Beef’s a trip

A 30-day look from gate-to-plate

“You keep worrying about your four years and I’ll keep worrying about my four minutes.”

Cassara, Rick_0003 — I get to chat with folks from all segments: restaurant owners and chefs to processors and packers.

As I interview chefs from time to time, I usually end by asking, “What would you like to tell America’s farmers and ranchers?”

I distinctly remember one chef saying that: “You keep worrying about your four years and I’ll worry about my four minutes.” He was telling me he understood that it takes details and hard work, record-keeping and sweat, to create that perfect steak, and that left a lot of responsibility on his shoulders.

After all, depending on the degree of doneness, he only had 4 to 10 minutes to get it right. Whether or not that diner was going to leave thinking about that amazing meal; whether or not feeding cattle in the heart of a blizzard or hauling water to the herd in the heat of a midsummer drought was worth it, all depended on that final person who cooked the meat.

I often think about that 4 years—how long it takes from the time a seedstock producer makes his matings, to the bull sale, to breeding season at a commercial ranch, to weaning and growing and then feeding.

But once those animals head to harvest, I rarely think about all the other steps the product has to go through just according to plan. From the humidity in an aging room to the temperature of the delivery trucks, there are details at every level.

2012_05_16_mr_Nebraska MBA_Rishel_and_Pioneer Ranch-323 — One of several food service salesmen that I got to tag along with as they experienced ranch country for the first time earlier this year. I gaurentee I learned as much about their side of the business as they did about ours.

And with those details there are real people. There is a salesman who takes emergency phone calls during his son’s basketball game, so that their restaurant customer will have enough tenderloins for tomorrow’s special. There is a truck driver who will work right through that holiday to get the product there on time. These people might not drive a dually pickup or work in boots, but they are your cohorts in this big ole beef business, and they care about product quality, too.

In my role, I’ve been lucky enough to meet folks from all parts of the industry. I’ve gotten to interview distributors from Dubai and ranchers from Texas. I’ve talked to feeders from Iowa and retailers from Pennsylvania.

So when ag journalist Holly Spangler encouraged folks to join in her “30 days of ag blogging” challenge on her “My Generation” blog, we thought it was the perfect chance to share some of those stories. Come along with us as we spend the next month taking a fast-forward look at the beef production system. We’ll talk about the people, the decisions they make, and what that ultimately means to beef quality.

Because it is—both literally and figuratively—we’re going to call it “Beef’s a trip.”

May your bottom line be filled with black ink,

Miranda

Beef’s a Trip Archives:

Day 1: Starting at day one

Day 2: Who are these people?

Day 3: Stockholders

Day 4: The cowherd’s purpose

Day 5: Deciding to care

Day 6: Quality focus doesn’t have to skip the middleman

Day 7: Stocking for quality

Day 8: SOLD!

Day 9: What have you done today?

Day 10: Working together to make ‘em better

Day 11: Keep on truckin’

Day 12: Packers want quality

Day 13: The target

Day 14: Packers up close & personal

Day 15: It’s not all about the beef

Day 16: Further processors

Day 17: From here to there–and a lot more

Day 18: He’s on your team

Day 19: Beyond prices, grocery stores uncovered

Day 20: Getting quality in the carts

PS—Holly settled on sharing “30 days on a Prairie Farm,” so check out her blog to follow that journey and to find out tomorrow who else is joining us: http://farmprogress.com/prairie-farmer-blogs-Holly-Spangler-4-fcb.

I’m So Lucky I Can’t Hardly Believe It!

My email account is amazing. I have received so many free offers and great deals in my Inbox! How can I be so lucky?

There have been several people from India (and other far away places) who have recenlty lost loved ones in some kind of a revolution; they were murdered; perhaps a spouse or someone close to them who was unjustly disposed of by some radical group or far out religious group.This survivor, let’s call her Suri, a widow, has a multi-million dollar fortune she’s willing to share with me if I’ll just contact her with some bank account information. Sometimes her English and spelling isn’t so good, but the story sounds believable. And, it usually closes “with God’s peace” or something like that, so you know their heart is in the right place.

Or, how about that one that helps me to lose that stubborn belly fat? (Well, that’s nice, but I know what my problem is there……I just need to give up beer, fried foods, and corn chips.) But, hey, for $69, we can help you with that, no guarantees, of course (especially if I don’t give up the beer and chips!).

