POUNDS PAY

by Brittini Bates for Beefmaster Breeders United

Commercial breeders have many options today to market their cattle, and retaining ownership through the feed yard is one of those options. Performance and carcass data producers have received from the feed yard at Irsik and Doll in Garden City, Kan., prove Beefmaster cattle are more than just a maternal breed. Beefmaster and Beefmaster-cross cattle can perform in the feed yard, grade on the rail, and return a profit for producers who market their cattle on the grid. James Skelton, a Beefmaster seedstock producer in Springdale, Ark., started retaining ownership of his calves through the feed yard in 2010, and he has experienced firsthand how well his cattle perform and can earn him a profit.

“This data tells me that Beefmaster and Beefmastercross cattle can do just as well in the feed yard as any other breed, and I have quickly learned how carcass data impacts my bull selection to produce the kind of quality calves that will grade and yield on the rail,” Skelton said.

Over the last seven years Skelton has marketed 453 through Irsik and Doll, and his average dry matter conversion rate is an excellent 5.29 with his best calves converting as low as 4.7. The more efficiently calves convert feed to pounds, the faster they gain, and the less money the producer incurs getting those calves to kill weight. Lower dry matter conversion rates means fewer days on feed and lower cost to gain which yields higher profitability.

At Vaughn Family Farms in Mount Vernon, Mo., owner Davin Vaughn considers their successful low feed conversion as the primary factor to their profitability. His added emphasis on efficiency as a criteria for breeding selection has proven beneficial when retaining ownership of feeder cattle.

“With the last group of cattle we marketed on the grid, we were able to profit $410.57 per head solely based on, what I feel after looking at the data, was low dry matter conversions and a zero percent death loss,” Vaughn said.

Cattle feeder Mark Sebranek said dry matter conversions are really important and can have an impact on cost to gain, especially with the increased corn prices and volatility of grain prices.

“So, it costs the producer less because it doesn’t take as much feed to make these cattle gain,” Sebranek said. “I’ve been impressed with the quick advancements the producers have been making with these Beefmaster calves.” After his average price per head increased by almost $200 from the first set of calves to the second, Skelton said he quickly learned he was leaving $200 to $300 per head on the table by marketing his weaned calves at the sale barn.

Likewise, Jerry Glor from Halfway, Mo., said he prefers retaining ownership through the feed yard due to the premiums he receives for his straight

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bred Beefmaster calves, and selling on the grid provides him a way to market his steers.

“It’s not unusual for Beefmasters to grade Choice or better, and I really enjoy seeing those kinds of premiums for my calves at the feedyard,” Glor said.

Despite the industry misconception that Beefmasters do not grade well, these producers have experienced a high percentage of their Beefmaster calves grading Choice or better. A majority of Skelton’s cattle grade choice, and Vaughn said 76 percent of his last group graded choice or above and 15 percent qualified for

Certified Angus Beef (CAB), which accounted for a $62 per head premium. Of those that qualified for CAB, one head was 3/4 Beefmaster and 1/4 Angus while the rest were straight bred Beefmaster.

“The industry’s perception is Beefmaster cattle typically do not excel in quality grades; however, you’re just leaving money on the table by not breeding for cattle that can have higher marbling scores without sacrificing yield. Because we use marbling as a selection tool, we are able to capture those kinds of added premiums,” Vaughn said.

Beefmaster and Beefmastercross cattle do combine efficiency, quality grade and they add on pounds which Sebranek emphasized is the biggest profit driver in the feed yard.

“We have seen the improvement in performance, dry matter conversions and quality grades in these cattle,” Sebranek said, “but at the end of the day, pounds are what pay.”

As much as the results from the feed yard tell a producer where he can improve, data can also show what producers are doing correctly. Hot carcass weight is what gives Beefmasters the competitive advantage. A highly heritable trait, dressing percentage is what packers are paying for, and Beefmasters certainly deliver.

“The biggest advantage I see with Beefmaster cattle is in dressing percentage,” Sebranek said. “In some cases, when the Choice and Select spread is lower, we actually see the Beefmaster cattle bring more than Angus, Hereford and other breeds just because of dressing percentage. These Beefmaster cattle hang up a nice large carcasses with large ribeyes.”

Sebranek compared a 700-pound Prime Angus carcass and a 900-pound Select Beefmaster carcass. Because pounds pay,

Sebranek said, the Beefmaster carcass is likely to bring a higher premium. With the advancements in DNA testing and genetic markers, there is an unparalleled opportunity for producers to more easily improve quality grades than ever before.

In terms of profitability, Vaughn said their margins were slightly larger in their straight bred Beefmaster cattle as compared to the Anguscrossed calves primarily based on dressing percentage and yield. Of their last group killed, the average dressing percentage was 65.1 percent, average yield grade was 3, and hot carcass weight averaged 895 pounds.

Beefmaster and Beefmastercross cattle can also attribute success in the feed yard to their hardy traits and natural ability to fight diseases. In the seven years Skelton has fed out his calves in the feed yard, his death loss remains 0.22 percent while Vaughn’s death loss is 0 percent. Pounds pay, and feeders don’t make payouts on dead calves.

That includes feed, medicine, yardage, processing expense and insurance. The health bill is an added input cost. So, the healthier the calves, the lower the expenses, the more profit in your pocket.

“In my opinion, death loss is one of the greatest keys. These Beefmaster cattle go into the feed yard with an increased natural immunity as compared to English and Continental breeds, and that’s just because of their natural disease resistance in addition to a stringent vaccination regimen we implement here at home,” Vaughn said.

All of these producers have fed cattle during different seasons throughout the year, so they experienced some of the harshest West Kansas winter as well as the harsh summer, proving Beefmaster cattle perform well in a gauntlet of climates from South Texas to the Kansas plains.

“I can’t control the markets, but I focus on what I can control like genetic selection and animal wellness,” Vaughn said. “We are not in the cattle feeding business. We are in the seedstock business, but the reason we do feed out some cattle is because I know these Beefmaster cattle can be profitable in the feed yard, and it helps us make better breeding decisions for our customers.

The more data we utilize and pass on to our customers, the more informed decisions they can make.”