WHAT ABOUT Carcass Merit ?
Without a doubt , beef producers have done an outstanding job of improving carcass quality . That ’ s clearly documented by the increase in Choice and Prime from around 64 percent in 2010 to 83 percent of all cattle graded so far in 2021 , according to USDA ’ s Ag Marketing Service . Of the cattle grading Choice in 2021 , 32 percent landed in upper two-thirds Choice .
saleable red meat as they reach historically heavy live weights .
“ Feed accounts for somewhere between two thirds and three-fourths of the input costs of the feeding phase ,” says Dr . Bob Weaber , professor and director of the Kansas State University Eastern Kansas Research and Extension Centers . “ So , feed intake and the utilization of those feed resources really gets at the heart of profitability in our business .” That ’ s even more pronounced as corn prices go up .
“ The feed to gain number is directly corelated to cost of gain ,” Wulf says . “ And if you lower feed to gain , you lower cost of gain .”
What ’ s more , cost of gain increases the longer an animal is on feed . One-way cattle feeders can roll back cost of gain is finding genetics that convert feed to saleable end product more efficiently , even at heavier outweights .
That ’ s happened for several reasons . One of the results of improved genetics is that mature weights have increased . “ We ’ ve selected very effectively for higher gaining cattle ,” Jim says . “ If you look at carcass weights over the last 30 years , they improved by about 7 pounds a year with roughly the same number of days on feed .”
That has given packers the green light to push cattle feeders to feed cattle longer and to heavier outweights . That ’ s because heavier carcasses improve plant efficiency .
Given the historic premiums for upper two-thirds Choice and Prime , it makes economic sense for feeders to maximize quality premiums by choosing to feed cattle longer on higher energy rations to heavier outweights . However , this can be an expensive proposition if animals are not genetically designed to convert nutrients to
That ’ s best achieved by crossbreeding , Jim says . Using a Continental breed such as Limousin or Lim-Flex on a British-based cow herd gives you the best of both worlds — the maximum combination of a balance between gain , feed efficiency and carcass quality .
But in an effort to chase grid premiums for upper two-thirds Choice and Prime , the industry has tended to sacrifice another key profit driver — feed efficiency .
As a result , Yield Grade ( YG ) 4 and 5 carcass have increased as well . “ At this point in time , the percentage of cattle that are in Yield Grade 4 and 5 , we ’ re not in single digits anymore ,” Weaber says .
Then there are those carcass premiums . While those dollars are certainly worth chasing , there are some caveats to ponder .
“ Feedlots are only paid a premium if the cattle grade better than the plant average ” Jim says . “ You have to