F&R LivestockResource
Spring 2020 | Volume 3, Issue 3
Your direct source for livestock news and information
Published by Farmers & Ranchers Livestock, Salina, Kansas
In this Issue: 1 Having Your Cake and Eating It
A topic that’s been debated ad nauseum, especially in the area of value-based marketing, is the correlation between cow reproductive traits and marbling. Recent research from Iowa State University suggests that little, if any, antagonisms between reproduction and carcass marbling exists.
12 Gone Global
The U.S. beef export market accounts for a significant and growing portion of cattle value. The “devil is in the details”, but as reported by Randy Blach, CattleFax, “We’d lose a third of the value of your calves if we lost our export markets.” Not to mention, the value added through exports is often on cuts of beef and organ meats with little or no value in our domestic markets.
16 Been Green
The facts about positive cattle contributions to the global environment and sustainability speak for themselves. The facts, however, are incredibly complicated. As we move toward global solutions to address climate change, there’s a lot at stake for food animal production. It’s imperative that facts, not politics, provide the road map.
19 Searching for a Solution
Common diseases, like pinkeye, have most likely been around since cattle have roamed the earth. Today, it’s important to quantify the economic loss resulting from pinkeye. Modern science has provided more information about causation. But it’s up to us as practitioners to commit the time and compassion to ask the right questions and seek long-term solutions.
23 Cattle Prices Set to Strengthen
Market projections for 2020 are mostly bullish as indicated by most every beef industry analyst moving into the new year. Demand is strong and new trade deals should support robust exports. Caution should be exercised relative to continued political and economic turbulence that could dampen an otherwise positive outlook.
Having Your Cake and Eating It Ongoing research suggests little, if any, antagonism between cow reproductive traits and carcass marbling, at least in one breed. By Wes Ishmael
Between the lengthy generation interval of beef cattle and the longevity of commercial cattle producers, it can be easy to make decisions based on facts and perceptions that no longer apply. For instance, the fact is that it used to be nearly impossible to find a pool
of bulls with high weaning and yearling growth that didn’t also have a propensity for higher birth weights and less calving ease. These days, of course, bulls with high growth potential and calving ease abound. Similarly, the perception that selecting
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F&R Livestock
From the Editor
Resource
Volume 3, Issue 3 Spring 2020 Published quarterly by
Farmers & Ranchers Livestock, Salina, Kansas 1500 W. Old Hwy 40 Salina, Kansas 67401 785-825-0211 • 785-826-1590 (fax) FandRLive.com
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Owner: Farmers & Ranchers Livestock, Mike Samples, Salina, Kansas (785) 826-7884 Editor: Deb Norton, Deb@CogentIdeasInc.com Production Coordinator: Julie Tucker Graphic Designer: Daric Wells Editorial Assistants: Dixie Russell, Dave Cumpton Contributing Editors: Wes Ishmael, Paige Nelson and Micah Samples Contributing Artist: Ted Foulkes Sales Jay Carlson Carlson Media Group, LLC (913) 967-9085 Ben Gleason (785) 640-9390
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By Deb Norton
Living in the city yet being raised in and working in the country has given me a different lens to view many issues throughout the years. Being fortunate to work with many of the nation’s most progressive beef operations, cattle feeders and other industry stakeholders has given me an immeasurable education far beyond the degree I earned decades ago. Several years ago, a few days before Thanksgiving, I had a long grocery list and had just parked in an overflowing Sam’s Club parking lot, steeling myself to fight the crowd, when my cell phone rang. It was my good friend, Dr. Randall Spare. He said, “I think you need an educational experience.” To which I replied, “I think I’m listening.” He went on to tell me that he believed it would be helpful for me to better understand cattle feeding if I had “skin in the game.” He told me I could own a portion of a pen of cattle he owned that had just gone on feed. So, my next question to Randall was, worsecase scenario, how much did I stand to lose? If a blizzard hit in the next 120 days and half the pen died, what would the financial wreckage be? I’m almost always up for a learning experience and often don’t overthink. Some will argue I often don’t think at all! Needing to get on with my shopping, I agreed to participate. Lesson number one became to fully understand the meaning of risk tolerance. If you’re reading this, you’re probably thinking about how the story ends! Randall was indeed correct. I learned a lot. Unless you understand a little about the cattle feeding business, you
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probably aren’t prepared for the monthly arrival of five-digit feed bills. Of course, five-digits turn to six-digits depending on the size of the group on feed or how significant cattle feeding is in your overall operation. Death loss is just one of the costs of doing business in cattle feeding. If the entire pen on feed made it to the harvest facility, consider yourself real lucky. Then, factor in the weather. Rest assured, I’ve never paid closer attention to the forecast in southwestern Kansas than I did for the next several months. In a way, it almost felt like cheating because the steers Randall offered to share his profits on were genetically some of the best in the country and highly predictable. The health on the cattle was impeccable and the genetics were generationally stacked to excel on a value-based grid. The cattle feeder was one of the most respected in the business and every major packer was at the yards weekly cherry picking from the show lists. All the components that could be controlled were. The next lesson I learned was accepting all those components that were out of our control, namely the weather and the market. One doesn’t have to be a mathematician to realize how the bottom line is affected if the market moves ten cents. Once the cattle were harvested, the next lesson I learned was how to interpret the grid summary that documented, in great detail, individual performance. A grid summary is often referred to as an animal’s report card and it truly is. Each grid summary tells you how well the pen performed against the plant averages for the week. Further detail includes the individual performance on every head. I’m always shocked at the difference within each pen, from the most to least valuable carcass even in the best of pens. Today we have so many data points to rely on to make educated decisions relative to purchasing and marketing beef cattle, regardless of production sector. Since my initial learning experience, and as a professional marketer working with value-based seedstock and commercial operations, it has become personally important to communicate the benefits of producing cattle with inherent value throughout all production sectors. Not all management schemes are the same and most are impacted by geographic limitations, forage quality and availability, debt, shrinking assets and economic realities. Reality dictates individual decisions but producers are rewarded for documented quality and value. The good news is my original “toe dip” into cattle feeding wasn’t a loss nor was it profitable enough to buy one share of Berkshire Hathaway. However, the lessons I began to learn (and continue to learn today) give me a unique perspective to Continued on page 15 _______________________________________
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F&R Livestock Resource page 3
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for marbling hinders herd reproduction continues to linger, although research over time suggests little, if any genetic antagonism. At least that’s true of the Angus breed. Up front, the research that follows was conducted for Certified Angus Beef, LLC (CAB), which has an obvious vested interest. Of course, plenty of commercial producers do, too. According to a recent commercial cow-calf survey conducted by BEEF magazine, 73% of respondents described the predominant breed composition of their herds as Angus; it was Red Angus for another 15%.
Iowa State University Case Study Most recently, Dan Loy, Iowa State University (ISU) animal science professor and director of the Iowa Beef Center, along with other ISU researchers, conducted a literature review and case study of its commercial Angus herd. The 400-cow ISU herd at McNay Farms in south central Iowa was established in 1996. It began as two herds: one where yield selection was emphasized through the use of ultrasound; one where marbling selection was emphasized, using ultrasound. The former was discontinued in 2002. For the remaining herd—about 300
spring-calving cows and 100 fall-calving ones—the primary breeding objective continues to be carcass quality, specifically marbling, while other traits such as growth, temperament, calving ease and structural soundness are considered. For perspective, between 2014 and 2018, the percentage of carcasses from cattle produced in the herd grading Prime and Premium Choice (upper two-thirds of Choice), increased from 73.3% to 93.0%. For Prime alone, the increase was from 26% to 57%. “Over the last five years, average marbling score (MS) has improved from average Choice to high Choice, ribeye Area (REA) has increased from 12.3 to 12.9 square inches, back fat thickness (FT) has increased from 0.50 to 0.60 inches, hot carcass weight has increased from 700.0 to 792.5 lbs.,
and yield grade (YG) has increased from 2.8 to 3.3.,” according to the project summary, “The Relationship between Carcass Merit and Maternal Traits in Beef Cattle: A Case Study and Literature Review.” The project utilized four separate datasets from the ISU herd: • In August of 2019, the American Angus Association provided EPDs for all animals born in the ISU project herd from 2001 to 2018. • Lifetime calving interval and reproductive success of cows born in the herd from 2001 to 2016 were evaluated. • Ultrasound phenotypes adjusted to yearling age on all cattle born from 2001 to 2011 were analyzed. • Breeding soundness exams and slaughter data were analyzed from two bull calf crops.
