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Blamers that adapt and profit, ruin it for other blamers

Murgen

Well-known member
Here's the link

http://www.admani.com/alliancebeef/TechnicalEdge/Surviving%20the%20beef%20industry%20change.htm

Surviving the Beef Industry Change
Nichols Farms: A Success Story
by J. David Nichols Managing Partner Nichols Farms





My dad was a “reputation” cattle feeder. He fed 200-250 steers annually from 1940-65. He bought his steer (mostly Herefords) calves at the Omaha Stockyards from “reputation” Nebraska Sandhill ranchers. His “reputation” served him well, as his cattle sold at/or near the top of the terminal markets. I became a cattle feeder as a 9-year-old and have fed cattle ever since. At that time, Swift, Armour, Wilson, and Cudahy slaughtered about 70% of the fat cattle (and they were fat). These big four packers sold individual hanging beef carcasses to buyers, which included bargain hunters, chain restaurants, and purveyors to white table cloth restaurants. Packer concentration has not been a “change,” though the packers are different ones.

Packing Industry Change
Then a major “change” occurred! The packing industry led by Iowa Beef Processors (IBP) moved to the country where the cattle were fed, escaped costly union labor contracts, mechanized processing, and introduced boxed beef. The introduction of boxed beef improved efficiency and lowered the cost to the consumer. But alas, it turned beef into a classic example of a price based commodity. The least cost producers were usually large feedyards and packers whose huge volumes enable them to produce beef at lower cost per head. The pricing system sent clear economic signals to feeders to buy and feed cattle that barely met minimum quality standards. The small, mostly mid-western cattle feeders who failed to “recognize and accept change” simply quit feeding cattle. My dad changed! He started buying, feeding, and selling cheap-colored-native calves from southern Iowa and Missouri auction barns. Commercial feedyards fed mostly long-tailed yearlings (Okies), which had naturally acquired high levels of immunity due to their age and exposure to a myriad of respiratory diseases. Thus, death loss and sickness was manageable. And, finished cattle all sold at basically the same price.

Breeding Industry Response
During this period (1970-95) the seedstock industry responded by selecting for frame size with little or no selection for meat quality (marbling) and imported about 20 “exotic” dual-purpose breeds, from Europe. Soon, much of US calf crop resembled #2 Okies at least in color and confirmation. Consumer beef demand decreased dramatically in spite of the nation’s cow herd numbers declining nearly every year. In public beef producer meetings, the most optimistic economists referred to the beef industry as “mature” In fact, it was in a deadly downward economic death spiral.

Branded Beef Enters the Market
Almost in desperation, the American Angus Association introduced Certified Angus Beef (CAB), as they were losing registrations, members, and income at an alarming rate. CAB was not an instant success, but grew dramatically in the early 1990s and reached critical mass in food service, exports, and retail markets. Its grown to be the largest US beef brand. The success of CAB inspired others to introduce their own branded beef. It is estimated over one-half of the beef sold today is branded or sourced. Many cow/calf producers were bewildered or angered as they saw black hided calves sell higher than their own similar quality colored ones. Many recognized the “change”— grudgingly accepted it and turned out black Angus bulls.

Producer Exodus
In the mid 1990s, as a large seedstock breeder and small cattle feeder, I watched my neighbors, who were independent swine producers, “exit the business” only to be replaced by vertically integrated swine/food companies. Exiting the business, is the same vernacular as, “I was down-sized out of my job;” instead of, “I got fired, because I wasn’t contributing ideas or $$$ to the company’s bottom line.”

Nichols Beef Business Changes
In 1995, we “recognized” and accepted the fundamental “change” in the beef business and sensed the exploding consumer demand for high-quality branded beef. We hired Ross Havens away from an integrated swine company to ram rod Nichols’ value-added programs. Ross and I plunged ahead with a plan and had our first Nichols Genetic Source Feeder Calf Auction in 1996. Our plans were subject to change, as there were no blueprints for our costly and risky undertaking. There weren’t any guidelines for such a feeder calf sale, but as a buyer of feeder cattle, I made the Nichols rules (no exceptions allowed):

Calves must sired by Nichols Bulls. (Since 1961, Nichols Farms has progeny tested herd sires for carcass merit.)

Calves must be weaned 45 days prior to the sale, vaccinated pre-weaning, given modified-live booster shots post-weaning, and veterinary certified.

