Bottom Line

Winter 2010

Volume 12, Issue 1

INSIDE...

Limousin Commentary The Limousin breed fits today’s beef industry.

Online Marketplace Is 1 of Many Web-Based Tools NALF offers a lot of helpful applications and information for commercial cow-calf producers on its Web site.

What Drives Value in Feeder Cattle?

Earning premiums for your feeder cattle is a team effort, but the process begins at home.

Research Illustrates Feed Efficiency Feeding experiments repeatedly rank Limousin genetics at or near the top.

Limousin Locator Find the Limousin sales and private-treaty offerings near you.

Bottom Line is published three times per year by the North American Limousin Foundation, 7383 S. Alton Way, Suite 100, Centennial, Colorado 80112; (303) 220-1693; fax: (303) 220-1884; www.nalf.org Executive Vice President Bob Hough, Ph.D., Ext. 120 Dir. of Member & Commercial Relations Frank Padilla, Ext. 123 Dir. of Performance Programs Lauren Hyde, Ph.D., Ext. 140 Dir. of Communications Brad Parker, Ext. 117

Lifetime production can increase by more than 20 percent in crossbreeding programs designed to capture both direct heterosis in crossbred calves and maternal heterosis in crossbred cows.

Experts Agree: Let’s Rediscover Crossbreeding

By Brad Parker As cattle producers continually strive to do more with less, industry experts from coast to coast and border to border have been offering similar advice lately.

“It’s time to rediscover crossbreeding,” said Roy Burris, Ph.D., an Extension beef specialist for the University of Kentucky.

Many of his colleagues agree.

Scott Greiner, Ph.D., an Extension animal scientist at Virginia Tech, said it is one of the oldest and most fundamental principles to reducing costs and enhancing productivity.

“Crossbreeding beef cattle offers two primary advantages relative to the use of only one breed,” he explained. “Crossbred animals combine the strengths of the various breeds used to form the cross, and crossbred animals exhibit heterosis.”

Commercial cattle producers must realize that no single breed excels in all areas that affect profitability, said Matt Spangler, Ph.D., a beef geneticist at the University of Nebraska-Lincoln. continued on page 7

LIMOUSIN COMMENTARY

Limousin Fits Today’s Beef Industry

By R.L. “Bob” Hough, Ph.D. Executive Vice President North American Limousin Foundation R.L. “Bob” Hough

The Limousin breed has a long and proud heritage of serving the commercial cow-calf sector. The fact that, when the association was founded, it was called a foundation instead of an association was to help differentiate it from other breed associations of the time. According to founder Dick Goff, “We needed an organization that would combine breed registration and pedigree services with a performance recording and research entity as well.” Thus, the Limousin breed has a long history of being performance- and research-based – all in an effort to serve the beef industry better.

Early on, research from Oklahoma State University demonstrated the Limousin breed’s ability for calving ease and calf vigor when compared to the other Continental breeds. This long has been a hallmark of the Limousin breed. Continental growth and excellent muscling were obtained without the calving problems often associated with those traits. Early research also showed that Limousin cattle were unequaled in efficiently producing red-meat yield per pound of input.

Page 2

The North American Limousin Foundation (NALF) also was one of the pioneers in producing genetic predictions, being the first to send whole-herd expected-progenydifference (EPD) reports – including cows – to breeders in 1985. Up until that time, the industry had produced only sire summaries. Extensive surveys of commercial customers and long-range planning also identified breed weaknesses, and NALF’s 1985 strategic plan identified scrotal circumference and disposition as areas that needed attention. In response, NALF has generated EPDs for scrotal circumference and docility that have changed the breed dramatically. Limousin breeders recognized the weaknesses some of their cattle possessed and fixed the problems; therefore, the Limousin cattle of 2010 are very different from those of 1985.

Research also identifies Limousin as the outstanding breed for feed efficiency. That is of huge importance in today’s cattle industry, and Director of Performance Programs Lauren Hyde, Ph.D., has more to say about it in this issue of the Bot-

Winter 2010

BOTTOM LINE

tom Line. The Limousin advantages in feed efficiency, calving ease, growth and muscling truly make it the Continental breed of choice when breeding British-based cows. Halfblood Limousin cattle sell well, excel in the feedyard and are ideal for commodity grids.

One of the products the Limousin breed has to offer is the Lim-Flex® (Limousin and Angus or Red Angus) hybrid. These bulls offer tremendous flexibility for commercial producers who wish to maintain a lower percentage of Continental genetics in their cow herds. That is especially important for those wishing to hit the upper two-thirds of the Choice quality grade but want to avoid Yield Grade (YG) 4. Lim-Flex cattle also can be straightbred for the commodity market while maintaining heterosis, a uniform cow herd and a simple crossbreeding system.

As for marketing options, Limousin can help in many ways. NALF has a feeder-calf listing service. You can sell listed cattle by private treaty, through an auction market or on a video auction. There also are many special Limousin-influenced feeder-calf auctions at markets across the country. We also will be advertising for the first time in the major videoauction catalogs to help cattle selling in those venues.

For producers breeding higher-percentage Limousin cattle who keep them natural, Laura’s Lean Beef is an excellent outlet for feeder and finished cattle. Strauss Brands takes natural veal calves straight off their mothers with no preconditioning; and it pays the same for bull, steer and heifer calves, making an excellent premium market for those who can meet their target carcass weights. Strauss Brands ideally wants calves continued on page 4

LIMOUSIN’S COMMERCIAL CONNECTION

Hough Is NALF’s 9th Chief Executive R.L. “Bob” Hough, Ph.D., is the new executive vice president (EVP) for the North American Limousin Foundation (NALF). The organization’s Board of Directors offered him a two-year contract at its meeting in August 2009, and he settled into the NALF office the following month.