Positive Link Between Marbling and Heifer Pregnancy “One interesting and notable result that has not been observed previously is a positive relationship between heifer pregnancy and marbling EPDs,” according to the ISU study. “This is consistent with the relationship of body composition and heifer growth, as well as the use of intramuscular fat serving as a depot to contribute to the energy demands of pregnancy. Selection for marbling in this herd has also not resulted in a detrimental effect on bull fertility. Overall, we could find minimal data to support the assertion that selection for marbling in Angus cattle would have a negative impact on fertility, reproductive or maternal
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Spring 2020
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Spring 2020
traits. To the contrary, many of the relationships between carcass quality and cow function, although weak, were positive.” More specifically, results of the analyses were mostly consistent with research reviewed in the literature. • A small, positive relationship between milk and marbling EPDs in the herd. • A significant positive relationship (r = 0.206) between marbling and heifer pregnancy EPDs in the herd. • Positive correlations between marbling EPD and the EPDs for scrotal circumference, heifer pregnancy and maternal calving ease. • Marbling EPD of the cows in the herd had a weak , negative relationship to total number of calves, a weak positive relationship to number of calves born in ISU’s spring-calving cows—under the management scheme of the herd— and a weak negative relationship with calving interval. • Relationships between ultrasound intramuscular fat phenotypes of the progeny were not significantly related to reproductive EPDs: calving ease direct (CED), calving ease maternal (CEM), heifer pregnancy (HP), scrotal circumference (SC) and milk.
• A tendency for a positive correlation between yearling bull scrotal circumference and marbling scores indicate that selection for increased marbling in this herd may have indirectly impacted SC with marbling having no measurable impact on sperm motility or morphology. “Part of the breeders’ perception of a negative relationship between maternal and terminal selection may stem from popular value indexes that focus on maternal traits such as maternal calf weaned value ($M) versus indexes that focus on terminal traits such as beef value ($B),” according to the ISU study. “Breeders may naturally then classify cattle as good ‘maternal’ or ‘terminal cattle’… While one may be labeled a maternal index and the other
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terminal index, the true antagonism is likely related to selection for growth (and milk production) rather than marbling or beef quality.”
Research is Consistent Over Time As mentioned, conclusions from the ISU project mirror previous studies and literature reviews. For instance, ISU researchers noted a 2011 Red Angus study that identified a small but positive genetic correlation (0.13 ± 0.09) between heifer pregnancy and intramuscular fat. Moreover, ISU researchers say a 2018 extensive evaluation of Red Angus records found a moderate but positive genetic relationship between ultrasound intramuscular fat (UIMF) and stayability, defined as
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HPCA Darth Vader J948 n 19461984 GAR Scale House X HPCA Early Bird A275 n One of only 4 bulls in the entire breed with his projections for calving ease, growth, and end product merit. This is an incredible young prospect that is destined to produce great cattle and could be a force in the breed. CED: +11 / 15% n WW: +81 / 2% n YW: +140 / 2% n MH: +1.2 / 1% n CW: +68 / 3% Marb: +1.35 / 2% n RE: +1.22 / 1% n $B: +220 / 1% n $C: +356 / 1%
HPCA Proactive Z318 n 19354887 GAR Proactive X HPCA 100X P226 n A big time performance bull with a little less mature size than most with his projections. Deep and soggy made bull here with a pedigree packed with valuable females including the great “9022”. CED: +5 / 60% n WW: +82 / 1% n YW: +143 / 2% n MH: +.3 / 50% n CW: +67 / 3% Marb: +1.06 / 10% n RE: +1.16 / 2% n $B: +186 / 2% n $C: +312 / 1%
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Spring 2020
2/11/20 2:30 PM
the ability of a female to produce five consecutive calves. “While there appears to be little genetic relationship, there still appears to be an influence of intramuscular fat on heifer fertility,” ISU researchers explain. “In a different study by Evans and coauthors (2004), non-cycling heifers were observed to have lower UIMF (2.93% vs. 3.07%) than cycling heifers at 14 days post-synchronization. Additionally, heifers that failed to conceive after expressing estrus had less backfat than those that successfully conceived… These relationships highlight the important role of body composition and energy status on fertility and reproductive function and should be considered when comparing an animal’s genetics for those traits.” In 2013, Scott Greiner, Extension beef cattle specialist at Virginia Tech and Jason Smith, now Extension beef cattle specialist at Texas A&M University conducted a literature view for CAB, “Selection for Marbling and the Impact on Maternal Traits.” Bottom line, they explained selection for improvements in marbling should not negatively impact scrotal circumference, age at puberty, heifer pregnancy, calving interval or mature weight. They added there appears to be favorable relationships between marbling and birth weight, calving ease and the $W index. “The potential impact of the phenotypic relationships observed in the U.S. Angus sire population, however, will remain dependent upon management scenario and feed resources,” explained Greiner and Smith. “As such, breeders are encouraged to remain cognizant of these relationships when making selection decisions, and as always, practice multiple trait selection while divergently selecting for these traits in such a way that matches progeny to a respective management strategy.”
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Check out our sale book online: www.NicholsFarms.biz Kevin & Vera Schultz Tyler & Hannah Schultz 2048 280th Avenue • Haviland, KS 67059 Home (620) 995-4072 • Kevin’s Cell (620) 546-4570 •Tyler’s Cell (620) 546-1574 Kevin@SandhillFarms.com • www.SandhillFarms.com • Ron & Arnita Schultz • (620) 348-4863
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Bridgewater, Iowa Bull Barn: (641) 369-2829 • Ross Cell: (641) 745-5241 Dave Home: (712) 762-3810 Cell: (641) 745-5730
High $Profit, Leachman Stabilizer bulls have made our ranch more sustainable! “Since 2010, we’ve been putting $Profit to the test on our ranch. It’s working. In 2019 our cows bred up 95% in 60 days. The light end of our calves brought back over $150 in carcass premiums.” ~ Trace Walker, Rolling Hills Ranch Brookville, KS
About our calves:
Our 2019 born steers were below average, but now we rank near the top in all categories. They gain, convert, reach heavy carcass weights, and marble far above average. Our last set of 2018 calves finished at 61% Prime with 87% CAB and higher – and no selects. They earned a premium of $168 per head.
About our bulls:
All Rolling Hills steers and cull heifers are finished so that carcass data can be collected and results can be benchmarked.
Every female on the ranch is bred to a Leachman Stabilizer bull. We use AI and natural service. We invest a lot in the bulls, because they drive the future profitability and sustainability of our herd.
About our cows:
In 2010, our steers fed out at Decatur County Feed Yard finished below average. We had to make a change. By 2015, every cow in the herd was sired by Leachman bulls. Now, we are into the 2nd & 3rd generation. We want to make the ranch sustainable, so the cows have to utilize our grasslands and reproduce at a high rate. We were very pleased that our young cows bred up 96% and our mature cows bred up 95% in just a 60 day Gary Backus, ranch manager on Rolling Hills Ranch, combines breeding season. long-term grazing practices, top genetics, and marketing strategies to minimize risk, optimize profit, and make the ranch pleasurable to operate.
Make Plans to Participate in these Upcoming Leachman Events:
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F&R Livestock Resource page 11
Gone Global U.S. beef export market accounts for a significant and growing portion of cattle value. By Wes Ishmael
Although it can appear straightforward, the economics surrounding U.S. beef exports and imports is complex. Let’s start with this. U.S. export value per head of fed cattle last year was $309.75, according to the U.S. Meat Export Federation (USMEF). That represents roughly 20% of the value of fed cattle. It’s more important to calf prices.
“We’d lose a third of the value of your calves if we lost our export markets,” said Randy Blach of CattleFax, at last fall’s annual Cat Symposium on Excellence in Ranch Management, hosted by the King Ranch Institute for Ranch Management. Arguably, exports represent even more economic impact, given the fact U.S. beef production increased by an average of about 1.5 billion lbs. per year
since 1990, according to CattleFax data. At the same time, U.S. consumers have record-large supplies of pork and poultry to choose from. Although the U.S. is the world’s largest beef producer, largest poultry producer and third largest pork producer, it exports far less beef production than most other countries. For instance, Blach explained Australia exports about
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72% of its production versus the estimated 12% of U.S. beef production last year, not counting beef variety meats.
