Bottomline Newsletter

Spring 2011

Volume 13, Issue 2

INSIDE...

Limousin Commentary The Future Looks Great for the Beef Industry

Full Circle The Value of Heterosis and Crossbreeding in the Beef Value Chain

Markets Maximize the Value of Your Calf Crop

Commercial Awards California Family Wins Limousin Commercial Producer of the Year GV Limousin Named Commercial Marketing Booster Davis is Limousin Promoter of the Year

Crossbreeding The Hybrid Advantage

Economics Economic Impact of Reproductive Rate

Bottom Line is published three times per year by the North American Limousin Foundation, 7383 S. Alton Way, Suite 100, Centennial, Colorado 80112; (303) 220-1693; fax: (303) 220-1884; www.nalf.org Dir. of Communications Jonathan Beitia, Ext. 117 Dir. of Commercial Marketing Joe Epperly, Ext. 107

The Value of Heterosis and Crossbreeding in the Beef Value Chain Robert L. (Bob) Weaber, Ph.D. State Extension Specialist-Beef Genetics University of Missouri-Columbia Recently, there have been dramatic increases in input costs for feed, fertilizer and fuel which have again narrowed profit margins of many cow-calf producers and others in the beef value chain. These challenges to profitability have motivated many producers to analyze their production systems and consider management strategies that improve operational efficiency. Profitability may be enhanced by increasing the volume of production (i.e. the pounds of calves you mar-

ket) and/or the value of products you sell (improving quality). The reduction of production costs, and thus breakeven prices, can also improve profitability.

For commercial beef producers, the implementation of technologies and breeding systems that increase the quality and volume of production and reduce input costs is essential to maintain or improve the competitive position of the operation. More and more producers are finding that a structured crossbreeding system helps them achieve the goals of increasing productivity and reducing production costs. continued on page 28

The Future Looks Great for the Beef Industry

By R.L. “Bob” Hough, Ph.D. last year, which has also increased demand. Our industry has We are at a unique time in our industry. Our national cow seen tremendous strength in branded beef products. Brands herd has dropped to record low numbers, while on the like Laura’s Lean, Strauss Natural Veal and Angus product demand side things are strengthening. You can look at the lines continue to grow. Producers need to remember that to Futures Market to see that we are looking at strong prices for qualify for most Angus product lines, an animal only needs to quality cattle. What is driving this “bullish outlook,” comes be 51 percent black hided and can be either from a number of fronts. horned or polled, neither are a hindrance for Beef exports are certainly on the rise, with Our nation’s breed selection for most crossbreeding systems. an especially promising outlook for the Pacific economy continues Overall, the domestic market price adjustment rim. After what looked like a grim outlook last to improve, should continue for high quality seedstock bulls, summer, new free trade agreements are lowerfeeder cattle and fed cattle. ing barriers in countries like South Korea. We driving more The new congress also seems to have a bullsfinally have access to European markets with demand for higher eye on ethanol as a program that will not be subcattle qualified USDA Process Verified NHTC priced cuts such sidized in the future. While this is terrible news (non-hormone treated cattle) programs. One as middle meats, for corn farmers, it will be a boom for beef promust remember that these markets not only ducers. A lack of subsidies on ethanol will mean purchase normal beef cuts but are also a major is in the future. lower feed ration costs for feedlots, and the abilioutlet for exotic or organ meats. One cannot ty for cattle feeders to pay even higher prices for over emphasize the importance of these beef feeder cattle. With already tight supplies of cattle this could products and the added value they provide through exports. mean unprecedented prices for feeder cattle lie ahead of us.

Our nation’s economy continues to improve, driving more demand for higher priced cuts such as middle meats, is in the Another major boom for the beef industry is a return to future. The foodservice industry has rebounded well in this continued on page 27

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Spring 2011

BOTTOM LINE

Maximize the Value of Your Calf Crop

By Joe Epperly, NALF Director of Commercial Marketing

Vaccination and preconditioning programs that are appropriately communicated to the buyer consistently pay a premium to the producer. Herds with a solid long-term vaccination program yield calves that are less likely to get sick during the feeding period. Preconditioning calves allows them to adjust to the stress of weaning and the management procedures that usually accompany it. Castration, dehorning, and the adjustment in diet and transporting the animal often lead to added stress. As illustrated in the following table, research has shown that pre and post weaning management including vaccinations and preconditioning affect feedlot performance, feedlot health, and carcass quality.

It is essential that buyers understand the ins-and-outs of your management program to ensure that you receive added premiums. Simply stating “they’ve had all their shots” no longer yields premiums. A program must be verifiable and comprehensive. Superior Livestock and the Livestock Marketing Association both have vaccination protocols that are easy to follow for the producer, and have terminology that make it easy to understand.

Figure 1. Significant variables for adding value to Age and source verification has become a major selling calves in Superior Livestock Video Auctions* point in today’s global marketplace. With Korea and Japan Variable Calculated added dollars regulating imports to cattle under the age of 30 months and received for a 600 lb. steer 20 months respectively, the added demand for age verified Steer vs. heifer $52.43 supply has yielded an average premium of $12/head with Weaned vs. not weaned $17.64 some as high as $60/head. The average cost for participating Source and Age verified $12.83 in an age and source verification program is around $3/head.

Since 1989, the Non-Hormone Treated Cattle (NHTC) proSemi-load of calves $12.65 gram has been in effect to facilitate the trade of non-hormone VAC 34 and/or VAC 45 protocol vs. other protocol $14.81 treated beef between the United States and the European * From summary sale results compiled by Montana Beef Network for June and July 2007, Union (EU). The demand for non-hormone treated cattle conMT raised calves tinues to increase and can mean a $5 to $10 a head premium for producers. To receive the added premium, a producer elects to particiFigure 2. Factors Affecting Bovine Respiratory Disease (BRD) and Subsequent Feedlot and Carcass Performance 1 pate in the verification programs and audits, which are similar to those for age and source Preweaning factors Postweaning factors + verification.

– Immunity · Prenatal nutrition · Transportation/marketing stress – · Commingling The United States Department of Agricul· Intake of colustrum + · Persistent BVD – ture (USDA) Process Verified Program (PVP) –/? · Receiving period management · Preweaning health ? and Quality System Assessment (QSA) pro– Castration, dehorning, etc. · Temperament +/– +/0 – Implant programs? grams allow suppliers of agriculture products + · Preshipment management · Receiving diet nutrients the ability to provide customer assurance and – Preconditioning – Energy (roughage) a consistent quality of goods and services.

– Vaccinations – Protein For cattle to be truly Age and Source Verified BRD – Nutritional status – Minerals (Cu, Se, Zn) or verified Non-Hormone Treated Cattle + = decreased incidence or + – Vitamins (E, antioxidants) (NHTC), they have to be documented and verconsequence · Prophylactic antibiotics ified through a USDA recognized program.

– = increased incidence or consequence Superior Livestock, Smithfield Beef Group, ? = effects not fully – understood AgInfoLink, and IMI Global are examples of – ? verified programs. A complete list of verified Feedlot performance Feedlot health Carcass quality programs can be found on USDA’s website.

Duff and Galyean, J. Anim. Sci. 2007 85:824 continued on page 4

It is never too early to consider a marketing plan for your calf crop. In some cases, it is essential to begin early and manage calves to maximize their market potential. Management and marketing strategies go hand-in-hand. By matching the genetics and management of the calf crop to specific markets, premiums can be realized to their fullest. Vaccination programs, preconditioning, and added-value programs like age and source verification all depend on the marketplace in which the calves are sold.

Tight margins, potential loss, and price variability of corn have lead feeder calf buyers to seek calves that come with maximum information. Buyers pay for the added information, because they know it provides the potential to make them money. At one time, buyers relied on subjective measures and trial and error to find the right cattle for the order. Now quality assurance programs open marketing doors, improve feedlot performance, hold significant benefits, and are worth a premium in the mainstream market to buyer and seller.

1

LIMOUSIN’S COMMERCIAL CONNECTION

Spring 2011

Page 3

Maximize the Value of Your Calf Crop continued from page 3 A signed affidavit will no longer substitute for documentation provided by a USDA certified PVP or QSA. Specific requirements differ for each verification program. You should contact a verified program to become familiar with record keeping and procedural needs before beginning. Most programs will require at least the following records be kept or procedure performed, and are recommended.

■ Tag all cows and calves with unique number in your herd.

Most will require the use of RFID tags on animals that are to be age and source verified.

■ Keep detailed calving records including calf ID, dam ID, calving date, and calf sex. At a minimum, the date of the first calf and last calf born should be recorded. Keep records in a safe and accessible place for at least 3 years.

