News Update
Sept. 28, 2009

Study Backs Up the American Angus Association’s New Ad Campaign

Premiums on Angus-based steer calves set a 10-year record last fall, despite a sagging economy and slumping prices for commodity calves. High-percentage Angus steers netted an extra $34.51 per head over non-Angus contemporaries at auction, smashing previous records, both per hundredweight (cwt.) and per head.

That’s according to “Here’s the Premium” (HTP), a long-term study initiated by Certified Angus Beef LLC (CAB) in 1999. “The project compares prices for Angus vs. non-Angus calves and feeders at auction markets across the United States,” says Steve Suther, CAB industry information director.

The decade of data includes information on more than 12,000 sale lots representing 270,220 cattle sold at a dozen locations from Kentucky to California. From the start, Kansas State University (K-State) agricultural economist Kevin Dhuyvetter has provided statistical analysis. Cooperating market managers were surveyed twice a year for the first eight years, before entering a secondary phase of “monitoring the established premium trends,” Suther says.

Fall surveys compare prices for 500-pound (lb.) calves, while spring surveys examine prices of 700-lb. feeders. Angus heifer premiums tend to hold stronger at the heavier weights. “If you just look at these 500-weight calves, it may appear that Angus heifers are lagging behind Angus steers in their ability to earn premiums,” Suther notes. “But this weight class represents the point where steer premiums have been at their widest relative to heifers.

“By contrast, the Angus heifers really begin to pile on the premiums when they reach the 700-lb. area. At 725 lb., heifer premiums typically equal those of steers, and at higher weights, the Angus heifer brings in more dollars over non-Angus than do Angus steers,” he says. “That could be due to the dual purpose nature of high-quality Angus heifers as either replacements or feeding animals that will require fewer days on feed than steers at that point.”

Looking back on 10 years, Suther notes that the premium for Angus steers and heifers more than doubled compared to the first few years of data. That progress came as all cattle were trending higher.

“When all cattle were trading at the top, Angus steers led the way,” he says. “They still do, because they deliver predictable and above-average gain and feed conversion, and bring home more premiums on packer grids that pay for pounds of high-quality beef.”

HTP project coordinator since its inception, Suther adds, “With so much uncertainty in virtually all markets now, buyers increasingly appreciate the dependability of today’s Angus genetics. If we could dig deeper into the very top premiums, we would probably also find that bidders have past experience with those sets of calves.”

Auction market managers agree that’s a factor. One commented, “Reputation cattle will sell. Buyers want calves they know will gain well and grade.”

The market managers report prices on groups of calves they personally know to be of high-percentage Angus genetics, vs. those that they know do not carry Angus genetics. Additional factors such as known weaning and health management and calf fleshiness are also reported.

Positive comments on calves sold such as “weaned,” “fancy,” or “preconditioned” were associated with a $1.88 per cwt. premium in the fall auctions. On the other hand, “thin,” “not weaned” or “fleshy” were terms that went along with discounts averaging $4.71 per cwt. The Kansas market manager noted, “Buyers want to know if the calves have been vaccinated, with what and when.”

The fall 2008 data set included 521 lots of calves marketed in October and November, accounting for 9,705 steers and heifers. While Angus-based steers weighing 509 lbs. captured a record $6.79 per cwt. premium last fall, buyers also paid an added $3.24 per cwt. for 501-lb. high percentage Angus heifers compared to their non-Angus counterparts. That’s $16.21 per head in added value over non-Angus heifers, consistent with the average fall Angus-based heifer premium of $16.66 per head over the course of the study. Historically, fall-marketed Angus-based feeder steers have netted $24.33 per head in premiums. 

For more information and graphs and charts, visit http://www.angus.org/pub/newsroom/releases/HTP%20fall%2008k.htm.

Mary Hawkes Brings Home the “Best of Beef” Grand Prize in National Beef Cook-Off

With her recipe for Sonoma Steaks with Vegetables Bocconcini, amateur home cook Mary Hawkes of Prescott, Ariz., won the checkoff-funded 28th National Beef Cook-Off $25,000 “Best of Beef” grand prize, topping recipes from 14 other finalists. The competition awarded $70,000 in total prize money.

This year’s Cook-Off “Sonoma Style” theme focused on fresh, flavorful ingredients paired with nutrient-rich beef cuts. The winning Sonoma Steaks with Vegetables Bocconcini recipe featured grilled beef top loin steaks, zucchini, yellow bell pepper and red grape tomatoes tossed with herb-marinated fresh mozzarella balls. In addition, the dish is an excellent source of protein, niacin, vitamin B6, vitamin B12, selenium and zinc; and a good source of iron.

Each contestant prepared their recipe for evaluation by a judging panel of local and national food journalists. Criteria included taste, appearance, convenient preparation and nutritional balance. The judges raved about Hawkes’ recipe because of its overall simplicity, her efficient use of ingredients, and the mellow flavor and texture of the mozzarella balls partnered with the smoky grilled steak and vegetables.

 “I’m absolutely thrilled to be named the winner of this year’s Cook-Off,” Hawkes says. “The Sonoma Style theme really inspired me to look at new ways to pair my favorite cut of beef with garden-fresh vegetables.”

Funded by the Beef Checkoff Program, the National Beef Cook-Off showcases Americans’ love of beef. The Cook-Off promotes beef consumption by reaching consumers with appealing beef recipes that deliver on taste, health and convenience.

In addition to the “Best of Beef” Grand Prize, six cash prizes were awarded in three categories.

The winner in each category received $10,000. This year’s category winners are:

• Live Well with Fast & Convenient Grilled Beef Recipes: Kristina Vanni – Hollywood, Calif.
  
• Teens Cooking with Beef: Morgan Hanrahan – Olympia, Wash.
  
• Lean Beef in Nutrient Rich One-Dish Meals: Elizabeth Bennett – Mill Creek, Wash.

National Beef Cook-Off Chef Challenge

In a separate Cook-Off event, six professional chefs from the San Francisco Bay Area and Sacramento counties competed head-to-head, showcasing their original beef dishes that portrayed “Sonoma Style” cooking.

Details of all chef challenge winners can be found at: www.beefcookoff.org.

— Release provided by Beef Checkoff News.

$1.4 Million in Grants to Help Small and Socially Disadvantaged Agriculture Producers and Cooperatives

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture (USDA) has selected 10 organizations in eight states to receive $1.4 million in grants to assist small, socially disadvantaged agricultural producers and cooperatives in rural areas.

“These grants will help owners of family farms, cooperative members and small business owners to better market their products and services to add profit and efficiency to their operations,” Vilsack said. “President Obama and I believe in providing the stability and support these small-scale producers need to furnish fresh, locally produced goods to their customers, and these investments will help make that possible.”

This funding is being awarded through USDA Rural Development’s Small, Socially Disadvantaged Producer Grant Program, which is part of the Department’s ongoing effort to expand outreach to rural residents to ensure that all communities have equal access to USDA programs and services. Funding is being awarded to cooperatives or associations of cooperatives where at least 75% of the governing board or membership has annual gross agricultural product sales of $250,000 or less in the last three years. Grants can be used for product improvements, business plan development or economic development activities.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at www.rurdev.usda.gov/rbs/coops/csdir.htm.

— Release provided by USDA.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.