Calves are individually weighed, frame scored, muscle scored, body condition scored, and sorted for sex and color. Based on this data, a computer program is used to group calves into 50,000 lb load lots with a maximum weight spread of no more than 75 lb in each lot.

Each calf possesses a unique ear tag, and buyers receive the consignor’s name, address, and phone number and vice versa. Calves are sold with prepaid individual carcass data collection services.

Nichols’ Success
Our 1996 sale was a resounding success in spite of low feeder prices and a host of nay-sayers. The calves sold for $78 a head more than if they had been sold as “commodity” calves at the same auction barn that same week! Though my hat size increased two sizes after this first sale, we invited the buyers of the calves to participate in a focus group after their Nichols’ calves had been fed, sold, and harvested. To our surprise, every one of them recommended using only one company’s vaccine and a standardized regime. So, we partnered up with the good people at Merial Corporation, and the Merial SUREHEALTH program was born, tested, tweaked, and then offered to the entire beef industry. It has become the gold standard for the feedlot industry. Predictably, several pharmaceutical companies are trying to emulate it now, with “me too” programs.

Expansion
Since our first Nichols Genetic Source Feeder Sale in Iowa in 1996, we’ve added feeder sales in Tennessee, North Carolina, and Indiana, with more on the way. We’ve sold about 25,000 head of Nichols Farms’ source-verified calves, each with a traceable EID ear tag. All sales have put “real folding money” in the pockets of cow/calf producers and, just as important, put black ink on the close-out sheets of the cattle feeders who plunked down their hard earned cash to buy them.

Future
To paraphrase Satchel Paige, the great baseball pitcher in the Negro Baseball League, “Never look back, they may be gaining on you.” Looking forward, it was apparent to me, that more than superior beef genetics and a certified health program were needed to keep our customers in business. Plus, I detest survival mentality and want and expect our customers to prosper. Any company’s success or failure depends largely on their customers’ profits and his/her quality of life.

Teamwork
Nearly everyone realizes that sound nutritional inputs and professional designed rations are critical to profitability in any food animal. But, none of these are worth much if there isn’t a viable value-based market available when finished cattle are ready to sell. ADM Alliance Nutrition and Nichols Farms teamed up two years ago to add not only sound nutritional programs and services, but to add USPB and IQB packing house shares/slots to our customers in “the system.” In addition, eMerge came on board to provide comprehensive animal tracking solutions, which will not only meet National Mandatory ID and COOL requirements, but provide individual animal tracking of health, performance, costs, marketing, and profit. When you count all the apples in the barrel, this truly unique combination of innovative companies and people has no equal in providing all the tools for all the customers our individual companies share.

A Piece of the Pie
Is the beef industry returning to my dad’s era of “reputation” cattle? Yes! Will it be the same? No! In dad’s day, it was a “good old boy” network of cow/calf producers, cattle feeders, and packers based on their own personal experiences and individual personalities. The premiums or discounts were negotiated face to face, mostly on their instincts if “the cattle worked.”

This time, all the entities “from farm to fork” will have hard data in their hands, which will determine the $$ value of cattle and/or beef. Business relationships will be formed and many will evolve into personal friendships.

Those who won’t accept “change” will level charges of “corporate concentration” to anyone who will listen, including the media and politicians. During the last 30 years, the beef industry has been cutting the dwindling “beef pie” into fewer and bigger pieces at every level, including retail outlets. Nichols Farms and their partners are working together to make the “beef pie” bigger. And, we are offering a slice of it to anyone, large or small, who wants to sit down and enjoy it— together.

The Next Step
Cattle producers need to gather production information and decide which business alliances will be of value to them in furthering their growth and prosperity. Without a doubt, in the future some cattle producers will be involved in successful business relationships while other will be watching from the sidelines. Producers should be prepared to ask questions, learn from other livestock industries, and make decisions that deliver a “piece of the pie.”

Click on chart for enlargement
 

Northern Rancher

Well-known member
Dave Nichols is one sharp cookie and any cattle we'vce used of his have darn sure 'worked'. I phone him once in awhile to pick his brain it's always well worth my dime.
 

Brad S

Well-known member
He misses some relevant points. First, if the Iowegian corn farmers went to feeding southern trash (and quit feeding sandhill calves) and the big yards were feeding okies, what the hell happened to the ranch fresh reputation calves out of the sandhills and dakotas? Fact is the sandhills and dakotas have been offering better cattle than the nichols cattle for along time - so let's not discuss them.