■ Keep records of all cattle sales, vaccination, deworming, implantation, and health treatment.

■ Become a BQA certified producer Another program that adds additional value to a calf crop is being certified natural. The program requires a signed affidavit stating that your cattle have never been treated with antibiotics or hormones. Producers should look at their mineral and management programs to make sure they are within the strict requirements and that treated cattle are clearly marked. Through the use of quality recordkeeping, producers can use sound management practices and either treat naturally or sort off those who are treated to qualify for the program.

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Markets can also be determined by your genetics and seedstock source. Limousin genetics remain competitive in the traditional mainstream marketplace. They also allow for access to additional marketing options through the North American Limousin Foundation (NALF) and its membership.

NALF can assist in marketing your Limousin-influenced calves whether you market them privately, through a video auction, or at the auction market.

The online Sale Barn, Feeder Calf Listing provides an outlet for you to advertise. The NALF staff work to make sure that those listings get to an ever-growing number of cattle buyers and feeders. Special Limousin feeder calf sales are held throughout the west with NALF’s assistance and are a gathering place for those buyers interested in the benefits Limousin genetics have to offer. Partnerships with Strauss Brands and Laura’s Lean Beef gives additional added value options to Limousin-influenced feeder calves.

A number of Limousin seedstock producers offer calf buyback programs or personally own and manage feedlot operations. They buy and feed Limousin-influenced calves from both their bull customers and other producers. Contact NALF for assistance in marketing your calves or for a list of breeders that can fit your seedstock and marketing needs.

To maximize income, it is important to have a target market for your calf crop whether it is a date, a location, or a specific program. Value-added programs and management practices are becoming more prevalent and can result in added profit for little added cost. Management to hit those targets should be considered starting now. It will result in more dollars at sale time.

Spring 2011

BOTTOM LINE

California Family Wins Limousin Commercial Producer of the Year Astute marketing, a commitment to customer service and quality helped earn the North American Limousin Foundation (NALF) Commercial Producer of the Year award for Sierra Valley Ranch, Erik Roen and family of Knights Ferry, CA. The family enterprise topped a field of eight nominees. Mike Hall, NALF secretary, and Joe Epperly, NALF director of commercial marketing, presented the award January 9th, during the NALF Annual Banquet/Member Social at the National Western Stock Show (NWSS) in Denver, CO. “The Roens’ commitment to quality shows throughout their operation,” said Epperly. “They strive to produce cattle that excel from the pasture to the plate. They utilize feedlot and carcass data as a tool to maximize their bull selection,” said Epperly.

The enterprise has been in business for 15 years and is made up of three ranches in the Sierra Valley and a winter pasture in the San Joaquin Valley of California. They have incorporated Limousin genetics into their progressive crossbreeding system on their 2,000 head English based cow herd.

Real world performance, profitability and customer satisfaction are at the forefront of their goals. They work to collect data on percent cows bred, calved, and total percent calf crop, as well as weaning weights and yearling weights on all calves, to assess herd performance. In an effort to identify grading, uniformity, and feed conversion, they work with their customers to gather data on feedlot and carcass performance.

Roen believes that it is crucial to stay in touch with their customers to have knowledge of the performance of their product all the way to the consumer if possible.

One of the enterprise’s major goals is improving irrigation and grass quality on their Sierra Valley ranches. Through the use of three truckloads of culverts and recycled 15,000 lb. gondola cars, major irrigation system structures have been repaired and upgraded, yielding a large expansion of high quality grasses and grazing potential on their ranches. They have been awarded several conservation awards for their LIMOUSIN’S COMMERCIAL CONNECTION

agriculture water quality accomplishments.

Sierra Valley Ranch strives to raise cattle naturally on native pastures, and certify their calves age and source verified, natural, and non-hormone treated to allow for expanded market opportunities for their customers. They market their calves as yearlings coming off of summer pasture in August, and have had a great deal of feeder satisfaction. John Wubbenhorst of KCC Feeding in Minden, NE, was one of those who bought Sierra Valley’s calves last year and he was extremely satisfied. “Those steers fed the best,” said Wubbenhorst. “I didn’t have a single one to treat in the whole group.”

This commitment to quality has yielded a premium with the last calf crop topping all western yearlings at Superior’s Video Royale in Winnemucca, NV, last July. The Superior Representative described those calves as “without a doubt the best set of yearlings I have ever shipped.”

Their sire selection begins with a thorough evaluation of their herd performance through measures like percent choice graded animals, feed efficiency, uniformity and percent of pregnant cows. These measures are used to focus their sire selection to continue to move herd genetics forward. A third of the heifer crop is kept for replacements, and visual conformation along with performance data are taken into account when making selections. Scrotal circumference is also a focus in bull selection to enhance fertility in those females.

Roen works with his good friend Jim Davis of Superior Livestock Auction, and Wendell Geeslin of Magness Land and Cattle, to find bulls that align with herd needs and goals.

They cull based upon soundness, fertility, body condition as well as age. Being a grass-based system, they focus on cattle that flesh easy and breed back. They remain at the genetic forefront by only keeping bulls for 4 breeding seasons. Their long term goals include continued conservation, quality assurance and pursuit of the best quality genetics to fulfill market demand.

Spring 2011

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GV Limousin Named Commercial Marketing Booster President of the North American Limousin Foundation, Mike Smith, Natoma, Kan., and NALF director of commercial marketing, Joe Epperly, present Gene Raymond, GV Limousin, Garnett, Kans., with the Commercial Marketing Booster of the Year award.

The North American Limousin Foundation (NALF) presented its Commercial Marketing Booster of the Year to Gene and Virginia Raymond, Arne and Stacy Hanson from GV Limousin of Garnett, KS. The award was announced at the Annual Banquet/Member Social on January 9th during the National Western Stock Show (NWSS) in Denver, CO. The award recognizes a seedstock producer who has demonstrated a commitment to commercial cattle producers.

The family-owned enterprise that began as a homestead in 1854 and now manages over 450 head of registered Limousin and Lim-Flex® cattle. GV Limousin takes pride in producing quality genetically superior Limousin cattle for both the com-

Page 8

mercial cow-calf sector and their fellow seedstock producers.

They sell 80 to 100 bulls annually off the farm and through their annual spring bull sale, along with cows, bred females and open heifers.

The program focuses on breeding sound, practical cattle that have the ability to flesh and be productive in any environment, and throughout the beef industry. They have built their cow herd by using proven herd sires and elite artificial-insemination bulls. Their goal is to produce practical, no-nonsense genetics that will power-up their customers’ programs.

The award winners believe in the feed efficiency and high quality product yielded by the Limousin breed. They strive to provide their customers with top quality carcass and efficiency genetics. This has yielded dividends for their customers, some of whom retain ownership through harvest. One longtime customer has been highly successful in the Flint Hills Beef Fest contest, which includes a grass futurity, feedlot gain, and carcass competitions; due to the benefits of the award winner’s genetic focus.

Using the tagline “The Brand of Breeder Respect and Commercial Appeal,” they work to further the profitability of their commercial customers. The family helps to source cattle to Laura’s Lean for their customers as well as purchasing customer’s feeder calves to feed out themselves.

Gene has been a leader with the North American Limousin Foundation serving on the Board of Directors for two, sixyear terms and as the President in 1986. He served as Chairman of the breed’s National Symposium twice and was the original Chairman of the Commercial Committee.

Spring 2011

BOTTOM LINE

Davis is Limousin Promoter of the Year The North American Limousin Foundation (NALF) promoter of the year award goes to someone in an allied industry who has advanced the Limousin breed through marketing, education, and research. Jim Davis, Superior Livestock Auction, Boise, ID, was presented with the 2010 Promoter of the Year award at the Annual Banquet and Member Social on January 9, held in conjunction with the National Western Stock Show (NWSS) in Denver, CO. “Mr. Davis has improved the value of Limousin-influenced feeder cattle in mainstream markets and has encouraged his customers to invest in Limousin bulls, providing true pullthrough demand for Limousin genetics,” said Joe Epperly, NALF director of commercial marketing.

Jim’s employer Superior Livestock Auction introduced satellite video marketing to the nation’s livestock industry in 1987 and has grown to become the largest livestock auction in the United States, marketing well over two million head of cattle annually. Davis is one of only two representatives at Superior, who have earned the company’s Highest Lifetime Award for selling over 250,000 head. To date, he has marketed over 500,00 head of cattle.

