A HISTORIC OPPORTUNITY
AMERICAN HEREFORD ASSOCIATION
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Capitalizing on this historic opportunity demands a cohesive breed message, which highlights Hereford’s inherent genetic advantages, trend of genetic improvement and the economic value of direct and maternal heterosis.
Historic Hereford Opportunity
When 2023 begins, there will likely be approximately 3% fewer beef cows year over year in the U.S. inventory — about 29.2 million head. That would be 2.5 million fewer cows than the most recent peak of 31.7 million in 2019.
When the current drought ends, supply fundamentals suggest enough economic incentive for cow-calf producers to build back by at least 2.5 million cows. If you figure 30 cows per bull, then the bull supply needs to grow by at least 83,000 head. That’s the opportunity Hereford and other breeds have to expand market share.
For perspective, total registrations through the American Hereford Association (AHA) in fiscal year 2022 (FY22) were 76,762. About 31,000 of those were bulls.
When the last persistent, widespread drought forced significant U.S. beef cow herd liquidation two decades ago, producers restocked with cows capable of producing calves with higher carcass quality. Arguably, they did so mostly with highpercentage and straightbred Angus cattle.
Since then, the percentage of carcasses achieving USDA Quality Grade Choice and higher continues to grow, as does consumer willingness to pay more for more pounds of higher quality beef.
However, based on various data over time, commercial cow herd performance has remained static or declined when it comes to key revenue metrics like reproductive efficiency, weaning weights and weaning weights per cow exposed.
So, Hereford opportunity to expand market share is magnified by the industry’s need to incorporate more heterosis as it rebuilds the cow herd.
Capitalizing on this historic opportunity demands a cohesive breed message, which highlights Hereford’s inherent genetic advantages, trend of genetic improvement and the economic value of direct and maternal heterosis. You will find these and other key messages in this booklet.
Of course, exploiting this opportunity also requires structurally sound bulls with the herd-improving genetic merit demanded by customers, backed by customer service integrity.
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The Efficiency Breed
Nearly 300 years ago, farmers in Herefordshire, England, founded the Hereford breed in response to consumer beef demand created by Britain’s Industrial Revolution. Efficient production, high yields and sound reproduction were of utmost importance.
Hereford cattle arrived in the United States in 1817 to serve a similar need — efficiently adding pounds to native cattle grazing the nation’s rangelands, while also creating reproductively efficient females. American Hereford breeders founded the Hereford Cattle Breeders Association in 1881, which was later renamed the American Hereford Association (AHA).
The Hereford breed and AHA maintain the original vision — build more pounds of quality beef and more production-efficient females with fewer resources than otherwise possible, via the breed’s inherent genetic advantages.
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Heterosis Pays
Decades of industry-wide research document the advantages of heterosis (hybrid vigor) in commercial crossbreeding systems. Direct heterosis — increased performance of the crossbred calf relative to the average of the straightbred parental breeds.
Maternal heterosis — increased performance of the crossbred cow relative to the average of straightbred females of the parental breeds.
Primary crossbreeding advantages are improvement of lowly heritable traits, such as those associated with reproduction, which are difficult to impact through direct selection pressure. Small, net-positive effects in multiple traits affecting commercial cow-calf profitability — pregnancy rate, calf livability, calf health, etc. — yield significant returns that are difficult to measure.
Crossbreeding value is most visible in the increased number of calves (lifetime), cow longevity and cumulative weaning weight (lifetime).
Developing and maintaining a crossbreeding system that captures maternal heterosis is critical to long-term profitability in the commercial cow-calf business. Likewise, increased production efficiency is crucial to maintaining social license to operate.
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Survival to weaning 1.9% Weaning Weight 3.9% Post weaning gain 2.6% Yearling Weight 3.8% Feed Conversion 2.2% Calving Rate 3.7% Weaning Weight 3.8% Longevity 38% Number of Calves 17% Culmative Weaning Weight 25.3%
Hereford Heterosis Pays More
Hereford genetics offer more crossbreeding power because they are the least related to other Bos Taurus breeds, as documented by the U.S. Meat Animal Research Center (USMARC).
Plus, Hereford’s unique, inherent genetic advantages compared to other breeds offer added breed complementarity, especially when crossed with Angus. Hereford advantages include:
• Docility
• Fertility
• Feed efficiency in the pasture and feedlot
• Longevity
• Production efficiency
Research consistently documents the advantage of Hereford-sired F1 black baldy heifers and steers compared to straightbred black Angus peers in the same production setting. Science and experience suggest these advantages would be similar in herds using Hereford bulls with Red Angus cows to produce red baldies. Unless otherwise noted, the research results below are from the multi-year Harris Ranch Heterosis Research Project completed in 2010.
