us with a younger, higher-quality cow herd and more and more cattleman have turned to using Angus bulls. All of these things have worked together to cause the record-high grades.

And that’s good news for everyone.

-Katrina

Katrina Huffstutler is a freelance writer based in Electra, Texas. She’s a frequent contributor to the Black Ink team and lover of functional cattle and quality beef.

You may also like

Chef Coats and Cowboy Hats

Chef Coats and Cowboy Hats

by | Jan 21, 2025

Two worlds collide, with one focused on raising the best beef and the other crafting dishes that honor it. This innovative program unites students from Johnson & Wales University and ranchers from across the United States, offering an immersive look at the beef industry.

Mark Ahearn Completes Term as CAB Board Chairman

Mark Ahearn Completes Term as CAB Board Chairman

by | Nov 4, 2024

Mark Ahearn admits his role as the chairman has meant a lot to him and his family. He expresses gratitude to those who believed in him throughout the past year and looks forward to seeing the future successes of the premium beef brand.

On Tuesday Laura shared a video on the breakeven calculator we created to help you estimate the value of your high-quality feeder cattle. You can download it for free here, then follow along as I walk through it.

A breakeven calculator is not a new tool and every feedlot manager uses one.  It takes expected selling price of finished cattle (as in Live Cattle futures) and the estimated cost of feeding them to calculate what the feedlot should pay to cover all costs or “break even.” These tools work great for cattle of “average” performance and carcass merit.

What’s unique to this calculator, developed by our own Paul Dykstra? It can apply expected carcass merit and grid pricing results to more precisely value any set of feeder cattle with an eye toward beef quality.

Here’s the key: If you produce above-average cattle, you must know what they’re worth to benefit from your extra effort. Continue reading “How to break even, Part II”

Adding, capturing calf value

March 17, 2011

 

Cattlemen may hear about the shrinking beef industry and wonder about their role in the future. They can take heart in the expanding high-quality end of the business, however.

Licensed partners of the Certified Angus Beef ® (CAB®) brand worldwide sell more than 2 million pounds of branded product per day, and supply has increased 92% in the past five years. That’s according to Mark McCully, CAB assistant vice president, supply.

Addressing producer-members of the Pittsylvania County Cattlemen’s in Chatham, Va., earlier this month, McCully said demand for CAB products grew along with supply, and that represents opportunity for producers.

Overall higher cattle prices and premiums for the best cattle are two results of strong demand, but producers can take steps to move a greater share of their calves into that premium category, he said.

Genetic selection tools available on registered Angus cattle, specifically EPDs (expected progeny differences) can help any herd make progress. “EPDs are used to compare animals within a breed but you should also pay attention to the average values of the breed,” McCully said. “For example, using a bull in the top half of the breed for Marbling EPD, or those above +0.40, is more in line with a genetic focus on the CAB brand.”

Given the genetic potential, cattlemen can see it realized through comprehensive herd health and nutrition programs and low-stress management, he added. “Then, find ways to get carcass data by working with organized state programs, your bull supplier or a CAB licensed feeding partner. Keep detailed records and use that data in sire selection and cowherd culling.”

To illustrate value differences, McCully shared three scenarios with 750-pound (lb.) feedlot calves. Groups one and two were both age-and-source verified, gained 3.5 lb. per day (ADG) with feed-to-gain (F:G) conversion of 6.1. After a theoretical 1% death loss, both groups finished at 1,325 lb.

The key difference was in carcass grading: Group 1 had 5% Prime, 40% CAB and 90% Choice or better along with 30% Yield Grade (YG) 1 or 2 and 15% YG 4. Group 2 was leaner with 40% YG 1 or 2 and just 5% YG 4, but no Prime, only 10% CAB and 50% Choice with 5% Standard.

Then there was Group 3, the calves without age-and-source verification, ADG at 2.9 lb., F:G at 7.0, apparently in poorer health with 4% death loss and finishing at 1,250 lb. They managed the same carcass results as Group 2, but came in $195 per head lower value than Group 1 under current market conditions.

McCully concluded by emphasizing the importance of marketing options to capture the value in “value-added” calves.

        • Retain full or partial ownership of calves through the feedlot
        • Direct marketing to feedlots with bonus options for carcass premiums
        • Commingled sales of high-quality calves with other like-minded producers
        • Calves backed by a resume that documents their profit potential
        • Age-and-source verification with AngusSource®, which generally returns at least $25 per head.

You may also like

CAB Sets Sales Records, Sees Historically High Brand Acceptance Rates

CAB Sets Sales Records, Sees Historically High Brand Acceptance Rates

by | Jun 10, 2025

In an otherwise tough time in the beef business, sales and supply records have been a bright spot. The positive numbers mean that quality beef production has not let up, and beef demand is holding. Consumers have proven the value proposition: the good stuff is worth a little more money, for a better eating experience.

Feeding Quality Forum Dates Set Earlier in August

Feeding Quality Forum Dates Set Earlier in August

by | Jun 3, 2025

When you’re feeding cattle, it counts to keep track of every calf, pound and dollar. Beyond the event’s educational sessions, networking between segments of the beef supply chain is invaluable—from feeders and cow-calf operators to allied industry and university researchers.