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hanging carcasses

Mythless?

November 21, 2011

I’m sure my droves of loyal followers were all heart-broken to find a familiar column absent from last week’s web presence.

OK, back to reality, maybe there were a few of you wondering, “What happened to Mythbuster Monday?” That leads us to today’s falsehood:

Myth: Mythbuster Miranda is all out of myths!

Fact: I have a really good excuse for missing last Monday’s post. I had a baby. (Doesn’t get much better than that, does it?) We welcomed little miss Cassidy Catherine to our family on November 12th. So while I’m spending time getting to know this new love of my life, you’ll get a chance to get acquainted with another member of our team.

Meet David O’Diam, assistant director of packing:

He’s a born-and-bred Ohio farm kid who holds an undergraduate and master’s from The Ohio State University. He ran the OSU meats lab, so it’s no surprise that among his hobbies of golf, skiing and watching sports, he also fancies himself a pretty good meat smoker and grill master.

David makes connections, educates and is the go-to guy for anything CAB Prime or CAB Natural. He also watches the markets, both live cattle and boxed beef, like a hawk. He keeps our sales and supply development staff updated on what’s shaking in the beef trade and now he’ll do the same for you.

Here’s a sneak peek at the info David’s got up his sleeve to share:

Another week of significant production decreases allows packers to force live cattle prices down $2-$3/cwt.  By reducing kill over the past two weeks, packers were able to regain some of their lost bargaining leverage.  Additionally, last week packers were buying for this week, a holiday shortened kill which only totaled 579K last year – again strengthening packer buyers positions.

In light of kill reductions, packers were also able to increase boxed values and thereby, margins.  Boxes increased $7.30 (3.75%), $4.20 (2.42%) and $4.00 (2.75%) for CAB, CH and SE, respectively.  Middle meats continue to provide significant support to the overall carcass value as CAB rib and loin primals increased in value 6.38% and 4.10%, respectively.  Retail buyers remain hesitant to make large out front commitments due to historic pricing and in light of the upcoming holiday.

Check back each Monday to read his new weekly feature, welcome David and enjoy the Meat Market Minute!

May your bottom line be filled with black ink,

~Miranda

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Beef Leaders Institute: An original experience

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Past experience showed me enough to get where food comes from, but not enough to understand how it gets from point A to B and then to me. Now I get the beef story, and a huge part of the credit goes to the week I spent with the American Angus Association’s Beef Leaders Institute (BLI) in June.

Of dreams and going all in

Of dreams and going all in

“I wish I could just move west and buy a ranch.” It’s something I’ve heard my dad mutter for years. He’s been around agriculture all his life, stacking hay as a teen and raising Hereford steers for the freezer as an adult. But Maryland is not big country. These days, he’s living vicariously through his three daughters’ 4-H projects and FFA events (and my internship here at CAB of course).

Not one for small talk

Not one for small talk

Uncomfortable silence.
If you don’t like it, you know the kind. Perhaps you’re just getting to know somebody, and you reach a point in the conversation where that silence hangs heavy and it makes you uneasy.

Packers are…

November 7, 2011

Don’t answer that just yet!

Terry Beller is the first feeder I’ve heard say “best friend” and “packer” in the same statement.

A while back I was talking to Nebraska cattle feeder Terry Beller and he said, “Some of my very best friends are my packer buyers.”

Whoa. Even though I work with a lot of feedlots who embrace the cooperative, “everybody’s in this together” mentality, you don’t hear that from a feeder every day. (And Terry did admit that his dad would’ve had almost an opposite mentality when he ran the feedyard.)

But I think of that comment when I hear a group of naysayers cussing and discussing the packers’ role in the beef industry, which leads me today’s little white lie:

Myth–Packers are only interested in lining their pockets. They don’t care about beef quality or the greater state of the beef industry.

Fact–This business is made of individuals, so I can’t promise that there aren’t any packers that fit that mold. What I can tell you is that I’ve never met one of them. Several years ago I wrote a story called, “Common Ground” that highlighted the packers desire to work together with cattle producers.