HEREFORD-SIRED BLACK BALDY FEMALE ADVANTAGES
• 7% higher pregnancy rate
• More calves weaned per cow exposed
1On average, OSU researchers measured about 2 pounds per day less moderate-quality forage (Oklahoma pasture) intake in the black baldy cows. On an annual basis the black baldy cows would be expected to consume about 725 pounds less forage.
2Calculation based on breed differences for feed efficiency documented by the U.S. Meat Animal Research Center, using current feed costs (Oct. 2022).
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• $51 more per cow per year in net present value (2009 calculation)
• 3.5% more average rate of return on assets
• 2 pounds less pasture forage per day while maintaining more body condition (Oklahoma State University)
Black baldy cows require 1 acre less of moderate-quality forage per year compared to straightbred black Angus peers, according to Oklahoma State University research.1
HEREFORD-SIRED BLACK BALDY STEERS
• Heavier weaning weights
• Increased feed efficiency
• Lower cost of gain
• Lower feedlot breakeven
• $28 per head less feed cost across finishing period
Based on feed efficiency alone —
breed differences documented by the U.S. Animal Research Center — Hereford has a $51 per head advantage over the finishing period, when compared to Angus.2 Hereford’s economic advantage increases as feed costs rise.
Commercial producers on the Gulf Coast and in the Southeast see similar advantages when using Hereford bulls on Brahman (Bos Indicus) cows to create what are commonly called “Tiger Stripes” because of their unique hide markings. The Tiger Stripe cow is recognized as the undisputed Queen of the South, just as the black baldy cow is regarded as unmatched in other parts of the country.
AHA’s future research efforts include documenting Tiger Stripe advantages as it has done with black baldies in the research mentioned above.
Hereford is the essential component to crossbreeding systems in the United States.
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Because of leadership foresight and breeder commitment to progress, the Hereford breed is poised to represent the entire beef industry as leaders in the sustainability arena.
Research is Critical and Evolutionary
Past AHA research projects demonstrated the economic value associated with direct and maternal heterosis in Hereford-sired, F1 black baldy females, compared to straightbred black Angus peers. Documented advantages include fertility (pregnancy rate), pounds of calf weaned per cow exposed, feedlot feed efficiency and cost of gain, cow feed efficiency (pasture) and net return per calf.
AHA’s current multiyear research project with the University of Illinois carries previous knowledge about maternal heterosis a step further. The project compares Hereford-sired, black baldy cows to straightbred black Angus peers for economically relevant traits such as conception rate, calving rate and pounds of calf weaned per cow exposed. But the project also measures individual cow feed intake prior to breeding and during lactation to establish maintenance energy requirements. Additionally, steer progeny of cows in the project will be fed and finished, providing a comprehensive assessment of values and efficiencies from conception through slaughter. Ultimately, the project goal is to develop a global economic model to quantify direct and maternal heterosis advantages of the Hereford-sired, F1 baldy female.
GRASPING THE FUTURE
AHA launched a landmark collaborative research project with Colorado State University in FY22, which will enhance the understanding of the genetic differences in seedstock relative to enteric methane production and nitrogen excretion. Both contribute to greenhouse gas (GHG) emissions and the carbon footprint of cattle. Documenting the relationship between traits associated with efficiency — Hereford advantages — and GHG emissions is the logical next step for the breed and the industry.
This project leverages decades of AHA research and member data, including individual feed intake records collected through the National Reference Sire Program (NRSP) since 2010. Unbiased reporting associated with AHA’s Whole Herd Total Performance Records (TPR™), established in 2001, adds prediction accuracy.
Because of leadership foresight and breeder commitment to progress, the Hereford breed is poised to represent the entire beef industry as leaders in the sustainability arena. Expected outcomes of the multi-year project include characterization of Hereford’s sustainability advantages associated with absolute production of methane and nitrogen, as well as selection tools enabling producers to select for less GHG emissions.
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EVOLUTION OF AMERICAN HEREFORD ASSOCIATION RESEARCH
1999
AHA participated in the beef checkoff-funded Carcass Merit Project (CMP), which was initiated to develop genetic selection tools for carcass and consumer-satisfaction traits, such as marbling, tenderness and meat composition. This was in response to two decades of declining domestic consumer beef demand and challenges revealed by the National Beef Tenderness survey. Olsen Ranches, Inc., Harrisburg, Neb., and Stahly Ranch, Cavour, S.D., provided and fed some of the Hereford and Hereford-influenced cattle that were part of the CMP. For AHA, this project also served as the template and starting point of the National Reference Sire Program (NRSP), as founders recognized the opportunity and value of comparing sires via larger contemporary groups to prove merit and increase prediction accuracy faster.
