Bottomline Newsletter

32
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 mar- gins 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 con- sider management strategies that improve operational efficiency. Profitability may be enhanced by increasing the volume of pro- duction (i.e. the pounds of calves you mar- ket) and/or the value of products you sell (improving quality). The reduction of produc- tion costs, and thus breakeven prices, can also improve profitability. For commercial beef producers, the imple- mentation of technologies and breeding sys- tems that increase the quality and volume of production and reduce input costs is essen- tial to maintain or improve the competitive position of the operation. More and more pro- ducers are finding that a structured cross- breeding system helps them achieve the goals of increasing productivity and reducing pro- duction costs. Spring 2011 Volume 13, Issue 2 Bottom Line is published three times per year by the Nor th 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 continued on page 28 The Value of Heterosis and Crossbreeding in the Beef Value Chain INSIDE... Limousin Commentary The Future Looks Great for the Beef Industr y 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

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Bottomline Newsletter - Spring 2011

Transcript of Bottomline Newsletter

Robert L. (Bob) Weaber, Ph.D.State Extension Specialist-Beef GeneticsUniversity of Missouri-Columbia

Recently, there have been dramaticincreases in input costs for feed, fertilizer andfuel which have again narrowed profit mar-gins of many cow-calf producers and othersin the beef value chain. These challenges toprofitability have motivated many producersto analyze their production systems and con-sider management strategies that improveoperational efficiency. Profitability may beenhanced by increasing the volume of pro-duction (i.e. the pounds of calves you mar-

ket) and/or the value of products you sell(improving quality). The reduction of produc-tion costs, and thus breakeven prices, canalso improve profitability.

For commercial beef producers, the imple-mentation of technologies and breeding sys-tems that increase the quality and volume ofproduction and reduce input costs is essen-tial to maintain or improve the competitiveposition of the operation. More and more pro-ducers are finding that a structured cross-breeding system helps them achieve the goalsof increasing productivity and reducing pro-duction costs.

Spring 2011 Volume 13, Issue 2

Bottom Line is published threetimes per year by the NorthAmerican Limousin Foundation, 7383 S. Alton Way, Suite 100,Centennial, Colorado 80112;(303) 220-1693; fax: (303) 220-1884;www.nalf.org

Dir. of CommunicationsJonathan Beitia, Ext. 117

Dir. of Commercial MarketingJoe Epperly, Ext. 107

continued on page 28

The Value of Heterosisand Crossbreeding inthe Beef Value Chain

INSIDE...Limousin CommentaryThe Future Looks Great for the Beef Industry

Full CircleThe Value of Heterosis andCrossbreeding in the Beef Value Chain

MarketsMaximize the Value of Your Calf Crop

Commercial AwardsCalifornia Family Wins Limousin Commercial Producerof the Year

GV Limousin Named CommercialMarketing Booster

Davis is Limousin Promoter ofthe Year

CrossbreedingThe Hybrid Advantage

EconomicsEconomic Impact ofReproductive Rate

The Future Looks Greatfor the Beef IndustryBy R.L. “Bob” Hough, Ph.D.

We are at a unique time in our industry. Our national cowherd has dropped to record low numbers, while on thedemand side things are strengthening. You can look at theFutures Market to see that we are looking at strong prices forquality cattle. What is driving this “bullish outlook,” comesfrom a number of fronts.

Beef exports are certainly on the rise, withan especially promising outlook for the Pacificrim. After what looked like a grim outlook lastsummer, new free trade agreements are lower-ing barriers in countries like South Korea. Wefinally have access to European markets withcattle qualified USDA Process Verified NHTC(non-hormone treated cattle) programs. Onemust remember that these markets not onlypurchase normal beef cuts but are also a majoroutlet for exotic or organ meats. One cannotover emphasize the importance of these beefproducts and the added value they provide through exports.

