Angus News & Information

Angus Remains Industry Leader

The American Angus Association^® remained at the top of the beef cattle industry in 2009, with the number of registrations far outpacing those of any other breed.

“Our year-end statistics continue to demonstrate strong demand for Angus genetics and solidify our long-held position as a leader in the beef cattle industry,” Bryce Schumann, American Angus Association CEO, said. “These results underscore our members’ commitment to providing genetic solutions to the beef cattle industry, and record-breaking sales for Certified Angus Beef^® further substantiate Angus demand.”

Despite a sagging U.S. economy, 282,911 animals were registered during fiscal year 2009, which ended Sept. 30, 2009. Transfers — representing sales of cattle to new owners — reached 176,199, indicating continued demand for Angus genetics. Embryo transfers accounted for 11.3% of registrations, and more than 52% of registered calves were a result of A.I.

The number of members storing registrations electronically increased slightly during 2009, and breeders continued to utilize Angus Herd Improvement Records (AHIR^®) and Beef Improvement Records (BIR). Breeders submitted a total of 845,633 weights, bringing the database to more than 16 million weight records.

Certified Angus Beef LLC (CAB) saw its third consecutive sales record in 2009, selling 663 million pounds, an increase of more than 24 million pounds, over last year. Approximately 14.1 million head were identified, and nearly 2.87 million head certified — an 8% increase over the previous year. Acceptance rates climbed to 19.8%.

AngusSource^® — a U.S. Department of Agriculture (USDA) Process Verified Program (PVP) documenting age, source and Angus genetics — saw an 8.5% increase in enrollments this year. More than 122,700 head were enrolled in the program in FY 2009, bringing total enrollments to more than 390,000 head since the program was initiated as a PVP in 2005. The average size of enrolled lots increased as well, from 146 head to 161 head.

In addition, producers marketed 18.7% more cattle through AngusSource online cattle listings, available at www.angus.org.

The American Angus Association is the nation’s largest beef organization, serving more than 30,000 members across the United States and Canada. It provides programs and services to farmers, ranchers and others who rely on the power of Angus to produce quality genetics for the beef industry and quality beef for consumers.

For more information about Angus cattle and the American Angus Association’s programs and services, visit www.angus.org

Traits correlated with grid premiums

When you get a bonus on grid cattle, sometimes it’s easier to count your blessings than to ask why.

But Tom Brink, senior vice president for Five Rivers Cattle Feeding, says taking a look at discounts and premiums can help you get more of the latter. Tapping into their database, Brink analyzed more than 300,000 cattle records for correlations with grid components. The results are based on a handful of value-based marketing options that mirror those popular in the industry.

“Southern” cattle sold in Kansas and Texas were compared to “northern” cattle in Colorado and Nebraska to show regional differences.

“The South is almost always starved for quality grade,” he says. “Because of that, when we have those southern cattle that do grade, it’s pretty easy for them to earn a sizeable grid premium.”

USDA Prime and Choice grade had a solid correlation of 0.6 to earning grid premiums in the South.

“That’s a very strong positive relationship, the strongest you see of all the different traits looked at,” he says. But that drops to 0.35 in the north.

“It’s still meaningful, that’s for sure,” Brink says, noting the moderate correlation. It’s topped by bonuses for yield grade (YG) 1s and 2s at 0.39 and discounts for heavies and YG 4s and 5s, both at -0.46, strongly negative.

“We struggle a little more with heavies and yield grade as an industry in the northern geographies, so that shows up on the negative side,” he says.

In the South, Brink says better YG is still desirable, but it actually shows up as a negative (-0.24) correlation.

“Intuitively that does not make sense, because on virtually any grid you get paid a premium for more YG 1s and 2s,” he says. “The quality grade influence is so strong that the cattle that graded well brought back such a positive premium that it actually offset the fact they probably had a few less YG 1s and 2s.”

So what do all of these relationships mean?

Simply put, cutability and quality are both important keys to getting more dollars, but within southern cattle the quality grades are especially rewarded. Northern cattle are expected to hit those high marks and then some.

“If your cattle are grading 70% Choice, just average in the North, should you be satisfied with that?” Brinks asks. “No, you wouldn’t want to quit there, because there is more opportunity for the cattle that can do better.”

However, northern packing plants typically run 12% to 15% outs, with some weeks eclipsing 20%.

“That is a big number, to have one in six carcasses coming through as a non-conforming carcass,” he says. “We have missed the mark as an industry when we do that.”

He pointed out YG and heavies are both a genetic and feeding-management problem.

Northern cattle are more Angus-influenced, and Brink attributes the better grading to that, but he says it also brings a challenge “to keep working on those yield grades.”

Fortunately, the American Angus Association measures and tracks those traits, providing dollar-value ($Value) indices such as $YG and $B as producer selection aids.

“Those are tools that not every breed has, but the Angus breed does and they work well,” he says.

Just as breeders watch genetic connections to get all they want out of an animal, perhaps feeders should consider these or their own set of premium and discounts correlations to get the most out of value-based marketing.