When discussing seedstock trends and sneering at breed developments we should remember where we've been. In the 50s fat was more valuable than lean, this changed quickly. The big framed cattle were a response to reduced demand due to an over fat product - they didn't cause it. giant feeders compete better with cattle that feed to 1400# also.
 

Econ101

Well-known member
Brad S said:
He misses some relevant points. First, if the Iowegian corn farmers went to feeding southern trash (and quit feeding sandhill calves) and the big yards were feeding okies, what the hell happened to the ranch fresh reputation calves out of the sandhills and dakotas? Fact is the sandhills and dakotas have been offering better cattle than the nichols cattle for along time - so let's not discuss them.


When discussing seedstock trends and sneering at breed developments we should remember where we've been. In the 50s fat was more valuable than lean, this changed quickly. The big framed cattle were a response to reduced demand due to an over fat product - they didn't cause it. giant feeders compete better with cattle that feed to 1400# also.

The whole fat thing has been out of whack. It was introduced by the poultry companies so they could compare a chicken breast to beef on a health basis and win the health argument.

It has really skewed the markets in a lot of ways.

The worst kind of beef you can get is one that has no fat in it. The worst kind of chicken you can eat is a fatless rubbery chicken breast. The worst thing that can be done in this comparison between chicken and beef is

Between the two, I would much, much rather have beef fat and much rather have beef fat from grass fed beef.

Advertising does matter and the efficacy of advertising can be measured in market share in the proteins market. The Checkoff has a lot of work to do in that regard based on the numbers.

Murgen, this was a good article you posted.



Now it is time to get back down to business but the business of false advertising should be addressed by the Checkoff. How can it be when Tyson's influence is so great?

Searching and Chicken Nuggets

Chicken-Nugget Boom Leads
To Worries About Kids' Health



Originally published in the Wall Street Journal (C) Dow Jones, Inc. Reproduced here solely for discussion purposes of search and retrieval bugs.

Like many parents, Grace Beam of Oshkosh, Wis., is thrilled when her two sons gobble down chicken nuggets , thinking they're far healthier than the burgers, fries and other junk food kids love.

"It's just breaded chicken," says the 38-year-old Web-site editor. "How bad could it be?"

Very. When it comes to childhood nutrition, few foods are as unhealthy and insidious as the chicken nugget , one of the most popular foods of the two- to six-year-old set. While other junk foods such as hot dogs and potato chips are obviously full of fat and calories, many well-meaning parents think they are doing right by their child's health when they feed them a nugget. After all, it's chicken.

But calling it chicken is a bit of an overstatement. Sure, chicken is the largest ingredient by weight, but once it's turned into a nugget, it's so laden with breading, fillers and fats, it's hardly recognizable as chicken anymore. Some 50% to 60% of the calories in most nuggets come from fat.

The chicken nugget is "somewhat analogous to cake with a little added protein," says Susan B. Roberts, chief of the Energy Metabolism Laboratory at Tufts University School of Nutrition and author of "Feeding Your Child for Lifelong Health."

Even so, the chicken nugget is one of the fastest-growing foods in the American diet, particularly among very young children, according to Harry Balzer, vice president of NPD Group, which tracks consumer eating habits. In restaurants alone, the nugget now accounts for about 5% of all orders -- more than double what it was in 1990.

What's particularly troubling about the growing consumption of nuggets is that they've become a dinner-time staple in households where parents think they're feeding their kids healthier alternatives to junk food. In fact, the popularity of high-fat, highly processed foods like chicken nuggets is one reason the percentage of overweight kids has tripled in the past 20 years to 15%. And experts now know that heart disease, which is linked with obesity, can begin in early childhood.

"If a child is consuming calories in nuggets and sodas, their energy needs might be met, but their nutritional needs won't," says Joan Carter Clark, dietitian at the Children's Nutrition Research Center at the Baylor College of Medicine. "Who knows when the ramifications of these kinds of food choices in childhood are going to show up later in life."

So exactly what part of the chicken does a nugget come from? Dissecting the chicken nugget isn't easy, but a look at the label and nutrition information can help.
[mcnugget]

The first ingredient is always chicken, but unless the label specifically says it's made with all-white meat, then the product contains a combination of white meat, dark meat and chicken skin. Dark meat is far higher in fat and lower in certain nutrients than white meat, and the skin is notoriously high in fat. (The skin is included in the same proportion as you would find on a whole chicken, says Richard L. Lobb, spokesman for the National Chicken Council.)

