News Update

March 20, 2017

Building Premiums, Cut by Cut

Something doesn’t add up.

In 2016, U.S. packers saw Choice beef production increase by 8.1% while that of the Select grade held steady. Yet the value of Choice over Select (the Choice-Select spread) went up by $3.47 per hundredweight (cwt.).

“If you’re just looking at supplies, you’d assume the premiums for hitting those higher quality endpoints would go down,” says Mark McCully, vice president of production for the Certified Angus Beef^® (CAB^®) brand. “But that’s where the story of demand really shines.”

The Choice-Select example pales compared to the growing CAB premium. After 10 years of record volume sales leading to more than a billion pounds last year, the CAB-Choice spread was up $5.77 per cwt. to average a record-wide $14.44 per cwt. advantage last calendar year.

“Many think most of the brand’s value comes from steaks and the high-end, five-star steakhouses,” McCully says. “They’re an important part of our business, but we see end-meat users starting to add even more dollars back to the carcass.”

Continue reading in the Angus Media news article online.

— Adapted from an article by Miranda Reiman, Certified Angus Beef LLC.

Don’t Let Cows Fall Victim to the Spring Nutrient Gap

Fresh green grass is a welcome sight come spring. However, early spring grass with limited growth or volume should be approached with caution when it’s used as the sole source of nutrition for recently calved cows. With limited grass volume, cows can expend more protein and energy than they are taking in and lose body condition.

“Cows are also coming out of gestation and into their time of highest nutritional requirement,” says Lee Dickerson, senior cattle consultant with Purina Animal Nutrition. “While it can be lucrative to turn cows out on pasture at the first sign of grass, short grass won’t supply the nutrients a cow needs to perform her best.”

Providing adequate nutrition helps cows stay in condition, which can in turn help cows get rebred. Rebreeding success will determine the number of calves you’ll have the following year and how much those calves weigh.

For more information, view the Purina news release online.

— Adapted from a release by Kayla Jentz, Filament Marketing.

American Angus Association Member Notice

Preparations for the 2017 Annual Convention of Delegates have begun. The American Angus Association will mail delegate nomination forms only to active regular and life members who qualify as eligible voting members prior to the deadline of 4:30 p.m. Central Daylight Time (CDT) on April 7, 2017.

To be active and eligible, you must be at least 18 years of age, as well as a life or regular member, when the nomination period begins (April 10, 2017). Dues must be current and paid in full. In addition, you must have registered at least one animal or have conducted a minimum $250 worth of business with the American Angus Association or Angus Genetics Inc. within the 12 months preceding the nomination period (April 10, 2016-April 7, 2017).

Please make sure you meet all the eligibility requirements by the close of business (4:30 p.m. CDT) April 7. Members can determine their eligibility status through AAA Login at My Account > Your American Angus Association Information.

The Association’s annual meeting will be convened Monday, Nov. 6, during the Angus Convention in Fort Worth, Texas.

— Announcement from Shauna Hermel, Angus Media.

Grain & Energy Outlook

Thanks to record yields in 2016, record U.S. feedgrain supplies are in place. While larger livestock inventories are supportive of demand, and fewer U.S. acres are expected to be planted to corn, CattleFax Market Analyst Mike Murphy sees the corn supply and demand situation as fairly balanced. Murphy talked about production and prices of grain, hay and energy during the CattleFax Outlook Seminar Feb. 2 at the 2017 Cattle Industry Convention in Nashville, Tenn.

The current balance between supply and demand suggests that near-term grain grower margins will be narrow, said CattleFax Analyst Mike Murphy. Corn prices should remain fairly flat through 2017, averaging around $3.45 per bushel.

Discussing factors influencing corn supply and demand, Murphy said U.S. acreage planted to corn is expected to decrease in 2017 by 1.1 million acres, trimming production by 700 to 800 million bushels.

— Adapted from an article by Troy Smith for Angus Media.

Cows Need the Right Nutrition at the Right Time

“Take care of Mama” is a saying not to be taken lightly, at least not when it’s in reference to pregnant beef cattle, said Lee Dickerson, a nutritionist with Land O’Lakes Purina Feed LLC. Dickerson addressed attendees of the 2017 Cattle Industry Convention & NCBA Trade Show during an NCBA Learning Lounge educational session.

Dickerson explained that mounting research in the area of fetal programming and epigenetics — which refers to maternal events during the development of the fetus — is revealing that how the female is treated throughout gestation is crucial to the future reproduction of that female, as well as the future performance of her progeny.

He shared that the current paradigm among producers within the industry is that concern with health and nutrition begins after calves are on the ground.

Continue reading the Angus Media news article online.

— Adapted from an article by Kindra Gordon for Angus Media.

— Compiled by Paige Nelson, field editor, Angus Media.

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