Burrell, Craig

Chapman, C. Kim

Zobell, Dale R.

English

DigitalCommons@USU

1DETERMINING THE GENETICPOTENTIAL OF BEEF CATTLETHROUGH RANCH TO RAILPROGRAMSDale R. ZoBell, Beef Cattle SpecialistCraig Burrell, Area Livestock Specialist C. Kim Chapman, Area Livestock SpecialistApril 2000 AG-508INTRODUCTION In recent years the cattle industry has had to come to terms with itself with respect tosurvival in a very competitive market place. The challenges are very real and extend from theranchers and seedstock producers through to the packers and retailers. The old way of doingthings may no longer be valid and there are certainly no guarantees for survival. What isnecessary is a willingness to gain new knowledge and technical expertise, and in combinationwith traditional wisdom, face this crisis head on. Each farm and ranch enterprise must developits own strategy and find that combination of production and marketing expertise that will resultin a viable operation. All of this must occur in a world that increasingly becomes morecompetitive.For ranchers, it is imperative that they examine their operation and determine what theyare capable of producing within their environment and with the available resources. This requiresa complete inventory of all resources, which includes such things as the herd genetic base,available pasture, range, and feed supplies, and other production oriented resources.In order to have any possibility of success, the genetic base must match the environmentand the feed resource. There is no point raising cattle that cannot meet their genetic potentialand maximize profitability. Additionally, extensive versus intensive production systems cannotbe managed in similar fashion nor can they expect to be optimized using similar genetics. Fine-tuning an operation and maximizing opportunities is no simple task, and eachoperation must determine its own production goals. Relative to genetics, it is necessary to ask thequestion: “How do I determine the genetic potential of my herd?” Many ranchers sell their calves at weaning and do not solicit feedback about how theircalves performed after they left the ranch. Often, the calves are marketed in a manner that makesit very difficult to track the calves because they may have multiple owners before they reachslaughter weight. Once the calves leave the ranch, it may require tremendous effort to acquireinformation on them. Additionally, most calves are sold in pen-lots when finished with noindividual identification, so carcass information, other than on a group-average basis, isimpossible to obtain. However, many calves can be tracked, at least to the point of slaughter, soproduction information can be obtained relative to days on feed, cost of gain, and animal health.2This feed-back can provide some insight into the genetic potential of the calves being raised onthe ranch.RANCH TO RAIL PROGRAMSTed Schroeder, an Agricultural Economist with Kansas State University, at an IRMproducer education seminar hosted by the NCBA, suggested cow-calf producers requireinformation to enhance value of their calves and can do so by:1. Producing and marketing calves that possess physical attributes conducive to efficientfeeding.2. Producing and marketing calves that have attributes to efficiently attain finish qualitiesthat garner premiums when calves are sold on a value-based marketing arrangement.3. Understanding and targeting calves for specific value-based marketing grids andmanaging calf production and cattle finishing to capture premiums and minimize discounts.4. Having detailed, reliable, verifiable, and accurate information about the expectedperformance of calves being produced and using this information to the ranch’s advantage.5. Even with all of the above information, retaining ownership or entering into an alliancemay be the only way to get full value for calves when they are marketed as finished cattle.All of these points are interconnected with determining the genetic potential of the herd.If there is no information on calves beyond the ranch gate, then a producer is severelydisadvantaged in providing information to your customer relative to the potential of your calves.This is particularly true now, in an era of value-based marketing. Feedyards and packers arelooking for calves that will not only perform well, but will have carcass characteristics that willmaximize their profit. If there is no feedback to the rancher on these points, then he has no wayto determine if he is on track and genetics cannot be used to their potential to garner maximumprofit for the rancher.This concept of soliciting feedback is not new, and for many years ranchers, in differentparts of the country, have used an innovative method to gain insight into the marketability,production and carcass evaluation of their calves. It has been called Ranch to Rail, Inside Beef,Steer A Year, Will it Work, and various other names, but the concept is the same. In brief,ranchers retain ownership on a certain number of their calves (anywhere from one to manycalves) and place them in a feedyard along with other calves on the program. Calves are sortedinto pens based on genetics, frame size, calf weight, flesh condition and predicted days on feed.They are then backgrounded and finished to a desirable weight and degree of finish. This is not a retained ownership program but rather a system that allows producers tolearn more about their calf crop and the factors that influence value beyond the weaned calfphase of beef production. It is also not a contest