The vast majority of nuggets aren't whole pieces of chicken -- instead the chicken is either chopped into small bits or "comminuted," which means the meat and skin is finely ground into an almost paste-like concoction. At that point, binders are added to make it stick together and it's pressed into the traditional nugget shape. Some brands also offer "fun" shapes like stars and dinosaurs.

Popular brands of chicken nuggets tend to have far more grams of fat and carbohydrates than they do protein, and most are made with partially hydrogenated oils -- meaning they include cancer-causing trans fats.

Consider McDonald's nuggets -- a kid-size serving of four nuggets contains 210 calories, with 120, or 57%, of those calories coming from fat. By weight, the nuggets contain 13 grams of fat, 12 grams of carbohydrates and 10 grams of protein.

Compare that with 72 grams of roasted, skinless chicken breast, which has 22 grams of protein, no carbs, and less than one gram of fat.

In 1,000 restaurants in New York City and Columbus, Ohio, McDonald's is test-marketing a new version of its nugget, one with all-white meat that has 14% fewer calories and 15% less fat. McDonald's spokeswoman Lisa Howard says the company's nuggets are made "from the highest quality food," and are a good source of vitamin C, calcium and iron. "Our Happy Meals can fit into a balanced diet," she says.

Nutritionists aren't so sure. "People assume it's all chicken, but there's been zero truth in advertising of that food by any fast-food company," says Barry M. Popkin, nutrition professor at the University of North Carolina School of Public Health in Chapel Hill.

Fast-food nuggets aren't the only culprits. Store-bought frozen nuggets baked at home are often just as fat-laden and unhealthy. A look at the label shows that many of those are pre-fried.

A serving of five Banquet chicken nuggets contains 270 calories with 160, or 59%, of those calories from fat. The 17 grams of fat and 16 grams of carbs dwarf the 11 grams of protein. And the protein doesn't all come from chicken -- most brands, including Banquet, include soy, corn and plant proteins as well.
WHAT'S IN A NUGGET?
Here's a look at the nutritional breakdown of a typical serving of McDonald's chicken nuggets .

Serving size: 6 nuggets
Calories: 310
Fat calories: 180
Fat: 20 grams
Carbs: 18 grams
Protein: 15 grams
Protein: 2 grams

Percentage fat: 58%




A spokesman for Tyson Foods, the chicken company that sells its own brand of nuggets and supplies some of the fast-food chains, says that as with all foods, balance is essential. "Chicken nuggets can be a healthful part of a balanced diet, which should also include all of the other elements of the USDA food pyramid," says spokesman Ed Nicholson.

The problem is that the prominence of chicken nuggets is throwing off the balance of kids' diets. Very young children are just developing and establishing their eating habits and preferences, and the more nuggets they eat now -- the more unhealthy food they will crave as they get older.

"This is what children have developed a taste for because that's what they're served," says Christina Economos, Tufts assistant professor of nutrition. "It's not their fault."

Many parents complain that their child simply won't eat anything else. Debbie Corbishley, a Coral Gables, Fla., lawyer and mother of three, says her five-year-old daughter eats chicken nuggets four or five times a week and will eat very little else. Although she is healthy, the girl is small for her age.

"I know this isn't considered the very best thing I can feed my kids, but I was just grateful she would eat something," says Ms. Corbishley, who adds that she read the labels and buys only all-white meat nuggets.

But nutritionists say parents have more options than they think. Start by trying to scale back the number of times your children eat fast-food nuggets and substitute healthy fun foods such as vegetable pizza.

When you do serve nuggets, make better choices. Dr. Economos serves her son Morningstar Farms Chik Nuggets, made with a blend of vegetable and plant proteins. Four nuggets have 160 calories and just four grams of fat. Also, homemade baked nuggets (see accompanying recipe) are simple, tasty and far healthier than processed nuggets -- with just 202 calories and two grams of fat.

None of the popular fast-food versions are particularly healthy, but some are better than others. For instance, a serving of Chick-Fil-A nuggets has 260 calories, 12 grams of fat and gets about 40% of its calories from fat, which is still high but lower than most fast-food brands.

And, contrary to what many parents may think, a simple hamburger at McDonald's is a better option, with 280 calories, 10 grams of fat and 30% of its calories from fat.