Our nation’s economy continues to improve, driving moredemand for higher priced cuts such as middle meats, is in thefuture. The foodservice industry has rebounded well in this

last year, which has also increased demand. Our industry hasseen tremendous strength in branded beef products. Brandslike Laura’s Lean, Strauss Natural Veal and Angus productlines continue to grow. Producers need to remember that toqualify for most Angus product lines, an animal only needs to

be 51 percent black hided and can be eitherhorned or polled, neither are a hindrance forbreed selection for most crossbreeding systems.Overall, the domestic market price adjustmentshould continue for high quality seedstock bulls,feeder cattle and fed cattle.

The new congress also seems to have a bulls-eye on ethanol as a program that will not be sub-sidized in the future. While this is terrible newsfor corn farmers, it will be a boom for beef pro-ducers. A lack of subsidies on ethanol will meanlower feed ration costs for feedlots, and the abili-ty for cattle feeders to pay even higher prices for

feeder cattle. With already tight supplies of cattle this couldmean unprecedented prices for feeder cattle lie ahead of us.

Another major boom for the beef industry is a return to

Page 2 Spring 2011 BOTTOM LINE

continued on page 27

Our nation’s

economy continues

to improve,

driving more

demand for higher

priced cuts such

as middle meats,

is in the future.

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 3

It is never too early to consider a marketing plan for yourcalf crop. In some cases, it is essential to begin early andmanage calves to maximize their market potential. Manage-ment and marketing strategies go hand-in-hand. By matchingthe genetics and management of the calf crop to specific mar-kets, premiums can be realized to their fullest. Vaccinationprograms, preconditioning, and added-value programs likeage and source verification all depend on the marketplace inwhich the calves are sold.

Tight margins, potential loss, and price variability of cornhave lead feeder calf buyers to seek calves that come withmaximum information. Buyers pay for the added information,because they know it provides the potential to make themmoney. At one time, buyers relied on subjective measures andtrial and error to find the right cattle for the order. Now quali-ty assurance programs open marketing doors, improve feed-lot performance, hold significant benefits, and are worth apremium in the mainstream market to buyer and seller.

Vaccination and preconditioning programs that are appro-priately communicated to the buyer consistently pay a premi-um to the producer. Herds with a solid long-term vaccinationprogram yield calves that are less likely to get sick during thefeeding period. Preconditioning calves allows them to adjustto the stress of weaning and the management procedures thatusually accompany it. Castration, dehorning, and the adjust-ment in diet and transporting the animal often lead to addedstress. As illustrated in the following table, research hasshown that pre and post weaning management including vac-cinations and preconditioning affect feedlot performance,feedlot health, and carcass quality.

It is essential that buyers understand the ins-and-outs ofyour management program to ensure that you receive addedpremiums. Simply stating “they’ve had all their shots” nolonger yields premiums. A program must be verifiable andcomprehensive. Superior Livestock and the Livestock Market-ing Association both have vaccination protocols that are easyto follow for the producer, and have terminology that make iteasy to understand.

Age and source verification has become a major sellingpoint in today’s global marketplace. With Korea and Japanregulating imports to cattle under the age of 30 months and20 months respectively, the added demand for age verifiedsupply has yielded an average premium of $12/head withsome as high as $60/head. The average cost for participatingin an age and source verification program is around $3/head.

Since 1989, the Non-Hormone Treated Cattle (NHTC) pro-gram has been in effect to facilitate the trade of non-hormonetreated beef between the United States and the EuropeanUnion (EU). The demand for non-hormone treated cattle con-

tinues to increase and can mean a $5 to $10 ahead premium for producers. To receive theadded premium, a producer elects to partici-pate in the verification programs and audits,which are similar to those for age and sourceverification.

The United States Department of Agricul-ture (USDA) Process Verified Program (PVP)and Quality System Assessment (QSA) pro-grams allow suppliers of agriculture productsthe ability to provide customer assurance anda consistent quality of goods and services.For cattle to be truly Age and Source Verifiedor verified Non-Hormone Treated Cattle(NHTC), they have to be documented and ver-ified through a USDA recognized program.Superior Livestock, Smithfield Beef Group,AgInfoLink, and IMI Global are examples ofverified programs. A complete list of verifiedprograms can be found on USDA’s website.

