Mark Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist, offers herd health advice as part of the weekly series known as the “Cow Calf Corner,” published electronically by Dr. Derrell Peel, Johnson, and Paul Beck. Today, Johnson talks about challenging traditional paradigms.
During the past half century, the cattle business has seen times when maximizing pounds produced at weaning, or as yearlings, or through finishing equated to profitability. As input costs increased, profit margins in all sectors of our business have become more closely related to efficiency or the cost of each pound gained. Interestingly enough, with current record-high prices, input costs still have significant potential to pull down or wipe out our profit margin.
Curiosity about the beef industry is essential to staying “ahead of the curve” with regard to breeding, managing, and marketing cattle. All pounds are not created equal – not from the cost of production side nor in the marketplace. Did you know?
- Beef consumer preferences have changed. Buyers today want (and are willing to pay for) high quality, consistently great-tasting beef as well as transparency into how we care for the cattle and the land.
- As a result of improved genetic potential and management, we now see approximately the same percentage of beef carcasses reaching USDA Quality Grade Prime as USDA Select.
- Historically, the Choice/Select spread was the primary factor impacting beef carcass value. Today, with more beef carcasses reaching the Prime grade, the Prime/Choice price spread has a greater impact on the value of a beef carcass.
- In the marketplace, documentation of genetic potential of weaned calves, yearlings, and potential replacement heifers is resulting in premiums paid by the next owner.
The best managers have the curiosity to be lifelong learners and stay ahead of the curve. Challenging traditional paradigms, considering a better way is essential to permit our beef operation to profit, sustain, and survive.