Jim, who joined Superior Livestock Auction as a representative in 1988, has been meeting customer expectations since Day 1, marketing more than 45,000 head in the year 2000. Born and raised on a ranch near Powder River, Oregon, Jim relocat-

LIMOUSIN’S COMMERCIAL CONNECTION

Joe Epperly, NALF director of commercial marketing presented Jim Davis, Superior Livestock Auction, Boise, Id., with the Limousin Promoter of the Year award.

ed to Boise, Idaho, to be in the midst of his Superior area.

Each year Jim is responsible for organizing the annual “Video Royale” video auction held in Winnemucca, Nevada.

Spring 2011

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The Hybrid Advantage

By Joe Epperly, NALF Director of Commercial Marketing duce the hybrid. And Limousin genetics lead the way.

Hybrid vigor. I can still remember the first time I heard the The hybrid is made simple through the use of Lim-Flex® term when I was introduced to the value of crossbreeding at my family’s livestock market. F1 Hereford Angus steers were genetics. Rather than constructing a complicated crossbreedthe rage in the feeding sector and replacement heifers were ing program to maintain heterosis, a commercial producer bringing top dollar for commercial cattlemen. Crossbreeding can breed Lim-Flex cows to Lim-Flex bulls and maintain hetseemed to be free pounds. Thus free money, and yet year erosis throughout generations. Using percent differences in after year it got harder to find those F1 baldy steers and Lim-Flex or purebred Limousin, production can be tailored to replacements. Registered breeders refused to produce them, fit a variety of markets. Lim-Flex genetics can fit into any and breed associations wouldn’t register them. number of Angus premium programs, the Strauss Veal sysEven at a time when EPDs were in their infancy, the registem, or the mainstream market place. tration paper meant a premium in the minds of the American North American Limousin Foundation (NALF) can even help beef producer. Dave Daley, University of California-Chico, you track your genetics and EPDs on those hybrid bulls. NALF’s recently described a list of reasons crossbreeding has been production EPDs are done through Angus Genetics Incorporatignored in the beef industry. Number 1 on the list was: “A culed (AGI) which allows for a tighter comparison to Angus tural bias that clearly reflects ‘purebreds as better,’ if for no parentage and performance for Lim-Flex cattle. This provides other reason than they have a registration paper.”

Lim-Flex a more accurate and complete production EPD profile The value of strategic crossbreeding systems has been than any other registered Angus Hybrid seedstock. preached throughout the industry. Dr. Jim Lim-Flex cows provide the same luxury as the Gosey, Beef Specialist emeritus at the UniversiF1 Baldy, with more power and that little extra The production ty of Nebraska, states, “A carefully constructed get up and go. Limousin’s feed efficiency, economic benefits British X Continental can come a lot closer to muscling, docility, longevity, and maternal effihitting most of the targets for reproduction, ciency compliment the Angus breed’s fleshing of using hybrid cows production and end-product than any straightand marbling ability. The cross breeds true as opposed to bred I’m aware of.” Why then do straightbred through several generations as evidenced by the straightbred cows Angus dominate the commercial landscape? quality and consistency of Lim-Flex cattle.

When first introduced to standard classroom Harley Coleman of Charlo, MT has been breedare limitless. examples of a two-breed rotational cross sysing and managing Lim-Flex cattle since the early tem, three-breed rotational cross system, and 1990s. Through the years, he has found that the three-breed terminal rotational cross, it became clear that they volume, fleshing ability, fertility, and puberty realized by offered a potential for genetic advancement. But there were a blending Limousin and Angus genetics are second to none. number of barriers between the classroom examples and pracThe cattle are moderate-sized and maternally sound, with the tical commercial production. added benefit of longevity from hybrid vigor.

Two main barriers to widespread planned crossbreeding The production economic benefits of using hybrid cows as systems are economic and practical feasibility of such a sysopposed to straightbred cows are limitless. Hybrid cows tem. “Standard” crossbreeding systems are easy to underhave been shown to wean up to 20% heavier calves per cow stand in a genetics or beef production course, but are not exposed with the added benefit of 1.3 years of added longevifeasible for most operations. Most require separating portions ty. With the addition of a crossbred calf at her side, the total of the herd to be mated to a certain breed. While this might be dollar impact can be as much $80 per head annually. Coupled feasible in larger operations, it is labor intensive. In smaller with the added benefit of longevity means more than $400 in operations of 25 to 30 head, it just isn’t economical to pay for added lifetime earnings. a second or third bull to breed the same cows, and to find Andy Hiko runs his cow herd on the rugged ranges of additional pastures to separate the herd. So, standard operatNevada, Idaho, and Wyoming, and has tried a variety of ing procedure with most commercial producers utilizing breeds with little success. He tried Lim-Flex cows, and they crossbreeding is, buy a bull of one breed, use him for two turned out to be the best fit to the harsh environment. “Limyears, and then replace him with a bull of another breed. This Flex adapt quicker to their environment than any other breed smaller scale system does little to maximize the value of we have ran in the past,” said Hiko. “Plus, they spread out hybrid vigor and fades over time. better over the range, making better use of available feed Why hasn’t the beef industry embraced the hybrid? Hybrid resulting in decreased supplementation.” he said. corn has revolutionized the grain business. The poultry and Of course, calving ease is the first step to a successful operswine industries have embraced the hybrid concept and are ation. Calf vigor goes hand-in-hand with calving ease and can reaping the rewards. Even automotive manufacturers are play a role in the overall lifetime health of the calf, especially moving toward hybrids. With the dominance of Angus genetin harsher environments. As shown in Table 1, Limousin genetics in the national cowherd today, the time is ripe to reintrocontinued on page 12 LIMOUSIN’S COMMERCIAL CONNECTION

Spring 2011

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calves, whether through video auction, on-line, at the sale barn, or on Biological Biological Calf Calving 12-hour the ranch. Partnerships with Strauss Efficiency at Efficiency at Birth Wt. Difficulty Milk Yield Brands and Laura’s Lean Beef, as 7,000 DMI2 (lb) (%) (lb) Breed 3,500 DMI2 well as contacts with feeders and Hereford 30 13 79.4 16.5 6.7 cattle buyers, provide producers Angus 39 17 74.7 8.8 9.3 with a variety of options to maximize Limousin 33 42 86.4 15.7 10.2 the value of their calf crop.

Limousin-influenced feeder Gelbvieh 29 36 95.2 21.5 12.7 calves were well accepted at video Simmental 26 42 94.2 23.9 13.1 auctions this past summer. For Charolais 27 45 98.1 19.5 10.5 example, during Superior Livestock’s 1 Technical Bulletin Number 1875, U.S. Meat Animal Research Center Video Royale sale in Winnemucca, 2 DMI = Dry Matter Intake. Grams of calf weaned per kilogram of dry matter intake per cow exposed.

NV, Limousin-influenced cattle sold at a premium. A total of 9,617 Limousin-influenced cattle were offered, with 71 lots rivaling the traditional top-tier cattle markets. A set of Lim-Flex® calves continued from page 11 topped all the yearlings sold that week, and Superior Livestock Representative Jim Davis described them as, “without ics excel over other major continental breeds in both calving a doubt the best yearlings I’ve ever shipped.” ease and birth weight. Additionally, a study at the University of The use of Limousin genetics is steadily growing across Georgia, Comerford et al J. Anim. Sci. 64:65-76 found an added the country. The added muscle and style that can be added to benefit of calving with Limousin cows. The report stated, a set of black or red Angus calves by using Limousin cattle is “Limousin dams tended to have the highest calving and weanunparalleled.

Livestock markets across the country are seeing rates because they were able to have heavier calves with ing the value of Limousin genetics for their customers. John less calving difficulty and higher survival rates.” Not only is Campbell, manager of Winter Livestock Market in La Junta, Limousin a continental leader in birth weight but Limousin Colorado, said “Limousin bulls can transform an average to dams can handle those heavier calves with less difficulty. below average set of cows into a set of calves that will top the At weaning time, Limousin offers marketing flexibility with market.

No other breed puts the muscle shape and expression calves that are extra stout and fancy to hit the top tier in the on a set of calves like Limousin.” traditional marketplace. NALF will assist in marketing your

Table 1. Breed group means for maternal efficiency and related traits1

The Hybrid Advantage

Now Buying Limousin-Cross Calves.

■ Hot-carcass-weight bonus.

■ Equal value for heifers, steers, and bulls.

■ Purchased straight off the cow before weaning.

■ Increase returns; save time and labor.

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Calves American Farmers Ranchers Environment

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We care about We care about We care about American

Booking weekly truckload deliveries of all-natural, hormone-free, veg-fed, source-verified, pre-weaned Limousin calves. Contact a Strauss representative today to learn more.

