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A couple weeks ago I told you how Rich Blair still remembers his first Prime premium—it was a big deal. It’d never happened before.

He’s probably not the only cattleman in that category. Heck, the national average for Prime is running at 3%, and we’re talking about how high that number is compared to just a few years ago.

I guess that’s why we hear people say this from time to time:

Myth: Prime happens by chance, it’s not a logical target, but rather a happy accident.

It’s not necessarily an easy mark to hit, but with the significant dollars available it’s not only a logical target, but also a lucrative one. As you’ve heard me say before, it may not be easy, but it’s so worth it.

The math is straightforward. It’s not that hard to see the dollars out there for reaching that top mark, so I don’t think that’s the item in dispute. It’s just that few people think it’s an attainable goal.

But our team knows a few who don’t just think it’s reachable. They know it.

Take John Osborn for example.

John routinely sends in loads that reach 100% CAB, with more than 50% Prime. Like the load of Angus Source Carcass Challenge winners that went 61.5% CAB Prime. And he’s always looking to get better.

Missouri producer Mike Kasten is the first cattleman to ever tell me he was specifically aiming for Prime with this no-nonsense reasoning.

“We’ve always used bulls with positive carcass, but now we’re trying to stack it even harder. The Prime premium has nothing but potential as demand.”

And that’s why Tory Borrell, of Dighton, Kan., has his sights set on 100% Prime.

Back in 2003, he said, “What makes the packer happy, makes me happy….I never understood why everybody thought the lean carcass was a target, when the only thing that got top dollar was Prime.”

When I think of aiming for Prime, it reminds me of that quote that’s often heavily used during graduation season: “Shoot for the moon. Even if you miss you’ll land among the stars.”

My version: “Shoot for Prime. Even if you miss, you might land at Premium Choice.”

May your bottom line be filled with black ink,

Miranda

Packer says cooperate, modern technology

By Miranda Reiman

October 12, 2011

If national trends are the equivalent of a beef industry report card, then ranchers and feeders are making the grade.

But Glen Dolezal, of Cargill Meat Solutions, warns that they need to pay attention to stay at the top of the class.

“Beef quality has been up each of the last three years, but we do have some concerns,” he said during a presentation at the Feeding Quality Forum. The company’s assistant vice president of business development and field sales leader outlined both the bright spots and challenges at the meetings in Omaha, Neb., and Garden City, Kan., in late August.

“Beef demand is linked to the great taste of beef,” Dolezal said. “We like to think of it as a three-legged stool made of tenderness, juiciness and flavor. If any one of them is broken, the eating experience doesn’t work.”

Trying to ensure that consistency, three out of every four carcasses in Cargill’s plants are destined for branded programs, and the increased quality of the past few years has helped them fill those orders.

“We think a lot of that is related to changes in genetics,” he said. “We’re seeing a high percentage of black-hided cattle entering our facilities.”

Dolezal talked about a Colorado State University study that evaluated eating experience at several different marbling levels. He noted that as the researchers selected carcasses with trace amounts of marbling or Standards, only 49% were “A-stamped,” denoting “Angus-type” at the plant. Compared to 92% of all moderately abundant (Prime) that received the same classification.

Cattle feeders are also using more ethanol co-products to economically extend days on feed.

“We think all of this is positive to beef quality,” he said.

What’s not? The increased intensity of implants along with the use of strong beta-agonist feed additives.

“At Cargill, we won’t buy cattle that knowingly have been fed zilpaterol [beta-2 agonist],” Dolezal said.

“Our point of view is that if we get too aggressive (with regard to growth) throughout the animal’s lifetime it can have an impact on the consumer attributes of size, quality and tenderness,” he said. “So we need to find a balance. The message there is that we ask you to be careful.”

As cattlemen make genetic and management decisions, it’s important to have good data to compare year-to-year.

“If you were trying to make genetic change or changing an implant program or feeding ration and you drew a grader that required more marbling to call it Choice, you’d think your cattle aren’t very good,” he said. “But on a different day you could draw a grader that required less, and you’d think you had really good cattle.”