Or life insurance offers. Did you know, I can get 14 million dollars worth of life insurance for just pennies a day? WOW! I mean, now that is a DEAL!

Look! My credit rating has just gone up! That means I’m eligible for more debt! Yahoo! I’m so lucky, I can’t hardly believe it! Sure glad they are notifiying me…….

I hope by now you have been able to detect my sarcasm! Really! Do these people honestly believe I’m going to bite on these deals? How stupid do you think I am?

Well, there’s lots of other deals out there like that in the beef industry, although they may be masked with a little bit more class than most of those examples. My response to that is: SHOW ME THE DATA!

Our new DNA test, GeneMax(TM) has just that. We have done the field validation research that shows us it really does work! No snake oil salesman here. As a matter of fact, I was probably what my boss would call a “doubting Thomas” until we got the data back in. You see, I’m a pessimist (I prefer to call a “realist” LOL!) by nature. I should have been born in Missouri, because you gotta “show me!”.

Data on over 2,000 head of high-percentage Angus cattle show that the test works. From the much touted Tri-County Steer Carcass Futurity (TCSCF) program in Iowa, where full feedlot performance and carcass data was compiled, blood samples had been archived and we had the ability to go in and match that up to provide proof.

: This pen of 79 head of high-percentage Angus cattle were fed at McPherson County Feeders at Marquette, KS. All were tested using GMX.

The GMX test gives you three scores. However, the first is the most important. It is a score, from 1-100, that ranks individual animals against the base. So, a GMX score of 90 indicates that the animal is in the top 10% of the animals tested.This score is a composite for the measures of marbling and yearling gain. The other two scores are individual score for those same two traits. Those two scores are rankings as well; but are on a scale from 1-5 in each marbling and yearling gain. A “5” in marbling would mean that the animal ranks in the top 20% for marbling; conversely, a “1” would mean it ranked in the bottom 20% for that trait. Likewise for yearling gain. But the most important score to look at is the 1-100 score. So, you may have an animal with a score of 80 that has a marbling score of “5” and a gain score of “3”, or vice-versa.

In the TCSCF field validation study, the animals scoring a “5” in gain had a 0.25 lb average daily gain advantage over those that scored a “1”. Those with the highest overall GMX score, i.e., those above 90, had a 0.75 ADG over those that scored 10 or below, with ADG figures scaling down from that peak group to the bottom enders. Marbling scores likewise dropped, by 20 points from top scores to bottom scoring animals.

More news: This past winter and spring, we GMX tested 79 head of steers in the Kansas Angus Association Carcass Data Project. Here are some of the results:

The top third of the steers had an average GMX score of 83; the middle had a score of 73; and the bottom third had an average score of 33.

The top scoring cattle had a marbling score of 511; the middle were 496 and the bottom were 493, nearly a 20 point spread (as we saw in the TCSCF field validation study). The average daily gain for the top third was 4.10; middle 3.94; bottom 3.92. That is a difference of 0.18 lbs per head per day, or an extra 28 lbs of live weight to sell in a 160 day feeding period. In today’s market, that’s $35 more per head. For a $17.50 investment, that’s doubling your money. There was also a 9 percentage point increase in animals that qualified for the CAB brand, meaning extra dollars in your pocket, in this particular example.

Using the economic models, our data tells us that a 50 point spread in GMX scores between two groups of cattle results in a $33 per head return for a $ 17.50 investment on cattle fed for 200 days.

Folks, the data is there. You’re pretty lucky to hear about it here. I’m not going to send you an email. But I’d be glad to talk to you about the test. Find out more about what GMX technology can do for you by visiting our website at www.cabpartners.com.

~Gary

Intern shares her CAB mythbusting experience

Terssa Lawrence — Tressa Lawrence, our fall Industry Information intern

Count this as your formal introduction.

Folks– this is former beef ambassador and Wyoming Livestock Roundup reporter and current Red Raider and Certified Angus Beef intern Tressa Lawrence.

Tressa—Here’s your chance to chat with some pretty cool folks from ranchers to beef industry professionals.