In NALF’s primary leadership position, Hough is responsible for executing policies and programs regarding the herdbook, animal performance, member and industry relations, breed marketing and promotion, finances, staffing, strategic planning, and various member services.

“I am excited to join the Limousin team and am looking forward to growing the Limousin breed,” Hough said. “Our goal as a staff and as a breed will be making Limousin the Continental common denominator in progressive commercial producers’ crossbreeding systems.”

Hough most recently was a senior principal and the livestock-industry practice leader at the Haines Centre

Winter 2010

continued on page 4

Page 3

Limousin Fits Today’s Commercial Industry continued from page 3

Hough Is NALF’s 9th Chief Executive continued from page 3

that are about 50 percent Limousin and 50 percent Angus. Contact Director of Member and Commercial Relations Frank Padilla, (303) 220-1693, Ext. 123, for more information about either of those programs.

New this year, we will update – free of charge – nonmember commercial customers’ EPDs for their bull inventories based on the latest International Limousin Genetic Evaluation. Remember, to take advantage of that service, your seedstock supplier must have transferred the bulls to your ownership. EPDs will be available in mid-January, and you can obtain them by contacting Frank.

For those bull customers who have been using Limousin genetics, I thank you. For those who are not, it is time to take another look. Limousin is the ultimate complementary breed for Angus- and Red Angus-based cow herds. The breed is right for today’s market and economic circumstances. It is a breed that has taken pride, from the beginning, in basing itself on science.

When it has had a problem with the cattle, it has not swept it under the rug but stood up and fixed the problem. The Limousin breed always has taken the longterm attitude of doing what is right for its customers, America’s commercial cattle producers.

Page 4

for Strategic Management. He previously served for three years as the marketing coordinator then 10 years as the chief executive at the Red Angus Association of America (RAAA). His other professional experiences include working as an Extension specialist in Arizona and Maine. The Maine beef industry subsequently inducted him into its hall of fame.

While at RAAA, Hough led the development of the industry’s first process-verified program (PVP), the Feeder Calf Certification Program. He also implemented a carcass expected progeny difference (EPD) program and negotiated value-based marketing grids with two major packers. Under his leadership, RAAA released the industry’s first reproduction sire summary in 2002.

He grew up on his family’s livestock farm in With roots in his family’s Pennsylvania Pennsylvania. He livestock farm, Hough remains actively hands-on in the cattle business. has a bachelor’s

Winter 2010

BOTTOM LINE

degree from Pennsylvania State University, a master’s degree from the University of Connecticut, and a doctorate from the Virginia Polytechnic Institute and State University. All of his degrees are in animal science.

Hough has served on the Beef Improvement His training and experience Federation (BIF) board of make Hough a knowledgeable directors and program evaluator of sale offerings and committee, was a guidelines show entries. author and editor for breeding-herd evaluation, and chaired a committee on wholeherd reporting. He has received the BIF Continuous Service Award.

He was a founding member of the Ultrasound Guidelines Council (UGC), has been president of the U.S. Beef Breeds Council (USBBC), and served on the boards of directors for the National Pedigreed Livestock Council (NPLC) and the National Beef Cattle Evaluation Consortium (NBCEC).

Hough has written more than 200 articles; co-authored a book, Breeds of Cattle; and wrote another book, The History of Red Angus. He has addressed beef industry audiences in 27 states, four Canadian provinces and four other countries.

He has served on the steering committee for the National

LIMOUSIN’S COMMERCIAL CONNECTION

4-H Livestock Judging Contest for more than 15 years; and he has judged livestock shows in 15 states, four Canadian provinces and two other countries.

“We are excited about the things Dr. Hough brings to the table,” said NALF President Bob Millerberg, Draper, Utah.

“His strong leadership skills and proven track record will be assets to the Limousin breed as we continue to work together to increase our market share.”

Hough succeeds Kent Andersen, Ph.D., who became NALF’s EVP in 2000 after serving as director of education and research since 1990.

Andersen left the organization July 1, 2009, to become an associate director at Pfizer Animal Genetics.

NALF now has had nine chief executives since its founding in June 1968: Richard Goff, 1968 to 1972; Dale Runnion, 1972; Bob Vantrease, 1972 to 1977; Greg Martin, 1977 to 1988; Hough addresses a beef Jerry Fitzgerald, 1988 to industry audience in 1997.

1989; Wayne Vanderwert, His speaking engagements 1989 to 1992; John Edwards, have taken him to 27 states, four Canadian provinces and 1992 to 2000; Andersen; four other countries. and Hough.

Winter 2010

Page 5

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Experts Agree: Let’s Rediscover Crossbreeding

Better Than Average

Also known as hybrid vigor, heterosis is the amount by which crossbred animals exceed the average of the pure breeds used in a crossbreeding system. Research conducted continued from page 1 at Nebraska’s Fort Robinson Beef Cattle Research Station in “Breed combinations can be engineered to accommodate the early 1960s provided the scientific documentation for hetenvironmental constraints and meet marketing objectives,” erosis, and numerous studies since then have documented he said. crossbreeding’s effectiveness.

