 |
||||
|
||||
|
||||
|
What Cattle Work In USPB? Grid data shows most kinds do. By Brian Bertelsen, USPB Director of Field Operations U.S. Premium Beef's grid has a reputation for being a high quality, value-based grid. Many prospective and some current members share the opinion that cattle must be black-hided and/or heifers to earn significant premiums on the USPB grid. While those cattle certainly tend to work well on our grid, they're not the only cattle that earn healthy premiums. Actually, many different types of cattle work well on the USPB grid. And in fact, when looking at the top 25% of USPB lots during 2000, the steer lots averaged $1.35 per head greater premium than the heifer lots. The premium difference between steers and heifers widens in favor of heifers especially when we compare the bottom 25% of USPB lots. Last year, the premium difference between the bottom 25% of USPB steer and heifer lots was just over $9 per head in favor of heifers. That shows how variable steers can be relative to heifers. Bottom 25% steer lots tend to have larger heavyweight discounts and lower yields (dressing percent). These go hand-in-hand. Steers that are placed on feed too heavy are often sold early to avoid the heavyweight discount of $15/cwt. As a result, they tend to yield lower and also fail to maximize their marbling potential. Over the last three years, USPB members have delivered a greater percentage of heifers due to their premium advantage. This advantage comes primarily from increased yield and fewer heavyweight discounts. Heifers are more predictable on yield and grade and therefore premiums are more predictable. Cattle that grow less per day (English heifers placed at light weights) tend to produce larger grid premiums. Cattle that deposit tissue more rapidly per day of feeding (crossbred steers placed at heavier weights) tend to be more variable in their grid performance. So, benefits from sorting and individual animal management will likely be greater with steers because of their faster growth rates. And obviously, steers tend to have an advantage in cost of gain. Premium is not profit. USPB heifers averaged 119 lbs. less live weight than steers during 2000. Heifer premiums per hundred pounds of live weight were higher than steers. However, due to their advantage in carcass weight, steers produced approximately $78.50 more total gross income per head on the grid during calendar 2000. When purchase price spreads narrow, as they will during the heifer retention phase of the cattle cycle, steer cost of gain advantages will overtake the grid premium advantages of heifers. Maximizing grid performance comes down to management which requires having the knowledge and experience to market cattle at their optimum endpoint. That experience comes from receiving and analyzing carcass data to know when time to harvest a pen of cattle. |
||||
|
|
||||
|
||||
|
All information is copywrited by Feed Lot magazine and cannot be printed or re-printed without the publishers express consent. Please contact Feed Lot Magazine for reprint and copy authorization. | ||||