Enjoy! –Miranda

As I sat in my ad campaigns class at Texas Tech University, the topic of branding came up. John Deere vs. Case, Coke vs. Shasta, Certified Angus Beef vs. off-brand “100% Angus beef”. Comments were thrown around such as “CAB is just a marketing scheme,” and “There isn’t anything different about CAB burger than any other Angus burger.” And the comment that finally jabbed me into action, “Any cow with a black hide is CAB.”

Wrong. I raised my hand and explained that I was actually very familiar with the Certified Angus Beef brand, and that no, not all black-hided bovine could become Certified Angus Beef.

Yes, one of the standards is that cattle must be 51% black hided in order to be evaluated for CAB, but there are also ten other qualifying factors.

Once my classmates had me on my soapbox there was no stopping me. I explained how those 10 carcass specifications ensure consistent quality. We discussed modest to higher marbling and medium to fine marbling texture; how only “A” maturity is acceptable; consistent sizing and the specifics of quality appearance and tenderness.

One guy in the back of the class said he raised another breed and was sure a steak from his cattle would taste just as good as any CAB steak I put in front of him. (It took a lot not to roll my eyes at this statement, but I am pretty sure my eyebrows shot up in disbelief. Had this guy ever eaten a CAB Prime steak? I’d bet not.)

I explained that it’s not just about the breed, but the specs and especially the consistency. That’s what is unique about CAB. You know that you are going to get consistently high quality meat every time, whether it’s a burger or one of their prepared briskets. Always consistent. Always high quality. They track every pound.

My explanation of Certified Angus Beef with Q&A follow-up managed to consume the rest of the class period, which I don’t think any of the students were complaining about. We may not have learned much about campaigns that day, but by golly I bet no one in that class ever says anything like ‘all black-hided cattle are Certified Angus Beef’ again.

~Tressa

The Prime directive

Improved genetics, focused selection transform an elusive grade into a logical target

by Jill J. Dunkel

Breeding for high quality and retaining heifers over generations, Mike Kasten sees results. The Millersville, Mo., rancher has used artificial insemination (AI) for decades, finishing the progeny and collecting data.

Detailed records prove the herd does it all, from calving to breeding back, raising the calf on pasture and, increasingly, hitting the top rung on the premium beef ladder–Certified Angus Beef^® brand Prime.

“I work hard to reach that target,” he says. “We’ve used AI for 40 years and have tried to pick bulls to get us there.” His work spanned the years from when Prime was a “bonus” to these days when it is a realistic expectation for him and others who follow such a strategy.

Kasten feeds 200 to 300 calves each year at Irsik & Doll Feedyard, near Garden City, Kan., lately averaging more than 20% Prime. “As we’ve stacked three generations of high quality in our pedigrees, some cattle are running in the mid-to upper-40% Prime,” he explains. Those that don’t reach Prime still make upwards of 80% CAB.

That progress has not come at the expense of their ability to perform in the feedyard or grow in the pasture.

“I don’t do one-trait selection. We have to have cattle that will work in a pasture situation,” Kasten says. “But why not try to get it all if you can? We have the ability to make cattle that are very, very functional on grass, do very good in the feedyard and have Prime carcasses. We don’t have to give up anything.”

Jerry Bohn, manager of Pratt (Kan.) Feeders, says more and more producers are targeting upper two-thirds Choice and higher. “The premiums being offered for CAB and Prime certainly play a role. I think you’ve got more genetics that continue to improve towards cattle that grade higher.”

He also sees more feedyards focusing on quality. Pratt Feeders uses individual animal management to gain a further edge. “We get the big guys out of a pen early on so we can feed the rest a little longer, getting them to grade higher,” Bohn says, noting other advantages.

“We try to market every animal to its optimal end point; the cattle do better that way,” he says. “If you’re feeding the bulk of the pen to the same end point, some of those calves will get too big.”

Better genetics and management at the yard have led to CAB acceptance rates triple what they were 10 years ago at Pratt Feeders. “With the nature of grades being higher, we see a few more of those bumping up beyond Choice. Anything that kicks up to Prime is gravy on the top,” he says.

Tyler Brown, with JBS in Greeley, Colo., has seen a significant increase in the demand for high-quality beef over the last 18 months.

“It’s been even more pronounced in the last six to eight months,” says the JBS premium program manager. “And I don’t see it subsiding any in the near term. The market is sending a clear message, not just in the foodservice channel, but also in the retail channel. Consumers are demanding a higher quality eating experience.”

