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Cowboy Math (Over 3000 Reasons to Ultrasound)
By Sean McGrath, Breed Improvement Consultant, Vermillion, Alberta It is important that seedstock producers are aware of cost/benefit of what they do to add value to their product. It is important that investments in data recording and genetic evaluation provide benefit to the downstream purchaser of the product, thus adding value to the seedstock. With that said, it is a bit of a mystery why more producers do not undertake ultrasound in their breeding programs. It illustrate this point, I have done some rough cowboy math using CanFax's boxed beef pricing report. By working backwards from the boxed beef price, it shows that the additional value a packer could pay in live price for cattle with a 2% increase in yield is nearly $3 per hundredweight. While this sounds like a minimal amount, on 25 slaughter progeny weighing 1250 pounds, this is nearly $900. If we look at the $11 per hundredweight price spread between AAA and AA boxed beef prices. there is further opportunity to add value to these cattle. If we took an average AA/AAA split on any given day and increased AAA by 5% through a breeding program that targeted marbling, we could potentially increase returns by nearly $120 per head. That is with only a 5% increase in AAA grading cattle. The added value to 25 slaughter progeny is about $2990. In this mainstream market example, producing a bull for your commercial customer that can sire 25 slaughter progeny, increases yield by 2%, and AAA grading cattle by 5% can generate an additional $3890. While this may vary with market conditions and the boxed beef price spread, the rewards cannot be dismissed. Even producers who sell weaned calves will have a more valuable product to potential buyers if they can get their cattle to grade. There are other opportunities for different carcass specifications as well, with various programs paying premiums for different spec product. The important point is that knowing the carcass characteristics of your cattle and targeting your customers' cowherds can pay big dividends. Research has constantly proven that ultrasound characteristics of young seedstock have a correlation with progeny carcass traits ranging from 0.70 to 0.80. Also consistent is the finding that ultrasound is a relatively inexpensive addition to a carcass testing program. Ultrasound allows us to rapidly obtain large quantities of records on young seedstock. In effect, this means that collecting and using ultrasound data in selection can positively impact the carcass characteristics of future progeny. In the commercial world, this is he ultimate driver of value. Processors pay for the product they can sell, feedlots selling cattle on grid payment receive added value for their efforts, turning the rewards back to producers and ultimately to seedstock producers. One of the most effective places for breeders to invest ultrasound dollars is in scanning replacement females. By scanning yearling heifers entering the cowherd, as replacements are made and older cows culled from the breeding program, the end result is a cowherd with a good carcass profile that can be mated to target any market. The most effective way to use ultrasound data is through genetic evaluation, where ultrasound records can be mated with performance information and anchored using actual carcass data. This is what North American genetic evaluation does. It is important for breeders who want to maximize their opportunities to take steps ahead of time to ensure their data is of most value to them.
By taking these simple steps, breeders can obtain and use carcass and ultrasound information to best advantage. Producers who wish to scan are encouraged to contact one of the ultrasound providers below, and contact their breed association offices to obtain their ultrasound barn sheets.
519-767-2665
Optimum Genetics
Windy Ridge Ultrasound
Sean McGrath is a Breed Improvement Consultant, specializing in genetic improvement programs, primarily focused in the beef industry. His experience and areas of expertise include development of performance programs, and operation of progeny tests, genetic programs, EPDs, computer systems, registry and on farm software program development, and extension work. He and his wife also Tanya run a herd of commercial and purebred Angus females. More of Sean's articles are available at http://consulting.ranchingsystems.com Reprinted with permission, from the Canadian Limousin Association website (www.limousin.com)
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