Thoughtfully applying the principles of crossThe amount of heterosis expressed for a given breeding can improve returns, said Bob Hough, “I am confident trait relates inversely to its heritability, which is Ph.D., executive vice president for the North the proportion of the measurable difference that we can no American Limousin Foundation (NALF). observed between animals that is due to additive longer forget how to “In crossbreeding, genetic variation comes genetic differences and passes from one generareduce input costs, from both the selected variation within a breed tion to the next. Because reproductive and materand heterosis has and the genetic variation between the selected nal traits have low heritabilities, their responses breeds,” he noted. “When producers apply to be part of to selection will be slower; however, producers selection pressure across breeds to allow one that equation.” can make significant improvement in those traits breed’s strength to offset another’s weakness, through crossbreeding programs that maximize — Dave Daley these breed differences are referred to as breed heterosis. With growth traits, which are moderate complementarity. That achieves a higher frefor heritability and heterosis, progress is possible quency of desired genes among the crossbreds than could be through both selection and crossbreeding. found within a single breed.”

David Daley, Ph.D., is an associate dean in the California Frank Padilla, director of member and commercial relaState University-Chico College of Agriculture, where he tions for NALF, used a common phrase in the cattle busidirects the school’s beef program. He also manages his own ness to express his support for the concept: “The closest herd of several hundred commercial cows. thing to a free lunch is taking advantage of an organized “Recently, I am hearing concern from some very large, procrossbreeding system. Breed complementarity and heterosis gressive producers as their cows become more straightbred benefit every production sector by adding genetic diversity, in a tough environment. Longevity, rebreeding and calf survivoptimal immune response, and other health and performance advantages.” continued on page 8

LIMOUSIN’S COMMERCIAL CONNECTION

Winter 2010

Page 7

Experts Agree: Let’s Rediscover Crossbreeding

Bob Hough

Matt Spangler

continued from page 7 ability all become important issues,” Daley said. “I don’t think it is because they have bought the wrong bulls or managed their ranches incorrectly. It is because they have forgotten or ignored heterosis.”

“I am confident that we can no longer forget how to reduce input costs, and heterosis has to be part of that equation,” he stated.

The subtle, cumulative improvement that heterosis provides does not lend itself to maximums, Daley also noted, adding, “Because heterosis is expressed as a small net positive in many traits, we do not know it when we see it.”

Although the individual change in one trait is small, he said, lifetime production can increase by more than 20 percent in programs designed to capture both direct or individual heterosis in crossbred calves and maternal heterosis in crossbred cows.

Dave Daley

Individually Speaking Greiner explained that the advantage of the crossbred calf is two-fold: an increase in calf livability coupled with an increased growth rate relative to its straightbred parents.

To illustrate the first point, Cathy Bandyk, Ph.D., an animal scientist at Quality Liquid Feeds, cited an in-depth multibreed analysis done at the U.S. Meat Animal Research Center (USMARC) in the 1970s. It showed crossbred calves exhibited

Page 8

Frank Padilla

Winter 2010

Lauren Hyde

BOTTOM LINE

Cathy Bandyk Roy Burris

Scott Greiner

Gary Hansen

less death loss and better gains – and, therefore, more pounds of weaned calf – compared to purebred animals. “Death loss among the crossbred calves was just 5.2 percent, compared to 14.2 percent for the purebred calves,� she said.

Research has shown weaning weights for crossbred calves are 5 percent greater than those for straightbred calves, and yearling weights are 4 percent greater. Burris noted that two-breed–cross calves weigh about 30 pounds more at weaning than straightbred calves, and calves averaged about 80 pounds heavier at weaning when they were out of a two-breed–cross cow and a third breed of bull.

Historical data also show consistent performance advantages for crossbred feeder calves and finished cattle, Bandyk added. Again referring to USMARC research, she said the calves of British-based cows and Continental or Bos indicus sires had significantly reduced rates of bovine respiratory disease (BRD).

Padilla has witnessed that better health in the feedyard and said, “That’s why feedyards like buying calves that will have good hybrid vigor. Crossbred steers can show a $45 per head advantage over straightbred steers.�

Maternal Perspective Commercial cow-calf producers realize even more benefits from crossbreeding when they use crossbred

Brett Barham

continued on page 10

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“F1 crossbred cows weaned calves that were 38 pounds heavier than similar straightbred cows, even though crossbreeding had virtually no effect on birth weights,” she noted, referring to data from Texas A&M University. “No price precontinued from page 9 mium for a certain breed can help overall returns unless it is cows because maternal heterosis results in improved cow ferlarge enough to overcome the reduction in total pounds tility, calf livability, calf weaning weight and cow longevity. weaned or sold.”

“Those cumulative effects increase productivity tremenPadilla said the benefits of crossbreeding have proved dously,” Hough said. “Maternal heterosis is expressed in the themselves many times over in university research, at crossbred female’s progeny, such as their heavier weaning USMARC and on ranches across the country. weights due to her increased maternal production.”

“Crossbred females are 30 percent more productive over Padilla pointed to research that showed their lifetimes,” he stated. “Some models show a crossbred females to be 8 percent more efficient “Some models planned crossbreeding program can add more than purebreds, to live 38 percent longer and to than $500 over the life of a crossbred cow. That’s show a planned have 25 percent more lifetime production in about $50 per year.” crossbreeding pounds of calf weaned. In addition, first-calf That looks even better when you consider, as program can add crossbred heifers have shown a 7 percent advanMontana State University research has shown, more than $500 over tage in conception rates compared to their that the average crossbred dam remains in the the life of a straightbred herdmates. herd about two years longer.

Hybrid vigor also gives crossbred cows crossbred cow.”