Brown says the demand for Prime-grade product has improved similarly to the high Choice market in those retail stores.

Indeed, the number of CAB retail partner stores selling CAB Prime is up 83% in the last four years, from 252 stores in 2008 to 463 in 2012. Nearly all licensed packers now sell the Prime brand extension.

“Beef costs so much now that it could pressure demand growth,” allows David O’Diam, CAB assistant director of business development. “But I don’t see the premiums to producers going down because Prime is becoming part of the sales strategy in more stores, especially with the end meats.

“The market wants at least a steady supply, but it’s becoming a struggle,” he says. “Packers were getting into 3% Prime for a while and that’s back to 2% of all cattle now.”

The mid-October Cattle-Fax Trends newsletter projects a $12 Choice-Select spread for 2013, which would be the fourth consecutive annual increase in the market indicator, and the second-highest ever.

Those are some of the reasons Brown says rewards for producing premium beef should remain robust for the next few years.

“Hopefully, that signal is getting to the ranch, to be producing as much high-quality product as possible,” he says.

Wild cards: Divide and conquer

Hey fellow seekers, the preg checking’s done and it was a full day.

Headed out to gather the herds on my “horse”

The vets were supposed to be here at 1:30, so I started gathering at 8. Mosey was locked in the garage and Tom was watching videos. If he was outside, he’d be nervous about leaving the back gate open at the stone posts. Wouldn’t be right to have cows get out. But he was watching videos so I enacted the usual plan.

On the Yamaha, I led 39 cows in and circled back to the gate I’d left open a couple of minutes ago. But Tom had noticed and slipped out to save the ranch, so I unchained the gate and found two calves wandering near the alley gate. I hazed them in and secured the corral. All other calves were weaned a month ago; this was a preg-checking roundup and the easy half was caught.

Tom, who had already shut the back gate again, said he would stay and do some house chores. So I went north for 40 cows in 5 loads, provided I could lead them across a road and down the alley. One wasn’t mine but we’d sort her out later. I had done this for 20 years and knew it took 5 to 20 minutes, depending on wild cards. I learned early that if time gets to 15 minutes, cows will start back up the alley as I round up stragglers, and meetings can end with a jump over the alley fence. I figured on 10 minutes since the neighbor’s heifer was in there.

It took 50 minutes. All were waiting for their morning bag of cubes at the intended gate. Thee gate, as Miranda would say. So I opened the back gate which, I admit is a little too close to thee gate but it has always worked. Anyway this time I hit the thumb throttle and roll in with the cubes, herd assembling behind me. Except the heifer. She thinks the back gate is an opportunity and begins tiptoeing that way, three of mine following. Oh no, I groan and buzz over to cut them off…

This puts the other 36 in chaos since I buzzed off with their cubes and morphed from friend to predator. Now, all sweetness and cubes, I’m back to QUICKLY open thee gate and roll through to see half following me. But fat 532 and old wall-eye 69 are trotting away. By the time I get out the other end of the catch pen, it looks like just about all came in. I buzz around to the back gate and find a couple of cows grazing along the road instead of crossing but they look almost apologetic as I approach and head on down the alley. I have to follow because I see Four Strong Winds 30 yards inside thee gate and will need to open a separate trap for them.

A couple of minutes later, the Four Winds are still standing in formation 10 yards apart, with the wall-eye aptly keeping her blind side to the others. They must have cow-municated a plan because as I haze from the edge of their flight zone, one or another runs at a tangent while the others scatter everywhere but alleyward. So it becomes clear I must divide and conquer. Biggest first, 532. She tries cutting across a pond, but it’s dry so I just kept up a steady pace and alternate pressure from left and right, once or twice circling around as she pauses for whatever reasons… One by one, with minor variations, I get all four winds calmed and caught so they are no longer capital letters.

Simple plan involves chains and heavy metal (gates)

Trailer in position, I stayed with the divide-and-conquer plan since it’s just me. Four go in the front and 4 in the back. It worked every time with hardly a yell or a twist of tail.

Dad came over with his rig to record data and then help haul. Two cows were judged unworthy, including the 15-year-old 69 as she was showing her age and seemed unhappy with me now. Six others were open or short bred to the point I culled them. Thirty-five may have settled to AI out of 50.

