Strategies for Optimizing Value of Finished Cattle in Value-Based Marketing Grids

Performance and carcass data from 624 steers in three experiments were used to evaluate potential strategies that might be used with incoming feeders to remove animals that produce low value carcasses when cattle are sold in a valuebased grid. Removing 10% of the carcasses with the lowest net value from each group increased the overall average net value of the remaining carcasses $17.50 to $21.09. Carcass weight was found to be the most significant factor determining net value of the carcass. Gain of the steers during the first 3 to 5 weeks of the feeding period was significantly related to average final gain and carcass value, but accounted for a small portion of the overall variation in gain or carcass value. Use of initial gain was successful in identifying ten of the sixty-four carcasses with least net value in a value-based grid. Adding frame score and measurement of initial thickness of backfat along with initial gain did not significantly improve identification of the low-value carcasses. Sorting the steers as feeders based on frame score and initial thickness of backfat resulted in differences in performance and carcass measurements. The low-value carcasses tended to be concentrated in the smaller-framed steers.

Use of Ultrasound Backfat Estimates to Form Marketing Groups Prior to Finishing for Feedlot Steers

An experiment was conducted using 95 Continental crossbred steers. The cattle were sorted by ultrasound 160 days before slaughter into a low backfat group (Low BF) and a higher backfat group (High BF). Half of the Low BF and half of the High BF were implanted whereas the other halves were not. Data from the experiment were used in two hypothetical markets. One market was a high yield beef program (HY) that did not allow the use of implants. The second market was a commodity beef program (CM) that allowed the use of implants. The cattle were priced as an unsorted group (ALL) and two sorted groups (Low BF and High BF) within the HY (non-implanted) and CM (implanted) markets. The CM program had a base price of $1.05/lb hot carcass weight (HCW) with a $0.15/lb HCW discount for quality grade (QG) Select and a $0.20/lb HCW discount for yield grade (YG) 4. The HY program used a base price of $1.07/lb HCW with premiums ($/lb HCW) paid for YG £ .9 (.15), 1.0 - 1.4 (.10), and 1.5 - 1.9 (.03). The carcasses were discounted ($/lb HCW) for YG 2.5 - 2.9 (.03), 3.0 - 3.9 (.15), and ³ 4.0 (.35). This data set provides good evidence that the end point at which to sell a group of cattle depends on the particular market. Sorting had an economic advantage over ALL in the HY Low BF and the CM High BF groups. The HY High BF cattle should have been sold sooner due to the discounts recieved for increased YG. The increased YG was directly affected by an increase in BF. Furthermore, the CM Low BF group should have been fed longer to increase the number of carcasses grading Choice.

Potential Value of Ultrasound to Sort Feeder Cattle into More Uniform Groups for Finishing and Marketing

Cattle in three experiments were scanned with ultrasound as feeders to measure ribeye area and thickness of fat cover to determine if cattle could be sorted into outcome groups with respect to carcass yield. Sorting the cattle into low fat cover or large ribeye groups resulted in improved carcass yield grades. There were no effects on carcass quality grades related to sorting of the cattle. Cattle with greater fat cover at the beginning of the feeding period were heavier, seemed to be more mature and had less muscle growth during the finishing period. There were no significant differences in gain among the groups, but cattle with more fat cover had poorer feed efficiency. Ultrasound seems to have potential to sort feeder cattle, but before it can be used in practice, growth curves need to be developed to predict final end points of individual cattle.

Experiences with Grid Marketing - Summary of Chariton Valley Beef Sales for Year 2000

Producers in the Chariton Valley Beef organization have marketed more than 10,000 head of cattle into grid markets over the past three years. Data from 134 lots were summarized, with 3,791 head of cattle marketed into four grid markets. Producers averaged $26.05 per head premiums. Premiums and discounts ranged from a positive $79.01 to a negative $40.44 on tots delivered.