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Page 12

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Spring 2011

BOTTOM LINE

Table 2. Current rank of four major Continental Breeds, based off of MARC trial results Postweaning Growth & Carcass

Feed Efficiency

Dressing %

Yield Grade

Ribeye Area

Fat Thickness

Shear Force

Flavor

Time 187-d

Fat Thickness 0.45 in

Simmental

4

4

3

1

1

3

2

2

Gelbvieh

3

3

4

3

4

4

3

3

Limousin

1

1

1

1

1

1

1

1

Charolais

2

2

2

4

3

2

4

4

Breed

Ranking determined from results published in the Germplasm Evaluation Progress Report No. 22, ARS-USDA Meat Animal Research Center, Clay Center, Nebraska.

Adding 25% to 50% Limousin genetics improves feed efficiency, percent retail product, and yield grades. Eliminating Yield Grade 4 and 5 discounts increases returns by more than $180 a head. Limousin genetics can eliminate Yield Grade 4 and 5 discounts in one generation and add the premiums that come with Yield Grade 1 and 2. Tom Brink of Five Rivers Ranch Cattle Feeding, the nation’s largest cattle feeder, gives the insight into the need for hybrid vigor in feedlots. “There have been cutability issues and overly fat cattle that the higher percentage Angus cattle bring to the industry. Our buyers say the ideal Angus percentage is 5075%,” said Brink.

A study at the Meat Animal Research Center in Clay Center, NE, found that Limousin cattle excel over all other major Continental breeds in eight growth, carcass, and feed efficiency traits. The breed’s ability to transmit muscle and feed efficiency while maintaining tenderness and flavor is unparalleled among Continental breeds.

LIMOUSIN’S COMMERCIAL CONNECTION

“Because Limousin had a higher dressing percentage, higher percentage of retail product and lower percentage of bone than the other breeds, it was the most efficient in measures of efficiency where the endpoint was retail product gain,” stated the report (MARC Germplasm Report).

Percent retail product is a measure that can become forgotten among producers, but it’s important to remember a simple rule of thumb from Marcine Moldenhauer, President of Meat Link Management, “…for every pound of carcass weight we produce; it is the same as adding 1000 head of live cattle supply.” With an ever-growing population and a shrinking cow herd, every pound counts and increasing carcass yield is an easy first step.

For the commercial cattleman, the use of crossbreeding and hybrid vigor has too many financial positives to ignore. Limousin fits the bill for producers with Angus based herds whether they are black or red; and will produce cattle that excel for the producer, the feeder, the packer, and the consumer.

Spring 2011

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BREEDER SPOTLIGHT NORTH CENTRAL REGION BREEDERS

LC IH M O U S HI N RA NCH A R L E S U N T F A M I L Y

Want to advertise in the BREEDER SPOTLIGHT section?

It’s easy! Call Jonathan Beitia at 303-220-1693 for all the details.

Straight Limousin 2173 Morgan Ave. * Logan, Iowa 51546 712-648-2180 * 712-592-1350 (Jay’s cell)

Jay & Lori Straight * Jordan & Jackson Jamie, Scott & Brayton Myer Jenelle & Adam Klein

PRIVATE TREATY SALES • Bulls • Females • Semen

308-473-8521

10329 Highway 136 · Oxford, NE 68967 Dan Hunt · cell 308-991-3373 huntlimo@huntlimousin.com · www.huntlimousin.com

www.straightlimousin.com Production Sale Last Friday In March

Leonard Wulf & Sons 47694 320th St. * Morris, MN 56267 Farm (320) 392-5802 * Fax (320) 392-5504 Jerry Wulf (320) 392-5988 Jim Wulf (320) 392-5966 10 miles south of Morris on Hwy 59

Austin, Leah, Bailee & Pitch Hager 4651 2nd Ave. NE Karlsruhe, ND 58744 (701) 525-6363 ■ (701) 626-2345 mobile

Your visit to the ranch is always welcome!

When in the market for

top-quality genetics, give us a call.

SOUTH CENTRAL REGION BREEDERS

Charles Linhart: (641) 340-1306 David Linhart: (641) 446-6906

Your Homozygous Headquarters

Linhart Limousin

Hiram and Darenda ◆ 806/375-2346 Bret, Hayley, McKinley & Boone ◆ 806/375-2345 Box 110, Allison, Texas 79003 begertranch@wildblue.net ◆ www.begertranch.com

27195 175th St. Leon, IA 50144 www.linhartlimousin.com

◆ ◆

Lonely Valley Limousin PUREBRED AND ANGUS COMPOSITE BREEDING FOR 20 YEARS

Annual Bull Sale last Monday of February Stan, Mike, Mark, Dean and Chad Settje Mail us at dsettje@settje.com Chad (402) 285-9013 • Dean (402) 783-2105 560th Ave. • Creston, NE 68631

A large number of breeding-age bulls available.

Trophy hunts available (deer, quail & turkey).

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21314 OSR Madisonville, TX 77864 Mobile (281) 808-3473 Home (903) 344-2331 www.counsilfamilylimousins.com BQA II Certified Herd Certified Brucellosis and TB Free Your call or visit is welcome

Schott

Limousin Ranch

Jim & Priscilla Schott 27601 108th St. McLaughlin, SD 57642 jschott@westriv.com

6 0 5 - 8 2 3 - 4 9 74

“Breedin’ the Feedin’ Kind” Bob Mitchell Family • 48715 Hilldale Road • Wauzeka, WI 53826 Bob – 608-875-5049 • Bob (mobile) – 608-553-0971 • Matt – 608-553-1251 Bart – 608-553-8070 • Scott – 608-553-8069 • www.springcreekscattleco.com

Davis Limousin Ranch Brad, Norma & Blair Davis

12500 Hwy. 279 • Brownwood, TX 76801 325/784-5071 • 325/784-7674 fax 325/647-7681 cell • info@davislimousin.com

www.davislimousin.com

De Ma r Fa rm s

RANCH RAISED BULLS & HEIFERS FOR SALE

Joe & Margaret Hoot

“Unparalleled black Limousin genetics”

630 VZ CR 4124 Canton, Texas 75103 (903) 829-8082 DeMarHome@aol.com

Craig Laroue

AI and ET bulls for the commercial market

Ranch Manager (903) 292-9080

JIM HCR 74, Box 146 Fort Davis, TX 79734-5005 (915) 426-3435 • fax (915) 426-3126

DYER

“Se Hablo Spanglish” jfdyer@hughes.net

www.bigbendtrailers.com

RIVERDALE RANCH Red & Black Limousin

EXPRESS RANCHES

2202 N 11TH STREET YUKON, OKLAHOMA BOB FUNK, OWNER 800-664-3977 405-350-0058 FAX squires@expressranches.com

Registered & Commercial

3830 Huckleberry Road • West, MS 39192 Jim Jolley, Manager riverdal@netdoor.com

www.expressranches.com

662-967-2407 fax: 601-605-4724

RED AND BLACK LIMOUSIN CATTLE

WIES LIMOUSIN RANCH Gene & Virginia Raymond (785) 448-3708 “Th e Br a n d o f Br e e d e r r

e s pe c T a n d

WELLSVILLE, MO 63384

Arne & Stacy Hanson (785) 448-6142 c o mme r c ia l a ppe a l ”

636-441-2439

WESTERN REGION BREEDERS

For Quality Limousin Genetics You Can Count On

9700 Slaughterville Rd. Lexington, Oklahoma 73051

Coleman Limousin Ranch, Inc.

53717 Gallagher Road Charlo, MT 59824

405/527-7648 hayhooklimousin@valornet.com Edna Manning 405/306-1316 cell

573-684-2773

BOB & EUVONNE WIES

Larry & Anita Coleman (406) 644-2300 Trent & Melissa Coleman (406) 644-2707

Judy Bugher 405/306-1315

Annual Production Sale, Second Monday in April

colemanlimousinranch.com

KEETON LIMOUSIN

Absarokee, MT

10510 CR 1100 • Wolfforth, TX 79382 Leonard & Betty Keeton 806-866-9440 LLKT@door.net

406-328-4393 www.gateslimousin.com

Lyle & Shana Keeton fax: 806-866-9441 806-866-9049 BULLS • CLUB CALVES • HEIFERS

gary@gateslimousin.com

h

Call us about the bulls & females we have available privately.

LAWRENCE FAMILY LIMOUSIN —————––––———————————————

Bruce, Paula & Lee Roy Lawrence Johnny, Amber & Tucker Parkinson PO Box 299 ■ Anton, TX 79313 e-mail: bll1@dtnspeed.net

Raising Bulls For The Commercial Cattleman

(806) 997-5381

Gordon & Earline Schuppe

Your call or visit is always welcome.