Imports Add Value to U.S. Beef U.S. beef imports are where the notion of international trade starts to get sticky for some folks. In simple terms, the argument goes something like this: “Why import beef, which adds to domestic supply, and all else being equal, should pressure domestic beef prices?” Putting other considerations aside, the fact is that all else is not equal. “The entire reason for imports and exports comes down to the market seeking the highest value for each product produced and efficient use of resources during the production phase,” explains Andrew P. Griffith, agricultural economist at the University of Tennessee, in a paper from a couple of years ago. “Thus, when one thinks about the beef products demanded by consumers in the United States, it generally comes down to steaks and ground beef. There are domestic consumers who demand round roast, chuck roast, and brisket, but the primary demand is for high quality steaks (Choice and Prime) and ground beef.” Most beef imported to the U.S. is lean trimmings, used to blend with fatter U.S. beef in order to provide domestic consumers with ground beef of the lean percentages they prefer at affordable prices. Other domestic lean trimmings come from dairy beef. “Depending on the prices of certain cuts of beef, cuts such as the round and chuck are also ground to meet ground beef demand, but this is a fairly expensive endeavor considering these whole muscle cuts may have a higher value in the export market,” Griffith explains. Depending on whose abacus you consult, ground beef represents just over half of all beef consumption in the U.S. Fail to provide consumers with the volume demanded, and beef consumption declines. Besides, international markets covet some beef products that U.S. consumers care little about. Think here of things like the short plate, tripe, beef tongue, heart and liver. “For example, short plate could be ground and get about $1.50 per pound here, but because it’s a high demand item in Japan, they will pay double that
A celebration more than 50 years in the making! 41ST ANNUAL PRODUCTION SALE & CELEBRATION
Friday, April 3 & Saturday, April 4, 2020 At the ranch • Near Ashland, Kansas
SELLING 1,600 HEAD!
450 Bulls • 900 Registered GAR Females Including the entire Gardiner Angus Ranch registered cow herd!
250 Bred Commercial Females
The Grand Plan 2020 will feature the entire Gardiner Angus Ranch cow herd, INCLUDING ALL 2017 BORN COWS & 2018 BORN HEIFERS. The Grand Plan 2000 featured our entire cow herd. Our goal then was to do the same in the next generation. The Grand Plan 2020 represents the unwavering, uncompromising and disciplined GAR breeding philosophy making it possible for this generational dream to become a reality.
Schedule of Events Friday, April 3 9 AM: 11 AM: 2 PM: 5 PM: 6 PM:
Grand Plan 2020 Bull Sale Lunch available throughout the sale Commercial females sell Dinner served Educational Forum: “Animal Health is Human Health” Megin Nichols, DVM, MPH, DACVPM
Saturday, April 4
9 AM: Grand Plan 2020 Registered Female Sale 11 AM: Lunch available throughout the sale
The Grand Plan 2020 offers an extraordinary opportunity for registered and seedstock operations to take advantage of rapid genetic progress into the next half century! Watch the sale and bid live online at LiveAuctions.tv. Register to bid prior to sale day.
1182 CR Y • Ashland, Kansas 67831 • Office (620) 635-2156 • gar@ucom.net • www.GardinerAngus.com The Henry & Nan Gardiner Family • Mark (620) 635-5095 • Greg (620) 635-0233 • Garth (620) 635-5632 Grant (620) 635-0382 • Cole (620) 635-0727 • Ransom (620) 635-0283 Proud to be a founding member of U.S. Premium Beef. More than $10.16 million in premiums and dividends have been paid to GAR customers using USPB delivery rights. Free Delivery | USPB Delivery Rights | Repeat Buyer Discount | Feedlot Relationships | Marketing Assistance | Revenue Sharing Semen Interest | G3 Age & Source | High Accuracy Progeny Proven Genetics | Method Genetics Benchmarking | Genetic Consultation | THE Gardiner Angus Ranch Guarantee
13th Annual Gelbvieh & Gelfords
“Going to Grass”
NEW LOCATION
Fairgrounds north end of Canton, KS
Production Sale
Saturday, April 4, 2020 1:00 p.m. CST Sale Broadcast
Selling... Selling...and Gelbvieh Gelfords
Gelfords and(18Gelbvieh • 50+ Bulls mo-yearlings) •• 555Show BullsHeifers (18 mo-yearlings) Show heifers Heifer •• 27 Replacement • Pens 30 plus pens replacement heifers • Gelbvieh Influenced • First 1st calf Calfheifer Heiferpairs Pairs
Circle S Ranch
John & Carla Shearer & Family Canton, Kansas Home 620-628-4621 John Cell 620-654-6507 Johnny Cell 620-654-6731 circle_s@hometelco.net
www.circlesgelbvieh.com
price per pound,” explains Greg Hanes, CEO of the Cattlemen’s Beef Board, in a recent op-ed. “Assuming each short plate weighs 15 pounds, the United States Meat Export Federation estimates that one item is adding about $22.50 of value per head. Tongues are another great example. Demand (domestic) for those is low, only fetching about $1.00 per pound here in the United States. But in Japan, every person I know loves to grill tongue, so they pay more than $5.50 per pound there. That adds another $13.00 per head.” In round numbers, based on CattleFax data, Hanes explains the U.S. imported about as much beef last year as it exported, in terms of volume. In terms of value, though, he emphasizes the value of U.S. beef exports were estimated to be $1.3 billion higher (final 2019 figures will be released in February). U.S. beef exports last year totaled 1.32 million metric tons (mt), 2.5% below the previous year’s record volume, according to data released by USDA and compiled by USMEF. After increasing by more than $1 billion in 2018, beef export value eased by 3% to $8.1 billion. Although still strong, softer U.S. beef exports last year magnify the importance of recent progress in trade issues. By the end of last year and the beginning of 2020, the outlook for many of those issues improved. • The Japanese Parliament ratified the trade agreement with the U.S. • The European Parliament approved
BVD VIRUS TYPE 1B IS ON THE RISE. Bovine viral diarrhea (BVD) infection can disintegrate herd productivity. And if you’re using a vaccine, like BOVI-SHIELD GOLD®, that isn’t labeled for the most prevalent strain, your cattle could be at risk. Play it safe. Choose the only vaccines specifically labeled to protect against Type 1b: Express® FP and Pyramid® + Presponse® SQ. Know more at BVDVTracker.com. 1 2
Data on file, Boehringer Ingelheim and BVDVTracker.com. Data collected November 1, 2018 through November 1, 2019. Ridpath JF, Lovell G, Neill JD, et al. Change in predominance of bovine viral diarrhea virus subgenotypes among samples submitted to a diagnostic laboratory over a 20-year time span. J Vet Diagn Invest 2011;23(2):185–193.
EXPRESS®, PYRAMID® and PRESPONSE® are registered trademarks of Boehringer Ingelheim Animal Health USA Inc. All other trademarks are property of their respective owners. ©2019 Boehringer Ingelheim Animal Health USA Inc., Duluth, GA. All Rights Reserved. US-BOV-0283-2019A
page 14
Spring 2020
granting the United States a country-specific share of the European Union’s duty-free high quality beef quota. • President Trump signed the U.S.-Mexico-Canada Agreement, which will replace the North American Free Trade Agreement. • The U.S. and China signed a phaseone trade deal, with China agreeing to purchase and import, on average, at least $40 billion of U.S. food, agricultural and seafood products annually for a total of at least $80 billion over the next two years, according to a fact sheet from the U.S. Trade Representative (USTR). Importantly for beef, the deal expands market access with elimination of the 30-month age restriction, acceptance of current U.S. traceability and the ban on U.S. beef from cattle grown with commonly used and safe-proven growth hormones. Before ratification and signing of the latter two agreements, Economic Research Service (ERS) forecasts total beef exports in 2020 to increase about 6% year over year to a record 3.3 billion lbs. At the same time, ERS expects the U.S. to import less beef in 2020.
Beef Exports Impact Other Agricultural Value U.S. corn value would have been $5.7 billion in 2018, if not for U.S. red meat exports, according to a study update conducted by World Perspectives, Inc. (WPI) and commissioned by USMEF. The original 2016 study, “The Intersec-
tion of U.S. Meat Exports and Domestic Corn Use,” also conducted by WPI, concluded U.S. red meat exports in 2015 accounted for 11.7 million tons of combined corn and dried distillers grains with solubles (DDGS) use. According to the 2018 update, exports accounted for 14.9 million tons of corn and DDGS. “Growing global meat consumption is the major driver for increasing production and expanding trade for numerous commodities, including coarse grains, oilseeds, and livestock and meat products,” according to U.S. Agricultural Projections to 2028, from the World Agricultural Outlook Board (WAOB).
