2017-02-16

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Adding Value from Pasture to Plate

“Are you ready for the next Cattle Cycle”

Kevin Unger

Leachman Cattle of Colorado/Lincoln County Feedyard

THE TIDES HAVE CHANGED

• Global glut of commodities.

• Money is running to safety.

• The US dollar has appreciated substantially.

• Beef prices have fallen more as a percentage than any time in

history.

• What about beef supply?

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Which dog do you want to be?

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How big are the value differences on a 650 lb. steer?

Value can range from $550 to $1,175!!

WHAT ARE YOUR CALVES WORTH?

Efficiency 43%

Grid Value 39%

Carcass weight 18%

Animal health 17%

OUTPUT VS. COST WHY $PROFIT WORKS BETTER

Cost

Output

High

High

Low

Low

High Output & Low Cost

Highest Margin

High $Profit Cattle

High Output & High Cost

Marginal Profit

1000 lb weaning weights!

Low Output & High Cost

Lose Money

Bad Cattle

Low Output & Low Cost

Marginal Profit

Some call “Solar Bulls!”

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COW HERD GENETIC PROFIT DRIVERS

• Output:

– What does her calf weigh?

• Reproduction:

– Calving ease / live calf %?

– Does she breed at 15 months?

– Does she breed back early?

• Longevity:

– Does she stay in the herd?

• Cow cost:

– How much does she eat?

LEACHMAN HERD’SA FORK IN THE ROAD: FEED INTAKE…

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

2002 2004 2006 2008 2010 2012 2014

Dry Matter Intake Genetic Trends

LCoC DMI Angus DMI

AI sires that

rank in the

95% on dry

matter intake!

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PROFIT DRIVER: FEED INTAKEA TALE OF TWO BULLS…

• Same herd. 1244 AYW vs. 1222 AYW.

• 17 vs. 42 lbs. of dry matter / day (9,125 lbs. / year).

• Converted 4 to 1 vs 10 to 1.

• 40% Heritable = 112 cows vs 75 cows on same grass.

• Which bull’s daughters do you want?

BUT WHAT DO LOW INTAKE CATTLE LOOK LIKE?

Visionary – Angus Prophet – Stabilizer

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LONGEVITY AND LIFETIME PRODUCTION TO 12 YRS OF AGE OF CROSSBRED AND

STRAIGHTBRED COWS AMONG ANGUS, HEREFORD AND SHORTHORN

(Nunez et al. and Cundiff et al.)

DON’T FORGET ABOUT HYBRID VIGOR!

•Lifetime production (30%)

•Longevity or herd-life (15%)

•Annual income (23%)

Crossbred Straightbred Heterosis

Cows Cows Units pct

Longevity (herd life, years) 9.7 8.4 1.3 15

Breeding seasons, no. 8.2 7.1 1.2 16

Pregnancies, no. 7.7 6 1.7 20

Calves born, no. 6.6 6 .6 10

Calves weaned, no. 6.2 5.2 1.0 20

Cumulative 200 d wt weaned, lb. 2,798 2,156 642 30

Annual income (100 cow herd) $16,524 $13,468 $3,056 23

LONGEVITY AND LIFETIME PRODUCTION TO 12 YRS OF AGE OF CROSSBRED AND

STRAIGHTBRED COWS AMONG ANGUS, HEREFORD AND SHORTHORN

(Nunez et al. and Cundiff et al.)

DON’T FORGET ABOUT HYBRID VIGOR!

•Lifetime production (30%)

•Longevity or herd-life (15%)

•Annual income (23%)

Crossbred Straightbred Heterosis

Cows Cows Units pct

Longevity (herd life, years) 9.7 8.4 1.3 15

Breeding seasons, no. 8.2 7.1 1.2 16

Pregnancies, no. 7.7 6 1.7 20

Calves born, no. 6.6 6 .6 10

Calves weaned, no. 6.2 5.2 1.0 20

Cumulative 200 d wt weaned, lb. 2,798 2,156 642 30

Annual income (100 cow herd) $16,524 $13,468 $3,056 23

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GREAT IDEA, KEVIN, BUT HOW DO WE SELECT FOR ALL THAT?

• A selection index helps you select

for multiple traits at the same time.

– Example: Miles City Line 1

Herefords

Index = -3.5 x BEPD + 0.5 x (WEPD

+ YEPD)

• Who uses selection indexes?

– Swine & Poultry

– Dairy cows

– Beef cows

Day 43 Day 57 Day 71 Day 85

2001 Chicken Genetics

1957 Chicken Genetics

OUR COMPETITORS ARE MAKING

MAXIMUM GENETIC PROGRESS:

Multi –trait, selection indexes worked in chickens!

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HOW DO YOU SELECT FOR IT, $RANCH!

$14 $15$16

$14 $15$16 $17

$18 $19$21 $20 $20

$21

$25

$30 $29$31

$33$35

$37

$47

1995 2000 2005 2010 2015

$Ranch -- Our Measure of Profit

From Birth to Weaning

WHAT DOES TOP $RANCH LOOK LIKE?YOSEMITE!