At 4:30 we started hauling to Wayne’s winter pasture, 16 at a time, gated into groups of 4. Tom rode along and told me about lightning and where to turn. It was turning into a stormy night by the last double trip and backing across a meadow to let them out across an electric fence took a little luck. Dad went on home and I had to take the last load over in total darkness at 7:00 with light rain and lightning. Asked Tom if he wanted to stay home and he said no, wouldn’t miss this for the world.

Divided they load easily and ride comfortably.

Wondering how to get them unloaded in the dark, when it dawned on me to just weight down the hotwires enough to drive on in and up into the pasture, locate the herd and then release the last few. It worked and we came home to start a fireplace and grill, watch some football, sip a homemade chokecherry beverage and watch over a couple of sizzling Certified Angus Beef brand strips. It had been a long, but good day.

Till next time, let’s keep targeting that brand and building tomorrow together.

–Steve

Grandfather, grandson share Angus passion

No doubt, one of the biggest perks of working on the supply development side of the Certified Angus Beef® brand is getting to travel all over the country meeting great Angus families. And thanks to the Black Ink blog, we get to share some of the stories of those families with you.

Just this week, Gary was traveling through Tennessee when he had the opportunity to stop and visit with Wayne Day and Nick Rippy, a grandfather/grandson duo whose passion for good Angus cattle is evident.

Wayne, who runs approximately 475 cows in Tennessee and Kentucky, buys his Angus bulls from Deer Valley Farms in Fayetteville, Tenn. Nick, a Goodlettsville, Tenn, high school senior who has an interest in the purebred side, manages another 45 head of registered Angus cows on one of his grandpa’s farms. He purchased these females from Southern Light Farms at their dispersal sale in November of 2011.

Gary reports that Wayne, who also has several other business interests, is glad his grandson is interested in the cattle business, and may eventually fulfill his dream of managing his grandpa’s cattle operations. But first, he plans to pursue a degree in agricultural business.

Wayne sells his Angus calves at local auction markets and occasionally sells freezer beef to friends and relatives. At one time, he retained ownership on his calves, feeding them in western Kansas. But he tells Gary the price of corn and the long distance to the feedlot areas of the High Plains has him figuring he’s ahead to let someone else take that risk, at least for now.

Wayne Day (left) and Nick Rippy (right) look over part of the calf crop.

Part of the spring 2012 calf crop at Wayne Day’s Goodlettsville, Tennessee, ranch.

Southern Light females purchased by Wayne and Nick.

It’s there for the taking!

Once upon a (several) time(s), I have had some great opportunities. Some of them were taken up. Some were not. However, not all opportunities were maybe the best for me, or for my family. Some were sure deals, and some were not. Nothing is certain in life, except for the proverbial death and taxes (can I add bad government?). But other times, it’s a pretty good deal. And one needs to be able to discern when that is a good deal………

I recently saw a commentary by a sale barn owner about the use of Longhorn bulls on heifers. While that thought is certainly not original, and was used to some extent in the late 1970s and early 1980s (calf pullers were at the peak of their market then), it is not without problems, because even a solid colored Longhorn calf does not produce a carcass with much value built into it. The idea that he was attempting to convey, was to avoid any dystocia problems in the cowherd. Brother, if that’s what thou art looking for, you can use an Angus bull on heifers with an above-breed-average Calving Ease Direct (CED) EPD and you will (1) have VERY FEW dystocia problems and (2) have a calf with a lot more value at weaning time! A Longhorn bull is NOT a good opportunity. Yes, you’ll get a little calf that the cow has very little trouble delivering, and they’ll get up and nurse right away. And a big set of horns. But you give up performance and carcass quality. Sorry, Longhorn fans, but a commercial cow-calf rancher or farmer that sells those in the open market is going to get his head handed to him on sale day; or watch them bring 5-8 bucks back of the finished market.

High quality Angus cattle on feed at a CAB-licensed feedlot. These cattle brought back big premiums at the packer!