U.S. Represents Sliver of Global Population The global population is about 7.8 billion people. The U.S. population represents about 4% of that at around 329 million. “Global per capita meat consumption remains low compared with levels in higher income countries—an indication of the potential for continued growth in world meat consumption,” according to the WAOB report. “Over the projection period, global meat (beef, pork and poultry) consumption increases by 47.9 million tons (15%), which increases trade by 7.9 million tons (25%)… The five countries accounting for the largest share of increased meat consumption over the projection period are China (23.5%),
the United States (6.7%), India (6.3%), Brazil (6.2%) and Mexico (4.9%). The United States has a low growth rate in consumption, but a large population and already has a large per capita disappearance of meats.” In other words, growing the U.S. cattle and beef industries will come through increased international demand. Besides more potential customers and coveting some beef parts more than U.S. consumers, international consumers also cleave different paths to increased beef consumption. Consider the growing trend of meat and meat snack purchases at convenience stores around the world. Convenience stores are offering a wide selection of entrée and full meal options that are winning customers and creating more demand for U.S. red meat, according to USMEF. For every gourmet hot dog sold in a South Korean GS25 store, every bowl of beef noodle soup ladled from a 7-Eleven hot food counter in Taiwan and every pork sausage sandwich pulled from a shelf in a Mexican Oxxo outlet comes another trade opportunity for the U.S. beef and pork industries. According to a 2019 report by Euromonitor, which tracks retail sales and maintains a category dedicated specifically to convenience stores, per capita spending on foodservice products at convenience stores increased 14%
worldwide between 2013 and 2018 and is projected to increase another 11% by 2023. South Korea leads the way, with a 142% increase in per capita convenience store foodservice spending from 2013 to 2018; another 47% increase projected by 2023. “Just as important as promoting existing products, we are developing brand new ideas for packaged meals and protein snack items featuring U.S. beef and pork that fit well with consumer trends in each individual market,” explains USMEF President and CEO Dan Halstrom. “USMEF recognizes the scope of this opportunity and the enormous demand that is driving it. As the convenience store sector has taken off in various parts of the world, suppliers realize they need products to help meet the demand for these meat snacks and packaged meals. The trend is toward
high quality meat, and that is definitely an advantage for U.S. beef and pork.” Japan, Taiwan, the ASEAN region and Mexico are other fast growing markets identified by Euromonitor, while a USDA report suggests China’s convenience store chains, which have historically focused on lower priced processed foods, are beginning to expand premium and imported food offerings. This trend is likely to continue as younger Chinese consumers shift away from traditional retail outlets. “Obviously there is tremendous potential for U.S. beef and pork in the convenience store sector, but competition is intense, so we must focus our efforts on identifying ways to highlight the advantages of U.S. products,” Halstrom says. “The quality and consistency that U.S. beef and pork deliver in processed products are really what set us apart.”
Editor’s message continued Continued from page 3 _____________________________________
debate with my city friends. After all, they are our customers. I can explain the difference in beef quality and what to shop for to ensure a better eating experience. At 30,000 feet, I can explain the complexities of getting safe,
healthy and nutrient dense beef to their favorite supermarket. I can explain the long-term consequences of some far-left policies they may be in favor of that will jeopardize food security everywhere. The greatest lesson learned is that I shouldn’t quit my day job!
69% 2019 1
61% 2008 2
54% 1998 2
41% 1988 2
Percent of all BVDV cases attributed to TYPE 1B. RELENTLESS PROTECTION
F&R Livestock Resource page 15
“The finest steel has to go through the hottest fire”
Been Green Facts about positive cattle ime esTed aiser eneTics 20 annual ProducTion sale . Thursday, aPril 2, 2020 contributions to the global aT The ranch . ParK, Kansas environment and sustainability SELLING: 65 18-20 Month-Old Bulls 20 Spring Yearling Bulls . 10 Registered Open ET Heifers speak for themselves.
T -T
Th
K
G
By Wes Ishmael
KA EnhAncE 890 . 9/25/18 . 19637884 Sire: SydGen Enhance . MGS: Mill Brae Identified 4031
HE SELLS
KA EnhAncE 896 . 9/27/18 . 19637886 Sire: SydGen Enhance . MGS: Mill Brae Identified 4031
HE SELLS
CED BW WW YW Doc Marb RE $M $W $B $C
EPD 15 -1.5 64 129 27 .79 .98 75 75 189 320
EPD 10 -0.1 63 122 25 1.03 1.10 80 77 190 326
KA FUll MEAsUrE B907 . 2/19/19 . 19498754 Sire: KB-Full Measure C40 . MGS: GAR Sure Fire
% 20% 25% 25% 10% 15% 10% 2% 3% 10% 2% 1%
CED BW WW YW Doc Marb RE $M $W $B $C
EPD 11 1.4 76 128 26 1.08 .85 71 82 170 291
% 15% 55% 4% 10% 15% 10% 15% 15% 4% 10% 3%
CED BW WW YW Doc Marb RE $M $W $B $C
EPD 17 -1.3 66 123 27 1.07 .79 89 87 160 297
% 1% 10% 20% 10% 10% 10% 20% 1% 2% 15% 2%
KA UniqUE B829 . 11/7/18 . 19373612 Sire: Deer Valley Unique 5635 . MGS: GAR 5050 New Design R529
HE SELLS
% 2% 10% 20% 10% 10% 20% 5% 10% 10% 2% 1%
Kaiser Angus
For more information about our program, please contact: Darrell & Frina Kaiser . 6051 Co. Rd. X . Park, KS 67751 Home (785) 754-2334 . Mobile (785) 673-3357 dfkaiser@ruraltel.net . www.KaiserAngus.com page 16
Spring 2020
“Animals are natural bioprocessors,” says Zhengxia Dou, PhD, Professor of agricultural systems at Pennsylvania’s School of Veterinary Medicine (Penn Vet), noting that livestock’s unique and indispensable natural biological processes enable them to consume plant and food residues that are either indigestible by humans, unpalatable to people, or are no longer sellable for any of a number of reasons—what she refers to as IUUB residues (indigestible, unpalatable, or unsellable biomass). “By maximizing the use of IUUB, the livestock sector of agriculture actually contributes to this societal issue (climate change) in a very positive way,” Dou says (more later). You know all of that, though specific statistics may not be on the tip of your tongue. Producer access to such information is a byproduct of the fact
WOODBURY FARMS
HE SELLS
CED BW WW YW Doc Marb RE $M $W $B $C
sheet series—Tough Questions about Beef Sustainability—funded by the Beef Checkoff. You can find the series here: BeefResearch.org/ToughQuestionsAboutBeefSustainability.aspx. What follows are some of the issues addressed in the Fact Sheet Series.
U.S. Cattle Contribute Little Greenhouse Gas “According to the U.S. EPA’s greenhouse gas (GHG) emissions inventory, 2% of U.S. emissions come directly from beef cattle (methane from cattle belches, methane and nitrous oxide from manure). Total direct emissions from all agricultural production, crops and livestock collectively, were 8.4% of U.S. emissions in 2017. Agriculture, land use, land use change and forestry combined in the United States are a
9th Annual Angus Production Sale
Wednesday, March 18, 2020 • 6:00 p.m. Overbrook Livestock Commission Company Overbrook, Kansas
~ Offering ~
50 Angus Bulls (2-year-olds and spring yearlings) 70 Yearling Open Heifers (both reg. Angus and commercial) 30 Young Commercial Pairs TEX Playbook
Sires include: TEX Playbook, Connealy Armory, Connealy Legendary, Baldridge Bronc, Baldridge Beast Mode, LD Capitalist 316 and more.
