Executive Summary

by Mark Anderson Executive Director North American Limousin Foundation

NALF is approaching its fiscal year end for 2020-2021 at the time of this writing. In spite of challenges with Covid-19 and drought conditions in regions of the U.S., we are coming off a very successful year for our breeders as well as the Foundation. The Spring bull sale season was as successful as any during the last 10 years with sale averages improving measurably over the previous year.

Much of that credit goes to our breeders and members who have made a dedicated effort to supply accurate performance data along with genomics on sires as well as females through the LimVision Cowherd Project. This enhances our EPD accuracy to our member’s cattle when making mating decisions that are in line with current industry demands.

The tools we are using today are much more advanced and informational, beginning with our National Cattle Evaluation that is produced at International Genetic Solutions. The inclusion of genomics, along with performance and pedigree data in a national cattle evaluation includes over 18 breeds that are all across breed comparable on their EPDs. This has been invaluable throughout the seedstock and commercial cattle industries.

The exciting element is the continual improvement process of that evaluation and its reported accuracies. As most of you are aware, NALF has incorporated the inclusion of nearly 86,000 head of actual carcass data phenotype records into the IGS evaluation which has greatly enhanced carcass trait EPD accuracy for many pedigree lines of cattle in our current evaluation.

At the current rate of continued additional inclusions, this will lead to NALF contributing more actual carcass record phenotypes to cattle evaluations by the end of the first quarter of next year as compared to any other breed in the U.S. It is rather fitting that the “carcass breed” will eventually take the lead in supplying this data set to the industry.

The inclusion of actual carcass data, updated USMARC sire data, along with updated genomic marker panels at IGS has been beneficial to both Limousin and Lim-Flex marbling EPDs. Both classifications have improved 0.2-0.3 the past 15 months with recent matings by members and improved accuracies of the EPD within our breed data base inputs.

Demand factors and signals have changed dramatically the last 10 years in the commercial cattle business. Quality is being paid for as it never has before. This is evidenced by the premiums paid on upper 2/3 of Choice and Prime cattle. Currently our spread between Choice and Select products in the U.S. is at $30/cwt. on a carcass basis. This increase has happened all while we have continued to throw an increasing supply of Choice and higher grading cattle into the supply system.

The U.S. slaughter data reflects we are annually processing nearly 84% of the commercial fed cattle grading Choice or higher and price premiums have continued to increase. The abundance of high quality product has dramatically improved beef demand here in the U.S. since the ‘90s when we were actually losing demand for our product.

Just as impressive in the quality grade chart supplied by CattleFax (figure 1), is the increase in production of Prime and upper 2/3 of Choice cattle since 2005. Premiums paid for both classifications have sent the demand signal to the industry to supply the product to the consumer. As evidenced by the chart, Prime production has increased from 2.5% to 14% of the U.S. annual cattle fed cattle supply. Upper 2/3 of Choice cattle have dramatically increased from 10% to Figure 1. 24% now in 2021. Low Choice has replaced Select as the new “commodity product”.

The graphic in figure 2 reflects that supply of upper 2/3 of Choice and Prime cattle has increased from 17% in 2000 to nearly 34% now Figure 2. in 2021 as indicated by the blue line. Select production has decreased from nearly 37% to slightly less than 14% of fed cattle harvested annually over the same 20 year period. The remainder of the production would mostly fall into the low Choice category for slightly over 50% of the remaining production.

Just as important to achieving those quality levels is achieving quality grade on a cost efficient basis given high feed cost and current drought conditions. The industry needs cattle that can achieve both of these factors in their genetic makeup and that’s where Limousin and Lim-Flex can capitalize moving forward.

We are feeding cattle longer in addition to producing much larger outweights than ever before. To do that requires enough genetic potential for cattle to remain efficient on their dry matter conversions to achieve the larger outweights. That trend will not likely reverse given the fact most packers will demand larger carcass weights in spite of high feed cost as it increases production efficiencies at their packing houses.

NALF is seeing more members begin to gather individual feed intake data that will be important to not only NALF members database but critical to the future of remaining efficient in the beef production systems throughout the U.S. High feed cost will most likely remain the norm in the future. Superior dry matter conversions will remain in high demand as we move forward given the fact that nearly 65% of the cost of production is feed cost.

