A NEWS SOURCE FOR COMMERCIAL BEEF PRODUCERS
MARCH•APRIL 2011
VOLUME 3
ISSUE 2
FRONTLINE beef producer
Crossbreeding Advantages for the Future
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FRONTLINE Beef Producer 1
TABLE OF CONTENTS FEATURES
6 The Trade Off of Imports and Exports by Marcine Moldenhaur
FRONTLINE Beef Producer
Commerical Marketing Programs
Grant Keenen
Marketing Programs Director
Ben Spitzer
12 Crossbreeding - Back to the Future by Dr. David A. Daley
Administration/Circulation
Frances Miller
Contributing Editors
16 The Brangus Advantage
Dr. Joseph Massey Marcine Moldenhauer Dr. David A. Daley Holly Foster
DEPARTMENTS
Advertising
by Holly Foster
4 Out Front
Challenges Facing the Cow/Calf Producer by Dr. Joseph Massey
Melanie Fuller 979.828.5300 Copy Editor
Elma Ryan Proofreader
10 The Marketing Update The X Factor by Grant Keenen & Ben Spitzer The BrangusLIST by Grant Keenen & Ben Spitzer
Jim Bulger Operations
Rosanne Sralla Patti Teeler Layout/Art Director
Cattle Solutions - Crystal Devoll
FRONTLINE Beef Producer
is a product of:
Brangus Publications, Inc. 5750 Epsilon San Antonio, Texas 78249 Phone: 210.696.8231 Fax: 210.696.8718 Brangus Publications, Inc. Directors: Angelo Zottarelli - Chairman Dr. Joseph Massey - President Bill Davis - Secretary/Treasurer R.L. Robbs Don Cox Information appearing in this issue may be reprinted only with written permission of Brangus Publications, Inc.
LPC Livestock Publications Council - Member
On the Cover:
19 NEWS & NOTEWORTHY 22 STATE DIRECTORY 26 SERVICES 28 ADVERTISER INDEX 28 CALENDER OF EVENTS 2 FRONTLINE Beef Producer
Crossbreeding Advantages: Brangus sired calf on the side of an Angus cross heifer.
FRONTLINE Beef Producer 3
OUT FRONT | by Dr. Joseph Massey
Challenges Facing the Cow Calf Producer
A
s we start to make decisions about our cattle operations this year, we will face many new opportunities and potential obstacles. The Cattlefax presentation at this year’s NCBA was rather bullish about the prices that we producers will be able to command for our calves, replacement heifers and cows. As our economy and world economies pick up the demand for US beef should also increase. The problem this year is that we have been contracting our cow numbers for at least seven to ten years and our ability to increase supply will take at least three to five years. On the other hand, the very economic conditions that are driving increases in cattle pricing will also be driving energy, labor and commodities costs higher making for some very challenging times for the producer. Since all indications are that 2011 may see the highest increases in sometime, it seems the challenges that will be hitting us the hardest are what input cost we will be able to afford, such as fertilizer, labor and feed supplement. In addition, different regions of the United States have experienced very different environmental stress factors such as droughts or excessive winter conditions, which affect the costs of production. The questions that face us today, maybe more than in the past are what type of cattle should we be raising when it comes to breed or breed type and what size animal as it relates to ability to maintain, breed and raise a calf with the available inputs. When prices are good, there is a ten-
dency to believe that any and all cattle are good because they bring relatively high prices when sold. The problem is that if your costs of production are also high, at the end of the day you still may find that you cannot make any money. This is the very caution that the Cattlefax presentations was pointing out. We face very challenging times in determining what cost can we really afford and what are we going to have to do differently. It will not be the same old cost structures. ABOUT THE AUTHOR
Now is the time to better understand not Dr. Massey has served as only the types of animals we want to pro- Executive Vice President duce but also the types of animals we do not of the IBBA since 2004. In what to produce. Perhaps we should change 2007, he started Genetic the way that we view our cattle. Maybe we Performance Solutions, LLC, should take better care of the bred thin look- a breed registry services ing cow with a big calf at her side rather and performance analysis than the cow without a calf that looks good. company serving the cattle and breed association This observation helps us to understand size, industry— a joint venture frame and the genetic potential of the result- between the IBBA and the ing offspring. We might have been forced Red Angus Association over the last several years to sell off animals of America. GPS manages that have not produced for any number of online registry programs for reasons from environmental factors to the breed associations and the cost of production. We should all be aware data base management of that the production model may be changing performance data like multiand we cannot afford to make the same old breed EPDs. mistakes in breeding or managing as we have in the past. We need to realize that identifying the Dos and Don’ts of our business carry equal weight today. We sometimes think that what is good for our neighbor is good for us and that prevents us from changing our way of thinking and taking action. You do not need a crystal ball to know that the genetic value of your bulls plays a more important role today in the management of your cow herd. Making predictions based on offspring from phenotypic bull selections is too costly a proposition and a risk that we can no longer take. We can no longer pretend that EPDs don’t work because we don’t understand them. Although EPDs are a tool just like your records, computer, scale and so on, they are only one tool and their value depends on how you learn to use them for your operation. No tool is absolute and EPDs are certainly not a simple tool but EPDs may be one of the best tools available to all cattlemen in the cow calf business. I have been struggling to understand what our model of production will be over the next several years in order for us to make money in the cattle business. I have to be honest and admit that I wish I had a magical crystal ball to predict the right model. What I do know is that producing animals that grow, thrive and produce efficiently will give me the best chance for making money going forward. This is not the time to save a dollar on an unknown source of genetics; you need to commit resources and effort in selecting bulls with known predictability of performance. I cannot stress strongly enough, that our only real chance of success rests on our ability to identify bulls with high levels of predictability.