Howard Woodbury (785) 453-2492 or 241-0515 John Woodbury (785) 453-2223 or 229-2557 23200 S. Stubbs • Quenemo, KS 66528 hhwoodbury@hotmail.com www.woodburyfarmskansas.com
net sink of CO2 equivalent (CO2e) emissions, meaning they removed 172 million metric tons of CO2e from the atmosphere in 2017.” That’s from the executive summary of the U.S. Cattle Production Sustainability Overview. It goes on to explain, there are large global disparities in GHG emissions per pound of beef produced. “The U.S. has one of the lowest beef GHG emissions intensities: 10–50 times lower than other parts of the world, according to the executive summary. Most of this variation is driven by the number of cattle required to produce beef. For example, the U.S. produces around 18% of the world’s beef with 8% of the world’s cattle herd. Fewer cattle required for a given amount of beef produced means fewer GHG emissions and fewer natural resources required to produce human nourishment. The U.S. is a leader in beef production efficiency because of scientific advancements in beef cattle genetics, nutrition, husbandry practices and biotechnologies.” Of course, that reality flies in the face of popular press articles that often suggest U.S. GHG emissions are comparable to those of the entire transportation sector. “When divorcing political fiction from scientific facts around the quantification of GHG from all sectors of society, one finds a different picture. Leading scientists throughout the U.S., as well as the U.S. Environmental Protection Agency (EPA), have quantified the impacts of livestock production in the U.S. which accounts for 4.2% of all GHG emissions, very far from the 18% to 51% range that advocates often cite,” explains Frank Mitloehner, professor and air quality specialist at the University of California-Davis, in his white paper “Livestock’s Contributions to Climate Change: Facts and Fiction.” “Comparing the 4.2% GHG contribution from livestock to the 27% from the transportation sector, or 31% from the energy sector in the U.S. brings all contributions to GHG into perspective,” Mitloehner says. “Breaking down the 4.2% EPA figure for livestock by animal species, shows the following contributors: beef cattle 2.2%, dairy cattle 1.37%, swine 0.47%, poultry 0.08%, sheep 0.03%, goats 0.01% and other (horses, etc.) 0.04%. “It is sometimes difficult to put these percentages in perspective, however; if all U.S. Americans practiced Meatless Mondays, we would reduce the U.S. national GHG emissions by 0.6%. A beefless Monday per week would cut total emissions by 0.3% annually. One certainly cannot neglect emissions from the livestock sector, but to compare them to the main emission sources would put us on a wrong path to solutions, namely to significantly reduce our anthropogenic carbon
footprint to reduce climate change.” Even on the correct path, it’s easy to ignore essential road markers. “Another key component of reducing GHG emissions from the whole beef system is the role of the consumer,” according to “Removing Beef from the Human Diet,” a fact sheet in the sustainability series. “Approximately 20% of edible beef is wasted at grocery stores, restaurants and in the home. As with other foods, the amount of nonrenewable resources used and the
environmental impacts that went into producing the portions of beef that are being sent to a landfill are often overlooked. Consumers could improve beef sustainability by 10% if beef waste were reduced by half.”
Buying Local Isn’t the Answer Another popular solution to reducing GHG emissions, proffered by some consumers is to simply buy locally raised products.
“Approximately 80% of GHG emissions occur in the beef value chain before the animal is harvested and approximately 1-3% of GHG emissions occur due to transportation of beef to the consumer,” explains another sustainability fact sheet “Is Local Beef More Sustainable?” “Local food, including beef, is either marketed directly to consumers, or marketed to foodservice (e.g., restaurants) and retailers and then purchased by consumers. The appeal of purchasing local foods is often associated with perceived reductions of greenhouse gases because the product travels shorter distances from the producer to the consumer, thereby reducing what is known as ‘food miles.’ However, there is a tradeoff between the increased frequency of trips and
CATTLEMAN’S CHOICE
BULL SALE
SUNDAY 3•17•19 1 P.M. CST
NEW SA DATE! LE
T Seven Ranch Sale Facility • GREENLEAF, Kansas 2211 15th Road
Justin Stout, auctioneer ~ Lunch provided ~
(at the corner of Upland & 15th Road)
SELLING 60 18-month-old Bulls
50 Angus Bulls | 10 SimAngus Bulls Also selling: 20 Commercial & 5 Registered Heifers T Seven Ranch home-raised and AI bred for September 19 calves!
Sires represented: Resource ~ Bronc ~ Black Granite ~ Cash Crop ~ Patriot ~ Basin Bonus ~ Aviator ~ Commando ~ Breakthrough ~ Courage ~ Joe Canada ~ Broken Bow ~ Uproar ~ Generation 2100 ~ Sure Bet ~ Sharper Image RUN DATE: 05/22/18 RUN TIME: 10:11:05 TURN-IN: 174599
Baldridge Bronc
SCALE HOUSE AND SHRINK SYSTEM IBP GENE TRAC LEXINGTON, NE
KILL DATE: 05/19/18
LOT NUMBER: 030
SUPPLIER # 00174985 T SEVEN RANCH BUYER NAME: RAY PALENSKE
1427 UPLAND RD
FORMULA STATISTICS:
NEG. ADJUST 0.50
USDA AVG 192.13
DESCRIPTION BASE PRICE
HEAD 104
WEIGHT 95216
QUALITY GRADING PRIME CAB CHOICE SELECT HEIFERETTE NOROLL OTHER
60.0 40.0 4.0 0.0 0.0 0.0 0.0
55245 36069 3902 0 0 0 0
%WGT STAND % 100.00
GREENLEAF, KS
PAY WGT
58.02 37.88 4.10
TOTAL
SAV Resource
55242 36069 3902 0 0 0 0
58% 38% 4% 100%
Prime CAB Choice = $149.30/head in premiums
No ultrasound, no sorting ... just the bottom 2/3 of our calf crop! • All bulls performance tested • Strict breeding soundness exam • Stacked, predictable, proven pedigrees
Cattlemen, calves sired by these bulls typically bring $2-$5/100 lb. more at sale time. Reasonably Priced! Bulls that really produce!
“75 Years of A.I. Represented in These Two Programs” Pictures, video and on-line catalog available at www.tsevenranch.com
For catalog or information, contact:
Connealy Black Granite
T Seven Ranch
G&G Angus
Jerry, Mike & Tim Gilliam (785) 452-1548 ~ Jerry (785) 747-6969 ~ Mike
T. Brad Gilliam (785) 747-7580 ~ cell (316) 734-4869 ~ Aaron Doll
“Best Genetic Value Anywhere!”
F&R Livestock Resource page 17
smaller load sizes versus the distance traveled per trip in local beef systems as compared to the mainstream beef transportation system. This is because more beef moved per trip will translate into lower fossil fuel energy use and lower GHG emissions per unit of beef transported. Consequently, even if transportation distances were cut significantly for local beef, the impacts on GHG emissions are likely minimal.” Keep in mind that the term ‘local’ is relative. Some companies and consumers believe in-state is local, while others view a multi-state region that way; for others it means their hometown.
Tradeoffs Come with Grain Versus Grass In a different way, a similar discus-
sion comes up within the cattle and beef industries with the notion that grass-fed beef is more sustainable than grain-fed. “The main difference in carbon footprints between grass-finished and grain-finished beef occurs as a result of the time spent in the finishing phase, the type of feed consumed, and the ending body weight of the cattle in the finishing phase,” explains another sustainability fact sheet, “Does Grass-Finished Beef Leave a Lower Carbon Footprint Than Grain-Finished Beef?” For grain-fed cattle, about 82% of feed intake per unit of carcass weight comes from grazing forage, pasture or rangeland, according to the fact sheet. Grass-fed cattle utilize forage throughout their lives. “Grain-finished beef has a lower carbon footprint than grass-finished
beef due to more efficient utilization of feed in the finishing phase, fewer days on feed and greater amount of beef produced per animal,” according to the fact sheet. “However, grass-finished beef contributes to sustainable beef production by utilizing forage resources during finishing to produce food from plants that are inedible by humans.” Specifically, the higher-energy, lower-forage diet, shorter time spent on feed during finishing and heavier carcass weights translate into a 18.5% to 67.5% lower carbon footprint for grain-finished beef, compared to grass-finished beef. Conversely, research indicates an advantage for grass-finished beef production over grain-finished beef production when expressing feed
Di r e c t or of H e r d I m prove me nt. With more Angus influenced cattle qualifying for the Certified Angus Beef ® brand than ever before, it’s clear that the Angus bull has become America’s bull. He sires calving ease, growth and superior marbling. He works well in any environment, and on any cow, regardless of breed. Make sure that America’s bull serves as your director of herd improvement. Angus. America’s breed. Go to www.Angus.org/businessbreed or call 816.383.5100 to learn more.
page 18
Spring 2020
conversion as human edible energy returned per unit of human edible energy consumed by the cattle. In sum, according to the fact sheet, “Ultimately, tradeoffs exist between the two beef production systems; however, beef producers using either system can sustainably meet consumer demand for beef by utilizing the resources they have in their part of the country.”
