Wednesday, January 17, 2007 2:53 PM CST
Finding Choice, Prime cattle gets more difficult
By Jeff DeYoung, Iowa Farmer Today
LEWIS -- Finding cattle that grade Choice and Prime is becoming more difficult, according to an executive with Certified Angus Beef (CAB).
Larry Corah, CAB vice president, told producers at the recent 4-State Beef Conference demand for premium beef is highand supply continues to drop.
"There is a tremendous demand for quality beef. We could sell more, but we can't find the product," he said. "Last year we sold a half-billion pounds of Certified Angus Beef, and if we could find the cattle, we could double that within 12 to 18 months."
According to USDA figures, just more than 60 percent of cattle graded Choice in 1996. That figure dropped to about 57 percent in 2005.
CAB requires all beef to be at least Choice and from black-hided cattle. He said consumers prefer beef that is tender, has good flavor and is juicy. That requires certain marbling specifications, Corah noted.
He said industry concerns include inadequate marbling, and excess fat and variable cut weights.
"A box may say the cuts average 12.5 pounds, but you could have strips in there weighing anywhere from 8 to 14 lbs. If you are going to cut those into strip steaks, you are going to have some variability."
Corah said only 14 percent of all black-hided carcasses fit into CAB's guidelines. Producers can garner a healthy premium if their cattle grade Choice or above, he added. Between 40 and 50 percent of cattle are marketed on a grid, Corah said, and that figure could increase to 70 percent.
"The economic importance of quality grade is going to grow. Today, the spread between a Select and CAB-qualifying carcass of the same weight will be in the $150-200 range, making quality an important economic factor in profitability."
Corah believes several factors contribute to fewer quality cattle.
Health problems will harm carcass quality, he said citing Iowa State University research that indicated calves treated two or more times for bovine respiratory disease had an 18 percent reduction in grading low Choice compared to more healthy calves, he said. "The impact was a 44 percent reduction in Prime and 33 percent fewer premium Choice grading cattle. Sick cattle just don't grade."
Corah said feedlots have tended to place younger and less heavy cattle, which could result in increase health risk. Treatment costs and death losses continue to increase, he added.
"We are selecting cattle that have higher growth rates, and those do have more health problems. They have a voracious appetite, and producers have a harder time managing their intake, and most of the health problems tend to be acidic."
Another recent issue is the effect of ethanol co-products on marbling. Research at Kansas State University indicates cattle fed large amounts of co-products have lower marbling scores, Corah said.
"What they're finding that if the co-products are 30 percent or more of the ration on a dry-matter basis, it may impact marbling. If the amount is more than 40 percent, it has an impact.
"Iowa has reputation for having high-quality cattle, and you don't want to lose that reputation. We need to figure out how to use these co-products without impacting the quality grade."
Geography also could be playing a role in beef quality.
Since 1970, Corah said the number of cattle fed in Iowa, Minnesota, Illinois and Indiana has dropped from 40 to 16 percent. Over the same period, the percentage fed in Texas has risen from 14.4 percent to 26.1 percent. "Feedlots with less than 20,000-head capacity are located in Iowa and Nebraska, and tend to focus on higher quality. The larger yards are located in Kansas and Texas, and typically aim to upgrade Southern cattle."
http://www.iowafarmer.com/articles/2007/02/01/livestock/41cattle_jd.txt