4 FRONTLINE Beef Producer
FRONTLINE Beef Producer 5
FEATURE | by Marcine Moldenhauer
The Trade Off of Imports & Exports
L
et’s talk Trade! Importing or Exporting (Trade) is an age old transaction. For this article I will use trade as the over arching term for collective imports and exports. I will refer to imports or exports directly when discussing specifics. Basics for trade - one country or business needs or wants what the other has! Consider for a minute the sophistication and complexity, the tariffs and restrictions, along with other complicating factors involved or required for countries to trade goods and services today. Particularly food related items. The importing and exporting meat products are under significant verification on both sides of the “trade” … beef is no different. However, there are a group of basic factors which influence decisions as whether to import or export beef to or from the United States.
A short list of influencing factors is:
1. Strength of US currency or exchange rate verses other beef exporting countries – particularly Australia when it comes to the US competing in Asia. 2. Weather factors (severity and the size of area affected by droughts or floods - cost of feed) 3. Economic strength and growth of trading partners 4. Supply and Demand
Each of these dynamics has a profound effect on how, what, and when companies in the US export and import beef products. Let’s take a quick look at Exports and Imports specifically. First exports. Exports What are the main beef products and by-products exported and why? As you review the list of products and by-products the conclusion is pure economics. It is either that there is no industry in the US to further process the items into valuable consumer goods, there is little consumer demand for the products verses other parts of the world, or the demand in another country drives prices higher than the domestic market is willing to support. If we examine the latest of US beef export data, according to the Cattlemen’s Beef Board, in August 2010 alone there was a 24 percent in volume and 43 percent in value increase compared to a year ago (August 2009). The cumulative January thru August 2010 (latest I could find) is up 16 percent in volume and 27 percent in value. The value total is 9 percent higher than the corresponding pre-BSE value from January thru August 2003. All of this suggests two positive factors. The local economy is improving at a good pace and heir people are financially able to upgrade the protein source they desire to eat, other countries are having beef shortages due to weather, lack of grains, and/or the US dollar is weak enough that these countries can afford US beef. There is always a balance between a strong dollar and exporting goods. Imports It is always interesting to me, that imports of beef get some people really upset. So, let’s examine the dynamics of beef imports to the US. First, however, what are the main beef products and by-products imported into the US and why? Again, as you review the list the conclusion is again economics but also available supply verse demand at an acceptable price level. Take Organic beef for example. Most “Organic” beef sold in the US is imported. Ad6 FRONTLINE Beef Producer
ditionally, most organic beef coming into the United States is also grass fed. This provides the buyer with the ability to target two markets at the same time at one price level which is critical to reduce shrink and maintain margin. What one might conclude is that there is a large demand in the US for both “organic” and “grass fed” beef. This assumption is most likely overstated if taken at face value. As with any niche product there is a delicate balance between too much and not enough supply. In the beef niche markets, a ABOUT THE AUTHOR Moldenhauer, tiny bit of too much supply can collapse the Marcine Owner and President of entire market. Meat≈Link Management, a The economics would suggest these niche Livestock and Meat Business beef supplies are cheaper to produce in other Consulting Firm; Contact countries than here in the US. But what Information: Wichita, Kanabout main stream beef like chilled or frozen sas 67230, Office 316-7338506, marcine_moffice@att. lean trimmings? Let’s think for a second about the US beef net herd numbers. The US beef herd is at an all time low of around 32 million head – give or take a couple. Why…well obviously there are many reasons, but mostly drought in major cow/calf producing regions, cost of production, age of producer continues to climb into the late 60’s, and feeder cattle prices are at all time highs, or close to it…so ranchers sell heifers versus retaining them. Cull and breeding cow prices at are all time highs – so cows are going to town. So, we have a decreasing cow herd in the US which is where a large percent of our lean trim comes from for ground beef type products. I am not saying these decisions or reaction to these market signals are wrong. I respect each producer to make the decisions which they believe are best for them.
Products which make up the majority of US beef exports: 1. Cattle Hides and calf skins 2. Variety Meats (Heart, Tongue, Kidney, Liver, Sweet Breads, Tripe, Weasond, etc 3. Thin Meats (short ribs, plate, etc) 4. Middle Meats (Tenderloin, Loins, Ribeyes) 5. Tallow
Products which make up the majority of US beef imports: 1. Canned meats 2. Frozen Lean Trimmings / Cuts 3. Organic Beef Cuts 4. Grass Fed Beef Cuts
A quick review: the US has a declining cow herd, ground beef demand it through the roof and price of ground beef at the retail market continue to increase. Case in point, ground beef prices realized approximately a 34% increase in price alone in 2010. Therefore, companies across the spectrum, from quick serve, to upscale food service, are all scurrying to tie up supply at a price they can work with. Continued on page 8
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Continued from page 6.