Some of my favorite quotes:

  • “I don’t mind paying a premium for good cattle.”—Art Wagner, National Beef Packing Co. LLC
  • “I think the United States has extremely efficient, qualified ranchers, feedlots and processors. As a chain, however, we’re not terribly efficient. We’re not good at passing the right signals back and forth throughout the whole chain. The only way to do that is to have open-minded producers sit down and have conversations about how to work the supply chain to do what we all need: satisfy the consumer at a higher level.”—Ken Bull,Cargill
  • “We like to buy what the consumer demands,”—John Gerber, Tyson Continue reading “Packers are _____”

Angus bull

A scary little myth

By: Miranda Reiman

October 31, 2011

I will be dressing up like a pirate tonight. Why? Because my 3-year-old son is going as a pirate and he insisted that I should dress up with him and who can tell this little matey no?

So although my evening will be spent with PG-version spooks, I thought I’d bring up this myth that frightens grown men and women. (It’s sort of a follow up to last week’s suggestion that you check into retained ownership.)

Myth—Finding a feedlot is scary.

Fact—It is a big decision, but it can be painless and pretty easy. If you’ve decided you want to feed your calves, partner with a feedlot or just build relationships with one you can market to directly, it just takes a little homework.

I could go on and on, but really our own Paul Dykstra and Oklahoma State University’s Greg Highfill tell it better: Continue reading “A scary little myth”

cattle drive

Scared of losing your shirt?

By: Miranda Reiman

October 24, 2011

I interviewed Barb Downey four years ago. In the meantime I had two kids and moved to a different state. She ran the Boston Marathon. (Wow.)

Joe Carpenter and Barb Downey feel pretty strongly about the benefits of retaining ownership of their calves through the feeding phase.

But in all that time I can still remember one of her most emphatic quotes during our pickup ride through her picturesque Flint Hills pastures:

“The best thing we ever did for our bottom line was to investigate retained ownership.”

You can read the whole story I wrote that year (Open to Suggestion), but the summary notes are that she and her husband started out feeding through an early CAB value-discovery program. Then they made the plunge to full retained ownership.

They gradually started to build on a small base of registered Angus cattle they started in 1993 and now they believe so much in retained ownership that they encourage their bull-buying customers to do the same.

So let me use their example to help bust this one:

Myth–Retaining ownership is a good way to lose a pile of money!

Darrell Busby crunches numbers as manager of Iowa’s Tri-County Steer Carcass Futurity.

Fact—Sure, every year is different and there’s no guarantee that you won’t lose money, and a lot of it, retaining ownership. But the odds are greatly in your favor if you do a little homework, and there is a pile of good data that says it’s still a sound strategy.

During a summer interview, Darrell Busby, of Iowa’s Tri-County Steer Carcass Futurity (TCSCF), mentioned that last year was the most profitable year they’ve had. Producers averaged more than $140 per head.

“Profit is the happiness index of the beef industry and when you retain ownership and make a profit, then things go well,” he said. Continue reading “Scared of losing your shirt?”

Got it or not– it matters!

By: Miranda Reiman

October 17, 2011

If you don’t have it, perhaps you’re more likely to make excuses.

At least that’s my gut feeling when I hear people trying to downplay the importance of marbling in beef. So every time this myth pops up, I wonder, “Why aren’t they just trying to improve the quality of their herd?” Instead they argue whether it’s even important.

Obviously they haven’t eaten as many steaks as I have, or they wouldn’t need research to prove this one false:

Myth—Marbling scores aren’t highly correlated with tenderness or eating experience. 

Fact–Beef Checkoff-funded research out of Colorado State University says it all. I recently interviewed veteran meat scientist Daryl Tatum on work he and his team just completed.

They used a trained panel to evaluate steaks from carcasses that were camera graded into seven different marbling scores, ranging from USDA Standard to Prime. Rather than assign positive or negative ratings, panelists were asked to quantify the presence of specific flavors such as “meaty, brothy” or other descriptors. They also gave ratings on tenderness, juiciness and the overall sensory experience.

Here’s what Daryl had to tell me:

“The last study that everyone wants to cite, the actual research was done in the late ‘70s and published in the early 80s. That was a long time ago and so we felt like it was time to take a look at it again.

Marbling has kind of gotten a bum rap from a lot of people saying it really doesn’t predict much, but across the full range, it has predicative capabilities. When you can measure it precisely,it does a really good job.”

Continue reading “Got it or not–it matters!”

One-track minds?

October 10, 2011

The number one reason that cattle don’t qualify for Certified Angus Beef ® is insufficient marbling. You’ve heard us say that before. You’ll hear us say it again.

Yes, we focus on marbling. A lot. It’s sort of our lifeblood.