USMARC studies have illustrated that using stronger immune systems; hence, they develop crossbred cows reduces the breakeven costs of — Frank Padilla better immunity after vaccination. They then production by about 10 percent. And the opporimpart better colostrum to their calves, keeping tunity costs of ignoring heterosis are cumulative them healthier during their early days. because small losses add up to a substantial drop in lifetime Bandyk said USMARC researchers found that crossbred productivity. calves from straightbred cows weighed 8.5 percent more than Daley summarized it this way: “It is time for many producstraightbred calves, crossbred cows bred back to parental ers to design long-term, simplistic plans that capture maternal breed bulls weaned 14.8 percent more pounds of calf, and heterosis. I would not want to manage cattle in any environcrossbred calves from crossbred cows were 23.3 percent ment without that incredible value.” heavier at weaning. continued on page 11

Experts Agree: Let’s Rediscover Crossbreeding

Page 10

Winter 2010

BOTTOM LINE

When constructing a crossbreeding plan, each breed should help meet marketing objectives and enhance the qualiGreiner said an ideal crossbreeding program should (a) ty of calves, Spangler said. He cautioned, however, that optimize, but not necessarily maximize, heterosis in both the expected progeny differences (EPDs) are not helpful in calf crop and, particularly, the cow herd; (b) use breeds and selecting between breeds because EPDs from one breed are genetics that match the enterpriseâ&#x20AC;&#x2122;s feed resources, managenot directly comparable to those of another. (He noted, ment and marketing strategy; and (c) be easy to apply and although, that producers can use the USMARC across-breed manage. adjustment factors to categorize breeds based on their genetEach system has advantages and disadvantages, said Gary ic potentials for certain traits.)

He suggested looking at the Hansen, Ph.D., an Extension livestock specialist for North existing herd composition then choosing another breed that Carolina State University, but cattle producers should find a complements those cattle. way to capture heterosis in their herds. Relatedly, he noted Hansen also encouraged producers to use the that breeds from diverse genetic backgrounds breeds that are the most economically producâ&#x20AC;&#x153;Considerable will express higher levels. For example, British tive for their enterprises and management styles, breeds crossed with each other will result in differences between reminding them that no single breed is best at less hybrid vigor than when crossed with Contibreeds exist and everything. nental or Bos indicus breeds. may be effectively For example, Greiner offered, coupling the When selecting breeds to use in a crossbreedutilized by British breedsâ&#x20AC;&#x2122; general advantages in marbling ing program, Bandyk said, some basic points potential with the Continental breedsâ&#x20AC;&#x2122; red-meatâ&#x20AC;&#x201C; crossbreeding.â&#x20AC;? will apply to all enterprises: yield advantages results in offspring that have â&#x20AC;&#x201D; Scott Greiner â&#x2013; local availability of breeding stock that meets desirable levels of both quality grade (marbling) the specifications; and yield grade (retail yield). â&#x2013; complementarity of the breeds used; Todayâ&#x20AC;&#x2122;s genetics offer the opportunity to stabilize coat â&#x2013; cows and calves that fit available resources and the local color and polled status while maintaining a crossbreeding environment; and program, he added. Technological advances, such as DNA â&#x2013; crosses that produce animals suited for the target markets. genotyping, have made it possible to manage such qualitative traits in several breeds; therefore, they do not need to be limConcerning that last point, Greiner advised, â&#x20AC;&#x153;specifically iting factors. include the targeted carcass-merit end point. Considerable

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Winter 2010

Page 11

Experts Agree: Let’s Rediscover Crossbreeding continued from page 11 Hansen encouraged commitment: “Use breeds that complement each other. Do not become the ‘bull of the month’ club with your bull battery.”

Utilize the various breeds’ strengths for a viable crossbreeding system, Greiner said, and maintain uniformity from one generation to the next with sire selection – both within and between the breeds.

“Bull selection within a breed is equally important,” he explained. “EPDs are very useful and important tools in accomplishing that task.”

Spangler agreed that EPDs and economic indexes are necessary for choosing individual animals.

“Those tools really center on the genetic aspects of individual animals,” he said.

A crossbreeding program requires quality cattle if it is to outperform straightbreeding and produce a product that meets consumer demand, Hansen stated.

“Crossbreeding will not overcome poor genetics,” he said.

“Use quality animals when selecting the bulls to use in your herd.”

Application Greiner noted several factors and challenges to consider when evaluating different crossbreeding systems:

Page 12

■ ■ ■ ■ ■ ■

the number of cows in the herd; the number of available breeding pastures; labor and management; the amount and quality of feed available; the production and marketing systems; and the availability of high-quality bulls of the various breeds.

Hough’s list included a few more items: a source of replacement females, identification and recordkeeping systems, matching biological types, and fitting the production environment.

“The ‘ideal cow herd’ and breeding program vary depending on the area in which the enterprise is located, the product and the target market,” he explained. “Once you have analyzed those aspects, you can design and implement a crossbreeding program that will help you achieve your production goals and marketing plans. The system must fit practical constraints.”

Overall, the cumulative effect of crossbreeding when you consider several traits is more important than the effect on any one particular trait, Greiner reiterated, so you must design effective crossbreeding programs to optimize performance, not necessarily maximize it.

“Still, a major challenge to making a crossbreeding program work is keeping the system sustainable without sacrificing optimum levels of heterosis and breed complementarity,” he cautioned. “A well-designed, manageable crossbreeding system is an important aspect in making genetic progress in the various economically important traits that drive profitability in today’s beef industry.”

Winter 2010

BOTTOM LINE

Simplify With Composite Seedstock Most beef herds are too small to implement standard crossbreeding systems. Using composite cattle might be an advantage to smaller-scale producers who have singlesire herds because it can simplify for them the use of breed combinations for their production environments.

A composite is a hybrid breed made up of at least two component breeds, explained Brett Barham, Ph.D., an Extension livestock specialist for the University of Arkansas. Its design retains heterosis in future generations without a complicated crossbreeding program, and producers can maintain the genetic composition as they would with a pure breed.