Moreover, as the US imports some of these lower priced beef items, we are able to export high end, high value products back to them. Keep in mind, beef is just one factor in the meat complex trade balance…pork and poultry play a serious role in this equation, as well as other factors and commodities. Besides having good trading partners as allies is not a bad thing. Case in point- South Korea. With the latest events in North Korea, South Korea is a perfect example. The U.S. Meat Export Federation reports that South Korea imported 84,822 metric tons of U.S. beef in 2010, up 42.6 percent compared to the previous year. This bettered the nation’s overall increase in beef imports of 16.2 percent. American beef accounted for 32.5 percent of the South Korea’s imported beef market last year, up from 26.5 percent the preceding year. It trimmed the deficit with market-leading Australian beef, whose share was 53 percent in the same year. It is reported that this increase alone accounted for over $80/head of live value to the fed cattle market. So when we feel like moaning and groaning about exporting our great beef to other countries – we should be proud they have a desire for it! At the same time we must keep in mind the factors which makes it good business to import from other countries as well. It cannot be overstated, the importance of having good trading partners around the world who are also our allies. Lastly, below are several data charts which you might find interesting.
I think it is always a good idea to take a look at this type of information relative to our industry. It helps me maintain an objective understanding of what is going on, and what does it mean to me. Top Ten Countries with which the U.S. Trades for the month of November 2010
The Values given are for Imports and Exports added together. These Countries represent 67.81% of U.S. Imports, and 62.10% of U.S. Exports in goods.
Country Name China Canada Mexico Japan Federal Republic of Germany United Kingdom Korea, South France Taiwan Brazil
Total in Billions of U.S. $
Year to Date Total in Billions of U.S. $
44.60 43.73 35.50 16.24 12.23 8.01 7.96 5.87 5.84 4.88
415.90 479.92 359.24 164.07 119.42 89.62 80.10 59.29 56.10 53.91
Source: Dow Jones
USDA Economic Research Service Livestock and Meat Trade Data - Meat and Livestock Annual Cumulative Year-to-Date U.S. Trade Meat and livestock annual cumulative year-to-date U.S. trade Import/export, country code and name 1/ Beef and veal 1220 Canada imports (Car6021 Australia cass wt. 1,000 6141 New Zealand pounds) 3550 Uruguay 3510 Brazil 2190 Nicaragua 3570 Argentina
2005 1,092,348 900,016 603,211 557,051 214,355 63,590 110,356
2006 843,943 887,612 563,553 305,403 273,209 62,590 85,798
2007 789,464 887,650 507,661 355,224 280,919 88,357 69,264
2008 841,241 663,009 527,332 65,549 212,907 99,326 56,052
2009 812,412 791,799 517,357 76,237 198,482 88,963 43,772
Jan-Nov 09 746,884 750,035 480,270 70,040 185,871 79,650 40,420
Jan-Nov 10 807,572 536,448 444,603 49,054 60,271 90,510 41,043
1/Countries are ranked by the sum of their trade for all full years show. Source: ERS calculations using data from U.S. Department of Commerce, Bureau of the Census. Date Run: 1/13/2011
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The Marketing Update | by Grant Keenen & Ben Spitzer
The X Factor
A
s we approach bull buying season, there are a number of factors a few. The Brangus sired commercial female is the mother cow of choice that beef producers look for when making their genetic deci- when you operate in harsh environments. sions. Phenotypes, EPDs, carcass data, etc., are scrutinized and Brangus have much to offer the commercial beef industry. If you are have varying value to each producer. One area that many beef interested in producing profitable cattle, you should be crossbreeding and producers leave out of the equation all together can contribute more to considering using Brangus in your plan. If we can be of assistance, give us their bottom line than perhaps all the individual animal data combined. a call at 210/696-8231. Crossbreeding has tremendous impacts on a multitude of traits important to profitable beef production. As you will see outlined in this issue, using Brangus in your planned crossbreeding program can reap big rewards. The past several years have seen a decline in cow numbers across the United States. As we see beef demand increase, producers From Florida swamps to the high country of Oregon... who make sound decisions now will set themselves Arizona deserts to the fescue valleys of Virginia... up for tremendous profit potential. The Brangus sired feeder calf has many traits of The Brangus crossbred mother cow produces quality end-product that meets value to the commercial beef producer, especially industry demand while fitting your environment better than any other. out of English mothers like Hereford and Angus. Brangus x English calves have tremendous growth potential, feed efficiency, and increased yield while having carcass quality equal to or greater than those Contact IBBA sired by Continental breeds. Brangus feeder cattle Today for consistently supply premium product lines includMarketing ing Certified Angus Beef (CAB). As we see increased acceptance into export marOptions kets, we will continue to see premiums for source and age verified cattle. Using registered Brangus Brangus Gold bulls allows entry to the IBBA’s OptimaxX source Commercial and age USDA Process Verified Program. There are Females no enrollment fees to participate, only the cost of the tag. If you are interested in learning more, conOptimaxX Age/ tact the IBBA office at 210/696-8231. Source PVP As we rebuild the cowherd, the Brangus influFeeder Cattle enced replacement heifer may be worth even more International Brangus Breeders Association than her brothers as they bring a host of desirables to the table. Mothering ability, hardiness, resis(210) 696-8231 tance to Fescue toxicity, and heat tolerance are just