to compare breeds or breeders. It creates anopportunity for producers to determine how their calf crop fits the needs of the beef industry andprovides the information needed to determine if changes in genetics and/or management factorsare warranted in order to be competitive in beef production. In short, it allows a producer todetermine the genetic potential of his herd.The oldest of these programs is the Texas Ranch to Rail program. Over many years,hundreds of producers have entered thousands of calves in a couple of locations in Texas.Feedback from producers who have been involved in these programs throughout the U.S. hasbeen extremely positive because it has allowed them to keep back a few calves each year andfollow them through the feedyard to finish and finally slaughter. Some programs offer producersthe option to tour the packing plant, watch the cattle be graded, and ask questions of the grader. 3Upon arrival at the feedyard, steers are eartagged, weighed andprocessed, and assigned a value based on current market calculations toserve as a basis for calculating theoretical break-evens and the financialoutcome of the program. Management factors such as processing, medicaltreatments, and rations fed to the steers are the same as the other cattle inthe feedyards. Final reports consist of production information (days onfeed, average daily gain, feed cost, and total cost of gain), carcassinformation (quality and yield grade, carcass weight, fat thickness, ribeyearea) and financial information (profit/loss, net return per head, animalhealth costs).This program allows ranchers to become involved in a segment oftheir industry that they may never have been exposed to, which includesthe feedyard and packer. Many ranchers have never seen their calveshanging on the rail and do not understand grading standards or the packer perspective. By usingthe information learned from this program, they gain new knowledge that assists them indetermining which direction their genetics and breeding program should take back on the ranch.The extremes and variability that exists in the industry is also evident from theseprograms. Financial returns for the producers are based on many variables, as described above.Returns normally range from positive to negative in any given year with a large differenceseparating top from bottom profitability for the steers. This is a reflection on production andanimal health, but more significantly, genetics. Many steers do not perform well and do notpossess carcass characteristics conducive to profitability. In a value-based system, these steers arediscounted, resulting in lower returns to the cow/calf producer. It is imperative the ranchersunderstand what they are producing.Utah initiated the Ranch to Rail Program in the fall, 1998 and has continued since thatdate. Calf entries into the program are limited to a maximum of fifteen per ranch and five perbreeding group. There is variability among the steers relative to genetics and initial calf weights,with steers coming from a variety of environments. At the feedyard, steers are maintained on rations and are treated as any other commercialcustom-fed calves. Steers are weighed every 28 days and are initially sorted into short-, medium-and long-keep calves. At approximately 80 days prior to slaughter, calves are scanned viaultrasound using Kansas State University sorting software that assists in determining optimaldays on feed. This program takes steer carcass characteristics (backfat, marbling and weight) andmarket prices into account. As steers approach market weight, they are scanned again and theyare sorted off and sold if it is determined they will grade USDA Choice. Producers are notified ofthe decision to sell and provided an opportunity to hold them longer if they wish and to see thecattle graded at the packing plant. The company grader takes the producers through the gradingprocedure and describes the carcass characteristics of each steer, pro and con. A final economicassessment of each calf is determined after all steers have been marketed, as well as a summaryreport for that year’s program.WHAT CATTLEMEN ACROSS THE U.S. THINK OF RANCH TORAIL PROGRAMSComments from producers who have entered calves reflect the necessity to determine thegenetic potential of their calves. Producers do not wish to retain ownership, as this can createunnecessary risk. By keeping back a few calves that represent the majority of their herd, or4particular breeding groups, they are able to gain valuable insight into their genetic potential.Calves that are entered based on breeding groups assist producers in determining value ofparticular breed types, genetic lines or crosses and this allows them to take a snapshot that can beused to make adjustments or validate their management.G. B. Parks, Millsap, Texas: In an effort to study the grade of carcasses from hisbreeding program, Parks sent a small group of crossbred calves to the Texas A & M Ranch toRail program. “The three years I sent calves to the program they finished in the top 10 percent.That made me feel pretty good. I didn’t realize they were as good as they were. I believe theRanch to Rail Program is one of the greatest things the Extension Service has done for thelivestock industry in Texas. It’s a great opportunity to learn what you are producing.” (Takenfrom the Angus Journal.)Hank Hoogmoed, Wellsboro, Penn: Because carcass traits are important to Hoogmoed,he sent four steers to the Cornell University feedlot test. They did well with three out of fourgrading Choice. “I think this is an excellent way for a breeder to learn what their breedingprogram is producing. With the beef industry getting more involved with value-based marketingwe need to know what the consumer wants and how to meet that need.”