Liberty Ranch

25653 C.R. 63 Iliff, CO 80736-9625

Annual Bull Sale 1st Saturday in March Email: gschuppe@kci.net

(970) 522-8195 (970) 580-8195

Limousin cattle raised with the commercial industry in mind.

Annual Bull Sale 3rd Weekend in January ~ 125 Bulls Available Roger Comeau: (785) 434-4686

308 West Mill Plainville, KS 67663

Mike Smith: (785) 885-4882

30849 CR 56 • Iliff, CO 80736 • lewislimousin@kci.net Les & Elaine Lewis • 970-362-4321 • Les Cell 970-630-1283 Mat & Wendy Lewis • 970-521-0545 • Mat Cell 970-580-8209

Limousin & Lim-Flex Bulls and Females for Sale Privately!

“Ranch Tested, Customer Approved”

LIMOUSIN’S COMMERCIAL CONNECTION

Spring 2011

Page 17

BREEDER SPOTLIGHT Larry Smith

Little Luckiamute Limousin

347 Davidson Road West Harrison, Indiana 47060 Evening: (812) 637-2303 Day: (513) 367-0218 www.loganhills.com

Ves and Marge Garner, Harlen and Anita Garner 4952 N. Rd. I Vale, OR 97918 541-473 – BEEF

Scott Minges,

www.luckilimo.com

Manager (812) 637-5554 Cell: (513) 616-8499

We Cater To Commercial Cattlemen

The Brand You Trust...The Results You Expect

Lance Sennett

Font used for Ranch name is Watson regular

“Since 1981”

RR 1 Box 82 • Waynetown, IN 47990 (765) 234-8506 Cell (765) 366-4894 lsennett@tctc.com

P.O. Box 190 • Platteville, Colorado 80651 Gary Magness, owner • Wendell Geeslin, manager (970) 785-0434 (home) • (970) 785-6170 (office) (303) 659-3822 (fax) • wendell@magnesscattle.com

Clark Sennett (765) 234-2621

inerich Land and Cattle Co.

491 E. 12000 S. Draper, Utah 84020 Bob Millerberg * (801) 566-4665 home * (801) 561-9911 office * (801) 673-9911 cell bob@crestfinancial.org Jim Millerberg * (801) 254-6610 home * (801) 303-6017 office * (801) 301-2953 cell

OWNER OFFiCE: (859) 328-7118 Fa x : (859) 328-7120 h OME: (859) 328-4104

Kevin & Julie Ochsner and family 30300 WCR 388 • Kersey, CO 80644 • H: 970-351-6008 • M: 970-396-5525 tenderleanbeef@hughes.net

“Breeding Prime Cattle” minegwen@aol.com

www.tubmillcreekfarms.com

John & Kitty Goodish 152 Florida Lane New Florence, PA 15944

V

R UNNING C REEK R ANCH

45400 Road 21 Elizabeth, CO 80107

REGiSTEREd LiMOu Sin

Give us a call for more information about our private-treaty offerings of Limousin and Lim-Flex® genetics.

Conveniently located 60 miles northeast of Denver, CO.

Joey Freund (303) 841-7901

BOB Min ERiCh

2003 Barnes Mill Road Richmond, Kentucky 40476-0536

Joe Freund, Sr. Email: jfreund@myedl.com

Q u a l i t y i n V o l u me

724-235-2178 Joint bull sale on April 8, 2011 in Harrisonburg, VA

LIMOUSIN SERVICES

(303) 840-1850 home (303) 341-9310 office Pat Kelley (303) 840-1848

Visitors always welcome

Brad & Janet Waddle

440 Road 161 Pine Bluffs, WY 82082

Seedstock Consultants Specialized Sales

307-245-3599 waddlelimousin@rtconnect.net

2300 Monument Ave. * Richmond, VA 23220 Ph: (804) 353-2220 * Fax: (804) 353-2221 Keith Kissee * Cell: (817) 821-6263 Email: kkseedstock@comcast.net

BULLS AND FEMALES AVAILABLE AT THE RANCH

“Marketing Limousin Seedstock Throughout North America”

EASTERN REGION BREEDERS

The Greenbrier Cattle Company Jim and Jay Justice and Family Office – 540-423-1200 Jeff Kaufman, manager Jeff – 540-280-5388 28011 Horseshoe Rd., gbcattleco@gmail.com Culpeper, VA 22701 Joint Bull Sale on April 8, 2011 in Harrisonburg, VA Page 18

Spring 2011

Randall O. Ratliff 3610 Bear Creek Ln Thompson’s Station, TN 37179 Office: 615.791.8982 Fax: 615.791.8983 Mobile: 615.330.2735 www.rrmktg.com e-mail: sales@rrmktg.com

BOTTOM LINE

Coleman Limousin Ranch Production Sale Monday, April 4 - 1 p.m. MST Missoula Livestock Exchange - Missoula, Montana

Selling 150 Lots Limousin & Lim-Flex Complete Performance Data Ribeye, Backfat & Marbling Scores Bulls Semen Tested & Scrotals Measured Pelvic Measurements for Heifers Trucking Arrangements Available

COLE

XCEPTIONAL 39X

2/21/10 - HOMO Black - HOMO Polled 50% Lim-Flex - BW: 88 - Adj. WW: 899 S: Coleman Production 608 MGS: COLE First Down 46D BW: 0.5 WW: 68 YW: 124 MA: 33 RE: -.06 MS: .48 $MI: 64

COLEMAN PRODUCTION 608 Lim-Flex sons and daughters sell!

130 Yearling Bulls 20 Open Yearling Heifers Many carry the Homozygous Black or Polled Traits!

Sale-Day Phone: (406)728-3052 Auctioneer: C.K. “Sonny” Booth

COLE

Accommodations: Days Inn (406)721-9776 Wingate Inn (406)541-8000 C’mon Inn 406)543-4600

X FACTOR 97X

3/3/10 - HOMO Black - Polled Purebred - BW: 94 - Adj. WW: 840 S: COLE Toolbox 89T MGS: COLE First Down BW: 3.4 WW: 55 YW: 96 MA: 17 RE: .55 MS: .01 $MI: 47 Visit our Website www.ColemanLimousinRanch.com for complete sale information. Give us a call for a sale catalog. Watch the sale online at www.dvauction.com

53717 Gallagher Road • Charlo, MT 59824 Larry & Anita Coleman • (406) 644-2300 Trent & Melissa Coleman • (406) 644-2707 www.colemanlimousinranch.com

Economic Impact of Reproductive Rate W. E. Beal, Professor Emeritus Department of Animal and Poultry Sciences Virginia Tech

reproduction in their cow herd than for genetic selection decisions that improve growth or carcass quality.

The “biggest loser” in a cow-calf operation is the cow that fails to become pregnant. Therefore, most producers design their breeding program to “get as many cows pregnant as possible.” The effort to maximize reproductive efficiency shouldn’t stop there, however. Instead, the emphasis should be on decreasing the number of open cows in the herd and reducing the income lost from cows breeding late in the breeding season.

A cow is a “factory.” The factory produces weaned calves.

Any factory that fails to produce a product is unprofitable.

The question is: just how much does an open cow cost?

How much an open cow costs can be determined by calculating the cost of replacing her with a pregnant cow (Table 2).

After removing transportation and sales commission, the value of a 1200-lbs open/cull cow sold at $62/cwt is $684. If that salvage value is applied back towards Table 2. Effect of Replacing the purchase of a bred Open Cows on Cash Flow cow ($1350 for a good Open Cow Salvage quality bred cow), 1200# @ .62 +$744 then it costs $666 to Transport & Marketing –$ 60 replace an open cow +$684 with a bred cow.

Buy Bred Cow Unlike the open cow, 1 head @ $1350 –$1350 the purchased bred Less salvage +$684 cow will calve and –$666 raise a calf to weanSell Open / Buy Pregnant Cow ing. Therefore, if the Replacement cost –$666 cost of keeping the Interest ($666 x 10%) –$ 67 cow until her calf is Annual cow cost –$345 weaned is added to –$1078 the expenses, and the Value of weaned calf +$715 value of the weaned Cost to replace open cow –$363 calf is deducted from the expenses, the total cost of replacing an open cow with a bred cow will be $363.

It is clear when considering the value of an open/cull versus a bred cow on today’s market – replacing an open cow is expensive.