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maxX feeder cattle they wish to market. BrangusLIST will give IBBA members a place to advertise Brangus bulls for sale as well as Registered females to cattlemen all over the country. This new on-line feature will give buyers and sellers a place to meet!To get started visit www.GoBrangus.com and click on the BrangusLIST icon. You will be directed to the current listings where there are search choices to help narrow the search to your specific criteria or you can add to the listing with cattle you have available. If you have any questions feel free to contact IBBA marketing staff. Grant Keenen - Director of Commercial Marketing Programs 210/696-8231 Office 417/540-6570 Mobile grant@int-brangus.org Ben Spitzer - Marketing Programs Director 210/696-8231 Office 864/723-3779 Mobile ben@int-brangus.org
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FEATURE | by Dr. David A . Daley
Crossbreeding - Back to the Future
T
hree years ago I was invited to address BIF regarding heterosis and how we have either ignored or forgotten the value of systematic crossbreeding to improve profitability in beef cattle production systems. In the interim period since that presentation, I am even more convinced that this incredible genetic resource has been under utilized and devalued. At a time when all of our input costs have increased dramatically, and the value of cow efficiency is paramount, we continue to find arguments against using crossbreeding primarily centered on the concepts of consistency and marketability. Clearly, there are specific instances in the commercial cattle sector where heterosis has been used effectively. I would argue, however, that the potential is far from realized. In fact, in the past few years, we seem to have drifted away from crossbreeding to more traditional straightbred programs that intend to focus on phenotypic consistency and end product, but not necessarily on profitability. Is there a rational explanation for our unwillingness to take advantage of a proven technique to enhance economic return? In my previous paper I outlined the “top ten” reasons that we have failed to capitalize on this important genetic attribute: 1) A cultural bias that clearly reflects “purebreds “ are better! If for no other reason that they have a registration paper. Society, at many levels, rewards purity. Is your dog registered? Does your quarter horse gelding have papers? How far can you trace your ancestry? Please don’t misunderstand---there is certainly value associated with
that record, particularly our ability to track performance and predict genetic potential of purebreds. But being purebred should not be a presumption of superiority.
ABOUT THE AUTHOR Dr. Dave Daley serves as Associate Dean for the College of Agriculture at CSU, Chico, CA, where he also directs the beef program. In addition, he runs a herd of several hundred commercial cows.
2) Our predilection for single trait selection focusing on “bigger is better”. The beef cattle industry seems to choose a trait of importance and then put an inordinate amount of pressure on that trait, ignoring genetic antagonisms. If a 90 pound yearling EPD is good, 100 must be better! It is intuitive! We have already done frame, growth (weight of all kinds), milk, and carcass traits (both ribeye and marbling). I sometimes have to ask myself, “so what is the trait of the year this time?”. It is akin the the “flavor of the month” at the local ice cream shop. And because often have chosen relatively highly heritable traits, we have not needed to crossbreed to achieve those goals. The subtle, and cumulative improvement that heterosis provides does not lend itself to maximums. 3) We have decided that measuring outputs is more meaningful than measuring inputs, as well as easier to do. It is certainly easier to measure calf performance on an individual basis, rather than all costs associated with that production. “I can weigh them at weaning quicker than I can determine differences in treatment costs over time.” 4) Uniform phenotypes for qualitative traits (color) have a distinct and really marketing advantage that is difficult to ignore. That does not mean you cannot have uniformity of color within a crossbreeding program, but the widespread and indiscriminate planning (or lack thereof ) of many crossbreeding programs certainly have us some interesting marketing challenges. Generally, it is easier to produce a uniform color in straightbred programs. 5) Heterosis is very difficult to visualize and even more difficult to measure. Because heterosis is expressed as a small net positive in many traits we do not know it when we see it. Slight changes in morbidity, ate at puberty, conception rate and significant changes in longevity are not easily observed. However, we all know when calves gain faster in the feedlot. 6) The presentation of complicated crossbreeding systems as a “normal practice” to diverse cattle operations, especially the countless small beef herds in the United States. Many of the systems that we teach as part of standard animal breeding or beef production courses have very limited application in the real world. Most beef herds are too small to implement the “standard system”. Continued on page 14
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FRONTLINE Beef Producer 13
Continued from page 12.
