Tanner Farms Angus Bull Sale & Quarter Blood Commercial Bred Heifer Sale

March 10, 2018 12:00 noon

Tanner Farms–Wiggins, Mississippi

Broadcast LIVE on www.DVAuction.com

Selling 100 Thick & Powerful Angus Bulls

Plus 175 Quarter-Flood Fall Calving Commercial Bred Heifers

Service age bulls, 16-18 months old

Raised on forage-based, high fiber ration

Born & raised in Southern heat & humidity 

Large selection of Calving Ease Bulls

Bred for strong maternal characteristics

Contacts: Gary Tanner 601.319.6610

Tim Hardy 601.319.7894

www.tannerfarms.com

Value of Eared Feeder Cattle

Joe C. Paschal

When The Ear was first printed I was asked to write an article on how Eared cattle performed in the feedyard (ADG, health, and most importantly PROFIT). I used mostly the Texas A&M Ranch to Rail – South data that we conducted from 1992 until 2004 and fed several thousand head of Bos indicus influenced or Eared steers. Feeders in the South (and in the North I expect) know the value of these types of feeders especially if they are looking for cattle to come into the yards to gain rapidly and efficiently and remain healthy. In the recent past these cattle have in general been undervalued (in price) and it has made them attractive to feed in live animal based marketing systems that are looking for cattle to produce mostly US Select Yield Grade 3 or better carcasses and make money doing it.

Dr. Tom Troxel and Dr. Shane Gadberry, Extension Animal Scientists at the University of Arkansas, have been following and reporting on the value of feeder cattle in Arkansas (a snapshot of the of the type of Southeastern cattle in demand by northern stockers and feeders). Begun in 2000 and repeated every 5 years they looked at the prices paid in weekly livestock auctions in 12 locations in the state and the various phenotypic and genetic factors that affect them. Their phenotypic factors included gender (sex), group size, body fill, body condition and health (based on hair quality, eyes, preconditioning). As genetic factors, they included breed or breedtype (as best as could be determined), color, USDA feeder cattle muscle score and frame size, horn/polledness and weight. Price was converted to a standardized value and represented single lots only. The differences in value reported were those above or below the average for that year.

Jacobsen Ranch steers out of Braford cows and Gardiner Angus bulls and put sold in a premium program

Jacobsen Ranch steers out of Braford cows and Gardiner Angus bulls and sold in a premium program.

These results were reported at this year’s American Society of Animal Science Southern Section meeting in Orlando this past February. They found that as the number of lots with more than one head increased, the value of uniform multiple head lots, especially if more than 6 head, were worth $4.39 more per hundredweight in 2005 and $4.94 per hundredweight in 2010. About the same percentage of heifers were sold in each of the three years sampled (45-47%).  Fewer bulls were castrated in 2010 even though steers brought premiums of $5.18 (per hundredweight) in 2000, $6.00 in 2005, and $8.21 in 2010!Cattle that were gaunt or shrunk  were considerably more valuable than feeders that were full or tanked when sold. However feeder buyers preferred cattle that were in thin to average condition with significant discounts for cattle that were very thin or especially very fat. Very few cattle were considered unhealthy with 96-98% of the feeders being considered healthy each year. Documented preconditioning accounted for about 4% of the feeders sold. Healthy cattle were sold with at a premium but feeders considered unhealthy (dead hair, stale looking, sick, bad eyes, lame, etc) had discounts ranging from $8.95 (for sick) to $32.61 (for stale looking). Preconditioned cattle brought premiums of $4.68 in 2005 and $6.84 in 2010.

TAMU Ranch to Rail Steers

TAMU Ranch to Rail Steers

In their second report on the effects of genetically influenced phenotype on price, they reported that although the percent of Angus or mostly Angus-sired feeder calves have increased from 7.0% in 2000 to 18.2% in 2010, the average price premium declined 43%! Angus x Hereford feeders, which represented 5.1 to 8.1% of the cattle offered also saw a decline in premium the past 5 years of 36%. Angus x Brahman feeders, representing 9.7% of the feeders offered in 2010 increased in value with a slight premium in 2000 of $0.55 to $1.47 in 2005 to $3.03 in 2010, a 106% increase (and the highest premium increase for any breed or type)! The discounts for ¼ blood Brahman, representing 5-7% of the feeders sold had reduced discounts from 2000 to 2010 (-$3.64 in 2000 to -$2.05, a 43% reduction). Hide color was still important but less so. With 26.6% of the feeders black hided in 2000 and 45% black hided in 2010, premiums for black hides were only $1.86 in 2005 and decreased to $1.70 in 2010. Black hided cattle with a white face (9.8%, 11.1% and 11.9% in 2000, 2005, and 2010) had increased premiums from $0.68 to $2.62 to $3.01 during those years.

