News Update
May 3, 2010

What the Choice-Select Spread is Trying to Say

Cattle are sold by the pound, but the price per pound can make as much difference as total weight, when it comes to the bottom line.

That’s why producers who aim for profit weigh everything that goes into that price.

The Choice-Select spread has been a leading indicator for decades, but a current analysis suggests it can mislead if taken at face value. A lot more commodity Choice came on just as the economy was closing the menu on “middle-meat” steaks cut from that commodity pool, which no longer represents much of an advantage over Select.

Producers today must lift their gaze to the relative values of premium Choice and Prime beef if they want to monitor the market, says Mark McCully, Certified Angus Beef LLC (CAB) assistant vice president for production.

McCully recently published a white paper entitled, “Trends in the Choice-Select spread and implications to cattle producers.” He explains that spread is simply the difference in price between the boneless beef cutout from a USDA Select carcass and one that graded Choice.

“But the difference may not be as simple as it first seems,” he adds. “Most of the upper two-thirds Choice beef is committed to premium branded programs, and much of the low-Choice product is also branded. That means it is separate from the USDA-reported price, which is now derived from the ‘leftovers,’ a little more than 15% of all Choice-grade cattle.”

Why is that an issue? Traditionally, the market relied on the published Choice-Select spread as a barometer and a price-discovery point in value-based marketing, McCully says. More than 60% of fed cattle today sell on some type of grid, formula or other method based partly on this spread. Read more.

New Beef Ad Campaign Debuts in May

The new “Profiles” chapter of the “Beef. It’s What’s For Dinner” campaign will reinforce consumers’ passion for the great taste of beef with information explaining nutritional benefits to the body. Attention will be focused on specific cuts, like the T-bone and top sirloin. Checkoff-funded messages beginning this month will emphasize these cuts are lean sources of high-quality protein.

Research has shown Americans have a love affair with beef, but occasionally hesitate to eat it due to nutritional concerns. Profiles will deliver information showing beef provides 10 essential nutrients to power a healthy lifestyle.

— Release by the Kansas Livestock Association.

Easy Steps to Fertilizing Summer Grass Pastures Properly

Producers who pay close attention to soil fertility fundamentals will help ensure desirable forage production and nutritive value, a management tool that is especially important with introduced forages.

“Lack of attention can easily necessitate increased purchase of off-farm feed and forage, decreased animal performance and reduced level of profitability of a forage-livestock enterprise,” said Brian Arnall, Oklahoma State University (OSU) assistant professor of plant and soil sciences.

The first step in the soil fertility program is to obtain a soil sample for analysis. A soil analysis is used to determine the levels of nitrogen, phosphorus and potassium in the soil, as well as the soil pH level. Under certain circumstances, analyses for other nutrients also may be required.

Based on the yield goal for specific forage crops, written recommendations for the level of each fertilizer nutrient required are usually furnished by the laboratory conducting the analysis.

After correcting the soil pH level to greater than 5.7 and meeting the phosphorus and potassium needs, there are only two basic fertilization principles required for introduced, warm-season grasses.

The first principle is that nitrogen fertility is required for grass growth; the second is that nitrogen fertilization should be based on a reasonable yield goal for the region of production, explains Daren Redfearn, associate professor of forages with the OSU department of plant and soil sciences.

“The first nitrogen application should be in early May, just as the grass is beginning to grow and ahead of late-spring rainfall,” he said. “Properly timed fertilization can result in better utilization of late-spring rainfall.”

When written as a list, the proper order for warm-season grass fertilization is as follows:

• conduct a soil test;
• lime as recommended;
• apply phosphorus and potassium as recommended;
• identify a reasonable yield goal; and
• apply nitrogen fertilizer ahead of moisture based on yield goals.

“Remember, by default, producers who use introduced forages have decided to provide the necessary fertility inputs,” Redfearn said.

— Release by OSU Research and Extension.

Enter Accelerated Genetics 2010 Photo Contest For A Chance To Win A Digital Camera

Are you ready to get started on the 2010 Photo Contest? Accelerated Genetics has two new themes for you to try your photography skills on ‘Change of Seasons’ and ‘Youth In Action.’

For ‘Change of Seasons,’ take pictures of calves, heifers or cows in the various seasons throughout the year. For ‘Youth In Action,’ take action photos of youth working or playing with calves, heifers or cows. A panel of judges will select winners from each category and they will be awarded a digital camera with the winning photos also printed in the December issue of the Genetic Trends newsletter.

Digital photos are preferred and need to be sent as a high resolution (300 dpi) JPEG image with photo size at least 8”x10”. Low resolution photos will be not be included in the contest. Digital images can be sent via email or mailed in on a CD.

For printed photographs, please make sure the image is printed from a photo center. (At home photo printers do not print high enough quality photographs.) Printed photographs will only be accepted at the sizes of 5”x7” or 8”x10”. Other photo sizes will not be considered for the contest.

The entry deadline is Sept. 1, 2010. Contestants can enter as many photos as they wish. For each photo entered, please include: name of photographer, address, phone, e-mail, location photo was taken, photo title and photo category. Then e-mail entries with the subject line ‘2010 Photo Contest’ to: kstanek@accelgen.com or mail CDs or prints to:

Accelerated Genetics, Kari Stanek-Photo Contest, E10890 Penny Lane, Baraboo, WI 53913.

All entries submitted will become the property of Accelerated Genetics and could be used in future publications or projects. If you have any questions please feel free to contact Kari Stanek at 1-800-451-9275 ext. 5422 or by e-mail at kstanek@accelgen.com. Happy photo taking.

— Release by Accelerated Genetics.