7) Our penchant for telling people how to modify their environment in order to “get heavier calves, higher percent calf crop and more total pounds”, rather than how to increase net return. How many new supplementation programs can you develop in order to get your heifers bred or wean bigger calves? In fact, we can recommend programs for non-cycling females.....you just have to pay for it and then pass those genetics to the next generation! Heterosis provides some improvement in traits at relatively little cost. However, we have obscured the opportunity for producers to focus on those traits, because they are so busy masking differences with artificial environments. 8) Historically, there has been active resistance to crossbreeding from some traditional marketing outlets, some purebred producers and (in some cases) breed associations. I would like to commend many of the associations who, quite recently, have taken the risk of suggesting where their animals fit most effectively in crossbreeding programs. 9) Inappropriate use of breed diversity. Nothing undermines crossbreeding more quickly than the unplanned “Heinz 57” or “Breed of the Month Club” approach. For those who were willing to experiment in crossbreeding, there was often very poor planning of the combination of breeds and the selection with those breeds. 10) Our industry and University systems have focused on individual trait measurement for over fifty years. We have done a very poor job of incorporating real world economics into our models. We have EPD’s for a plethora of traits...and we are adding more! Economic indices are starting to catch up, but we are still behind. Has anyone thought about measuring return per acre or return on investment? We have had a disconnect between agricultural economists and animal science that has not been well bridged. We tend to think lineally rather than laterally, which has reduced the application of innovative crossbreeding. As I review this list, I am convinced that the primary drawback (among all of the others), is #3...the focus on measuring outputs rather than inputs. With a few notable exceptions, all of the individual animal traits we measure reflect “bigger, faster, more”. And certainly, the glamour traits of yearling weight, ribeye area, marbling---have accelerated at a rapid pace. You can make very rapid genetic progress in these highly heritable traits by direct selection with a breed. Therefore, many people fail to see the value of crossbreeding. The value in crossbreeding is often underestimated because it has a small positive effect on many different traits that are lowly heritable and difficult to measure. Frequently, maternal heterosis (the value of the crossbred cow) is about decreasing inputs as much as it is about increasing output. For example, longevity, livability and disease resistance are traits that impact the input side of the equation as much as the output. Our industry has been on a mission to improve product quality and quantity, focusing on carcass traits. We finally are paying attention to our consumers---a good thing! Unfortunately, that effort has been on a per animal basis rather than per unit of input. Do we ever ask ourselves how our long term selection programs affect the profitability of commercial producers? When EPD’s became a marketing tool rather than a genetic improvement tool, a great deal was lost from beef cattle breeding. There was a decision to chase numbers in order to have the “latest and best”, and function was often ignored. Purebred breeders were constantly looking for the newest genetics. We utilized lightly proven sires throughout the breeds, before we tested them carefully. And now look.....how many genetic defects are we tracking in each major beef breed? A quick check of most of the major breeds websites are somewhere between five and ten! And we discouraged crossbreeding, while we simultaneously narrowed the genetic 14 FRONTLINE Beef Producer
base of many of the major breeds. Does that make sense? Our current “trait of the month/selection effort” moves us in the direction of genomics. I applaud the scientists who do the work and I see the eventual long term value. But as a commercial cattleman, if I am not capitalizing on crossbreeding---a simple, inexpensive tool to make genetic progress---should I really be worrying about gene markers? Do I really want to select for a marker that may only explain a very small part of the variation of a complex trait---a trait significantly influenced by genotypic/ environmental interactions. If I had a goal for gene markers it would not be for markers that identify highly heritable traits. I can make progress with those traits based on good old fashioned selection programs. The gene markers that I would like to see are for things like disease resistance, fertility, longevity---those traits that make the bigget difference in profitability. Let’s not get sidetracked on what determines maximum sustained profit for all segments of the industry. It is not the amount of product per head. It is amount of product per unit of input cost. Every few years we seem to find another EPD or measurement to chase. When are we going to focus on maximum sustained profit per unit of input? Three years ago we began a study/field trial evaluating the impact of crossbreeding in a vertically coordinated beef system, where premiums are paid for carcass merit. Approximately 600 predominantly Angus based cows were exposed to either Angus or Hereford bulls under extensive range conditions. DNA was used to determine parentage at weaning, and only those calves that could be definitively matched to a single sire were used in the data analysis. Collaborators included Harris Ranch Beef Company (Coalinga, CA); Lacey Livestock of Independence, CA and the American Hereford Association. Presently we are close to collecting the third year of feedlot/carcass data and the final report should be completed by summer, 2009. However, preliminary results are not surprising. As we measured direct heterosis (heterosis of the calf ), there was a small positive advantage in most traits. In particular, crossbred (F1) calves were slightly heavier at weaning, had a slight advantage in feedlot gain and feed efficiency and a lower cost of gain. The crossbred calves had lower quality grades, partially offsetting the economic advantage in the other segments. However, in the first two years of the study, there was a consistent economic advantage to crossbreeding, even factoring the reward for differences in quality grade to the Angus sired calves. The data is not surprising and mirrors decades of research. Althought direct heterosis (heterosis of the calf ) is important, we must remember that the true value is maternal hybrid vigor - the incredible value of the crossbred cow. If the data in year three is consistent, it appears there will be an economic advantage in vertically coordinated beef production systems from direct heterosis of the F1. However, the most important economic return will be when the crossbred cow enters the production system. In particular, the potential increase in lifetime productivity and longevity are key to maximum sustained profit per unit of input. In academia, it seems that we tend to want to make the simple complex. The commercial beef business is faced with a very difficult challenge to maintain long term profitability and viability. There are countless battles (unrelated to cattle breeding) in order to survive and be profitable in the long term. We need to keep cattle breeding simple. We have wonderful within breed selection tools (EPD’s). We have the ability to capitalize on breed differences and capture both heterosis and breed complementarity through crossbreeding. Designing simple, long term breeding programs to capture direct and maternal heterosis, while capitalizing on maternal and terminal lines, is a significant step in attempting to maximize sustained profit.