2001
AHA established Whole Herd Total Performance Records (TPR™), building upon the early performance programs of the late 1960s. This enabled the collection of complete calf crop information and eliminated reporting bias.
2004
AHA and Hereford associations in other countries conducted the national genetic linkage project demonstrating the efficacy of intercontinental genetic evaluation.
2005
AHA conducted the Harris Ranch Project, which validated the direct and maternal heterosis advantages of Hereford genetics. The study documented a $30 dollar advantage for Hereford-sired black baldies, compared to purebred Angus contemporaries, due to health, pounds produced and efficiency throughout the finishing phase. Black baldy females also had a 7% advantage in pregnancy.
2007
AHA conducted the Circle A Ranch Project to validate the direct and maternal advantage of Hereford genetics. Economist Vern Pierce demonstrated the baldy female had a $51 advantage over straightbred Angus due to fertility and longevity.
2009
The first Pan American Cattle Evaluation was released.
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2010
Olsen Ranches, Inc., implemented feed intake systems, adding individual feed efficiency data to the NRSP.
Simplot Ranch, Inc. became a NRSP test herd and validated that Hereford genetics could be used successfully on heifers.
2011
AHA collaborated in the National Feed Efficiency Project. This project established collection of multiple genotypes that would serve as the foundation of the AHA’s genomic-enhanced expected progeny differences (GE-EPDS). This project also served as the basis for the first across-breed comparison for feed intake developed by the U.S. Meat Animal Research Center (US-MARC).
2017
US-MARC released the first across-breed comparison for feed intake, showing Hereford has a feed intake advantage of nearly 2 pounds.
AHA transitioned its genetic evaluation to a mixed marker effect model using only data from progeny born after 2001, when TPR was established, but including three generations of pedigree.
2019
Mershon Cattle LLC, Buckner, Mo., becomes NRSP test herd.
Oklahoma State University published research results showing the baldy female consumes 2 pounds less feed per day while carrying a 0.5 higher body condition score (BCS), compared to straightbred Angus cows.
2020
AHA established a research project with the University of Illinois to fully characterize the maternal efficiency advantages of the baldy female. This project expands on previous research — Harris Ranch, Circle A Ranch and Oklahoma State University –– documenting direct and maternal heterosis.
2022
AHA established a research project with Colorado State University to enhance understanding of the genetic differences in seedstock relative to enteric methane production and nitrogen excretion. The research includes identifying selection tools that can help reduce beef’s carbon and environmental footprint.
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Hereford Genetic Improvement
Much of the breed’s genetic progress during the previous two decades is rooted in the American Hereford Association’s (AHA) Whole Herd Total Performance Records (TPR™), which removed reporting bias from genetic evaluation.
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Look at Chart 1 and you can see Hereford’s continuous improvement in economically relevant traits over the past two decades. It has become a complete and balanced breed offering moderate cow size, adequate weaning and yearling growth, along with appropriate milk levels and carcass quality.
Chart 1
Percentage change in breed-average EPD (2002-2021)
Conversely, you can also see the transformation of Angus from what used to be regarded as a maternal breed to more of a terminal breed, which has emphasized continuous weaning and yearling growth, carcass size and carcass quality. At the same time, mature cow size increased significantly, along with dry matter intake (Chart 2).
Chart 2
Percentage change in breed-average EPD (2002-2021)
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Chart 3
ACCURATE GENETIC EVALUATION IS ESSENTIAL
At the same time, Chart 3 illustrates the Hereford breed’s remarkable improvement in carcass marbling and ribeye area. AHA’s pioneering National Reference Sire Program (NRSP) has enabled comparing young Hereford sires via larger contemporary groups, which proves genetic merit sooner and accelerates the prediction accuracy of expected progeny differences (EPDs). This means breedchanging sires can be identified earlier and with less risk. Since it began in 1999, the NRSP has evaluated more than 460 sires.
Expected progeny differences (EPDs) are the gold standard for genetic selection. Unlike actual and adjusted weights and ratios, EPDs rank animals based on their in-herd performance, compared to those in other herds by the same sire. They utilize contemporary groups that account for contemporary group size as well as management and environmental differences.
The AHA’s genetic evaluation is unmatched. AHA is one of the only two U.S. beef breed association that require whole herd performance reporting. AHA’s is this nation’s only breed-specific intercontinental genetic evaluation.
AHA was also one of the first to incorporate genotypes into genetic evaluation. Genomic-enhanced expected progeny differences (GE-EPDs) increase prediction accuracy faster.
The AHA recognizes breeders who go above and beyond in collecting phenotypes and genotypes as Gold and Platinum Whole Herd Total Performance Record (TPR™) breeders.
