November 3, 2021 | Vol. 14 : No. 10
Strong demand from China, smaller supplies and other factors have resulted in higher prices for many agricultural commodities. Projected prices for corn, soybeans, hogs and several other commodities moderate in the years ahead, while cattle prices increase.
I was asked a great question the other day: If you could change the way we think about something, what would it be? Initially, my mind went to the easy answers — our silo/segmented mentality, the way we use data as a competitive advantage rather than to make the industry better, the way we price cattle, and the list goes on.
The Federation of State Beef Councils, on behalf of the Beef Checkoff, has once again partnered with the Daytona International Speedway to sponsor the 41st season-opening race for the NASCAR Xfinity Series — the Beef. It’s What’s For Dinner.® 300. The event is set for Saturday, Feb. 19, 2022, one day ahead of the legendary DAYTONA 500.
In response to a request from Congress and the USDA, the Agricultural and Food Policy Center (AFPC) at the Department of Agricultural Economics in the Texas A&M College of Agriculture and Life Sciences has completed an extensive report on the U.S. cattle market, including information on supply-chain disruptions. The 180-plus page book is the result of proceedings from an AFPC-hosted workshop on cattle markets hosted June 3-4 in Kansas City, Mo.
Grandpa heard a noise behind the couch. His grandson had his finger in the mousetrap.
“Owwww!” whimpered the grandson.
“Sonny, don’t put your finger in the mousetrap. It will bite you,” Grandpa advised.
The next day Grandpa couldn’t find his grandson. He looked behind the couch. There the grandson was, licking the peanut butter off the mouse trap.
Beef production involves the fabrication of a beef carcass into primal and subprimal cuts, from which individual beef cuts are derived. Valuing a beef carcass involves working backward from these individual beef items. First, prices for beef cuts are combined to create subprimal values. Next, subprimal values are combined to calculate values for the seven beef primals: rib, chuck, round, loin, brisket, short plate and flank. Finally, composite primal values are multiplied by their respective carcass yield percentages and summed to arrive at a beef cutout value for a specified quality grade (e.g., Choice cutout value).