Cattle Epitomize Upcycling Often overlooked in mainstream conversation about cattle and GHG emissions is the fact that cattle convert what’s mostly inedible by man into a high-protein food source for mankind. “In the U.S., 90% of the feed consumed throughout the lifetime of grain-fed cattle is human-inedible and cattle consume a number of different feeds that classify them as upcyclers,” according to the sustainability fact sheet, “How Does Upcycling Relate to Beef Production? “Inadequate for growing crops for human consumption, the 800 million acres of rangeland grazed by cattle comprise 35% of the United States. Cattle consume by-products from the biofuel and food industries, such as distillers grains and wheat middlings, which are by-products of the ethanol production process and wheat flour milling process, respectively. Use of these by-products as cattle feed decreases the respective industry’s waste by providing an alternative use of the by-product compared to sending it to a landfill.” For that matter, Dou points to the surge of processing by-products generated by the increased popularity of plant-based foods in consumers’ diets as an example of indigestible, unpalatable, or unsellable biomass (IUUB). Dou’s team is working with a California pilot project— Sustainable Alternative Feed Enterprises (SAFE)— to develop treatment technologies to convert post-consumer food waste into safe, nutritious livestock feed. That, of course, is an addition to the millions of pounds of IUUB already consumed by livestock, which are created in the production of products like orange juice and canola oil. Relative to the SAFE project, Dou’s lab systematically collects and tests feed samples derived from consumer food waste for feed safety evaluation, analyzing factors such as mycotoxins, heavy metals, pesticides, microbial contaminants, and nutrition parameters. Bottom line, Dou and Penn Vet emphasize cattle and other livestock are critical partners in developing
sustainable, regenerative agro-food systems. Currently, she and her team are in the process of conducting a dairy-focused project called The Amazing Cow. Funded by the Pennsylvania Department of Agriculture, the study documents the types, amounts, and variations of IUUB fed on dairy farms, characterizing important nutritional attributes and giving producers informed insights on how IUUB feedstuffs could be implemented on their farms.
Intensified Production Helps “Addressing the 2050 challenge of supplying food to a drastically growing human population can sustainably be achieved through intensification of livestock production,” says Mitloehner. “Indeed, intensification provides large opportunities for climate change mitigation and can reduce associated land use changes such as deforestation. Production efficiencies reduce environmental pollution per unit of product.” The 2050 challenge Mitloehner refers to is the need to feed the fast-growing global population with finite input resources. U.S. livestock producers continue to write the proverbial book on how to do so efficiently. “Globally, the U.S. livestock sector is the country with the relatively lowest carbon footprint per unit of livestock product produced (i.e. meat, milk or egg),” Mitloehner explains. “The reason for this achievement largely lies in the production efficiencies of these commodities, whereby fewer animals are needed to produce a given quantity of animal protein food.” By way of illustration, he explains, “The average dairy cow in the U.S. produces 22,248 lbs. milk per cow per year. In comparison, the average dairy cow in Mexico produces 10,500 lbs. of milk per cow per year, thus it requires two-plus cows in Mexico to produce the same amount of milk as one cow in the U.S. India’s average milk production per cow per year is 2,500 lbs., increasing the methane and manure production by a factor of nine times compared to the U.S. cow. As a result, the GHG production for that same amount of milk is much lower for the U.S. versus the Mexican or Indian cow.” The U.S. beef industry decreased its GHG emissions per pound of beef 9-16% since the 1970s, according to a sustainability fact sheet series. That’s from ongoing advances in genetics, animal nutrition, management and growth-promoting technologies that reduce the amount of natural resources required to produce a pound of beef.
Searching for a Solution By Randall Spare, DVM
Recently, a producer from another part of the state came to me with a pinkeye problem in a set of calves destined for Flint Hills grazing this summer. The producer purchased two loads of calves, off video, from reputation herds with “all their shots.” In the first 90 days, 30% of the cattle were treated for nonresponsive pinkeye and approximately 10 percent of the calves
were treated for respiratory disease. Pinkeye is more than a nuisance disease. It’s hard to quantify the economic loss to the disease. Gain is compromised and those that are blind or have blemishes on the eyes are not merchantable as breeding stock and therefore, discounted at the time of sale. There are several vaccines available for use in preventing pinkeye,
F&R Livestock Resource page 19
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Seedstock Plus RED REWARD Bull & Female Sale March 14, 2020
Wheeler Livestock Auction, Osceola, MO 60 RED Gelbvieh & Balancer bulls! Plus! RED females!
Seedstock Plus South Missouri Bull & Female Sale March 28, 2020
Joplin Regional Stockyards, Carthage, MO * 150 bulls!
18 month old & yearling bulls! Angus, Gelbvieh & Balancers! ALL BLACK! Plus! Open heifers!
ALL SALES! Bid & Buy at: • • • • • • •
page 20
Spring 2020
DVAuction
Guaranteed Sight-Unseen Purchases! Let us help you find the bull to fit your program and needs! Free Trucking on every bull! No fine print! Extensive Data & Genomic EPDs! All bulls are coat color & polled tested & Sire Verified! All Bulls Are Semen & Trich Tested! 100+ RFI tested bulls sell in these sales! Videos of sale bulls on website the week before each sale! www.seedstockplus.com or www.dvauction.com
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but none are effective all the time. We define “pinkeye” as keratoconjunctivitis. Simply stated, there is an infection involving the cornea and the surrounding tissues causing inflammation. Often this begins with an irritation or trauma to the cornea, followed by an infection resulting from an abrasion in the outer layer of the cornea. Subsequently, the eye is tearing, and the animal is attempting to keep the eye closed because of pain. The most common bacteria is a strain of Morexella bovis. However, it is not uncommon during extremely contagious outbreaks, such as the producer’s group of calves, to find 3-4 strains of bacteria involved in the same eye causing the problem. In fact, one or both eyes may be affected. What caused the infection? What can we do to prevent it now and in the future? And how can we treat the active infection? A wise, seasoned veterinarian once told me early in my career, “Seldom, when there is an outbreak of disease or death loss in cattle, is there only one cause.” I remind myself of this constantly. Producers come to a veterinarian for answers to problems right now. As veterinarians, or diagnosticians, we are challenged to look for the root of the problem. What initiated the outbreak? I would love to give a “silver bullet” answer, but as a diagnostician, I am learning to ask lots of questions. Many times, the causes and solutions are multifactorial. Where did these cattle originate? What is their vaccination status? Are they fall born? Did the calves receive adequate colostrum? When were they vaccinated and with which antigens? Are they from BVD free herds? Are they comingled? Did they experience a “weather event” near weaning time? Were they weaned prior to shipping? Were they weaned on the truck? What is the current feed ration? Did they eat out of bale rings? What was the feed ration during the weaning phase? What percentage of the cattle are treated? How many calves required more than one treatment? There are many questions to be asked, rather than responding by saying, “Well, you should have done this, this, and this.” Frankly, often, we just don’t know. I find myself saying more often, “I don’t know the exact cause or reason this is happening to your calves, but I care and we will explore the problem and work toward finding a solution.” In this specific pinkeye scenario, we asked if it was resolving now. After fighting the infections for 60 days, there was an indication that it may be diminishing in numbers of new infections. Why the infection occurred is related
to the immune status and the potential trauma to the cornea on these calves. The diagnostic work done on the calves’ eyes looked for the specific bacteria present. The lab work indicated there were four strains of bacteria in all of the eyes that were swabbed. There were two strains of Morexella and two strains of Mycoplasma in the eyes. Both of these bacteria are efficient opportunists. Both strains are present in the environment and are looking for a breach in the immune status of the bovine eye to set up an infection. We don’t know which bacteria are the primary initiator and which are lurking for a way to get into the cornea. The outer covering, or epithelium of the cornea, is a protective barrier to the eye. The
epithelium is the first portion of the immune system to protect the eye. When trauma to the epithelium occurs, bacteria attaches to the stroma of the eye and an infection occurs. In looking for ways to prevent these highly contagious bacterial infections, we must ask what violated the immune system to permit bacteria to attach itself to the cornea. Considerations of possible initiators are trauma to the eye by hay, dust, persistently infected BVD, mineral imbalance or IBR infection in the eye. Flies are also transmitters of these bacteria. Each initiator can play a part in the cause of a pinkeye outbreak. Pinkeye is a multifactorial disease and to address the core issue of prevention we must analyze all possible violations in immunity.
Several vaccines are available; however, the effectiveness is inconsistent at best. There are autogenous vaccines designed by culturing the bacteria on a particular ranch or location and using specific organisms to make a vaccine for that specific strain and location. A good thought in theory, yet the results are less than satisfactory. I believe it is more important to search for solutions to prevent pinkeye without vaccine, by examining how the infection occurs. This isn’t the easy way and takes time to help producers understand how immunity of a calf normally protects from disease. Understanding the normal process of this disease syndrome will help create a path of health and also prevent outbreaks in future seasons.