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EPD
Percentage change in breed-average
(2002-2021)
AHA Provides Myriad Member and Customer Services
The American Hereford Association offers members and commercial users of Hereford genetics a number of services and programs beyond maintaining the accuracy of the herd book and conducting the breed’s genetic evaluation.
COMMERCIAL OPPORTUNITIES
AHA commercial programs focus on expanding market opportunities for users of Hereford genetics.
The Hereford Advantage, Premium Red Baldy and Maternal Advantage programs highlight the use of Hereford bulls of superior genetic merit. The programs provide a platform for program participants to document and market calves sired by genetically superior Hereford bulls.
The Hereford Feedout Program and the National Junior Hereford Association Fed Steer Shootout provide participants a convenient, cost-effective way to evaluate how
their genetics perform in the feedlot and on the rail.
AHA staff represent the breed at key commercial events and sales, as well as networking one-on-one with auction markets, order buyers, feedlots and beef packers.
CONNECTING PRODUCERS AND CONSUMERS
Certified Hereford Beef® (CHB) is a premium branded beef program providing foodservice and retail customers the opportunity to grow their business through offering a unique, differentiated beef product of the highest eating quality, backed by unwavering customer service. Through beef packing partner, National Beef LLC, the CHB value grid also expands marketing opportunity for users of Hereford genetics. Overall, Certified Hereford Beef elevates the visibility of the Hereford breed.
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SERVING HEREFORD BREEDERS
AHA member services range from helping members register cattle and submit performance data to conducting research pertinent to breed improvement and advancement to breed promotion and industry communications.
AHA field staff assist members with advertising and marketing their genetics, while also promoting the breed and providing information to breeders and commercial producers.
Hereford World, the official breed publication, published by Hereford Production, Inc. provides articles aimed at informing and helping AHA members and their customers. Commercial issues of Hereford World offer broader coverage of the commercial sector and highlight Hereford success in the commercial industry.
AHA’s communications department develops promotional and educational content for delivery across a range of media — everything from videos about how commercial producers are using Hereford to their advantage to podcasts featuring the breed and breeders to targeted social media messaging.
JUNIOR GROWTH
The National Junior Hereford Association (NJHA) is second to none among junior beef breed organizations. It offers Hereford youth multifold opportunities to share their common passion for the cattle they raise, while increasing their knowledge, honing leadership skills, networking and engaging in professional development opportunities. Nearly $200,000 in scholarships are awarded to NJHA members each year, supported by the tireless efforts of the Hereford Youth Foundation of America. The annual VitaFerm® Junior National Hereford Expo is one of the largest junior shows in the world.
LEADERSHIP
The American Hereford Association (AHA) Board of Directors determine organization policy and strategy. AHA staff conduct the organization’s business, developing and executing tactics that fulfill the Board’s strategy. Both groups include recognized industry leaders.
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AHA STRATEGIC PLAN CORE STRATEGIES
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1
Capitalize on the value of Hereford-influenced commercial females.
2
Document, communicate and improve Hereford’s sustainability story.
3
Fuel the growth of Certified Hereford Beef ® .
Increase demand for Hereford-influenced feeder cattle. 4
Build a pipeline of future leaders.
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HISTORY OF THE HEREFORD INDUSTRY
“History of the Hereford Industry,” by Tom Phillips in 1974 graces one of the walls of the American Hereford Association (AHA) in Kansas City, Mo. It is remarkable for the history it captures and its sheer size — 7.5 feet long and 4.5 feet high.The Farm and Ranch Division of the Metropolitan Life Insurance Company commissioned Phillips to paint the mural and then gifted it to the AHA.
The artist provides a description below the mural. This is a portion:
“The story of this mural begins at the bottom center with the trailing of Texas Longhorn Cattle to the railheads of Kansas and on to the marvelous grazing lands of the upper great plains. The cattle pass the Indians who
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have now been subdued. The Buffalo the Indians hunted are now gone from the plains, symbolized by the Buffalo Skull at the lower left.
“In the upper left is the introduction of Hereford bulls onto common Texas Longhorn cows. Then begins the upgrading process across the top of the painting, where the cows gradually change to the more modern type bred today. ANXIETY the Fourth, the most important bull to influence American cattle, is just to the left of center. This bull was imported from England in 1881 by the firm of Gudgell & Simpson of Independence, Missouri. ANXIETY the Fourth is the progenitor of practically every Hereford in America today, all being descendants from his line...”
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AMERICAN HEREFORD ASSOCIATION 11500 N Ambassador Dr., Ste. 410, Kansas City, MO 64153 | 816-842-3757 | hereford.org