In another instance, a cowman called me once to try and market his Jersey sired (on Angus cows) calves. Did I know a feedlot that might buy them? My question was “why in the world would you use a Jersey bull on Angus cows?” He replied, “Because I don’t have time or resources to watch cows at calving time, and I wanted an easy calving sire and a live calf.” Well now, isn’t that like cutting off your nose to spite your face? Do you realize what the discount is between a/an (insert any beef breed name here) sired calf is and that of a dairy breed sired calf? You could lose 2-3 percent of the calves and still be WAY ahead with a beef breed bull!

The use of an Angus bull on any type of commercial cowherd has many obvious benefits, but I’ll take this one step further: as I write this, the Choice/Select spread is $ 14.00. On an 800 lb carcass, that is a $ 112 advantage on the higher-grading Choice carcass. Add a CAB premium on top of that (currently $ 5 to $ 6, but let’s take an average of $ 5.50); and you suddently have a carcass worth $ 156.00 more than a USDA Select one. A USDA Prime is worth nearly $ 300 more than a Select!

To those of you who’ve never thought about it; that is, WHY black-hided calves bring more at the salebarn? It is because of the (read carefully the following capitalized phrase) CONSUMER DEMAND FOR HIGH QUALITY BEEF! Consumers want it. They are willing to pay for it.

Let’s visit about this along another path. You’re going to the hardware store to purchase spade. There are three brands there. The first one, made in the U.S. and of highest quality steel and a hickory, real hardwood, steel encased handle is $36.00. The next, a mid-level spade made in India, is $24.00; has a what looks like a wood handle, but is definitely more cheaply made, the handle is not hickory, the steel is a lighter gauge. The last one is a $16.00 spade that is made in China, has a plastic handle, and, while functional, is definitely NOT very high quality. Which one will you buy? Many people, driven by price, purchase the Chinese made, plastic handled, cheesy, flimsy, spade. The handle breaks the second time you use it in the garden or farmyard, while the high quality tool is still being used by someone who purchased it at your estate sale (not wishing you bad luck, but remember the death and taxes thing?).

If the consumer wants a higher quality product, they will pay for it. And we continue to see that in our market place, with record sales (again!) in fiscal year 2012 at 812 million pounds! This “pull-through” effect, in fact, lifts prices for high-percentage Angus calves.

At a trade show a couple of years ago, I was confronted by a gentleman from another, much, much, much smaller breed organization who was touting their branded beef product. He begins to tell me what is wrong with the Certified Angus Beef program. I was feeling very charitable that day, so I bit my lip and refrained from saying, “And your program sold how many pounds of beef last year? Maybe, say, 10,000?” And, “Your calves are worth how much more in the marketplace than the average?” It’s not worth even arguing about, because he knew the truth, and I did too.

You see, what you have in front of you, as a commercial cow-calf producer, is extra MONEY for the taking in the market. Whether you retain ownership or sell calves at the salebarn after weaning, your Angus-sired calves are worth MORE! More dollars in your pocket because the CONSUMER DEMAND is there for the end product. You can read all about it with this story from Tom Brink with Five Rivers Cattle Feeding at ttp://www.cabpartners.com/news/press/GEN_WhatFdydsWant_NR.pdf

The opportunity is there. Seize it! It is simply a decision you’ve got to make. Do you want to be in the business of raising a high-quality product for the consumer and receive a premium for it? The decision is in your hands.

~Gary

Seek answers for better beef

by Miranda Reiman

If you’ve ever tossed leftovers or overripe fruit without considering tomorrow’s lunch or creative baking, you’re part of the problem.

“We throw away 242 pounds of food per person per year,” said Brad Morgan, senior food safety and production efficiency specialist with Pfizer Animal Health.

That’s about 1,400 calories per person per day, and roughly 1.3 billion tons of food per year.

Morgan shared these facts at this year’s Feeding Quality Forum in Grand Island, Neb., and Amarillo, Texas.

“We spend about 7% of our disposable income to feed our families,” he said. “In Europe they spend anywhere from 13% to 28% of their income. What am I getting at? One, we take food for granted. Two, it’s cheap. And three, we always expect it to be there.”

But many have heard the stats pointing to the need to feed 9 to 10 billion people by 2050. That’ll take more technology for certain, he said, but also, “We’ve got to become less wasteful.”

That goes for every step of the chain, from harvest to distribution to the consumer level.

“In World War I, they talked about food as a weapon. Don’t waste it. Buy it wisely,” he said, “World War II they said it again. Rationing, grow your victory gardens, do your part.”