Employing composite seedstock provides a dependable strategy to maintaining uniformity without sacrificing production potential as you do with the inbreeding and linebreeding necessary to produce purebred animals.

“Once producers establish a composite and random (closed-herd) mating occurs among cattle with a similar breed makeup, the resulting heterosis should be constant,” Barham said. “The main disadvantage of using composite breeds is the lack of extensive per formance data to compare individuals.”

The seedstock sector rapidly is mitigating that drawback, said Bob Hough, Ph.D., executive vice president for the North American Limousin Foundation (NALF). For example, NALF maintains pedigree and per formance records for

its Lim-Flex® (Limousin and Angus or Red Angus) hybrid seedstock just as it does for its fullblood and purebred animals.

In fact, NALF conducts its semiannual International Limousin Genetic Evaluation in cooperation with Angus Genetics Inc. (AGI) to help overcome any shortfall in performance data for the Lim-Flex population.

Working with AGI offers some distinct advantages, said Lauren Hyde, Ph.D., director of per formance programs for NALF. “The improved hereditar y ties to Angus seedstock make genetic predictions for Lim-Flex animals the most timely and reliable of any for Angus-influenced composite seedstock,” she stated. “No other multibreed genetic evaluation in the world more thoroughly incorporates per formance information from two populations of animals as does AGI’s work for NALF.” Accurately described seedstock resources are paramount to the success of a crossbreeding program, Hough added.

“Our more accurate accounting for past and present-day Angus genetics not only enhances predictions for Lim-Flex animals but also for our purebreds and fullbloods,” he said, “so our hybrid seedstock offer the advantages of accurate genetic predictions, heterosis and breed complementarity in one package.”

Mobridge, SD

LIMOUSIN’S COMMERCIAL CONNECTION

Winter 2010

Page 13

BREEDER SPOTLIGHT

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Phone: (254) 597-0044 www.colonialoaksranch.com e-mail: colonialoaksranch@htcomp.net

KEETON LIMOUSIN 21314 OSR Madisonville, TX 77864 Mobile (281) 808-3473 Home (903) 344-2331 www.counsilfamilylimousins.com

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JIM HCR 74, Box 146 Fort Davis, TX 79734-5005 (915) 426-3435 • fax (915) 426-3126

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636-441-2439

Craig Laroue Ranch Manager (903) 292-9080

WESTERN REGION BREEDERS TERRY OʼNEILL

EXPRESS RANCHES 2202 N 11TH STREET YUKON, OKLAHOMA BOB FUNK, OWNER 800-664-3977 405-350-0058 FAX squires@expressranches.com

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Page 16

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Winter 2010

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Brad & Janet Waddle 440 Road 161 Pine Bluffs, WY 82082 307-245-3599 waddlelimousin@rtconnect.net BULLS AND FEMALES AVAILABLE AT THE RANCH

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Winter 2010

Randall O. Ratliff 3610 Bear Creek Ln Thompson’s Station, TN 37179 Office: 615.791.8982 Fax: 615.791.8983 Mobile: 615.330.2735 www.rrmktg.com e-mail: sales@rrmktg.com

Page 17

Search, Sort, Select With the Limousin Exchange NALF’s online marketplace is one of its many Web-based tools.

By Brad Parker The Limousin Exchange Bull Listing Service (BLS) is a popular feature of the North American Limousin Foundation (NALF) Web site (www.nalf.org). It allows bull buyers to search for Limousin and Lim-Flex® herd-sire prospects online by clicking the “Limousin Exchange: Bull Listing Service” link on the organization’s home page. Both private-treaty and public-auction offerings are included in the searchable database.

Those looking to take advantage of Limousin genetics can identify a variety of criteria – including state, owner, expected progeny differences (EPDs), coat color, polled status, percent blood, sale date, sale type and price – to obtain information about the bulls that fit their specifications. Also included in a bull’s listing are his name, registration number, tattoo, birthdate, pedigree, ultrasound-scan data, owner contact information and additional comments. Users can sort the results by any trait.

The Limousin Exchange also is a convenient, online marketplace for Limousin and Lim-Flex females and Limousininfluenced feeder calves. Just like the Bull Listing Service, the “Females for Sale” and “Feeder Calf Classifieds” components allow prospective buyers to search, sort and select on many criteria. The Feeder Calf Classifieds also allow commercial cow-calf producers to post calves for sale in a free, easy-to-

Page 18

use advertisement with worldwide exposure.

The BLS and “Females for Sale” link to listings in the Web site’s member directory, making it easy for buyers to obtain sellers’ contact information when those searches identify their animals.

“It’s easy and basically a free service because the seller’s listing fee is subtracted from the transfer,” said Gary Gates of Gates Limousin in Montana.

NALF also offers a lot of other helpful information for commercial cow-calf producers online. For example, you can view Limousin herdbook entries via the EPD and pedigree lookup. An animal’s pedigree page includes information about its color, polled status, ancestry, Mainstream Terminal Index ($MTI) value and individual performance measurements.

The site’s “Genetic Evaluation” section includes the latest sire summary. New EPDs are available on the Web site around Jan. 1 and Aug. 1 each year. The site’s Sire Selector interfaces with the International Limousin Genetic Evaluation to search for bulls with specific EPD profiles and other characteristics.

If you need help locating breed information on the Web, send an e-mail message to limousin@nalf.org or call the NALF office at (303) 220-1693.

Winter 2010

BOTTOM LINE

What Drives Value in Feeder Cattle?

By Frank Padilla The prices customers are willing to pay for a certain product determine its value in the marketplace. If they are satisfied, they will return to buy that product again. The same is true in the cattle industry.