Other genetically influenced factors that they reported on included muscling, frame score and horn status. Percentages of cattle increased in the higher muscling categories, larger frame sizes and polledness (either genetically or dehorned). More value was attached (greater premiums or at least no discounts) to cattle with more muscling, larger frame size, and polled or dehorned feeders. Although these premiums may not have been great, the discounts for undesired types (muscle score 3, small framed, and horned cattle) were severe at -$21.78 for muscle score 3, -$16.42 for small frame, and -$4.25 per hundredweight for horned cattle in 2010. Less than 1% of the cattle offered were muscle score 3 or small frame in any of the three years while horned cattle dropped from 25.1% in 2000 to 9.2% of the cattle offered in 2010.

It won’t be enough to just breed Eared cattle. They will sure enough have to be good ones and fit the demands of the market based primarily on muscling (where the greatest discounts can occur) but the market is definitely interested in Eared cattle and will pay more of a premium for them than they have in the past.

In visiting with Dr. Tom Troxel about their work (disclaimer: Tom was our Extension Beef Cattle Specialist in Uvalde for several years before he went to Arkansas 21 years ago to head up their Animal Science Extension group – he is a good scientist as well as a good extension specialist!), Tom said that buyers were looking for cattle to go back on grass as stockers and their interest was in putting more Brahman or Bos indicus into the cattle since they have a real problem with endophyte infested fescue. The Bos indicus genetics and to a lesser degree, through hybrid vigor or heterosis, allows these crosses to be less affected by the endophyte toxicity and they tend to graze and gain and not show the more serious side effects seen in non Bos indicus cattle. Regardless of the reason for the increase in popularity (and value) of the Brahman crosses, they are definitely bringing more! If you are interested in visiting with Tom you might give him a call or email him at (501-671-2188) or ttroxel@uaex.edu .

Dr. Paschal is a livestock specialist for the Texas A&M AgriLife Extension Service and is based in Corpus Christi, Texas. He can be reached at (361) 265-9203 or j-paschal@tamu.edu

The National Beef Quality Audit: What it means for Eared cattle

Over the past 6 months or so the results of the most recent National Beef Quality Audit (funded by your Beef Check Off dollars and conducted by several land grant agricultural universities) were presented and explained (first at the NCBA meeting and later in the press). The audit was conducted last year and I would encourage you to go to the website http://bqa.org/audit.aspx and read all the results, many of which are positive but some less so. The concept of auditing the beef product of the cattle industry is not new, the idea originated in the early 1990s, and the audit has provided data that have allowed the industry to make significant positive changes in the way we produce, handle and market our product for today’s consumer.

Nolan Ryan Carcasses

Nolan Ryan Carcasses

This past Audit included face to face interviews with government or allied industry (agribusiness), retailers, food service, packers and feeders. All were asked how they defined “quality” based on their rating of seven specific quality attributes. These attributes were 1) How and Where the Cattle were Raised; 2) Lean, Fat and Bone; 3) Weight and Size; 4) Cattle Genetics; 5) Visual Characteristics; 6) Food Safety; and 7) Eating Satisfaction. They were also asked to provide quality related details and practices that are important to them. Finally they were asked a “willingness to pay” and a “best-worst” ranking for the industry for these seven quality attributes.  The table below indicates the ranking of these attributes for each group.

