Jason, Would you care to explain the phenomena that the mix of Angus cattle is at an all time high by a very large margin, yet quality grades and yield grades continue to decline?
I've read all the CAB propaganda that blames everything but genetics. Give me some real reasons...........................
HUNTIN' DAYLIGHT -- WEIGHT STILL WINS...FOR A WHILE
by: Wes Ishmael
It's true that an eight-weight USDA Choice Carcass would have been worth $109.12 more than a Select one the second week of January based on boxed beef cutout values and a USDA Choice-Select spread of $13.64 that week.
But it's just as true that a Select carcass weighing 900 lb. that week would have been worth $96.70 more than the Choice 800-pounder.
In other words, even as the Choice-Select spread has reached historic highs—it was $23/cwt. for a time in 2006—there often continues to be more economic incentive to increase carcass weight than carcass quality.
Viewed through these spectacles, it's not much wonder that quality grade has continued to decline in the industry, despite a cowherd mostly increasingly Angus-influenced.
In fact, according to the 2005 National Beef Quality Audit (NBQA) released last summer fewer cattle graded Choice or higher in 2004 (58.5 percent) than in 1975 (84 percent). In the eyes of purveyors, retailers, restaurateurs and packers insufficient marbling is the single greatest challenge for beef. Insufficient marbling was also cited as the biggest challenge when responses were aggregated from seedstock operators, cow-calf producers, stockers/backgrounders and feedlot operators. Quality Grade represents the single greatest lost opportunity in each periodic NBQA ($26.81 in 2005).
Even the vaunted Certified Angus Beef program (CAB), which ultimately created a new premium category for all beef (upper two-thirds of Choice and higher) is coming up short finding enough cattle to fill demand. According to CAB officials, a record number of cattle were identified for the program last year — 13.1 million head — yet a record low percentage — 14 percent -- were accepted for CAB certification. Despite that, increased product utilization meant that CAB still marketed more than 500 million lbs. of product.
This at a time when, arguably, there are more Angus-influenced cattle running around the country that at any time in history. Though the American Angus Association actually registered more cattle in the late 1960s, the 347,572 head registered last year dwarfs every other breed association.
Combine it with cattle registered through the American Red Angus Association (43,201) as reported by the National Pedigreed Livestock Council and 80 percent of all registrations from the major English breeds are from these two breeds; 48 percent of all cattle registered with the primary English, Continental and American breeds.
Moreover, as reported in last month's Western Cowman (Black Tide-Part 1) various industry surveys indicate Angus and Angus crossbred cattle comprise at least two-thirds of the commercial cowherd.
One example is a survey commissioned by Certified Angus Beef, LLC a couple of years ago. In that survey 65 percent of respondents—commercial producers with at least 100 cows—said there herd was Angus-based. Another five percent named Red Angus as the primary component.
In another survey conducted by the American Angus Association a couple of years earlier, 33 percent of producers surveyed said their cowherd was primarily composed of Angus. Another 30 percent said it was Angus crossbred and 22 percent answered crossbred. Of the 22 percent who answered crossbred, 78 percent indicated Angus was represented in those genetics. According to AAA, "When analyzing all responses, 68% of total producers surveyed indicated Angus was a major influence on the genetics of their cowherd. All other breeds were mentioned specifically by less than 10 percent of producers surveyed."
Given the inherent genetic advantage of Angus and Red Angus in marbling, and the sheer numbers of them in the industry, plenty of folks have been wondering how in the world USDA quality grades could be running backwards.