FRONTLINE Beef Producer 15
FEATURE | by Holly Foster
The Brangus Advantage
W
hat is the perfect breed or crossbreeding program for your operation? It’s a question best answered with the noncommittal response of “it depends.” But, what it depends on primarily is your environment and your marketing outlet. Those two factors dictate the type of breeding program you should be pursuing. Commercial cattlemen operating in the humid Gulf Coast or arid regions of the southwestern United States know just how important the adaptability of Brahman influenced cattle can be. But, marketing those cattle can become a challenge. How do commercial breeders take advantage of the only free lunch in the cattle business, better known as heterosis, and still raise calves that fit today’s marketplace? For many, Brangus may be the answer. “The advantages you get when you cross a Brahman influenced animal with an English or Continental influenced animal are more dramatic than when you cross different breeds among straight English or Continental cattle,” says Dan Moser, associate professor in the Department of Animal Science and Industry with Kansas State University. “There are biological differences between Bos indicus and Bos taurus cattle that when crossed, gain you clear advantages in fertility and longevity. The adaptability you get is also an advantage during droughts, in harsh climates and in areas where feed resources are limited. Those advantages don’t just apply in the southern half of the United States, but can be universal across many regions of the country.” Todd Thrift, an associate professor with the University of Florida agrees with that sentiment. “We have data going back 50 years that supports the advantages of hybrid vigor on adaptability, but that advantage becomes greatest in sub optimal environments,” he says. “In other words, the worse the environment, the more some of those adaptability traits are expressed and the better those cattle do compared to their English or Continental counterparts.” According to Thrift, the advantages in weaning productivity of a Bos indicus/Bos Taurus cross is unequaled, especially in hot, humid or arid climates. “The ability of that Brahman influenced cow to stay in your herd
longer is also enhanced because of differences in calving ease, resistance to parasites and even the fact that her teeth last longer.” Brahman crossed cattle definitely have an advantages when it comes to adapting to harsh environments, but when it comes to marketability, hide color and breed type can hurt you. That’s where the Brangus breed becomes a potential solution. “Straight Brahman cattle have challenges when it comes to carcass traits and there is data to support that,” says Moser. “But, if you use Brangus to infuse heterosis into your English or Continental influenced cattle, then you get the Brahman concentration down to 3/16 and differences in carcass quality become less significant.” Cattle with a visible Brahman influence can be discriminated against by cattle buyers, but Moser says that by using Brangus as your heterosis hole card, it makes it less likely that a buyer will pick out those differences.
ABOUT THE AUTHOR Holly Foster, is a fourth generation cattle producer, who is actively involved in a family-run cow-calf operation in northern California. She also currently works as a public relations consultant for several agricultural organizations and businesses including the National Cattlemen’s Beef Association (NCBA), IMI Global, Inc. and the Agricultural Council of California. Foster received her undergraduate degree from California State University, Chico majoring in animal science and minoring in business administration. She obtained a master’s of science degree from Colorado State University in the Beef Industry Leadership program. Prior to establishing her own public relations consulting business, Foster worked for five years as director of public relations for the California Beef Council and previously for Farm Journal Media as managing editor of Farm Journal’s Beef Today magazine.
“It’s important for producers to understand that the perception is often not the reality. With Brangus cattle, the data demonstrate you can get an advantage in carcass traits over other Brahman crossbreeding programs,” says Moser. “Being homozygous black for hide color can also be beneficial as it may qualify Brangus-sired calves for certain branded beef programs.” What may come as a surprise to many commercial producers is that Brangus actually perform much better on the rail than you might expect. According to Moser, the large amount of information available about Brahman cattle versus the limited amount that is available about Brangussired cattle has added to the perception that using any Brahman influence in your crossbreeding program can be detrimental to carcass quality.
“We know from years of data that Brahman cattle have higher shear force values and lower marbling scores,” says Moser. “In the 1990s research identified the role of calpain and calpastatin enzymes on tenderness and Brahman cattle have significantly higher calpastatin activity, which is detrimental to tenderness. However, research shows that once you reduce the Brahman influence to 3/8 as in Brangus cattle, or to 3/16 as in Brangussired calves, that reduction makes a huge impact on lowering calpastatin activity and increasing calpain activity, thus increasing tenderness.” A 1997 University of Georgia study that evaluated straight Angus, straight Brahman and crossbred Angus steers with either a 25, 37.5, 50, or 75 percent Brahman concentration showed that the 37.5 percent Brahman (3/8 Brahman-5/8 Angus) calves had the most favorable ratio of Continued on page 18 16 FRONTLINE Beef Producer
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Continued from page 16.
Breed
Calpain 316
Calpain 4751
Calpastatin
Angus Red Angus
43
71
82
23
47
74
Char-Angus (F1)
23
46
79
Brangus
18
55
79
Brahman 1 8 43 Figure 1. Frequency of favorable alleles for tenderness (Source: National Beef Cattle Evaluation Consortium)
calpastatin and calpain, the lowest shear force values and were essentially equivalent to purebred Angus when it came to tenderness. The Germplasm Evaluation program at the U.S. Meat Animal Research Center has been characterizing cattle breeds representing diverse biologi-
cal types for decades and according to Moser, the research indicates that Brangus-sired calves compare very favorably to Continentalsired calves. “These studies represent large numbers of cattle and years of data where calves sired by different breeds are benchmarked against an Angus and Hereford base,” says Moser. “When fed in Nebraska, the Brangus-sired steers yielded carcasses comparable to Continental breeds for shear force, marbling and percent USDA choice. You almost have to wonder if the cattle were fed in a harsher climate, such as the Panhandle of Texas in the summer, would they have done better due to their environmental adaptability?”
