The Changing Beef Industry

1
The Changing Beef Industry
2
The Changing Beef Industry
Number of new USDA Certified Programs
2001
3
The Changing Beef Industry

• In 1997, 5 of the fed cattle were estimated to
  be in some form of alliance.
• Today, it is estimated to be around 15.
• Before the end of the decade, 80 of fed cattle
  could be marketed on some form of value-based
  system.

4
2001 FSBI n 2332
5
2001 FSBI n 2332
6
The Changing Beef Industry(Since 1999)
Excel
Ada Beef
Taylor
Smithfield
Murco
Moyer
IBP
Packerland
Tyson
Smithfield
What or whos next?
7
Environmental Stewardship

• Michigan Right to Farm Law
• GAAMPS
• Non-compliance procedures
• CAFO/MAEAP
• DEQ/EPA General permits

The 5-State Beef Initiative has adopted state
specific environmental guidelines
8
Electronic ID (EID)unique identification

• Allows confirmation of individual identity when
  animals are commingled
• Basis for sharing information among segments
• Allows for source and/or process verification
• Provides the basis for automated data collection
• Allows application of information back to a sire
  and dam

The 5-State Beef Initiative has partnered with
eMerge Interactive in providing information
sharing between industry segments
9
Factors affecting the variation in profitability
for cow-calf producers
96 99 Illinois Iowa IRM Data
Source Miller et al., 2001
10
Value of IRM

• Producers who participated in Illinois IRM for 5
  years reduced their annual production cost by
  nearly 175/cow. Given an avg. herd size of 128
  cows, this has resulted in an annual savings of
  over 22,000 per producer.

Total cost per cow
11
Integrated Resource Management Programs

• Cow-calf standard
• Cow-calf simple
• Stocker/Backgrounder
• Feedlot Closeout program
• - Feedlot IRM is in development

NEW
NEW
The 5-State Beef Initiative has adopted cow-calf
IRM, has developed stocker IRM, and is developing
feedlot IRM
12
Animal Well-being

• Animal well-being is largely a consumer
  perception issue
• Major meat buyers want to pass on assurances to
  their customers about how the animals were
  handled in their supply chain
• 2000 and 2001 McDonalds, Burger King and
  Wendys implement animal well-being guidelines
  and audits for their suppliers
• Pizza Hut, Papa Johns, and Little Caesars
  quickly followed suit

The 5-State Beef Initiative has adopted animal
well-being guidelines
13
Sire Selection

• Expected Progeny Differences are the single most
  accurate means of assessing the genetic value of
  an animal for the calculated traits
• Indexing potential sires based on EPDs may be
  accomplished by using their relative ranking of
  EPDs within their breed (Power score)

The 5-State Beef Initiative has adopted a power
score system in to aid in genetic improvement
14
Cost of Sickness

• Influence of sickness on performance, QG, and
  profitability in 8 years of the Texas AM Ranch
  to Rail programNumber of cattle 12,306 4,047
• Medicine trt cost, /hd 0 27.03
• ADG, lb 2.99 2.67
• USDA Choice, 39.6 27.5
• Net return, /hd 67.32 -20.28Source Mcneil
  et al. 2000

The 5-State Beef Initiative has adopted minimal
preconditioning requirements
15
Beef Quality Assurance Mission

• Increase consumer confidence
• Attention on beef quality
• Research and education initiatives

The 5-State Beef Initiative has adopted a
regional BQA program to enhance consumer
confidence
16
How to become certified as a Michigan Quality
Beef Producer / 5-State Beef Initiative Producer
17
Education

• Michigan Quality Beef Producer Training
• Genetics
• Health Management
• Beef Safety and Quality Assurance
• Animal Handling and Well-being
• Animal Data Management
• Environmental Stewardship
• Integrated Resource Management

Seedstock ? Cow-calf ? Stocker-Backgrounder ?
Feedlot
18
Certification

• Certification is optional
• Opportunity to be certified for 3 yr as a
  5-State Beef Initiative / Michigan Quality Beef
  Producer
• Certified producers are eligible to produce and
  market calves through the FSBI coordinated
  production, marketing information system

19
Michigan Quality Beef Producer Training
March 8th Escanaba, Great Northern Buffet March
11th Reed City, Osceola Inn March 12th Gaylord,
BJs Restaurant March 13th Ithaca, RESD
Bldg March 21st Kalamazoo, Holiday Inn, West