• Hybrid vigor.

• Low birth.

• Solid early growth.

• Optimal milk.

• Low feed intake.

• Moderate cow size.

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IT’S REALLY JUST ONE THING!

$PROFIT$Profit BW WW YW Mlk DTC MWT Intk FG IMF REA BFt

$6,000 +2.8 43 77 17 -5.1 1250 40 0.00 0.10 0.26 -0.01

$12,000 +0.8 51 91 22 -5.4 1245 -34 -0.24 0.24 0.67 0.01

• Better on the ranch, in the feedlot & on the rail.

• Selecting all the traits to change the one thing that

matters most!

WHAT DOES TOP $PROFIT LOOK LIKE?PROPHET!

• Top 0.1% on $Profit

• Top 0.1% $Ranch

• Top 0.1% $Feeder

• Converted 4 to 1

• Intake of 17 lbs / day

• 17.4 inches2 REA

• 4.5% IMF

• Very quiet

• 0.6 BW to +104 YW

• Elite pedigree

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SWEETWATER RANCH, SALINA, KS

• Using Prophet via AI to improve their bottom line.

• Moved from above average to – “hubba hubba”!

• 127 steers by Angus

and Angus x cows.

• AI bred to Stabilizer

bulls.

• Converted 5.3:1

• 932 hot carcass weight

• 14.8 sq inch avg REA

• 3.2 avg yield grade

• 14% YG 4

• 98% Choice or better

• 66% CAB or higher

IX RANCH RESULTS, BIG SANDY, MT• 3500 mother cows.

• Calculate unit cost of production and

measure everything!

• Use exclusively Leachman bulls since 2008.

• Results:

– Weaned calf %:

Up 5%

– Pounds / cow

exposed: Up 30 lbs!

– Cow size:

Down 5 pounds!

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• “We send 500 steers to the feedlot

each year. Our 2008 steers converted

6 : 1. After just five years of selection

for feed efficiency, our 2013 steers converted

4.8 : 1. Plus, our cows are more efficient!”

K LAZY K RANCH, HIGHMORE, SD

The K Lazy K herd has been a Leachman progeny test herd for 7 years.

“My cows weigh 1200 pounds and wean over 600 lb.

calves. I feed 15 pounds of dry matter over the winter

and the cows gain weight. The steers convert 5.1 to 1

and finish at 1425 pounds….”

ROD COOK, CRAIG, CO

Cook has used exclusively Leachman bulls for 20 years….

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LU RANCH, WORLAND, WY• The ranch runs 1400 cows on extensive rangelands west of

Worland, WY.

• Range conditions: 5000’ elevation and 6” rain in winter country. Composed of heavy sage, desert type country.

• Fed only protein tubs and no hay.

• Calf in April and May.

• The cowherd is bred for a short breeding season.

• Cows bred after the first 45 days are sold….

• Cow preg rate: 96-97%

• Live calf weaned per pregnant cow: 92-95%

LU RANCH, WORLAND, WY

• 907 lb. carcass weight

• 16.2 in2 ribeye area

• Upper 2/3 CH (CAB)

• Converted 4.5 to 1

• $1,824 return to ranch

Year In WtAD

GFeed F:G REA MARB Carc. Wt Advantage

2008 641 3.67 19.8 5.4 12.5 26% 816

2012 637 3.78 18.4 4.9 13.4 49% 862 $122

The L U Ranch is a leading buyer of Stabilizer bulls.

Each year, they retain ownership in over 700 steers to

harvest. In 2008, their average bulls $8,362. In 2012,

their average bull had improved to $10,596. Here are their

feeding results:

Here is a prototype:

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HOW FAST CAN WE IMPROVE?

0

2000

4000

6000

8000

10000

12000

14000

16000

1985 1995 2005 2015

$Profit Genetic Trend

10 Years – No

Change In Profit!15 Years – of

Change at $2/hd/yr.

Next 10

Years:

$10 - $15

per hd / yr

OUTPUT VS. COST WHY $PROFIT WORKS BETTER

Cost

Output

High

High

Low

Low

High Output & Low Cost

Highest Margin

High $Profit Cattle

High Output & High Cost

Marginal Profit

1000 lb weaning weights!

Low Output & High Cost

Lose Money

Bad Cattle

Low Output & Low Cost

Marginal Profit

Some call “Solar Bulls!”

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Pulling together as a team…

Seedstock Cow/calf Feeder

Dairy x Beef

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LCOC Stabilizer Sired x Jersey cows

RESULTS!!

• 96.5% CH or better *112 hd

• 31% CAB *DP 63.0%

• 20% Prime * netted $1467.70

• 980# HCW * Made a 730# steer worth

• 14% YG 4’s 2.01 back to the Dairy!!

• 3.51 ADG

• 6.35 FE

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Don’t you want to be the Lead Dog?