A problem that goes unnoticed more often than the cost of an open cow is the cost of cows that are bred late in the breeding season. Cows bred late calve later and have younger, lighter calves at weaning. The average weaning weight of calves born in a Virginia Tech (VT) cow herd during the first 20 days of the

Cost of Open Cows or Cows Bred Late

Effect of Reproductive Efficiency on Profit A study done by Agriculture Canada was very specific in identifying how reproduction, production and price variables influenced profit. That study estimated the change in net farm income that would be caused by a 1% change in each of the five traits listed in Table 1. Improving pregnancy rate was predicted to have the greatest influence on income. In fact, improving pregnancy rate by 1% was more beneficial than increasing the price of calves or decreasing the cost of feeding cows in a commercial herd.

The signal to commercial cow-calf producers should be very clear. Even though producers can control the genetic decisions that ultimately determine post-weaning performance and carcass quality, at the present time they are more likely to be rewarded for management decisions that improve

Table 1. Contribution of Production Variables to Net Cow-Calf Income a Production variables

Effect on net farm income $ / cow

Pregnancy rate, 1% increase

+ 6.34

Winter feed, 1% increase

- 1.28

Postnatal calf death loss, 1% increase

- 3.59

Weaning weight, 1% increase

+ 3.30

Price of steer calves, 1% increase

+ 3.30

a Adapted

from Agriculture Canada data.

Page 22

Spring 2011

BOTTOM LINE

calving season was 97 pounds more than that of calves born in the last 20 days of the calving season (Table 3). Although the older, heavier calves brought less per pound because of being in a higher weight bracket, they consistently returned more total dollars than calves born later. When averaged over both years, the cost of being bred a day later and calving a day later was $1.74. Based on the VT data, calves born on the last day of a 90-day calving season would return $157 less than calves born on the first day of the calving season.

Table 3. Value of Calves Born During the 1st, 2nd, or 3rd 20-day Periods of the Calving Season 1st

Year #1 2nd

3rd

1st

Year #2 2nd

3rd

Calf weight

472

411

386

617

562

509

Price / cwt

$115

$120

$123

$118

$124

$129

Calf value

$543

$493

$475

$728

$697

$657

Value lost/day

$1.78 $1.74

calf weaning weight is a “free” benefit of the hybrid vigor derived from crossbreeding.

Crossbreeding Improves Reproduction Data from the Meat Animal Research Center (MARC) demonstrated that lifetime productivity of crossbred cows is 25% greater than that of straightbred cows in the same herd.

Much of this advantage was due to the beneficial effects of crossbreeding on reproduction. Analysis of the data from the MARC experiment indicated that 3% more crossbred cows became pregnant during the breeding season and among those cows, the crossbred cows calved an average of 3 days earlier in the calving season than straightbred cows of the same breeds.

When applied to a cow herd like that depicted in Table 3, these results indicate that the average crossbred cow would wean an additional 23 lbs of calf each year compared to straightbred cows in the same herd. There is no additional cost associated with crossbred cows. Hence, the additional

LIMOUSIN’S COMMERCIAL CONNECTION

$1.70

Average cost for each day bred late

Summary The cost of replacing open cows and the revenue lost from cows bred late emphasize the importance of incorporating (or continuing) the following management practices which increase the likelihood of cows breeding early in the breeding season: ■ Employing crossbreeding to enhance fertility ■ Scheduling a controlled 60- to 120-day calving season ■ Supplying adequate nutrition beginning 60 days prior to calving ■ Checking bulls for breeding soundness prior to breeding ■ Checking all cows for pregnancy 60+ days after the breeding season ■ Culling and replacing open cows

Spring 2011

Page 23

Understanding Limousin EPDs 1

2

PLD

BLK

P B

3

4

5

6

7

8

9

10

11

12

13

14

15

16

CED EPD/ACC 10 .65 5 .05

BW EPD/ACC -1 .75 3.0 .05

WW EPD/ACC 38 .45 44 .05

YW EPD/ACC 72 .47 92 .05

MA EPD/ACC 30 .65 23 .05

CEM EPD/ACC 14 .50 10 .05

SC EPD/ACC 0.0 .30 1.0 .05

ST EPD/ACC 5 .50 20 .05

DOC EPD/ACC 15 .45 -10 .05

CW EPD/ACC 20 .45 10 P

REA EPD/ACC .50 .40 .20 P

YG EPD/ACC -.1 .40 0 P

MARB EPD/ACC -.1 .40 .10 P

MTI

Here is a guide to understanding Limousin EPDs. Utilize this tool to determine an animals horned/polled and color status, performance and carcass EPDs. Refer to the breed averages under the ‘Genetics & Performance” tab on the NALF web site to familiarize yourself with the breed EPDs. Evaluating breed averages and percentiles will allow you to narrow down your bull selection. NALF has a useful tool on its website called the “Sire Selector,” which allows you to search for sire prospects based on your own selection criteria and benchmarks.

1 2 3

PLD – Polled Status of the animal with P denoting a polled animal BLK – Black color status of the animal with B denoting a black animal

CED – Calving Ease Direct EPD and accuracy. When sires A and B are bred to similar replacement heifers, you’d expect 5 percent (the difference between +10% and +5%) more of sire A’s calves to be born unassisted as compared to sire B’s calves. Said another way, due to genes for calving ease passed on from the sires to their calves, each of sire A’s calves out of first-calf heifers have a 5 percent greater chance of being born unassisted as compared to sire B’s calves.

4

BW – Birth Weight EPD and accuracy.

When mated to equal dams, progeny of sire A (listed above) are expected to weigh 4.0 lbs. less at birth than progeny of sire B (-1.0 – 3.0) , due to genes for birth weight passed on from the sires.

5

WW – Weaning Weight EPD and accuracy.

Weaning weight EPDs are predictors of preweaning growth of progeny. Of the two sires represented above, progeny of sire A are expected to weigh 6 lbs. less than progeny of sire B (44-38) at 205 days of age (when bred to dams of equal value), due to genes inherited for pre-weaning growth from the sires.

6

YW – Yearling Weight EPD and accuracy.

Yearling weight EPDs are predictors of progeny growth to yearling ages. For example, progeny of sire A are expected to weigh 20 lbs. less (92-72) than progeny of sire B at 365 days of age (when mated to equal dams), due to genes for growth from the sires.

7

MA – Milking Ability EPD, and accuracy.

Milk EPDs are predictors of pounds of daughters’ progeny weaning weight due to genes for milk the daughters inherit from the parent in question. For example, daughters of sire A are expected to wean calves which are 7 lbs. heavier than calves from daughters of sire B (30 – 23 lbs.), due to genes for milk passed on to daughters.

8

CEM – Calving Ease Maternal EPD and accuracy. When daughters of sires A and B are bred to similar bulls, daughters of sire A have a 4 percent (14% –10%) greater chance of calving unassisted with their first calf as compared to daughters of sire B, due to differences in genes the daughters inherited from their sires for easy delivery of their first calves.

Page 26

9

SC – Scrotal Circumference EPD, and accuracy. Scrotal EPDs are expressed in centimeters (cm), with higher values indicating the expectation of genes for larger average yearling scrotal circumferences to be passed on to sons. If mated to equal dams, sire B would be expected to produce sons which average 1.0 cm larger (1.0 – 0) than the average of sons of sire A. Scrotal circumference has also been correlated to the age of puberty in heifers

10

ST – Stayability EPD and accuracy.

Stayability EPDs predict genetic differences in the probability that daughters will produce calves at the age of six years or beyond, given that at least one calf was produced prior to the age of six. Generally, higher stayability EPDs represent genetics for greater longevity. Sire B above is expected to have 15% more daughters still in production at the age of six or beyond (+20% vs. +5% = 15% difference) as compared to the percentage of daughters of sire A.

11

DOC – Docility EPD and accuracy.

Docility EPDs predict genetic differences in the probability that offspring are scored as 1 (docile) or 2 (restless) as opposed to 3, 4, 5 or 6 (nervous to very aggressive). The higher docility EPD for sire A above is preferred to that of sire B; specifically indicating that 25% more (+15% for sire A to -10% for sire B = 25% difference) of sire A’s offspring are expected to have scores of 1 or 2 as compared to offspring of sire B. Generally, the higher the accuracy value, the more progeny with docility scores in groups which have contributed to the EPD, making the EPD more reliable and less subject to change. Only groups with variation in docility scores are used in EPD evaluation.

12

CW – Carcass Weight EPD and accuracy. Carcass weight EPDs are used to genetically design carcasses with weights that fall within an acceptable industry weight range. Optimum carcass weight EPDs for sires will vary according to the types of cows to which the sires are mated and the calf growing/finishing management regime. If mated to cows of equal value, sire A would be expected to produce progeny with carcasses 10 pounds heavier (20 – 10) at harvest than sire B.