Ranking of Attributes by Interview Group for Quality Attributes (High to Low)
Allied/Govt Retailers Food service Packers Feeders
Food safety Food safety Food safety Food safety How and where raised
Eating satisfaction Eating satisfaction Eating satisfaction Eating satisfaction Weight and size
Cattle genetics How and where raised Lean, fat and bone Lean, fat and bone Cattle genetics
Weight and size Visual characteristics How and where raised How and where raised Lean, fat and bone
How and where raised Weight and size Visual characteristics Cattle genetics Food safety
Visual characteristics Lean, fat and bone Weight and size Weight and size Eating satisfaction
Lean, fat, and bone Cattle genetics Cattle genetics Visual  characteristics Visual characteristics

 

The closer you get to the end product the higher food safety and eating satisfaction are in the list of quality attributes (as they should be) and cattle genetics is in the top three only twice for the Government/Allied Industry types and the Feeder classification. In an overall weighted ranking, genetics is fifth, behind Visual Characteristics and tied with Weight and Size. Food Safety is three times as important and Eating Satisfaction is twice as important as Cattle Genetics as an overall quality attribute.

When asked to define Eating Satisfaction, the top two most frequent descriptions by the Allied Industry/Government and Retailers were tenderness and flavor. Retailers indicated that the amount of marbling desired to mean “USDA Select or higher” and about half used “predominately black hide” to describe the desired visual characteristic quality attribute. Of particular interest was that 13% of retailers interviewed (no mention of which ones or how many pounds of beef were sold) reported “not Bos indicus”. Whether or not that means no Bos indicus or not 100% wasn’t asked but should have been. The primary reason for this response when asked was “toughness associated with Bos indicus beef” which is why some purchase product from the Midwest and not Texas. Even though this was at the bottom of their list of rankings, it seems that some work needs to be done here to show these folks how much the Brahman and Bos indicus influenced breeds have improved tenderness in their product.  Brahman was one of the second breeds in the US to have a Tenderness EPD and my own research over the past 20 years with many of the Bos indicus influenced breeds and crosses has shown average shear force to be very acceptable.

When Packers were asked about Cattle Genetics, about half defined this quality attribute as “having a black hide” and about one in four as having the “genetic potential for marbling” or “quality grade”. I disagree with the findings of the Audit though when they say that “Based on these frequently mentioned attributes by packers, it could be concluded that packers prefer black-hided cattle that grade USDA Choice or better”.  Of the Packers interviewed, 88% participated in branded beef programs and half or more of those interviewed indicated that requirements should include marbling, hide color, hump height and yield grade. It is interesting that hump height should be included since work done by Dr. Don Franke at LSU a few years back concluded that there was no genetic correlation between hump height and tenderness in Brahman cattle but maybe the word hasn’t gotten to the Packers yet. In their definition of Visual Characteristics and at the bottom of their list of concerns, 29% of Feeders indicated “predominately black hide” and 12% indicated “no eared cattle”. This discrimination against Brahman or Bos indicus cattle may have been well deserved at one time but not now.

The refrain of preferring predominately black hided cattle echoes throughout this audit as if the color of the hide truly represented anything about the eating experience of the meat it covers. How many breeds of cattle are black hided now? It is easier to count those that are not: Charolais, Hereford, Red Angus (the only beef breed that matches marbling in Angus but is discriminated against in CAB), Brahman, Braford, and Santa Gertrudis. In one of the presentations a slide indicates that for Cattle Genetics one of the top three answers (across market sectors) was “primarily British”. I never saw that response from any sector in the Audit report. It may have been assumed by the authors that most black hided cattle were primarily British but it sort of leaves out a lot of non British breeds that ought to have been included that will grade Choice.

There are other parts of this Audit, including the Carcass Quality Survey and Instrument Grading Assessment (new to this Audit) and the Quality Enhancement of the Seedstock, Cow/Calf and Stocker Sectors. The increase in percent Prime and Choice over previous Audits is noted as is the similarity between instrument grading and human grading. Beef Quality Assurance practices and principles are being followed and more folks are interacting with their veterinarians in a timely manner. This is good for all in our industry.

The good news is that much of the audit shows all segments prefer the type of cattle being raised by Eared breeders and commercial Eared cattlemen. All want a good eating experience, adapted cattle raised in a healthy environment, cattle that have been treated humanely and beef that is safe to eat. And if we look at the other details expressed about cattle genetics; lean fat and bone; and visual characteristics, Eared cattle fit. They will grow fast and efficiently in the feedyard, will be healthy and profitably, will provide a product that is acceptable in carcass weight, ribeye area and fat thickness, will quality and yield grade (Select or better, 3 or better), be tender, safe and provide an excellent eating experience. Don’t let anyone tell you different!