We’ll admit it. Marbling is kind of our life, but we know the cattle business is about much more…

But, that doesn’t mean we walk around with blinders on. We know there are dozens of considerations that cattlemen and women must weigh at every turn.

That’s why I take it personal when I hear this come up in conversation or on-line forums:

Myth–CAB advocates single-trait selection.

Fact–Not true. We want producers who aim for our brand to be profitable. We know that not only includes a focus on the end product, but also on things like reproduction and growth.

Want proof? Check out our published genetic recommendations. Continue reading “One-track minds?”

cutting a steak

In this economy

October 3, 2011

Is anybody else getting sick of phrases like, “In this down economy,” or “Since the recession”?

I realize that I’m blessed to live in a state (Nebraska) that’s doing fairly well compared to many in the Union and I work in an industry (agriculture) that has many bright spots compared to others, but at some point don’t we have to quit blaming stuff on “this economy”?
 

That’s why today’s myth is one that really irritates me and I’m glad we’ve got some data to disprove it.

Myth—In this economy people won’t pay more, even if it is a premium product.

Fact—People want value. And it seems they know the difference between buying something cheaper and spending a little more for something that’s a whole lot better.
 
That philosophy carries over to consumer meat purchases. If they’re not going to go out to an award-winning steakhouse, they want that scrumptious steak at home. If they do treat themselves, it better be worth every pretty penny they just paid at that fancy restaurant.

But I’m no psychologist so don’t let me tell you what people are thinking. Instead take a look at some research out of Kansas State University that proves what people are really doing. Continue reading “In this economy”

Inheriting good things

September 26, 2011

People are always pointing out whose personality a child inherited, which parent he or she takes after.

I’m a night owl like my dad, but almost every other personality trait is often credited to my mother’s linage. When I was younger the older generations would reference my “Buchan (mom’s maiden name) temper” and any time I channel my inner Betty Crocker or Martha Stewart my maternal grandma’s family gets the credit.

I hear people talking about the same relationships in their family all the time, so why is it so hard for some folks to believe that cattle disposition follows similar patterns?

Myth—Some cattle are just wild. There’s not much a rancher can do to change that.

Fact—You might get one bad one in a bunch, but, overall, crazy cattle can be addressed through both genetics and management. (Are you seeing a pattern in these posts? Seems almost everything—even prices—gets rosier when focusing on both in tandem.) Continue reading “Inheriting good things”

The market’s not all marketing

By: Miranda Reiman

September 19, 2011

If you follow the Beef Daily blog, you may have come across a post last week that hit really close to home with our crew. In “The Best Ways to Market Your Cattle,” Amanda Radke even mentioned our program by name and gave us credit for driving up prices of black feeder cattle at the auction barn.

I don’t disagree that CAB probably played a huge role in that. After all, that live-animal specification is the first hurdle that cattle have to meet to be accepted into our program, but it usually surprises folks to learn that our goal isn’t to increase numbers or prices of black-hided cattle in the U.S.

Myth—CAB is just concerned with turning the nation’s cowherd black.

Fact—If that myth said “Angus” instead of “black” it would have a slight element of truth to it, but that’s still not what we’re all about.
 
We know that as percent Angus increases in the cowherd that increases quality and CAB acceptance. That’s why those cattle are worth more at the auction barn, buyers are taking a chance that they are indeed high-percentage Angus and are going to earn premiums as finished cattle. Continue reading “The market’s not all marketing”

angus cows in pasture

Do high prices equal high profits?

August 29, 2011

If I had to sum up the Feeding Quality Forums we co-hosted last week in a short phrase, it would be, “So much good information.”

I enjoyed all the presentations, and as I’m listening to them I’m always trying to pick out the most useful take home messages for producers. As I discussed the content with my family, market analyst Dan Basse’s came up a lot.

He and his cohorts at AgResource Co. are predicting fed-cattle prices to reach $130 to $135 early next year.

To outsiders that might sound like everything is roses in this business, but insiders know better. Still, it’s easy to get starry-eyed when talking record highs and dollar signs in the same breath.

So today’s post is somewhat cautionary.

Myth—High beef prices=guaranteed profit for cattlemen and women.

Fact—High beef prices=hopefully enough money to cover all the rising input prices.

No matter what segment of the business you’re in, there are a number of factors that will Continue reading “Do high prices equal high profits?”