13

REA – Ribeye Area EPD and accuracy.

Ribeye area EPDs offer an objective measurement of genetic differences in muscularity. EPDs for ribeye area are expressed in units of square inches, with larger values indicating larger ribeye area and increased expected overall carcass muscularity. Sire A is Spring 2011

55 40

expected to produce progeny with ribeye areas that are .30 square inches larger (.50 – .20) on average than progeny of sire B.

14

YG – Yield Grade EPD and accuracy.

Just as lower carcass yield grades are favored and indicate greater cutability, lower YG EPDs are favored and indicate genetic differences for yield grade and cutability of offspring. When bred to similar cows, offspring of sire A are expected to average .10 (–.10-0) units of yield grade lower than offspring of sire B.

15

MARB – Marbling Score EPD and accuracy. The marbling score EPD is expressed in units of numeric USDA marbling score, with higher values indicating genes for greater deposition of intramuscular fat, or higher expected marbling score and USDA quality grade at a constant age. When mated to similar sets of cows, sire A would be expected to produce progeny with average marbling scores .20 units lower (-.10 – .10) than sire B.

16

$MTI – Mainstream Terminal Index.

The mainstream terminal index takes both genetics and economics into account to rank animals in terms of expected profit per carcass produced from weaning to mainstream market endpoints of yield grade 1s and 2s and Select to low-Choice quality grades. It is based on the assumption that Angus-Hereford cows in a two breed rotation are mated to Limousininfluenced terminal sires and is determined primarily by genetics and economics associated with post-weaning growth and yield and quality grade. In this example, if sire A and sire B were mated to similar sets of black baldy cows, sire A would produce progeny with carcasses worth $15 ($55 – $40) more than those of sire B. The mainstream terminal index does not have an associated accuracy value. *ACC – Accuracy. Accuracy is a measure of the reliability associated with an EPD. For Limousin cattle, accuracy is designated by either a P (pedigree only), P+ (interim pedigree plus own performance in contemporary group) or a numeric value (performance of individual and subsequent progeny in contemporary group) which ranges from 0 to 1. Accuracy indicates the amount of performance information which was used to calculate the EPD. Note: Carcass EPDs are only calculated for animals have had carcass data collected on them, their parents, or their progeny by either ultrasound or actual carcass data collection. So in the case of Bull B, for him to have pedigree estimates for his carcass values, his parents would have had data collected on themselves or their progeny.

BOTTOM LINE

The Future Looks Great for the Beef Industry continued from page 2

mentary. The blending of British and Continental breeds means the end of excessive Yield Grade 4’s and improved crossbreeding by commercial producers. With straightbreedfeed efficiency. Continental breeds have changed greatly ing in our rearview mirror, producers with a well thought out from their early importation, and gone are the days of worryuse of heterosis, can expect returns up to 25 percent higher ing about horns, calving difficulty and bad disposition. In from crossbreeding systems. These are econommany ways, Continental breeds have kept their ics that simply cannot be ignored by profit-drieye on the ball better than their counterparts by With the return ven producers. Through the use of hybrid cattle not trying to be all things to all people. This has of crossbreeding and across breed genetic evaluations, scientifimeant keeping their strengths of cutability and and the use cally sound use of heterosis can now be used by growth, while maintaining moderate mature cow of heterosis, even the smallest producers without the complisize compared to many British breeds. the industry is cations of multiple breeding pastures and other All this means commercial producers should former obstacles. be looking to add the highest quality genetics again enjoying the When the nation’s cow herd looks again to through bull purchases this spring. Study after benefits of breed expansion based on the positive economic sigstudy has shown that investing in superior genetcomplimentary. nals we are seeing, crossbred females will ics always pays. Given that the majority of this undoubtedly be what profit-minded commercial country’s cow herd is British based, the purchase producers will rely upon. That is because the greatest beneof Continental bulls, or their hybrids’, is the logical move for fits of heterosis are seen in lowly heritable traits such as cow profit-minded commercial producers. longevity and reproduction. This means commercial producWe are in for exciting, profitable times in our industry. ers with excess replacement quality heifers from a planned Looking at the history of the beef industry, we have never had crossbreeding system, should be looking at excellent demand a beef cycle that mirrors our current one. However, with the for their product in the years to come. use of heterosis, high quality genetics, smart management and With the return of crossbreeding and the use of heterosis, marketing, there is as much upside potential as we have seen the industry is again enjoying the benefits of breed compliin generations.

LONELY VALLEY LIMOUSIN

“Keepin’ Kind” 20th Annual

Production Sale

HOMO Blk HOMO Pld

Selling 85 Lots

LIMOUSIN’S COMMERCIAL CONNECTION

HOMO Pld

le New Sa .

Date..

At The Farm Creston, Nebraska

HOMO Blk HOMO Pld

LONE ONELY ONEL LY VA LY ALLEY ALL LLEY LL EY LIMOUSIN Spring 2011

Page 27

The Value of Hererosis and Crossbreeding continued from page 1 Why crossbreed?

The use of crossbreeding offers two distinct and important advantages over the use of a single breed. First, crossbred animals have heterosis or hybrid vigor. Second, crossbred animals combine the strengths of the parent breeds. The term ‘breed complementarity’ is often used to describe breed combinations that produce highly desirable progeny for a broad range of traits.

Table 1. Effects of individual heterosis on performance of crossbred calves Trait

Units

% Heterosis

Calving Rate, %

3.2

4.4

Survival to Weaning, %

1.4

1.9

Birth Weight, lb.

1.7

2.4

Weaning Weight, lb.

16.3

3.9

Yearling Weight, lb.

29.1

3.8

Average Daily Gain, lb./d

0.08

2.6

method to improve reproductive efficiency and productivity in beef cattle.

What is heterosis?

Improvements in cow-calf production due to heterosis are “Heterosis is defined as the average advantage of a crossattributable to having both a crossbred cow and a crossbred bred individual over the average of its purebred parental calf.

The two tables below detail the individual (crossbred breeds,” explains Dr Larry Kuehn. Kuehn is a research geneticalf) and maternal (crossbred cow) heterosis observed for cist at the USDA’s Meat Animal Research Center, Clay Center, various important production traits. Dr. Cundiff says Nebraska. He continues that, “While it is possible for one of “Research has demonstrated that heterosis favorably influthe parental breeds to be more advantageous for a specific ences the output per cow in a herd by approximately 25%. trait, it is unlikely that any one breed can be superior to a Over half of this increase is from the use of a crossbred animal for all overall production “Research has crossbred cow. Economic analyses have shown efficiency. The crossbred advantage is particuthat this increase in output equates to a reducdemonstrated that larly pronounced in the performance of crosstion of 8-10% in cost of production. Herdlife of heterosis favorably bred dams.” crossbred cows is almost 1.5 years longer on Heterosis results from the increase in the influences the output average relative to purebred cows under normal heterozygosity of a crossbred animal’s genetic per cow in a herd by commercial production.” makeup. Heterozygosity refers to a state approximately 25%.

The heterosis generated in calves that are the where an animal has two different forms of a Over half of this progeny of straight bred parents of different gene. It is believed that heterosis is the result increase is from the use breeds or crossbred parents is called individual of gene dominance and the recovery from heterosis.

While this type of heterosis has of a crossbred cow.” accumulated inbreeding depression of pure import effects on economically important traits, breeds. Heterosis is, therefore, dependant on – Dr. Larry Cundiff it only accounts for approximately one-third of an animal having two different copies of a the total economic benefits of having crossbred gene, each originating from a different breed. cows and calves.

Thus if you only have crossbred calves (i.e.

The level of heterozygosity an animal has depends on the ranstraight bred cows) you’re missing the biggest share of ecodom inheritance of copies of genes from its parents. In genernomic benefit from crossbreeding. Individual heterosis al, animals which are crosses of unrelated breeds, such as improves performance in a number of traits measured on Angus and Brahman, exhibit higher levels of heterosis, due to calves including survival and growth (Table 1). For example, more heterozygosity, than do crosses of more genetically simindividual heterosis can improve weaning weights by nearly ilar breeds such as a cross of Angus and Hereford.

4% which on a 500 lb. weaned calf is 20 lbs.