This Page was last update: 5/27/2003; 8:23:11 AM
 

Brad S

Well-known member
The way nichols used "nichol's calves" was to referance calves sired by his bulls from southern cows. i use nichols cattle consistant with nichols, and I strongly believe gate cut sandhill cattle will outperform these nichols cattle.

I have no doubt Nichols sells good cattle as do many seedstock producers. I don't think a good sire is going to make tennessee calves equal cherry county calves.

My point is Nichols began by introducing "sandhills cattle," The industry sure as hell hasn't passed over sandhills cattle, so what becomes of sandhill cattle? The honest truth is the giant nasty powerful feeders have found the best cattle feed the best and took them away from iowegians. Iowegians were stuck with southern cattle. Nichols can only hope to make the southern cattle come close to sandhill cattle. Using profitability arround these southern hobby herds is by the way a mixed metaphor.
 

Sandhusker

Well-known member
Brad, "I don't think a good sire is going to make tennessee calves equal cherry county calves."

My estimation of your I.Q. just raised 50 points! :wink: :lol:
 

Jason

Well-known member
I don't think a good sire is going to make tennessee calves equal cherry county calves.

Not just 1 sire, I agree. But how about 3 generations of good sires? How about 6?

The very worst thing a producer can do is underestimate the potential for improvement in other cattle.

I was told that because of climatic conditions the cattle I sold to Mississippi and Texas would not perform up to our standards. Wrong!

The mature cattle in Mississippi are some of the nicest looking animals to be found anywhere, the calves are less than ideal because of the owners trying to save on feed and they only feed weaned calves every other day a small amount.

The cattle in Texas, fed a reasonable diet, have weaned 700 pound plus calves, that have ultrasounded near the top of the breed. I wouldn't call them inferior even though they are a "hobby herd".

My bulls did the same conversion in Idaho. They took a mongrel rainbow herd to even productive cows in 2 generations. The producer was always amazed when the heifers he had retained would out perform the older cows.

The reverse can also be true. Get a producer that thinks he can back off the quality of bulls and watch his herd decline.
 

Econ101

Well-known member
Pointrider has a program that allows producers to find out how their cattle are really doing for the packer/feeder if only this information was sent back to the producer via "scoring ag".

There, two advertisements in one sentence that helps the producers.j

Jason, the biggest factor for producers in their better breeding is knowing that the bull they buy will put real money in their pocket under their current or somewhat changed environment.

If a producer isn't creep feeding, why should he buy cattle that require creep feeding?

I have a couple of quarter horses that are way too fat. I didn't feed them anything (except 1 bale of hay during an ice storm) all winter. They are just good keepers. They can outperform almost all the other horses around even when the other horses are given a heavy dose of grain.

Producers need to buy bulls that fit in their program, not yours, unless they are willing to change. There are good cattle out there that do that and cattle that have been selected for that reason. There are also cattle that, given a good pasture management program, can grade choice on pasture and be sold as such. Most of those in this area are the brittish breeds and are smaller than the big cattle that feeders/packers want. They make more money for the producers.

You have to figure out what you need, your goals, and find reliable bulls that will match those needs. Hopefully if they are dealing with you they have independent information or someone else's experience to use instead of just your "sales" pitch. I don't know why it should be different for anyone else.
 

Brad S

Well-known member
I've fed lots of cattle out of the south, almost my entire life. I would agree that genetics is a problem with southern cattle. Jim Leachman sez top bulls will bring up bottom cows in 4 generations, but I don't think he was talking about saving the top male calf in the pen for a herd bull. That's a common practice in the south among 6, 8, and 15 cow herds. 1 good sire on a pen of southern cows will likely result in quite an advancement - especially the heifer crop making cows. Now stack 6 generations of good bulls like Jason sez and you have Sandhill cattle. The average cowherd in the south is 15 head and lasts 6 or 7 years.

Even if you're a gump in cherry county, you go to town and buy a cow freshener bull, gump will likely fall into a good bull simply by what's available.

So sandhusker's estimation of my IQ has been increased by 50 points. Working backwards, I'd say someone having seen the closeouts I've seen, would need an IQ of about 90 to realize the doability of cherry county calves, so Sandhusker had me penciled in at the 40 - 50 IQ range.
Almost where I should take dirrection from my good border collie - well, let's just say I consult her input and leave that alone.
 
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