Maximize the Value of YourCalf CropBy Joe Epperly, NALF Director of Commercial Marketing

continued on page 4

Figure 1. Significant variables for adding value tocalves in Superior Livestock Video Auctions*

Variable Calculated added dollars received for a 600 lb. steer

Steer vs. heifer $52.43

Weaned vs. not weaned $17.64

Source and Age verified $12.83

Semi-load of calves $12.65

VAC 34 and/or VAC 45 protocol vs. other protocol $14.81

* From summary sale results compiled by Montana Beef Network for June and July 2007,MT raised calves

Figure 2. Factors Affecting Bovine Respiratory Disease (BRD)and Subsequent Feedlot and Carcass Performance 1

Preweaning factors

· Prenatal nutrition· Intake of colustrum· Persistent BVD· Preweaning health· Temperament· Preshipment management– Preconditioning– Vaccinations– Nutritional status

Postweaning factors

· Transportation/marketing stress· Commingling· Receiving period management– Castration, dehorning, etc.– Implant programs?

· Receiving diet nutrients– Energy (roughage)– Protein– Minerals (Cu, Se, Zn)– Vitamins (E, antioxidants)

· Prophylactic antibiotics

Immunity++

+

BRD

+

+/–

––

–/?

+/0

?

Feedlot performance Feedlot health Carcass quality

– –?

1Duff and Galyean, J. Anim. Sci. 2007 85:824

+ = decreased incidence orconsequence

– = increased incidence orconsequence

? = effects not fullyunderstood

Page 4 Spring 2011 BOTTOM LINE

A signed affidavit will no longer substitute for documenta-tion provided by a USDA certified PVP or QSA. Specificrequirements differ for each verification program. You shouldcontact a verified program to become familiar with recordkeeping and procedural needs before beginning. Most pro-grams will require at least the following records be kept orprocedure 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 areto 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 thefirst calf and last calf born should be recorded. Keeprecords 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 cropis being certified natural. The program requires a signed affi-davit stating that your cattle have never been treated withantibiotics or hormones. Producers should look at their min-eral and management programs to make sure they are withinthe strict requirements and that treated cattle are clearlymarked. Through the use of quality recordkeeping, producerscan use sound management practices and either treat natural-ly or sort off those who are treated to qualify for the program.

Markets can also be determined by your genetics and seed-stock source. Limousin genetics remain competitive in thetraditional mainstream marketplace. They also allow foraccess to additional marketing options through the NorthAmerican Limousin Foundation (NALF) and its membership.NALF can assist in marketing your Limousin-influencedcalves whether you market them privately, through a videoauction, or at the auction market.

The online Sale Barn, Feeder Calf Listing provides an out-let for you to advertise. The NALF staff work to make surethat those listings get to an ever-growing number of cattlebuyers and feeders. Special Limousin feeder calf sales areheld throughout the west with NALF’s assistance and are agathering place for those buyers interested in the benefitsLimousin genetics have to offer. Partnerships with StraussBrands and Laura’s Lean Beef gives additional added valueoptions to Limousin-influenced feeder calves.

A number of Limousin seedstock producers offer calf buy-back programs or personally own and manage feedlot opera-tions. They buy and feed Limousin-influenced calves fromboth their bull customers and other producers. Contact NALFfor assistance in marketing your calves or for a list of breed-ers that can fit your seedstock and marketing needs.

To maximize income, it is important to have a target mar-ket for your calf crop whether it is a date, a location, or a spe-cific program. Value-added programs and managementpractices are becoming more prevalent and can result inadded profit for little added cost. Management to hit thosetargets should be considered starting now. It will result inmore dollars at sale time.

Maximize the Value of Your Calf Crop continued from page 3

Astute marketing, a commitment to customer service andquality helped earn the North American Limousin Foundation(NALF) Commercial Producer of the Year award for SierraValley Ranch, Erik Roen and family of Knights Ferry, CA. Thefamily enterprise topped a field of eight nominees. Mike Hall,NALF secretary, and Joe Epperly, NALF director of commer-cial marketing, presented the award January 9th, during theNALF Annual Banquet/Member Social at the National West-ern Stock Show (NWSS) in Denver, CO. “The Roens’ commit-ment to quality shows throughout their operation,” saidEpperly. “They strive to produce cattle that excel from thepasture to the plate. They utilize feedlot and carcass data asa tool to maximize their bull selection,” said Epperly.