Look for the inclusion of a dry matter feed conversion EPD at IGS in the future to measure this important trait moving forward. As always, as we mate cattle to achieve a set of balanced EPDs we must not single trait select.

Sometimes we hear the debate of what traits are most critical to the beef industry. The fact of the matter remains, they all are. Commercial beef producers have extreme operational risk whether they are in the cow/calf sector or feedyard business. Part of the risk elimination come in the form of a complete superior genetic packages that can be utilized by both sectors and ultimately the packer and consumer.

Most in the commercial cattle feeding industry still prefer the crossbred animal to obtain the heterosis advantages for both feeding performance and improved carcass merit as it relates to both quality and yield grade. Limousin and Lim-Flex cattle can accomplish this in a crossbreeding program on English-based cows better than anyone when superior genetics are utilized in the commercial cattle industry that your breed can supply.

All this has to be accomplished while still maintaining maternal traits for our commercial cow operators throughout the country. We are getting closer to nearing the end of the liquidation phase of the U.S. cattle cycle, this assumes mother nature cooperates over the next 6 to 18 months and rain returns through droughtstricken areas.

Given current inflation rates, that means an uptrend for commercial cattle prices will eventually materialize as we transition back to expansion down the road. That may not happen overnight but it should be in the back of your mind as you do long term planning for your operation. This will create additional opportunity that is long overdue for the prices the cow/calf operator are currently receiving. Most of whom critically need this price improvement on their annual calf crop to remain in business given the rising cost of production.

Technology is also accelerating as never seen before. The ability to gene edit cattle for single gene traits is already out there. The Federal Drug Administration has not approved gene editing for inclusion into the U.S. cattle population and for consumption at this time. Yet, other countries have already approved the practice including some in South America. This means we will begin to see some gene-edited cattle where single gene traits like horn/polled, hide color and hair shedding will be utilized for export of semen to other countries.

NALF will incorporate guidelines and rules into its Rules and Regulations to address this production practice into the future. The NALF board addressed this at the August board meeting this summer. You will see more information on the subject in the future.

The NALF Board and staff would like to thank everyone for their dedication to not only the Limousin breed, but the improvement our breeders have made to their cattle the last five years. We will be focused on maintaining tools through genetic evaluations, DNA testing, performance records and genomics that supply our breeders with the information they need to make cattle that offer the beef industry and its producers superior genetics to remain profitable.

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Homo Black • Homo Polled • Lim-Flex(71/59.4) CD: 9(85) BW: 2.4(85) WW: 90(2) YW: 150(1) MA: 25(15) CM: 5(75) SC: 1.5(10) DC: 20(1) CW: 53(4) REA: 0.7(60) YG: -0.1(1) MB: 0.13(75) $MTI: 63.2 LFL Gamer is one of the most impressive bulls we have seen in 2021. Sired by Cash Flow and out of the great 9066U cow, Gamer shows one of the most balanced sets of EPDs, matched by flawless structure and balance. Thick made, Homo Polled and Homo Black, this high percentage Lim-Flex can do it all. Add in a great disposition and outstanding performance, it makes him a total Gamer.

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Black • Homo Polled • Purebred(93/81) CD: 8(85) BW: 1.8(65) WW: 83(2) YW: 138(1) MA: 20(65) CM: 3(95) SC: 1.15(10) DC: 19(3) CW: 48(1) REA: 1.44(10) YG: -0.44(1) MB: -0.04(40) $MTI: 57.6 L7 Humdinger is just that, a Humdinger. Purebred, extremely stout, loaded with performance, Homo Polled and loaded with bone, butt and muscle. Humdinger is carrying a red gene and that gives you the opportunity to add the Envision influence to your red program. Look over the numbers, look over the picture, think about the possibilities, Humdinger is one of a kind.

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If we can help you at any of the following sales, just let us know.

OCT. 7 – Coleman Limousin Females, Charlo, MT OCT. 23 – Linhart Limousin Females, Leon, IA OCT. 31 – P Bar S Ranch, Sand Springs, OK NOV. 6 – Thomas Farms Fullblood Dispersion, Damascus, AR NOV. 20 – Heart Of Missouri Sale, Lebanon, MO DEC. 11 – Night On The Town, Las Vegas, NV

MARK & DEIDRE SMITH

ph/fax: 515-965-1458 • cell: 515-229-5227 • GRGenetics@aol.com

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