MARKETING...
Beef Market Wants More Prime
Industry reacts to changes in genetics, management, marketing.
When corn prices moved up a few years ago, many predicted cattle finishers would reduce days on feed and quality grades would suffer. Neither happened.
Instead, a paradigm shift swept through the U.S. feeding industry: Those last days on feed are not so inefficient because cattle are growing carcass weight to sell on value-based grids. Supporting factors included the growing use of beta-agonists and the shrinking supply of feeder cattle that made replacements more costly.
That’s all part of the picture that shows a dramatic, 11.3-percentage-point gain in the share of Choice and Prime cattle in the five years that started in 2007, says Paul Dykstra, beef cattle specialist with the Certified Angus Beef LLC (CAB), who follows that data weekly in his “Rearview Mirror on Quality” column. Read more.
Entrepreneurial Minute
What do customers want? Tom Field with the Engler Agribusiness Entrepreneurship Program at the University of Nebraska says it goes beyond simply selling bulls.
The Source
Comparing prices shows AngusSource advantage.
It has been a crazy week. I had the pleasure of attending the Superior sale in Steamboat Springs, Colo., this year. I can’t imagine there were many disappointed producers among those who sold their calves. Prices were very good. The air was full of excitement and anticipation wondering where the market would go next.
There was not a shortage of buyers in the seats, but several were disappointed they were not able to purchase the lots they came to buy. I was able to talk with several buyers and learn more about how they choose the lots they want to bid on. Every buyer has a little different strategy, but most had the same comment — quality genetics matter. Read more.
Investing in the Future of the Beef Industry
The Texas Department of Agriculture (TDA) recently announced Texas cattle producers voted to establish a state-level beef checkoff program. The referendum passed with broad support, and I believe this a positive step forward for the Texas beef industry.
Since the U.S. Beef Checkoff Program was established in 1985, we have seen added value to the beef cattle you and I produce. However, lately, we have been operating under a few disadvantages. Read more.
In The Cattle Markets
Price risk protection tools for this uncertain market.
Last week’s drop in cattle futures markets were largely unsupported by the cash markets. Granted, cash fed (live and dressed) prices declined an average of $2.02 and $2.43, respectively, for steers and heifers. The bulk of other cash prices either remained steady or moved higher, with boxed beef breaking previous records on the week. Still, the occurrence created quite a stir, at least on my radar, as calls were received in regard to marketing options. Many were asking if it was time to sell.
So, based on this market event and the reaction to it, a review of price risk-management alternatives is warranted. Read more.
Trust in the Source
Enroll Angus-sired calves in AngusSource, a USDA process-verified program.
Third-party verification still plays a dominant role in the cattle markets. Many commercial Angus producers would agree, and have found value in AngusSource®, a USDA process-verified program (PVP) offered through the American Angus Association. The AngusSource PVP is the only industry program to guarantee 50% Angus genetics, source the calves to ranch of origin and verify the enrollment group’s age.
“We stand committed to the AngusSource program and the competitive advantage third-party verification brings to commercial cattle producers,” says Ginette Kurtz, Association director of commercial programs. “It’s another tool we provide to give partners the greatest success rate when using registered-Angus bulls.” Read more.
Angus Calendar
To view the Angus Calendar, a complete list of Angus sales, click here.