Feeder-calf buyers demonstrate their preferences through the prices they pay – on or off the farm or ranch. The value of various traits can vary widely from sale to sale and depends on the market conditions. Over time, however, we can determine a good estimate of what buyers prefer.

The factors that drive the value of a feeder calf are its gender, weight, frame size, muscle score, health status, bloom and appearance of freshness. The market dictates the value of which management and marketing practices a producer chooses.

Another study conducted by the University of Arkansas documented the traits and management practices that can add value to a feeder calf. From 2000 to 2005, university staff members worked with U.S. Department of Agriculture (USDA) livestock-news reporters to track data from 17 markets across the state. The data included the number of cattle sold at a time, gender, breed or breed type, color, polled or horned, frame (large, medium or small), muscle score (1, 2, 3 or 4), fill (gaunt, shrink, average, full or tanked), condition (very thin, thin, average, fleshy or fat), age (calf or yearling), health, weight, and price.

The results were similar to the Oklahoma results. Here are a couple of the highlights.

Real-World Examples

■ Discounts for unhealthy calves ranged from $15 to $38 per hundredweight.

■ Muscle was a major factor that affected the selling price, regardless of calf weight.

Several land-grant universities and private entities have tracked feeder-calf demand. An Internet search finds a wealth of information from various regions of the United States. An OklaProduct Specifications homa project estimated buyer preferIf you want to increase the value of Feeder-calf buyers have varying preferences that ences with data from 20 Oklahoma help determine the prices they are willing to pay. your calves, produce exactly what the Quality Beef Network (OQBN) sales. feeders are wanting: same-sex loads of The research found buyers paid more for the following: calves that are light in flesh, like in kind, preferably weaned and with a history of good feedyard performance and carcass ■ steer calves compared to heifers, bulls or mixed lots; merit. And use a good health program.

■ medium-framed calves compared to large- and smallAnother consideration for adding more value is backframed calves; grounding. The longer you develop a calf at home after wean■ heavy-muscled calves compared to moderate and thining, the more immunity it develops. That reduces the risk of muscled calves; sickness in the feedyard. Through the years, the marketplace ■ polled or dehorned-and-healed calves compared to horned has discounted calves that have sold unweaned or weaned for calves; only a short period.

■ healthy calves compared to unhealthy-appearing calves; Source-and-age verification is another way to earn added ■ uniform sale lots compared to nonuniform lots (including value. It is out there, and it is real. It can be anywhere from a color); and $20 to $30 per head premium. We also are seeing premiums for ■ larger sale lots (even 15 to 20 head) compared to singlefeeder calves that are verifiably antibiotic- and hormone-free. animal lots. continued on page 23 Page 20

Winter 2010

BOTTOM LINE

LIMOUSIN’S COMMERCIAL CONNECTION

Winter 2010

Page 21

What Drives Value in Feeder Cattle? continued from page 20 Historically, the average cow-calf producer has not worried about the calf ’s performance beyond weaning.

Today, cow-calf producers need to understand the importance of feed efficiency, gain and carcass quality. They must collect data to quantify how their cattle perform in the feedyard and packinghouse. Producers should be conscious of those performance traits in the bulls they purchase and be able to furnish such data to their feeder-cattle buyers upon request.

Balance The North American Limousin Foundation’s (NALF’s) Mainstream Terminal Index ($MTI) is a multiple-trait selection tool, expressed in dollars per head, designed to assist beef producers by adding simplicity to genetic selection decisions. It measures differences in expected profit per carcass produced for a mainstream grid (Yield Grade 1 or 2, Select to low-Choice quality grade, and no over- or underweights or dark cutters).

NALF based $MTI on the assumption that Angus–Hereford cows in a two-breed rotation are mated to Limousin-influenced terminal sires. Further, the index assumes the resulting calves sell into a commodity beef market with premiums and discounts based on both quality and yield grades. It estimates how future progeny of each sire will perform, on average in the same environment, compared to progeny of other sires in

LIMOUSIN’S COMMERCIAL CONNECTION

the Limousin herdbook if you randomly mated the sires to similar herds of black-baldie cows. $MTI is important to feeder-cattle buyers, and you should share information regarding it with them.

When using $MTI, it is wise to select simultaneously for economically relevant traits (ERTs) that are not included in the index. NALF developed the index for use in a terminalsire situation in which Limousin and Lim-Flex® bulls and mature, British-based cows produce calves for the feedyard and a mainstream grid. Maternal traits, such as calving ease, are not included in the index.

If you intend to use high-$MTI bulls on first-calf heifers, you also will want to use expected progeny differences (EPDs) for direct calving ease to minimize calving difficulty.

Likewise, to keep pace with the Limousin breed’s tremendous improvement in temperament, NALF also advises selection for superior docility EPDs. For more information about $MTI and NALF’s EPDs, contact its home office at (303) 220-1693 or visit the “Genetic Evaluation” section of the NALF Web site (www.nalf.org).

Results Getting the most value for feeder cattle is becoming more of a team effort. From the seedstock producer to the cow-calf producer to the feeder and packer, everyone needs to work together to produce the best product possible for the consumer. That, in turn, will add more value for all links in the chain.

The fact is the process of earning a premium in the marketplace – whether at the auction market, off the farm or ranch, or in the packinghouse – begins at home.

Winter 2010

Page 23

Research Illustrates Limousin Feed Efficiency

By Lauren Hyde Among the Continental breeds in a 2004 study, Limousin ranked first in liveweight gain per unit of maintenance energy consumed to 187 days on feed.

Throughout history, Limousin cattle have been extremely efficient at and well suited to meat production. Although there is anecdotal evidence supporting that claim from experience with the breed, the U.S. Meat Animal Research Center (USMARC) near Clay Center, Neb., has been accumulating scientific evidence since the early 1970s, when producers permanently imported the first Limousin bulls into the United States.