Marker assisted selection represents a great opportunity for Brangus breeders to help dispel some of the perception that just because their cattle have a little ear that they won’t stack up as well against their British or Continental counter parts. “Tenderness is a highly heritable trait and represents one of the best opportunities for improvement through marker assisted selection,” says Moser. “The frequency of tenderness genes in Brangus cattle is essentially equivalent to what you see in Continental breeds.” Graham DuBose, a commercial producer from Camden, S.C. knows firsthand the advantage of using Brangus in his breeding program. DuBose was a purebred Brangus breeder until about 1990, so the majority of his cowherd has a lot of Brangus influence. He has been using a twoway crossbreeding system of Angus and Brangus to improve the marketability of his calves, while still maintaining the advantages from heterosis that the Brangus breed brings to the table. “Heterosis is the motivation for me to use Brangus in my breeding program,” says DuBose. “In my mind, the real advantage to Brangus is on the female side and their mothering ability. The breed’s strength lies in the value of heterosis and the impact it has on calf performance, and the merits of Brangus females.” Using Angus bulls on his predominantly Brangus-influenced cowherd has worked well for DuBose, as he’s selling full load lots of feeder cattle via video sales and has been more than pleased with how his cattle have done. When you boil it down, using Brangus affords a commercial breeder the opportunity to achieve significant increases in cow efficiency while maintaining a largely Angus-based gene pool, which is certainly favorable in today’s marketplace.
To place your ad in the State Directory, please call Melanie Fuller at 979.828.5300 18 FRONTLINE Beef Producer
NEWS&NOTEWORTHY NCBA: Outlook Suggests Tight Global Supplies, Higher Prices & Herd Stabilization
DENVER, CO (Feb. 4, 2011) – Beef industry economists reported on the 2011 beef industry outlook today, Feb. 4, 2011, to more than 5,000 cattlemen and women during the Cattle Industry Convention in Denver. Brett Stuart, CattleFax market analyst, said global beef demand is increasing alongside tighter world beef supplies. “2011 will be the fourth consecutive year of global beef production declines,” said Stuart. “This will not correct quickly. We will see very tight supplies moving forward.” A major contributing factor to increasing demand comes from outside the borders of the United States. Stuart said business in the international marketplace is growing quickly as improvements to infrastructure and logistics are made. Beef exports are witnessing substantial growth with 75 percent of all U.S. beef exports going to Mexico, Canada, South Korea, Japan and Vietnam. “Korea is very aggressively buying beef from the United States,” said Stuart, adding that the foot and mouth disease issue is causing substantial reductions in Korea’s domestic meat supplies. “Last week we had outstanding sales to Korea at 24,000 tons, which is up from 9,000 tons a year ago.” Stuart projects the increasing demand from outside the United States will continue the upward trend. He suggested an 8 percent to 10 percent increase in U.S. beef exports in 2011 compared to last year. He said it could even surpass his expectation. “I am not saying exports will be up 18 percent (from 2010), but I’m not saying they won’t be,” he said. Kevin Good, market analyst for CattleFax, said 2011 will be another year of tighter supplies and a “very mild” cow herd reduction. He added that stabilization is also in sight, projecting the early half of the year will bring continued reduction but suggested the decline will simmer in the latter half of 2011. The smaller herd is a “double edged sword,” according to Good. “Demand will be a notch better this year. Total domestic supplies will be lower this year than last. I am very bullish on price, which is good. But we have to start retaining heifers and rebuilding the cowherd to meet this demand and compete globally,” said Good. The industry experts offered a sense of cautious optimism. Basically, supplies are tight, global demand is up, live cattle prices are good for U.S. cattlemen and women, and 2011 will be the year of stabilizing the cowherd.
OptimaxX Age and Source Verified (ASV) beef is in high demand creating premiums for cattle that fit the USDA’s ASV guidelines. We are seeing progress on almost a daily basis in gaining access again to markets closed to US Beef. Most countries immediately ceased imports border after the first case of BSE in the US just before Christmas in 2003. While we have made great progress in export markets, we have yet to reach pre-2003 levels. It is expected that South Korea and China will resume full US imports in early 2011. The Pacific Rim (expecially China) is an emerging market for Beef. We should see China as a large market for years to come. Currently, most countries’ import guidelines mandate beef from the US must be age and source verified and come from cattle less than 30 months of age. As this market re-establishes itself we should expect to see ever-increasing demand for ASV cattle. Continued on page 20 FRONTLINE Beef Producer 19
Continued from page 19.