The enterprise has been in business for 15 years and ismade up of three ranches in the Sierra Valley and a winterpasture in the San Joaquin Valley of California. They haveincorporated Limousin genetics into their progressive cross-breeding system on their 2,000 head English based cow herd.Real world performance, profitability and customer satisfac-tion are at the forefront of their goals. They work to collectdata on percent cows bred, calved, and total percent calfcrop, as well as weaning weights and yearling weights on allcalves, to assess herd performance. In an effort to identifygrading, uniformity, and feed conversion, they work with theircustomers to gather data on feedlot and carcass performance.Roen believes that it is crucial to stay in touch with their cus-tomers to have knowledge of the performance of their prod-uct all the way to the consumer if possible.

One of the enterprise’s major goals is improving irrigationand grass quality on their Sierra Valley ranches. Through theuse of three truckloads of culverts and recycled 15,000 lb.gondola cars, major irrigation system structures have beenrepaired and upgraded, yielding a large expansion of highquality grasses and grazing potential on their ranches. Theyhave been awarded several conservation awards for their

agriculture water quality accomplishments. Sierra Valley Ranch strives to raise cattle naturally on

native pastures, and certify their calves age and source veri-fied, natural, and non-hormone treated to allow for expandedmarket opportunities for their customers. They market theircalves as yearlings coming off of summer pasture in August,and have had a great deal of feeder satisfaction. JohnWubbenhorst of KCC Feeding in Minden, NE, was one ofthose who bought Sierra Valley’s calves last year and he wasextremely satisfied. “Those steers fed the best,” said Wubben-horst. “I didn’t have a single one to treat in the whole group.”This commitment to quality has yielded a premium with thelast calf crop topping all western yearlings at Superior’sVideo Royale in Winnemucca, NV, last July. The Superior Rep-resentative described those calves as “without a doubt thebest set of yearlings I have ever shipped.”

Their sire selection begins with a thorough evaluation oftheir herd performance through measures like percent choicegraded animals, feed efficiency, uniformity and percent ofpregnant cows. These measures are used to focus their sireselection to continue to move herd genetics forward. A thirdof the heifer crop is kept for replacements, and visual confor-mation along with performance data are taken into accountwhen making selections. Scrotal circumference is also afocus in bull selection to enhance fertility in those females.Roen works with his good friend Jim Davis of Superior Live-stock Auction, and Wendell Geeslin of Magness Land and Cat-tle, to find bulls that align with herd needs and goals.

They cull based upon soundness, fertility, body condition aswell as age. Being a grass-based system, they focus on cattlethat flesh easy and breed back. They remain at the geneticforefront by only keeping bulls for 4 breeding seasons. Theirlong term goals include continued conservation, quality assur-ance and pursuit of the best quality genetics to fulfill marketdemand.

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 7

California Family Wins LimousinCommercial Producer of the Year

Page 8 Spring 2011 BOTTOM LINE

The North American Limousin Foundation (NALF) pre-sented its Commercial Marketing Booster of the Year to Geneand Virginia Raymond, Arne and Stacy Hanson from GV Lim-ousin of Garnett, KS. The award was announced at the Annu-al Banquet/Member Social on January 9th during the NationalWestern Stock Show (NWSS) in Denver, CO. The award rec-ognizes a seedstock producer who has demonstrated a com-mitment to commercial cattle producers.

The family-owned enterprise that began as a homestead in1854 and now manages over 450 head of registered Limousinand Lim-Flex® cattle. GV Limousin takes pride in producingquality genetically superior Limousin cattle for both the com-

mercial cow-calf sector and their fellow seedstock producers.They sell 80 to 100 bulls annually off the farm and throughtheir annual spring bull sale, along with cows, bred femalesand open heifers.