Heterosis generates the largest improvement in lowly heriA recent report by Daley and Earley, 2010, of a crossbreedtable traits. Moderate improvements due to heterosis are seen ing trial comparing Hereford and Angus sired calves proin moderately heritable traits. Little or no heterosis is duced by Angus dams, revealed that the crossbred calves observed in highly heritable traits. Heritability is the proporwere 15 pounds heavier at weaning and worth $18.00 more tion of the observable variation in a trait between animals per head. While performance improvements of feedlot and that is due to the genetics that are passed between generacarcass traits due to crossbreeding are generally smaller than tions and the variation observed in the animal’s phenotypes, at the cow calf sector, these modest improvements can have which are the result of genetic and environmental effects. an important role in profitability for producers retaining ownDr. Larry Cundiff, retired research geneticist at the USDA ership and others. For instance, Daley and Earley report that Meat Animal Research Center, reinforces the point by adding, the crossbred calves, (there were approximately 300 for each “Purebred superiority is more likely when traits are moderatesire breed) had the same live weight at placement and upon ly heritably (e.g, milk production in dairy cattle, carcass harvest from feed yard and both groups were on feed 155 merit), partially due to the effectiveness of past selection. On days. The crossbred calves had the same average daily gain the other hand, traits with lower heritability, such calf suras the straight bred calves, but had significantly better feed vival, longevity, and fertility, benefit significantly from heteroconversion ratio (5.52 for straightbreds vs. 5.25 for crosssis.” Improvement in these traits via selection has been breds). Reduced morbidity and treatment costs of crossbreds difficult. Crossbreeding has been shown to be an efficient Page 28

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further decreased expenses and reduced total cost of gain by $4.37 per hundredweight. These performance improvements resulted in the crossbred calves being $27.50 per head more valuable at the end of feeding period. Carcass parameters were not significantly different except for marbling and percent choice. Angus superiority in these traits resulted in the Angus sired carcasses being $15.60 more valuable than the crossbred calves. Summarized value from birth to harvest revealed the crossbred calves were $29.90 more valuable than the straight bred calves.

In this study, pregnancy rates of crossbred heifers were 7% higher than for the straight bred heifers.

Research by Snowder and others, 2005, revealed that crossbred calves had a reduced incidence of bovine respiratory disease before weaning. Calves that were crosses of two Continental breeds or crosses of Continental and tropically adapted breeds had less BRD incidence that British by British crosses which had less BRD than purebreds.

Why is it so important to have crossbred cows?

The production of crossbred calves yields advantages in both heterosis and the blending of desirable traits from two or more breeds. However, the largest economic benefit of crossbreeding to comMaternal heterosis mercial producers comes improves both the from having crossbred cows. environment a cow Maternal heterosis improves both the environment a cow provides for her calf provides for her calf as well as well as improves as improves the longevity the longevity and and durability of the cow. durability of the cow.

The improvement of the maternal environment a cow provides for her calf is manifested in the improvements in calf survivability to weaning and increased weaning weight. Crossbred cows exhibit improvements in calving rate of nearly 4% and an increase in longevity of more than one year due to heterotic effects (Table 2). Heterosis results in increases in lifetime productivity of approxicontinued on page 8

Table 2. Effects of maternal heterosis on calf traits affected by maternal environment, cow productivity and longevity.

Trait

Units

% Heterosis

Calving Rate, %

3.5

3.7

Survival to Weaning, %

0.8

1.5

Birth Weight, lb.

1.6

1.8

Weaning Weight, lb.

18.0

3.9

Longevity, years

1.36

16.2

Number of Calves

0.97

17.0

Cumulative Weaning Wt., lb.

600

25.3

Lifetime Productivity

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The Value of Hererosis and Crossbreeding continued from page 29

erosis, breed complementarity is also a useful tool in crossbreeding mating systems. For example, based on results reported in the yearly across-breed EPD adjustment factor analysis from USMARC, some breeds have superior averages for marbling potential but are generally poor relative to measures of yield. Crossbreeding can help to produce animals that grade select to choice with a lower probability of high yield grades. Large docking categories in carcass premium grids (yield grade 4 or 5, standard) are less likely from these crossbreds.” It’s clear that effective crossbreeding systems offer benefits in all segments of the beef value chain.

mately one calf and 600 pounds of calf weaning weight over the lifetime of the cow (Table 2). Crossbreeding can have positive effects on a ranch’s bottom line by not only increasing the quality and gross pay weight of calves produced but also by increasing the durability and productivity of the cow factory. Crossbred cows maybe the only free lunch in the world.

The effects of maternal heterosis on the economic measures of cow-calf production have been shown to be very positive. The added value of maternal heterosis What are the keys to Many of the ranges from approximately $50/cow/year to nearsuccessful crossbreeding ly $100/cow/year depending on the amount of challenges that programs? maternal heterosis retained in the cowherd have been “As a final note, commercial producers have (Ritchie, 1998). Maternal heterosis accounted for associated with often enjoyed the benefits of crossbreeding in an an increase in net profit per cow of nearly crossbreeding initial cross, only to see those benefits erode due $75/cow/year (Davis et al., 1994). A recent study systems in the to mating back to the same breed of bull in the (Pierce, 2010) of a Hereford X Angus crossbreedpast are the result next generation; the progeny become graded-up ing system compared to a straight Angus system of undisciplined purebreds thereby losing the benefits of heterosis. in Missouri estimated that the crossbred cows This erosion of heterosis can be effectively manhad a $514.00 per head advantage over a ten year implementation of aged through the use of crossbreeding systems time horizon or $51 per cow per year. Their the system. (terminal cross, composites, rotational breeding, results suggested that the benefits of maternal etc.),” concludes Dr. Cundiff. heterosis on profit were primarily the reduced Many of the challenges that have been associated with cost per cow exposed. Crossbred cows had higher reproduccrossbreeding systems in the past are the result of undiscitive rates, longer productive lives, and required fewer replaceplined implementation of the system. With that in mind, one ments than straight bred cows in their study. All of these should be cautious to select a mating system that matches the factors contribute to reduced cost per cow exposed. Further, amount of labor and expertise available to appropriately they found increased outputs, including growth and milk implement the system. Crossbreeding systems range in comyield, were offset by increased costs. plexity from very simple programs such as the use of hybrid How can I harness the power of breed genetics, which are as easy to use as straight breeding, to elaborate rotational crossbreeding systems with four or more complementarity? breed inputs. The biggest keys to success are the thoughtful Breed complementarity is the effect of combining breeds construction of a plan and the sticking to it! Be sure to set that have different strengths. When considering crossbreedattainable goals. Discipline is essential. ing from the standpoint of producing replacement females, one could select breeds that have complementary maternal Literature cited: traits such that females are most ideally matched to their proCundiff, L. V., and K. E. Gregory. 1999. What is systematic crossbreeding? duction environment. Matings to produce calves for market Paper presented at Cattlemen’s College, 1999 Cattle Industry Annual should focus on complementing the traits of the cows and Meeting and Trade Show, National Cattlemen’s Beef Association. Charfine tuning calf performance (growth and carcass traits) to lotte, North Carolina, February 11, 1999. the market place.

Daley, D. A. and S. P. Earley. 2010. Impacts of crossbreeding on profitabiliThere is an abundance of research that describes the core ty in vertically coordinated beef industry marketing systems. California State University, Chico, Chico, California. competencies (biological type) of many of today’s commonly Davis, K.C., M.W. Tess, D.D. Kress, D.E. Doornbros, and D.C. Anderson. used beef breeds. Traits are typically combined into group1994. Life Cycle Evaluation of Five Biological Types of Beef Cattle in a ings such as maternal/reproduction, growth and carcass.

Cow-Calf Range Production System: II. Biological and Economic PerWhen selecting animals for a crossbreeding system, their formance. J. Anim. Sci. 72:2591-2598. breed should be your first consideration. What breeds you Pierce, V. 2010. Comparison of the economic value of Hereford sired herds select for inclusion in your mating program will be dependant versus Angus sired herds on long run economics: A simulation based on performance data. University of Missouri. Columbia, Missouri. on a number of factors including the current breed composiRitchie, H.D. 1998. Role of Composites in Future Beef Production Systion of your cow herd, your forage and production environtems. http://www.msu.edu/~ritchieh/papers/BEEF201.ppt. Accessed ment, your replacement female development system, and October 2, 2005. your calf marketing endpoint. All of these factors help deterSnowder, G. D., L. D. Van Vleck, L. V. Cundiff and G. L. Bennett. 2005. mine the relative importance of traits for each production Influence of breed, heterozygosity, and disease incidence on estimates phase. of variance components of respiratory disease in pre-weaned beef calves. J. Anim. Sci. 83:1247–1261 Kuehn summarizes these points by adding, “Beyond hetLIMOUSIN’S COMMERCIAL CONNECTION

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