IBBA’s OptimaxX can help cow-calf producers reach those premiums. OptimaxX is a USDA approved Age, Source and Genetic process verification program. Cattle approved for OptimaxX are eligible for feeder and packer premiums. 2010 yielded $25-$60/head premium for age verification alone. This year should see the same kind of money added, and perhaps more to those ASV cattle due to increased demand from the shortage of fed cattle supplies and increased foreign demand. You and your commercial customers can benefit from OptimaxX and the IBBA is here to assist. For further information about OptimaxX and the commercial marketing programs or to enroll in OptimaxX, contact Grant Keenen at the IBBA office. Grant R. Keenen - Director of Commercial Marketing Programs (210) 696-8231 Office (417) 540-6570 Mobile grant@int-brangus.org
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WW 44
YW 74
MILK 0
TM 22
CADENCE OF BRINKS* MISS BB NEW BIG EASY 222E55 GOOD FORTUNE OF BRINKS 14H3 MISS BRINKS LINEMAN 317E17 TRANSFORMER OF BRINKS* MS BB BRIGHT PROMISE 789E14 BRINKS CC NEWS DAY 661C2* MISS BB NEW KANSAS JACK 209C
SC
REA
IMF
FT
0.8
0.74
0.2
0.012
REA 365
FT 365
BW
205 Wt
365 Wt
SC
ADG
IMF 365
70(101)
707(106)
1169(105)
37.1
2.89
3.808(89) 13.12(95) 0.28(100)
20 FRONTLINE Beef Producer
NCBA: President Denounces Government Overreach, Calls for Industry Unity DENVER, CO (Feb. 2, 2011) – National Cattlemen’s Beef Association (NCBA) President Steve Foglesong addressed nearly 5,000 cattlemen and women today, Feb. 2, 2011, as he officially kicked off the organization’s 2011 convention in Denver. Foglesong advised the attendees to reflect on 2010 successes but focus on possibilities for 2011. “Your NCBA didn’t waver to the critics or this administration’s regulatory rollercoaster ride. We buckled down and took them on, which resulted in several wins for U.S. cattlemen. You ladies and gentlemen sat high in the saddle and worked with your NCBA to aggressively defend this industry,” said Foglesong. “The success stories go on and on. As you set forth policy positions this week, I am confident the success stories will continue in 2011. We will go do battle again and again with forces that are aligned against us and our commonsense approach will win again” Continued on page 21
Continued from page 20.
Foglesong said the Obama administration’s “regulatory rollercoaster ride” is unprecedented and has the potential to devastate rural America. However, he is hopeful President Obama will carry through with a thorough regulatory review to rein in the Environmental Protection Agency, the Grain Inspection, Packers and Stockyards Administration and other government agencies from regulating farmers and ranchers out of business. Foglesong said NCBA’s pressure on the administration to eliminate burdensome, costly and scientifically unfounded regulations assisted in the President’s decision to conduct the review. “Well, mark my words and write this down – NCBA will join with other agricultural organizations, congressional leaders and government officials to hold the president accountable to this commitment. Say what you mean. Do what you say,” said Foglesong. Foglesong charged the attendees to serve as united front for the industry. “I call for us to unite and fight for this industry we all love. Leave your egos at the door. Leave your personal agendas in the dirt and join me in standing tall for the U.S. beef industry,” said Foglesong. “No more negativity within our own industry. Let’s do what we have done since 1898. Let’s serve as advocates for this industry in order to sustain it for our grandchildren.”
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Triple JR Cattle Company Jim & Chip Gibson 713-906-8141 281-831-4476 www.triplejrcattleco.com 5K Cowbelle Ranch Wyliss & Kippy Kemp 662-488-1360 662-489-5335 www.5kcowbelleranch.com
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ADVERTISERSINDEX ADVERTISER
PAGE
ADVERTISER
PAGE
ADVERTISER
PAGE
5K Cowbelle
5, 20
Dotson, Wes
26
OvaGenix
26
ABS Global
7
Elgin Breeding Service
26
Perry Ranch
18
American Marketing Services
3, 26
Farris Ranching
20
RRR Ranch
15
Barnes, Tommy
26
GENETRUST
9
Southern Cattle Co.
1
Cattle Connections
26
JM Cattle Co.
4
Spanish Ranch
8
Cattle Solutions
26
Lambert, Doak
26
TBBA
21
CattleMax
26
Land O Lakes Purina
11
Triangle K Farms
13
CI Brangus
15
Livestock Photos by Nancy
26
Triple JR Cattle Co.
16, 21
Circle X Land & Cattle
IFC
New Mexico State University
19
Valley View Ranch
12
CUP Lab
26
Oak Creek Farms
BC
Dillard Land & Cattle
17
Oakley, Lakin
26
CALENDAROFEVENTS MARCH • 2011 4
Houston International Brangus Bull Show - Houston, TX
4
Global Collection Sale - Houston, TX
5
Houston International Brangus Female Show - Houston, TX
5
Genetic Edge Sale - Houston, TX
6
Global Roundup - Rosenberg, TX
12
Quail Creek Brangus - Cullman, AL
12
Southern Bull Sale - Caldwell, TX
19
Houston Jr Brangus Show - Houston, TX
19
TBBA West Sale - West, TX
19
Mound Creek’s ‘Cowman’s Kind Bull Sale’ - Leona, TX
22
GeneTrust @ Suhn Cattle Co - Eureka, KS
26
Austin Jr Brangus Show - Austin, TX
26
16th Annual West Texas Springtime Sale - Abilene, TX
APRIL • 2011 9
Texas Brangus Sale - West, TX
29 - 30
GENETRUST @ Cavender Ranches Field Day and Reg. & Com. Female Sale - Jacksonville, TX
30
NMSU 29th Annual Cattle & Horse Sale - Mesilla Park, NM
MAY • 2011 7
Winning Tradition IX Sale JLS Int. - Devine. TX
14
The Stars & Stipes Sale VII - Raymond, MS
21
RRR Ranch & CI Brangus Female Sale @ Camp Cooley - Franklin, TX
27-28
Southern’s Dams of Distinction Female Sale - Marianna, FL
JUNE • 2011 11
Salacoa Valley Top Quality Brangus Female Sale - Fairmount, GA
28 FRONTLINE Beef Producer
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www.GoBrangus.com