The program focuses on breeding sound, practical cattlethat have the ability to flesh and be productive in any environ-ment, and throughout the beef industry. They have built theircow herd by using proven herd sires and elite artificial-insem-ination bulls. Their goal is to produce practical, no-nonsensegenetics that will power-up their customers’ programs.

The award winners believe in the feed efficiency and highquality product yielded by the Limousin breed. They strive toprovide their customers with top quality carcass and efficien-cy genetics. This has yielded dividends for their customers,some of whom retain ownership through harvest. One long-time customer has been highly successful in the Flint HillsBeef Fest contest, which includes a grass futurity, feedlotgain, and carcass competitions; due to the benefits of theaward winner’s genetic focus.

Using the tagline “The Brand of Breeder Respect and Com-mercial Appeal,” they work to further the profitability of theircommercial customers. The family helps to source cattle toLaura’s Lean for their customers as well as purchasing cus-tomer’s feeder calves to feed out themselves.

Gene has been a leader with the North American LimousinFoundation serving on the Board of Directors for two, six-year terms and as the President in 1986. He served as Chair-man of the breed’s National Symposium twice and was theoriginal Chairman of the Commercial Committee.

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 theCommercial Marketing Booster of the Year award.

GV Limousin Named CommercialMarketing Booster

Davis is LimousinPromoter of the Year

The North American Limousin Foundation (NALF) pro-moter of the year award goes to someone in an allied industrywho has advanced the Limousin breed through marketing,education, and research. Jim Davis, Superior Livestock Auc-tion, Boise, ID, was presented with the 2010 Promoter of theYear award at the Annual Banquet and Member Social on Jan-uary 9, held in conjunction with the National Western StockShow (NWSS) in Denver, CO.

“Mr. Davis has improved the value of Limousin-influencedfeeder cattle in mainstream markets and has encouraged hiscustomers to invest in Limousin bulls, providing true pull-through demand for Limousin genetics,” said Joe Epperly,NALF director of commercial marketing.

Jim’s employer Superior Livestock Auction introducedsatellite video marketing to the nation’s livestock industry in1987 and has grown to become the largest livestock auctionin the United States, marketing well over two million head ofcattle annually. Davis is one of only two representatives atSuperior, who have earned the company’s Highest LifetimeAward for selling over 250,000 head. To date, he has market-ed over 500,00 head of cattle.

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

ed to Boise, Idaho, to be in the midst of his Superior area.Each year Jim is responsible for organizing the annual “VideoRoyale” video auction held in Winnemucca, Nevada.

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 9

Joe Epperly, NALF director of commercial marketing presented JimDavis, Superior Livestock Auction, Boise, Id., with the LimousinPromoter of the Year award.

Hybrid vigor. I can still remember the first time I heard theterm when I was introduced to the value of crossbreeding atmy family’s livestock market. F1 Hereford Angus steers werethe rage in the feeding sector and replacement heifers werebringing top dollar for commercial cattlemen. Crossbreedingseemed to be free pounds. Thus free money, and yet yearafter year it got harder to find those F1 baldy steers andreplacements. Registered breeders refused to produce them,and breed associations wouldn’t register them.

Even at a time when EPDs were in their infancy, the regis-tration paper meant a premium in the minds of the Americanbeef producer. Dave Daley, University of California-Chico,recently described a list of reasons crossbreeding has beenignored in the beef industry. Number 1 on the list was: “A cul-tural bias that clearly reflects ‘purebreds as better,’ if for noother reason than they have a registration paper.”

The value of strategic crossbreeding systems has beenpreached throughout the industry. Dr. JimGosey, Beef Specialist emeritus at the Universi-ty of Nebraska, states, “A carefully constructedBritish X Continental can come a lot closer tohitting most of the targets for reproduction,production and end-product than any straight-bred I’m aware of.” Why then do straightbredAngus dominate the commercial landscape?

When first introduced to standard classroomexamples of a two-breed rotational cross sys-tem, three-breed rotational cross system, andthree-breed terminal rotational cross, it became clear that theyoffered a potential for genetic advancement. But there were anumber of barriers between the classroom examples and prac-tical commercial production.

