Executive Summary
Cattle Company. These cattle provide a
stellar example of what Limousin cattle
can do while hitting and exceeding the
mark on both quality and yield grade
specifications. The ability of cattle to
hit the Choice Quality Grade continues
to become of increasing importance
as evidence by a spread of over $30
between the Choice and Select cutout
value during the month of June. Several
factors continue to influence this spread
as retailers look to capitalize on the
value of Choice product in their meat
counters. Walmart switched to featuring
a Choice product in their retail chains a
couple of years ago and is in fact having
success with their Angus Pride Choice
product in 2017, this has forced other
retailers to compete more heavily for
product that hits the Choice grade,
which has further increased the demand
for Choice cattle at the retail level.
The purebred Limousin Running Creek
cattle (Table 1.) are a perfect example
of how good cattle can capitalize on
both fronts. This set of cattle actually
represents their cull steers and heifers
they retained ownership on to feed
out. The steers were able to average 95
percent Choice while still maintaining
77 percent Yield Grade 1s and 2s. This
being the kind of cattle that are in
is outstanding, but reflective of what
demand in today’s marketplace.
Limousin genetics can accomplish
The demand for high quality Choice
on the right set of purebred cattle
product will most likely continue
and exhibit what could be potentially
to grow. U.S. beef access to China is
utilized in a crossbreeding program by
expected this summer with the White
the commercial industry when mated
House announcing an agreement has
to a set of English based cows. These
been reached to restore U.S. access
superior kill results led to a premium
to the China export market after a
of $223.00 per head on the steers in an
13-year ban. China and other Asian
environment where every dollar counts!
export markets will open demand for
The heifer mates graded slightly over
all classes of beef and help the value
88 percent Choice with 67 percent of
of products Americans don’t regularly
the heifers still in the Yield Grade 1 and
2 categories.
This enabled the
heifers to achieve
The steers were able to average 95 percent Choice
a premium of
while still maintaining 77 percent Yield Grade 1s
$225.00 per head.
and 2s. This is outstanding, but reflective of what
These kinds of
Limousin genetics can accomplish on the right
premiums were
set of purebred cattle and exhibit what could be
achieved when
the spread was
potentially utilized in a crossbreeding program by
much narrower
the commercial industry when mated to a set of
than the $30
English based cows.
Choice-Select
spread that
the market
consume like tongues and short ribs,
experienced this summer. They
but also aid in the demand of high end
not only eliminated risk, they
middle cuts in addition to chucks and
achieved substantial bonuses for
rounds. China represents one-fifths of
the world’s population and its middle
class is larger than the entire U.S.
population. It is estimated that current
global export demand is adding $250
per head to each fed steer and heifer
produced in the United States. Opening
additional export access to countries
like China is opportunity for seedstock
and commercial cattle producers alike.
As you look to increase the value of
your cattle and get the additional
production of superior quality and
yield grade based pounds on cattle
that possess high feed efficiency, look
to Limousin genetics to improve your
profitability over the decade ahead! I
10 | AUGUST 2017