For more information contact:
Jake Alden, Field Services Representative American Shorthorn Association
402-393-7200 office 402-660-9048 cell
An extremely harsh winter with record snow and cold temps across the nation made cattle feeding extremely challenging in early 2010. Luckily, an upswing in the fed market this spring healed a lot of bottom lines. Also, for the first time in recent history, a USDA Yield Grade 2 Select carcass had as much or more value than a Yield Grade 3 Choice carcass for an extended period of time. As a result, cattle were marketed earlier (younger) than normal to maximize profit. The Shorthorns fed in the Great State Feedout (GSF) certainly exceeded all expectations and certainly proved that breeders should take a hard look at retaining ownership of their next weaning group. The order buyers who have been stealing your Shorthorns at local sale barns aren’t crooked, just smart. It’s time to capture more dollars per head and prove the breed’s carcass value to the critical mass of the beef industry!
The most important result from the GSF was profit! The average Shorthorn on feed filled their owner’s pocket with an additional $100 over and above feeder calf value, feed, yardage, and all other inputs. It is important to point out that a USDA feeder calf grader valued GSF cattle in Iowa at typical feeder calf prices, not a discounted price typical of a sale barn. As a result, profits were not over-inflated due to an arbitrarily low purchase price. A pen of Shorthorns in the Hy-Plains (KS) yard fed for a cost of gain of $0.62; the yard average across 50,000 head capacity is $0.72. That’s an incredible feat for a group of purebreds to feed a dime cheaper than their commercial crossbred counterparts!
In the late spring and summer market of 2010, it took 7 Yield Grade 2 steers to offset the discount for 1 Yield Grade 4! We are happy to report that the GSF produced ZERO Yield Grade 4 carcasses. The elimination of discount cattle is a major management challenge for feed yards of all sizes. Since so many cattle were marketed young, backfat results were adjusted to 450 days to mirror more typical marketing conditions. After the age adjustments were factored into USDA Yield Grade, there were still no cattle that exceeded a 3.99 Yield Grade. The average adjusted backfat depth across the entire trial was 0.38in. The average USDA Yield Grade was 1.9, a testament to the above average muscle of the group.
A narrow Choice-Select spread causes feedlots to alter their marketing strategy to maximize profit. When cattle reached a plateau in average daily gain in 2010, it made the most economic sense to market them promptly and capture premiums for cutability. Since marbling is dependent upon age, younger cattle simply don’t quality grade as well as long-fed cattle. The Shorthorns in the GSF graded 42% Choice on the rail at a weight of 1167 (steers and heifers combined). However, adjust the cattle to an age-constant of 450 days, and the grade-out jumps to 72%. A vast number of steers/heifers were simply marketed on the brink of Choice; average Marbling Score was 494, just a few flecks of marbling from Low Choice. Feed those cattle another 30 days and they are well into the Choice grade
One of the most important take-home messages from the GSF was the consistent performance of a vast array of Shorthorn genetics put into the trial. Everything from asterisk free bloodlines to progeny with national champions on both sides of the pedigree were included. Just because a Shorthorn is destined to show does not mean they are worthless on the rail. Likewise, Shorthorns geared for the commercial bull/female market can perform in the feedlot as well as cattle of any other color. All of the carcass and performance data will be included in the upcoming Shorthorn EPDs to help you make better breeding decisions in your program.