(Taken from the AngusJournal.)Ben Olivarez, Mission, Texas: “I use Ranch to Rail to evaluate bulls. It helps meidentify sires with carcass characteristics we want. I also use the information to eliminate cowsfrom the herd.” (Taken from Progressive Farmer.)Bobby Lovett, Cuthbert, Georgia: “In the feedlot your cattle must gain over 3 pounds aday to have a chance at showing a profit. Once I cleared that hurdle I started looking at carcassquality. The industry is going to value-based marketing. Through the Georgia Beef Challenge Iam moving my herd in that direction.” (Taken from Progressive Farmer.)Howard Jensen, Troy, Kansas: “I recommend that cow-calf producers, from any sizeoperation, participate in a carcass feedback project at least once. Even if your cattle don’t work inthis particular situation, consider it tuition to learn what you are producing.” (Taken from theAngus Journal.)WHY SHOULD I CARE ABOUT CARCASS TRAITS INDETERMINING GENETIC POTENTIALCarcass traits are moderately to highly heritable. This means that the carcasscharacteristics of a bull will be passed on to his progeny, similar to average daily gain or weightper day of age. We also know that there is as much variation within a breed as there is betweenbreeds (Reynold Bergen, 1998).Backfat, ribeye area, and marbling are the major traits that should be assessed.Conformationally, this would mean looking at the muscling and overall condition of the animal.These measurements can be determined with ease and are quite accurate with new ultrasoundtechnologies. The fat measurement or fat depth gives an indication of the animal’s fleshing ability.Calves from a bull with no fat may finish too slowly in the feedlot and in females it is related totheir ability to reach puberty at an early age, produce milk, rebreed and maintain a short calvinginterval. Excessive fat in a bull may result in reduced fertility if not managed properly. Extremelylean (high cutability) and extremely fat (low cutability) carcasses are not desirable. We shouldlook for moderation.5Utah State University Extension is an affirmative action/equal employment opportunity employer and educationalorganization. We offer our programs to persons regardless of race, color, national origin, sex, religion, age or disability.Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with theU.S. Department of Agriculture, Robert L. Gilliland, Vice-President and Director, Cooperative Extension Service, Utah StateUniversity, Logan, Utah. (EP/04-2000//DF) Overall carcass muscling can be determined by looking at the ribeye area. Ribeye area isinfluenced by body weight and the heaviest bull often has the largest ribeye, so the score shouldbe weight adjusted. Marbling is an important consideration in determining quality grade. Again, there can belarge differences between and within breeds. Management (feeding) only slightly affectsmarbling and it is predominantly genetically influenced, although certain implant strategies mayalso have a marked effect on marbling and intramuscular fat deposition. In value-basedmarketing, marbling has merit on its own, but must be considered in combination with othercarcass traits. The most desirable carcasses are choice grade or higher, which takes into accountmarbling.CONCLUSIONThe importance of production and carcass trait information is very significant. Producerswho can provide this to clients or potential buyers will have a greater opportunity for increasedprofits than those who continue to breed their calves with a disregard for, or an understandingof their animals genetic potential. When a consumer goes in to purchase a new pickup, they go to a dealer with anunderstanding of what they are after. Much of this is based on performance and service recordsprovided by consumer reports or word of mouth (reputation). The dealer unfolds for their benefita history of the model, specifications, testimonials and other relevant information in an effort toconvince them of the necessity to own that particular vehicle. This is marketing. The moreinformation provided, the greater the likelihood a purchase will occur from him. Ranchers andcattlemen can learn from this example. Provide good solid information to your customers and ifit is a quality product, they will return because of the opportunity for profit. Building a solid herd with sound genetics is not a random event. It requires using all thetools available to produce an animal that will meet today’s consumer demand. It also requires theability to change and continually look for opportunities. By knowing the potential of your herdyou will be more able to make management decisions that will maintain or enhance profitabilityin a very competitive industry.REFERENCESAngus Journal. 1997. Herd reference issue.Bergen, Reynold. 1998. Real-time ultrasound evaluation of carcass traits. Manitoba Agric. Facts.Progressive Farmer. July 1998 issue.Schroeder, Ted C. 1998. Enhancing value of calves through value-based market information.IRM Producer Education Seminar, Feb. 5-7, NCBA.

Determining the Genetic Potential of Beef Cattle Through Ranch to Rail Programs

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Determining the Genetic Potential of Beef Cattle Through Ranch to Rail Programs

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