Two main barriers to widespread planned crossbreedingsystems are economic and practical feasibility of such a sys-tem. “Standard” crossbreeding systems are easy to under-stand in a genetics or beef production course, but are notfeasible for most operations. Most require separating portionsof the herd to be mated to a certain breed. While this might befeasible in larger operations, it is labor intensive. In smalleroperations of 25 to 30 head, it just isn’t economical to pay fora second or third bull to breed the same cows, and to findadditional pastures to separate the herd. So, standard operat-ing procedure with most commercial producers utilizingcrossbreeding is, buy a bull of one breed, use him for twoyears, and then replace him with a bull of another breed. Thissmaller scale system does little to maximize the value ofhybrid vigor and fades over time.

Why hasn’t the beef industry embraced the hybrid? Hybridcorn has revolutionized the grain business. The poultry andswine industries have embraced the hybrid concept and arereaping the rewards. Even automotive manufacturers aremoving toward hybrids. With the dominance of Angus genet-ics in the national cowherd today, the time is ripe to reintro-

duce the hybrid. And Limousin genetics lead the way.The hybrid is made simple through the use of Lim-Flex®

genetics. Rather than constructing a complicated crossbreed-ing program to maintain heterosis, a commercial producercan breed Lim-Flex cows to Lim-Flex bulls and maintain het-erosis throughout generations. Using percent differences inLim-Flex or purebred Limousin, production can be tailored tofit a variety of markets. Lim-Flex genetics can fit into anynumber of Angus premium programs, the Strauss Veal sys-tem, or the mainstream market place.

North American Limousin Foundation (NALF) can even helpyou track your genetics and EPDs on those hybrid bulls. NALF’sproduction EPDs are done through Angus Genetics Incorporat-ed (AGI) which allows for a tighter comparison to Angusparentage and performance for Lim-Flex cattle. This providesLim-Flex a more accurate and complete production EPD profilethan any other registered Angus Hybrid seedstock.

Lim-Flex cows provide the same luxury as theF1 Baldy, with more power and that little extraget up and go. Limousin’s feed efficiency,muscling, docility, longevity, and maternal effi-ciency compliment the Angus breed’s fleshingand marbling ability. The cross breeds truethrough several generations as evidenced by thequality and consistency of Lim-Flex cattle.

Harley Coleman of Charlo, MT has been breed-ing and managing Lim-Flex cattle since the early1990s. Through the years, he has found that the

volume, fleshing ability, fertility, and puberty realized byblending Limousin and Angus genetics are second to none.The cattle are moderate-sized and maternally sound, with theadded benefit of longevity from hybrid vigor.

The production economic benefits of using hybrid cows asopposed to straightbred cows are limitless. Hybrid cowshave been shown to wean up to 20% heavier calves per cowexposed with the added benefit of 1.3 years of added longevi-ty. With the addition of a crossbred calf at her side, the totaldollar impact can be as much $80 per head annually. Coupledwith the added benefit of longevity means more than $400 inadded lifetime earnings.

Andy Hiko runs his cow herd on the rugged ranges ofNevada, Idaho, and Wyoming, and has tried a variety ofbreeds with little success. He tried Lim-Flex cows, and theyturned out to be the best fit to the harsh environment. “Lim-Flex adapt quicker to their environment than any other breedwe have ran in the past,” said Hiko. “Plus, they spread outbetter over the range, making better use of available feedresulting in decreased supplementation.” he said.

Of course, calving ease is the first step to a successful oper-ation. Calf vigor goes hand-in-hand with calving ease and canplay a role in the overall lifetime health of the calf, especiallyin harsher environments. As shown in Table 1, Limousin genet-

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 11

The Hybrid AdvantageBy Joe Epperly, NALF Director of Commercial Marketing

continued on page 12

The production

economic benefits

of using hybrid cows

as opposed to

straightbred cows

are limitless.