In the first germplasm evaluation (GPE) progress report, released in 1974, researchers at USMARC compared progeny of Limousin, Angus, Charolais, Hereford, Jersey, Simmental and South Devon (Cycle 1) sires out of Angus and Hereford dams for several traits, including feed efficiency. They defined feed efficiency as pounds of total digestible nutrients (TDN) consumed per pound of gain and recorded it after 212, 247 and 279 days on feed. Among the Cycle 1 breeds, Limousin ranked the highest for average feed efficiency with a leastLIMOUSINâ&#x20AC;&#x2122;S COMMERCIAL CONNECTION

squares mean of 6.56 pounds.

Agricultural Research Service (ARS) Technical Bulletin No. 1875, published in 1999, is a summary of results from a 15-year USMARC study in which researchers compared composite breeds to their parental breeds for major bioeconomic traits. They evaluated gain efficiency at four different end points (to 207 days; from 684 to 1,191 pounds; to a carcass weight of 734 pounds; and to a retail-product weight of 463 pounds) for nine parental breeds (Limousin, Angus, Braunvieh, Charolais, Gelbvieh, Hereford, Pinzgauer, Red Poll and Simmental) and three composites developed at USMARC (MARC 1, MARC 2 and MARC 3).

Limousin ranked first for both liveweight gain (LWG) and retail-product gain (RPG) per megacalorie (Mcal) of maintenance energy (ME) on a time-constant basis, second for continued on page 26

Winter 2010

Page 25

Table. Breed-Group Means for Different Measures of Gain Efficiency

Breed group

Time constant (to 207 days) LWG1 RPG2

No. of carcasses

Gain constant (684–1,191 lb.)

LWG1

To a carcass wt. of 734 lb.

LWG1

To a retail-product wt. of 463 lb.

RPG2

Limousin

138

54

47

51

54

57

Hereford

133

54

34

48

51

24

Charolais

125

52

40

52

53

50

Simmental

126

51

38

52

52

46

Pinzgauer

119

50

39

50

50

40

Braunvieh

138

50

38

51

51

42

Angus

117

50

35

48

49

26

Red Poll

114

49

35

48

48

28

Gelbvieh

148

48

40

49

49

49

1,599

51

38

50

51

40

Overall 1

Liveweight gain in grams per megacalorie of maintenance energy 2 Retail-product gain in grams per megacalorie of maintenance energy Source: USDA-ARS Technical Bulletin No. 1875 (1999)

Research Illustrates Limousin Feed Efficiency continued from page 25 LWG on a weight-constant basis, first for LWG to a constant carcass weight and first for RPG to a constant retail-product weight.

From GPE Progress Report No. 22 (2004) – a comparison of Cycle 7 breeds (Limousin, Angus, Charolais, Gelbvieh,

Page 26

Hereford, Red Angus and Simmental) – differences between Continental and British breeds in many traits are not as great as they were 30 years ago in Cycle 1. Among the four Continental breeds, however, Limousin ranked first in LWG per unit of ME consumed (pounds per megacalorie) to 187 days on feed; second from a weight of 750 to 1,300 pounds; second to a marbling score of Small35; first to a fat thickness of 0.43 inch; first to a fat trim of 24.8 percent; and second to 456 pounds of retail product. continued on page 27

Winter 2010

BOTTOM LINE

Beginning in 2003, USMARC started a long-term feed-efficiency research project in which scientists will collect individual feed-intake data and DNA samples for steers and heifers produced from Cycle 7 of the GPE study. Although one of the primary objectives of the steer and female experiment is to develop the tools needed to help create expected progeny differences (EPDs) and genetic markers for selection on feed efficiency, breed characterization likely will be a byproduct of the research, with the Limousin breed ranking at the top.

Glossary Feed-conversion ratio (FCR) is the ratio of units of feed consumed to units of weight gained. FCR is the most common measure of efficiency, but growth and composition of gain highly influence it. Selection for increased growth indirectly results in selection for improved (lower) FCR; however, selection pressure to improve FCR might result in increased birth and mature weights.

Residual feed intake (RFI) is the difference between actual feed intake and expected feed intake, accounting for body size and production. In statistical terms, RFI is independent of the traits with which it might be correlated, such as growth rate, fat deposition, milk production and body size. That allows for selection on favorable (lower) RFI without unfavorable effects on other traits.

LIMOUSINâ&#x20AC;&#x2122;S COMMERCIAL CONNECTION

Feed Intake, Utilization in Beef Cattle Improvement

By Denny Crews For more than 20 years, significant genetic improvement of beef cattle has resulted from the use of such tools as expected progeny differences (EPDs) and selection indexes for economically relevant traits (ERTs). The industr y has obser ved the largest genetic trend for traits associated with outputs or revenues, such as Denny Crews reproductive and growth rates, carcass yield and meat quality.

Relatively little genetic progress has been made, however, for traits associated with input costs. Cattle feeding and feed supplementation account for more than two-thirds of the variable costs of beef production. Therefore, genetic improvement in feed utilization has the potential to result in large economic benefits for the beef industry and to reduce the feeding sectorâ&#x20AC;&#x2122;s environmental footprint.

Historically, a major limitation to implementing largescale genetic improvement programs for feed utilization was

Winter 2010

continued on page 29

Page 27

Feed Intake, Utilization in Beef Cattle Improvement continued from page 27 the cost and labor associated with collecting feed-intake records for individual animals. Measuring individual intake for group-fed cattle remains expensive today, but technological advancements and standardized data-collection guidelines have resulted in a significant increase in the number of facilities capable of measuring individual feed intake. In 2009, Colorado State University (CSU) constructed its Feed Intake Unit (FIU), a facility at the Ag Research, Development and Education Center (ARDEC) that uses technology with the capacity to measure feed intake on more than 500 head per year.