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Spring 2020
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Cattle Prices Set to Strengthen Beef production this year is poised to grow again and the low cattle prices for the cattle cycle are in the rearview mirror. By Wes Ishmael
Growing demand and increasing beef prices at the consumer level will be supportive of cattle prices, with leverage beginning to shift away from the packing sector as more shackle space becomes available, according to CattleFax analysts, at that organization’s recent 2020 Industry Outlook in San Antonio. CattleFax projects fed steer prices to average $120/cwt. during 2020, which would be $3 more than last year. Kevin Good, CattleFax vice president of industry relations and analysis, notes there is downside risk at $108 and resistance at $130. “With strong demand for U.S. beef at home and rising demand overseas, the modest increases in supply will be more than offset by a growing consumer appetite for our product,” says Good. He projects all-fresh retail prices will average $5.87/lb., 5¢ more than in 2019. CattleFax projects average composite cutout prices $3 higher this year at $222/cwt., with a range of $210-$235. “Higher wholesale beef values are a reflection of improving domestic and global beef demand,” Good explains. CattleFax forecasts steer calf prices (550 lbs.) this year $6 higher than last year at an average of $170/cwt., across a range of $155-$180. “With total cattle inventories at or just past a cyclical peak, feedlot inventories will likely peak in the next few months,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in recent weekly market comments. “However, average feedlot inventories are currently record large. After peaking last August then declining for two months, the 12-month moving average of feedlot inventories moved higher the last three months and is currently at 11.639 million head, record large for the current data series back to 1996.” In January, the World Agricultural Supply and Demand Estimates projected 2020 beef production at 27.44 billion lbs., which was 75 million lbs. less (-0.27%) than the December forecast, but still 289 million lbs. more (+1.06%) than in 2019. As for feeder steer prices (750 lbs.), CattleFax projects an average increase of $6, compared to last year, at an average of $150/cwt., across a range of $140-$160. CattleFax sees bred cows steady at $1,500, across a full range of $1,200 to
reach 83 million acres. He pegs spot corn prices at $3.50-$4.00/bu., which would be 15¢ to 20¢/bu. less than last year, notwithstanding significant weather pressure.
$1,800 for load lots of running-age cows. On the input side of the equation, Mike Murphy, CattleFax vice president of research and risk management
services, predicts acres planted to corn will increase 4 million acres to 94 million acres this year and that soybean acres will increase 7 million acres to
Herd Expansion Ends, for Now
Based on USDA’s cattle report released Jan. 31, as widely expected, national herd expansion is over.
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• Beef cows at the beginning of the year of 31.31 million head, were 1.18% less (-374,000 head) than the previous year. “The peak beef cow inventory for 2019 was 31.7 million (revised down by 75,000 head from the previous report),” Peel explains. “This means that the total herd expansion in this cycle was an increase of 2.73 million head from the 2014 low of 29.0 million cows. That is a total cyclical expansion of 9.4% or an average of 1.9% per year for the five years of expansion.” • Beef replacement heifers Jan. 1 of 5.77 million head were 1.92% fewer (-113,000 head) than the previous year. “The inventory of beef replacement heifers is 18.4% of the beef cow inventory, a level that historically has not indicated significant liquidation,” Peel says. “However, in 2019, replacement heifers were 18.6% percent of the beef cow inventory, but sharply higher beef cow slaughter at the end of the year pushed the culling rate fractionally over 10% and resulted in modest reduction in the herd inventory. The number of beef heifers expected to calve in 2020 is 3.5 million head, 0.8% lower year over year.” States with 1 million or more beef cows at the beginning of the year, and the ranking by size, were the same as a
year earlier. In order of size, with Jan. 1 cow numbers in parenthesis: Texas (4.57 million); Oklahoma (2.09 million); Missouri (2.08 million); Nebraska (1.92 million); South Dakota (1.73 million); Kansas (1.43 million); Montana (1.43 million); Kentucky (1.01 million). Of those eight states, beef cow numbers increased year over year in Missouri (+24,000 head or 1.17%) and Kentucky (+4,000 head or 0.39%). For the other six states, year-overyear declines in beef cow numbers ranged from -19,000 head in Nebraska (-0.98%) to -96,000 head in Kansas (-6.28%). • Milk cows Jan. 1 of 9.33 million head were 2.10% less (-113,000 head) than the same time a year earlier. • The 2019 calf crop was estimated at 36.06 million head, which was 0.70% less (-253,100 head) than in 2018 • Cattle on feed Jan. 1—for all feedlots—of 14.68 million head was 2.16% more (309,800 head) than the previous year. That’s the largest January 1 inventory since 2008, according to Peel. “These numbers show that the last pulse of larger cattle numbers are currently in feedlots and cattle slaughter will be up in the first quarter before declining through the second half of the year,” Peel says. “However, higher carcass weights are projected to offset
a slight decline in cattle slaughter and push total 2020 beef production higher to new record levels. Beef production is likely, however, to be lower year over year by the fourth quarter of the year.” • The estimated feeder cattle supply outside feedlots Jan. 1 of 26.45 million head is 0.40% less (-105,300 head) than a year earlier. • There were 1.61 million head grazing small grain pastures in Kansas, Oklahoma and Texas on Jan. 1. That was 15.26% less (-290,000 head) than a year earlier. • USDA pegs the Jan. 1 inventory of all cattle and calves at 94.41 million head, which is 0.41% less (-391,400 head) than a year earlier. Good notes additional supplies of utility cows, the product of several years of aggressive expansion, are likely to challenge the cull cow market. However, he explains, “Increased demand for lean trim and a decline in the availability of imported grass-fed trim from Australia and New Zealand will be supportive of cow prices.” He projects utility cow prices at an average of $65/ cwt., ranging from the low $70s to a fall low near $55.
Cattle Feeding Returns More Positive In the meantime, cattle feeding economics grow more positive, according
to the most recent Historical and Projected Kansas Feedlot Net Returns, from Kansas State University. Net returns projected for closeouts in December were +$51.13 per head for steers and +$40.44 per head for heifers, according to the report. That’s with estimated feedlot cost of gain (FCOG) of $89.49/cwt. for steers and $95.78 for heifers. Keep in mind that these estimates are cash to cash and do not account for price risk management. Moreover, the report projected positive net returns for steers in six of the next eight months, counting January with a range of -$12.44 per head ( June) to +$122.26 ( January), with FCOG of $85.75/cwt. ( July) to $94.77 (February). KSU projects positive net returns for heifers in the next eight months, ranging from +$3.60 (August) to +$146.75 ( January) with FCOG of $93.01 (August) to $99.88 (February).
Beef Exports Help Offset Increased Production “Given that red meat production is expected to remain elevated in 2020, it points to the importance of being able to export pork and beef,” says Andrew P. Griffith, agricultural econ-
F&R Livestock Resource page 25
omist at the University of Tennessee is recent market comments. U.S. beef exports last year totaled 1.32 million metric tons (mt), 2.5% below the previous year’s record volume, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef export value was 3% less at $8.1 billion. Beef export value per head of fed slaughter last year was $309.75, down 4% (see “Gone Global”). “There is strong demand for our product, but that’s the result of the fact that our business has paid attention to market signals and we’ve been producing a consistent, quality product that has gained a greater piece of that retail dollar. We need to protect that,” says Randy Blach, CattleFax CEO. “We must pay attention to what the con-
“Market conditions in 2020 will determine the trajectory of the cattle industry from this point forward.” sumer is telling us. That means conversations about topics like traceability and sustainability only become more important as time goes on. We have to listen to the consumer and respond with action to meet their needs and demands if we’re going to continue to be successful in a hypercompetitive global protein market.” “Market conditions in 2020 will determine the trajectory of the cattle industry from this point forward,” Peel says. “Modestly higher prices are projected in 2020, combined with
improved international market potential, could restart herd expansion. Alternatively, continued political and economic turbulence or shocks, such as coronavirus, could drag markets down and hold cattle inventories flat or fall into more liquidation.” Editor’s Note: In addition to his writings for F&R Livestock Resource, Wes Ishmael also writes and produces Cattle Current—a convenient, one-stop glance at daily cattle markets. The website and daily podcast include market highlights. The daily Cattle Current e-mail newsletter includes more detail: Highlights from and links to calf and feeder cattle auctions monitored by Cattle Current; weekly market summary commentary; daily cash grain prices; futures prices for live cattle, feeder cattle, corn and Crude oil (day, previous day and previous week). For more information, visit cattlecurrent.com.
