CALF_News_October_November_2020

40 CALF News • October | November 2020 • www.calfnews.net By Larry Stalcup Contributing Editor W ith premiums that spanned from $5 to $20/ cwt., in 2019, Certified Angus Beef (CAB) illuminates the value of producing high-quality cattle needed to meet continued strong con- sumer demand for tasty, tender beef. CAB’s recent virtual Feeding Quality Forum updated producers and feeders on the industry’s long-time success and challenges encountered during the pandemic and weakened economy that ravaged food service businesses. More for Your Calves Many other breed groups have developed their own value- added programs that help reward producers and feeders for quality. But with more than 60 percent of the nation’s cattle being black hided through pure Angus or Angus-crosses, CAB continues as a leader in quality programs. More than 5 million cattle are in the CAB program, a testament to the alliance’s quality-driven, value-added system. Recent data shows that for CAB calves, prices average $14.70/ cwt., higher than average prices for a 600-lb. steer. This is due mainly to better genetics, said Paul Dykstra, CAB beef cattle specialist, speaking to some 600 people tuned into the virtual forum. Special premium programs available for producers add even more value. Dykstra said average premiums from 2019 video sales included $13.95/cwt., for GAP (global animal partner- ship-approved) calves; $8.21 for NHTC+ natural (non-hor- mone treated calves); and $5.46 for straight NHTC. “Enrolling in such a program puts icing on the cake,” Dyk- stra said, adding that feedyards and other cattle buyers are constantly seeking high-quality calves that “have a resume” for performance. CAB Feeding Quality Forum IDs the Value of Quality Cattle It's a Demand-Driven Market “I assure you, there is a plethora of feedyards that would love to hear from a rancher who has quality cattle that they haven’t heard from. Make contact with them, and tell them, ‘I have cattle that might meet your requirements.’” Dykstra pointed out that networking is the best way to mer- chandise quality calves.“It’s important to develop and maintain contacts through auction markets, video auctions and direct sales in the country,” he said.“The Angus Link program helps producers document the value. You’ve done the work – get paid for it.” He noted that the “30-day weaned calf still presents a health risk to the buyer. Feedyards want cattle that have been weaned 45 days. They are less excited than ever about freshly weaned cattle.” 80% Choice and Prime CattleFax CEO Randy Blach said the dramatic increase in black-hided cattle has changed the industry.“Black-hided cattle made up about 35 percent of the cattle in the mid- 90s,” he said.“It’s now about 65 percent. “There is higher quality in genetics, a focus on grid sales and more marbling. Carcass quality is now 82 per- cent Choice or Prime, compared to 54 percent in 2016. That’s a 62 percent increase in the production of Choice and Prime product. Once consumers taste the good stuff, they stay with it.” The demand for higher quality beef has provided the welcomed premiums after beef demand suffered heav- ily from 1980 to 1998. The Beef Checkoff helped the industry promote consistently better tasting, more tender beef.“We have moved from a supply-driven to a demand- driven market,” Blach said. LEFT: "The 30-day weaned calf still presents a health risk to the buyer.” – Paul Dykstra, CAB. Photo courtesy CAB RIGHT: “We have moved from a supply- driven to a demand-driven market.” – CattleFax CEO Ranch Blach Genetics are the backbone of strong CAB success.