We are beginning to learn more about the genetic architecture of feed intake in cattle. The Animal Breeding and Genetics Group in the CSU Depar tment of Animal Sciences is particularly interested in developing tools for producers in the beef industry to improve cattleâ&#x20AC;&#x2122;s genetic ability to utilize feed.

Feed utilization refers to the optimal combination of performance and intake. Because feed intake is genetically related to growth rate and mature size, the challenge is to identify cattle that have high levels of per formance with lower feed intake. We know that various measures of feed intake and utilization have significant genetic components, and those traits exhibit sufficient genetic variance to suggest a real economic potential under selection.

In most studies, for example, there is at least a 10pound difference in the amount of feed consumed daily between efficient and inefficient cattle gaining at the same rate. With even moderate adoption of genetic improvement technology by the industry, that could translate to tens of millions of dollars in feed-cost savings per year in Colorado alone, without reducing production.

Cattle that perform well on less feed also produce less manure, methane, ammonia and other greenhouse gases.

Studies have shown at least a 10 percent difference in the carbon and greenhouse-gas footprint of efficient versus inef ficient cattle per forming at the same level. Those results show genetic improvement of feed intake and utilization will be a significantly positive step toward reducing the environmental effect of beef production.

The cost and time associated with collecting feed-intake data limit the numbers of animals that we can test. But the CSU Animal Breeding and Genetics Group also is investigating the use of genetic markers in combination with live-animal measurements to predict genetic merit for feed intake and utilization. The incorporation of molecular tools into genetic evaluation can increase the accuracy of selecting replacements and potentially reduce generation interval â&#x20AC;&#x201C; both of which contribute to higher rates of genetic progress.

About the author: Denny Crews, Ph.D., is a professor of animal breeding and genetics in the Department of Animal Sciences at CSU.

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Limousin Locator Colorado

Minnesota

Jan. 9 – Magness Land and Cattle Show Heifer and Bred Female Sale, Platteville, (970) 396-6958 (pp. 14–15) Jan. 11 – National Limousin Sale, Denver, (303) 220-1693 March 6 – Elmwood Limousin 20th Anniversary Bull Sale, Sterling, (970) 522-8195 (p. 9) Private treaty – Lewis Limousin, Kirk and Iliff, (970) 521-0545 (p. 31) Private treaty – Ochsner Limousin, Kersey, (970) 351-6008 (p. 4) Private treaty – Running Creek Ranch, Elizabeth, (303) 841-7901 (p. 19)

March 26 – Wulf Limousin Farms Opportunity Sale of 2010, Morris, (320) 392-5802 (p. 30)

Mississippi

March 19 – Schott Limousin Ranch 27th Annual Sale, Mobridge, (605) 823-4974 (p. 13)

Montana

Texas

April 5 – Coleman Limousin Ranch 32nd Annual Sale, Missoula, (406) 644-2300 (p. 10) Private treaty – Gates Limousin, Absarokee, (406) 328-4393 (p. 24)

Private treaty – Lawrence Family Limousin, Anton, (806) 997-5381 (p. 12)

Nebraska

Private treaty – Sennett Cattle Co., Waynetown, (765) 234-2621 (p. 29)

Iowa

North Dakota

Private treaty – Linhart Limousin, Leon, (641) 340-1306 (p. 5) Private treaty – Straight Limousin, Logan, (712) 648-2180 (p. 18)

March 22 – Hager Cattle Co. Annual Bull Sale, Bismarck, (701) 525-6363 (p. 26)

Kansas Feb. 6 – Liberty Ranch Annual Bull Sale, Plainville, (785) 885-4882 (p. 28) Feb. 20 – GV Limousin Sale, Garnett, (785) 448-3708 (p. 11)

South Dakota

Private treaty – Riverdale Ranch, West, (662) 967-2407 (p. 21)

Feb. 22 – Lonely Valley Limousin Keepin’ Kind Bull Sale, Creston, (402) 910-5504 (p. 3) Private treaty – Hunt Limousin Ranch, Oxford, (308) 473-8521 (p. 7)

Indiana

Private treaty – Hayhook Limousin, Lexington, (405) 306-5202 (p. 27)

Oklahoma March 18 – Lance Hall Cattle Co. and Coyote Hills Ranch Limousin Bull Sale, Chattanooga, (580) 597-2419 (p. 22) March 28 – Magness Land and Cattle Southern Division Bull Sale, Miami, (918) 541-5482 (pp. 14–15) April 10 – Magness Land and Cattle FallCalving Cow Herd Dispersal, Miami, (918) 541-5482 (pp. 14–15)

LIMOUSIN’S COMMERCIAL CONNECTION

Winter 2010

Utah Private treaty – Millerberg Limousin, Draper, (801) 566-4665 (p. 21)

Washington Private treaty – DJ Limousin, Port Orchard, (360) 871-3642 (p. 8)

Wisconsin Private treaty – Spring Creeks Cattle Co., Wauzeka, (608) 875-5049 (p. 23)

Thanks to Our Corporate Sponsors Breeds of Cattle from TRS Publishing, 1-888-530-3322 (p. 17) Five Star Cattle Systems, (970) 231-6278 (p. 32) Igenity, 1-877-IGENITY (p. 6) Laura’s Lean Beef, 1-800-ITS-LEAN (p. 2)

Page 31

7383 S. Alton Way, Suite 100 Centennial, Colorado 80112-2339