As prices escalate, the conversation turns in that direction again.

“Whenever we have times like this, I think it forces us to do things we never would have done before,” Morgan said.

Other countries provide examples. In South Korea, they charge citizens for food waste disposal. During the first year of implementation they cut food waste by 20%, or $4.3 billion worth.

Some European grocery stories have changed from “buy one get one free” marketing to “buy one now, get one free—later.” During a shopper’s return visit to the store, they can pick up the free item so it doesn’t go bad in the meantime.

Reducing waste is one part of the global food supply equation. “It’s just the right thing to do,” Morgan said. The other variable is increasing production, which requires new innovations. But Morgan cautioned that it can’t be at the expense of consumer satisfaction.

In this country, shoppers still have the luxury of being discerning.

“People buy beef for a reason, and it’s not because it’s cheap,” he said. “They buy it because they like the flavor of it.”

Technology that makes animals “stronger, faster, more efficient,” needs be used judiciously.

“There has got to be a balancing act, because it doesn’t matter how cheap or efficient it is to get it there if people don’t want to buy it,” Morgan said.

The seventh annual meetings were co-sponsored by Pfizer Animal Health, Purina Land O’ Lakes, Certified Angus Beef LLC (CAB) and Feedlot Magazine. For more information or event proceedings, visit www.cabcattle.com.

Different by design

As we drove through his monoslope building, Tom Revier rolled down his window and invited me to take a deep breath. The demonstration worked as it was intended. I was shocked not by what I smelled, but by what I didn’t.

2012_10_10_mr_Revier Cattle Co-29 — It seems like Tom Revier thought of everything when he built his feedyard.

Everything about Revier Cattle Company near Olivia, Minn., screams differentiation, starting with the innovative manure handling plan that includes an underground sewer and a solids separator. From the immaculate facilities to the completely uniform look of the cattle on feed, it doesn’t take long for one to realize this isn’t your average feedlot.

Tom used to custom feed cattle, but when he went to owning them all himself he got real specific on the kind of cattle he wanted and the ultimate product he wanted to produce.

A survey of the yard shows pen after pen of uniform, Angus cattle.

“Angus has improved the genetics the most and improved quality in all aspects, not just dollars in the beef,” Tom said.

But he quickly learned that going straight to the rancher source was the easiest way to be sure he had the kind of critters that fit his program.

“We found out not all black cattle do the same,” he said.

Just one more point of differentiation that makes his feedlot tick.

May your bottom line be filled with black ink,

Miranda

Rations may change, business models won’t

2012_10_08_mr_Redstone Feeders-37 — Todd (left) and Bill Wilkinson of Redstone Feeders are finding ways to deal with this year’s drought.

You know it’s an unusual year when the silage pile is so tall that it interferes with the internet connection.

Of course, moving the antenna to a higher point on the feedyard office isn’t the only change that the crew at Redstone Feeders, near DeSmet, S.D., is making due to the widespread drought.

Earlier this week I met with brothers Todd and Bill Wilkinson, who own the 8,200-head operation with a third brother, Ed. In addition to cutting way more silage than usual, they’re buying more wheat straw, tweaking their rations and changing up the somewhat standard risk management routine. What was always a “push ‘em harder and faster” approach on calf-feds is getting a second look, as they pencil out ways to feed a little less of that high-dollar corn.

“We’re not sitting around crying about it. We’re developing strategies,” Bill says. (I love that optimism…and it seems like I’ve heard a line like that before..)

2012_10_08_mr_Redstone Feeders-53 — Some fairly new arrivals settle in to their new digs.

But what remains constant? “We’ll feed the kind of cattle that make us money,” Bill says.

Their target is predominately high-grading Angus genetics, because it gives them an “additional marketing alternative,” says Todd, who is careful to point out that it’s “not just about pounds.”

They own all of the cattle that come through their yard and say that helps take some of the gamble out of it. Both grid marketing and source-and-age verified programs help them capture premiums.

When I asked if they ever deal with folks who say they’ve got “good black cattle”—when really they’ve just got black cattle, I loved Bill’s answer: “Yeah, we deal with them. We deal with them by not buying those cattle.”

And drought isn’t going to change that.

May your bottom line be filled with black ink,

Miranda

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