The USDA and packers worked together for many years calibrating and testing camera systems before implementing them to call marbling scores. Currently about 10 plants in the U.S. use the technology to determine quality grade.

“The cameras have been a big win, a big success story,” Dolezal said. “Our customers have been very pleased with the consistency they’re getting box to box, based on marbling levels and other traits.”

Cattle producers should be happy, too.

“Data for grid payments and pre-harvest decisions are more accurate, consistent and repeatable,” he said.

Dolezal said that each part of the beef industry needs to rally together to continue pleasing the consumer.

“We’re all in this together, and if we can ever get in the same spirit on the same page, working together, we’re going to put out a greater product and more of it to compete with other proteins or even the vegan diet,” he said. “We have to be on the same page to promote beef and grow demand for it for every segment to be profitable into the future.”

The Feeding Quality Forums were co-sponsored by Pfizer Animal Health, Certified Angus Beef LLC (CAB), Feedlot Magazine and Purina Land O’Lakes. More information and proceedings are available at www.cabcattle.com.

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Now we’re in the money!

September 20, 2011

I’m excited to see the price differential between Choice and Select boxed beef at $11.87/cwt today.  Did anyone else notice?  It’s a pretty big adjustment from the values under $5.00/cwt. that we’ve seen more often than not over the past few years and as recently as several weeks ago.

I suppose my job with Certified Angus Beef may have something to do with my excitement, but it’s really my interest in cattle and profitability that has me excited.  I just like to see the better cattle rewarded in dollars and cents. 

The value-based grids offered by packers always generate premiums for the high-grading cattle that avoid discounts.  But when the Choice/Select price spread is wider there are more dollars to be had.  It’s pretty simple.

With the current Choice value at $11.87/ cwt. above the Select price, the premium per head is right at $40.36 for an 850 lb. carcass.  Premiums are paid above the packer’s average weekly Choice percentage, so you’ve got to do some math to adjust accordingly.  I’m using 40% of the boxed beef premium in this example, it would be higher in the south.

Providing that the Angus steer met the 51% black-hided requirement, there’s a chance of moving that Choice carcass on up to the upper 2/3’s of the Choice grade and meeting the 10 other carcass specs for CAB®.   Doing so generates another $2.50/cwt., or $21.25/head, for a grand total of $61.60 per head.  Now we’re in the money! 

Folks, every pound is already worth quite a little in this market.  Efficient production of high-quality product is not a fad that will fizzle out.  It’s a winning plan in any business.

-Paul

Paul Dykstra is a  beef cattle specialist for Certified Angus Beef LLC. He works closely with current and prospective licensed feedlots and ranchers in north-central and western states of the U.S to help them profitably meet the demands of a high-quality marketplace through breeding and managing Angus cattle to their utmost potential.

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Mythbuster Monday: good fat, bad fat

May 16, 2011

Last week while sampling Certified Angus Beef® Prime tenderloins to hungry New Yorkers, I tried diligently to explain exactly why this was some of the best beef they had ever eaten.

It’s all about the marbling – those beautiful flecks of flavor you see evenly dispersed in the steak. You may notice that I focus on saying “flecks of flavor” rather than “flecks of fat,” because that little three-letter word instantly sends up a red flag on red meat.

This week, I’m giving Miranda a break from Mythbusting to take this one on myself and prove that more marbling isn’t something we should be scared of.

Myth: Highly-marbled beef is more fatty and therefore not a healthy “lean” protein option.

Fact: When you want to go lean, what you really want to cut back on is beef’s external fat, which is usually trimmed to a constant level for all grades.

Marbling, on the other hand, is primarily made of heart-healthy oleic acid, the simple (monounsaturated) fat prevalent in olive oil. More marbling means more oleic acids, which means less of the potentially harmful saturated and trans-fatty acids that many negatively associate with red meat. Continue reading “Mythbuster Monday: Good fat, bad fat”