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Extended-Release Injectable Parasiticide 5% Sterile Solution For the Treatment and Control of Internal and External Parasites of Cattle on Pasture with Persistent Effectiveness Not for use in female dairy cattle 20 months of age or older, including dry dairy cows. Not for use in calves to be processed for veal. Not for use in breeding bulls, or in calves less than 3 months of age. Not for use in cattle managed in feedlots or under intensive rotational grazing. CAUTION: Federal law restricts this drug to use by or on the order of a licensed veterinarian. INDICATIONS FOR USE LONGRANGE, when administered at the recommended dose volume of 1 mL per 110 lb (50 kg) body weight, is effective in the treatment and control of the following internal and external parasites of cattle: Gastrointestinal Roundworms
Gastrointestinal Roundworms Bunostomum phlebotomum – Adults and L4 Bunostomum phlebotomum Adultsandand Cooperia oncophora ––Adults L4 L4 Cooperia oncophora – Adults and Land Cooperia punctata – Adults 4 L4 Cooperia surnabada Adults Cooperia punctata – Adults –and L4 and L4 Haemonchus–placei – Adults Cooperia surnabada Adults and L4 Oesophagostomum radiatum – Adults Haemonchus placei – Adults Ostertagia lyrata – Adults Oesophagostomum radiatum – Adults Ostertagia ostertagi – Adults, L4, and Ostertagiainhibited lyrata –L4Adults OstertagiaTrichostrongylus ostertagi – Adults, inhibited L4 4 andand axei – LAdults L4 Trichostrongylus axei – Adults and L4– Adults Trichostrongylus colubriformis Trichostrongylus colubriformis Persistent Activity – Adults
Lungworms Lungworms Dictyocaulus viviparus – Adults
Dictyocaulus viviparus – Adults Grubs Grubs Hypoderma bovis Hypoderma bovis Mites Sarcoptes scabiei var. bovis
Mites
Sarcoptes scabiei var. bovis
the following parasites for the indicated amounts of time following treatment:
Parasites
Parasites
Gastrointestinal Roundworms Gastrointestinal Roundworms Bunostomum phlebotomum Bunostomum phlebotomum Cooperia oncophora Cooperia oncophora Cooperia punctata Cooperia punctata Haemonchus placei placei Haemonchus Oesophagostomum radiatum Oesophagostomum radiatum OstertagiaOstertagia lyrata lyrata OstertagiaOstertagia ostertagiostertagi Trichostrongylus Trichostrongylus axei axei Lungworms Lungworms Dictyocaulus Dictyocaulus viviparusviviparus
Durations of Persistent Effectiveness Durations of 150 days 150 days 100 days 100 days 100 days 100 days 120 days 120 days 120 days 120 days 120 days 120 days 120 days 120 days 100 days 100 days 150 days 150 days
DOSAGE AND ADMINISTRATION DOSAGE AND ADMINISTRATION Body Weight (lb) Dose Volume (mL) LONGRANGE® (eprinomectin) LONGRANGE® (eprinomectin) should be given 110 1 should be giveninjection only by in front of only by subcutaneous 220 2 subcutaneous injection in front of the shoulder at the recommended dosage 330 3 the shoulder at the recommended level of 1 dosage mg eprinomectin per kg body 440 4 level of 1 mg eprinomectin weight (1per mLkgper 110 lb body weight). 550 5 body weight (1 mL per 110 lb Each mL ofbody LONGRANGE 660 6 weight). contains 50 mg of eprinomectin, to treatcontains 110 lb (50 Each sufficient mL of LONGRANGE 770 7 kg) body weight. Divide doses greater than 880 8 to treattwo 110injection lb (50 kg)sites bodytoweight. 10 mL between reduce 990 9 doses or greater than 10 mL occasional Divide discomfort site reaction. 1100 10 between two injection sites to Do not underdose. Ensure each animal reduce occasional discomfort or site receives a complete reaction. dose based on a current body weight. Underdosing may result in ineffective treatment, and encourage the development of parasite resistance. LONGRANGE is to be given subcutaneously only. Animals should be appropriately restrained to achieve the proper route of administration. Inject under the loose skin in front of the shoulder (see illustration) using a 16 or 18 gauge, ½ to ¾ inch needle. Sanitize the injection site by applying a suitable disinfectant. Clean, properly disinfected needles should be used to reduce the potential for injection site infections. Withdrawal Periods and Residue Warnings Animals intended for human consumption must not be slaughtered within 48 days of the last treatment. This drug product is not approved for use in female dairy cattle 20 months of age or older, including dry dairy cows. Use in these cattle may cause drug residues in milk and/or in calves born to these cows. A withdrawal period has not been established for pre-ruminating calves. Do not use in calves to be processed for veal. Animal Safety Warnings and Precautions The product is likely to cause tissue damage at the site of injection, including possible granulomas and necrosis. These reactions have disappeared without treatment. Local tissue reaction may result in trim loss of edible tissue at slaughter. Observe cattle for injection site reactions. If injection site reactions are suspected, consult your veterinarian. This product is not for intravenous or intramuscular use. Protect product from light. LONGRANGE® (eprinomectin) has been developed specifically for use in cattle only. This product should not be used in other animal species. When to Treat Cattle with Grubs LONGRANGE effectively controls all stages of cattle grubs. However, proper timing of treatment is important. For the most effective results, cattle should be treated as soon as possible after the end of the heel fly (warble fly) season. Environmental Hazards Not for use in cattle managed in feedlots or under intensive rotational grazing because the environmental impact has not been evaluated for these scenarios. Other Warnings: Parasite resistance may develop to any dewormer, and has been reported for most classes of dewormers. Treatment with a dewormer used in conjunction with parasite management practices appropriate to the geographic area and the animal(s) to be treated may slow the development of parasite resistance. Fecal examinations or other diagnostic tests and parasite management history should be used to determine if the product is appropriate for the herd/flock, prior to the use of any dewormer. Following the use of any dewormer, effectiveness of treatment should be monitored (for example, with the use of a fecal egg count reduction test or another appropriate method). A decrease in a drug’s effectiveness over time as calculated by fecal egg count reduction tests may indicate the development of resistance to the dewormer administered. Your parasite management plan should be adjusted accordingly based on regular monitoring. Macrocyclic lactones provide prolonged drug exposure that may increase selection pressure for resistant parasites. This effect may be more pronounced in extendedrelease formulations. TARGET ANIMAL SAFETY Clinical studies have demonstrated the wide margin of safety of LONGRANGE® (eprinomectin). Overdosing at 3 to 5 times the recommended dose resulted in a statistically significant reduction in average weight gain when compared to the group tested at label dose. Treatment-related lesions observed in most cattle administered the product included swelling, hyperemia, or necrosis in the subcutaneous tissue of the skin. The administration of LONGRANGE at 3 times the recommended therapeutic dose had no adverse reproductive effects on beef cows at all stages of breeding or pregnancy or on their calves. Not for use in bulls, as reproductive safety testing has not been conducted in males intended for breeding or actively breeding. Not for use in calves less than 3 months of age because safety testing has not been conducted in calves less than 3 months of age. STORAGE Store at 77° F (25° C) with excursions between 59° and 86° F (15° and 30° C). Protect from light. Approved by FDA under NADA # 141-327 Made in Canada. Manufactured for Boehringer Ingelheim Animal Health USA Inc., Duluth, GA 30096 ®The Cattle Head Logo and ®LONGRANGE are registered trademarks of Boehringer Ingelheim Animal Health USA Inc. © 2019 Boehringer Ingelheim Animal Health USA Inc. All rights reserved.1050-2889-08, Rev. 01/2019, 8LON016E US-BOV-0277-2019
25.4
1
WITH JUST ONE DOSE, LONGRANGE® (EPRINOMECTIN) WORKS UP TO 5X LONGER.1
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By delivering up to 150 days of parasite control with just one dose2, LongRange® (eprinomectin) offers the best economic return of any dewormer on the market. The season-long protection provided by Theraphase® technology means greater defense against nutrient-robbing parasites — and ultimately, heftier cattle. Visit theLONGRANGElook.com to learn more.
Dectomax® (doramectin).3
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WORTH ITS WEIGHT IN
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LONGRANGE IMPORTANT SAFETY INFORMATION: Do not treat within 48 days of slaughter. Not for use in female dairy cattle 20 months of age or older, including dry dairy cows, or in veal calves. Post-injection site damage (e.g., granulomas, necrosis) can occur. These reactions have disappeared without treatment. Not for use in breeding bulls, or in calves less than 3 months of age. Not for use in cattle managed in feedlots or under intensive rotational grazing. 1 2 3
Results based on actual on-farm comparative demonstration. Individual herd results may vary. Data on file at Boehringer Ingelheim. Dependent upon parasite species, as referenced in FOI summary and LONGRANGE product label. DECTOMAX product label.
Available in 500 mL, 250 mL and 100 mL bottles. Administer subcutaneously at 1 mL/110 lbs.
LONGRANGE®, THERAPHASE® and The Cattle Head Logo® are registered trademarks of Boehringer Ingelheim Animal Health USA Inc. All other trademarks are property of their respective owners. ©2019 Boehringer Ingelheim Animal Health USA Inc., Duluth, GA. All Rights Reserved. BOV-2008-GEN0219
F&R Livestock Resource page 27
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Spring 2020