Page 12 Spring 2011 BOTTOM LINE

ics excel over other major continental breeds in both calvingease and birth weight. Additionally, a study at the University ofGeorgia, Comerford et al J. Anim. Sci. 64:65-76 found an addedbenefit of calving with Limousin cows. The report stated,“Limousin dams tended to have the highest calving and wean-ing rates because they were able to have heavier calves withless calving difficulty and higher survival rates.” Not only isLimousin a continental leader in birth weight but Limousindams can handle those heavier calves with less difficulty.

At weaning time, Limousin offers marketing flexibility withcalves that are extra stout and fancy to hit the top tier in thetraditional marketplace. NALF will assist in marketing your

calves, whether through video auc-tion, on-line, at the sale barn, or onthe ranch. Partnerships with StraussBrands and Laura’s Lean Beef, aswell as contacts with feeders andcattle buyers, provide producerswith a variety of options to maximizethe value of their calf crop.

Limousin-influenced feedercalves were well accepted at videoauctions this past summer. Forexample, during Superior Livestock’sVideo Royale sale in Winnemucca,NV, Limousin-influenced cattle soldat a premium. A total of 9,617 Limou-

sin-influenced cattle were offered, with 71 lots rivaling thetraditional top-tier cattle markets. A set of Lim-Flex® calvestopped all the yearlings sold that week, and Superior Live-stock Representative Jim Davis described them as, “withouta doubt the best yearlings I’ve ever shipped.”

The use of Limousin genetics is steadily growing acrossthe country. The added muscle and style that can be added toa set of black or red Angus calves by using Limousin cattle isunparalleled. Livestock markets across the country are see-ing the value of Limousin genetics for their customers. JohnCampbell, manager of Winter Livestock Market in La Junta,Colorado, said “Limousin bulls can transform an average tobelow average set of cows into a set of calves that will top themarket. No other breed puts the muscle shape and expressionon a set of calves like Limousin.”

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

Biological Biological Calf Calving 12-hourEfficiency at Efficiency at Birth Wt. Difficulty Milk Yield

Breed 3,500 DMI2 7,000 DMI2 (lb) (%) (lb)

Hereford 30 13 79.4 16.5 6.7

Angus 39 17 74.7 8.8 9.3

Limousin 33 42 86.4 15.7 10.2

Gelbvieh 29 36 95.2 21.5 12.7

Simmental 26 42 94.2 23.9 13.1

Charolais 27 45 98.1 19.5 10.5

1 Technical Bulletin Number 1875, U.S. Meat Animal Research Center2 DMI = Dry Matter Intake. Grams of calf weaned per kilogram of dry matter intake per cow exposed.

The Hybrid Advantagecontinued from page 11

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Adding 25% to 50% Limousin genetics improves feed effi-ciency, percent retail product, and yield grades. EliminatingYield Grade 4 and 5 discounts increases returns by morethan $180 a head. Limousin genetics can eliminate YieldGrade 4 and 5 discounts in one generation and add the pre-miums that come with Yield Grade 1 and 2. Tom Brink ofFive Rivers Ranch Cattle Feeding, the nation’s largest cattlefeeder, gives the insight into the need for hybrid vigor infeedlots. “There have been cutability issues and overly fatcattle that the higher percentage Angus cattle bring to theindustry. Our buyers say the ideal Angus percentage is 50-75%,” said Brink.

A study at the Meat Animal Research Center in Clay Cen-ter, NE, found that Limousin cattle excel over all other majorContinental breeds in eight growth, carcass, and feed efficien-cy traits. The breed’s ability to transmit muscle and feed effi-ciency while maintaining tenderness and flavor isunparalleled among Continental breeds.

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

Percent retail product is a measure that can become for-gotten among producers, but it’s important to remember asimple rule of thumb from Marcine Moldenhauer, President ofMeat Link Management, “…for every pound of carcass weightwe produce; it is the same as adding 1000 head of live cattlesupply.” With an ever-growing population and a shrinkingcow herd, every pound counts and increasing carcass yield isan easy first step.

For the commercial cattleman, the use of crossbreeding andhybrid vigor has too many financial positives to ignore. Limou-sin fits the bill for producers with Angus based herds whetherthey are black or red; and will produce cattle that excel for theproducer, the feeder, the packer, and the consumer.

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 13

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

Postweaning Growth & Carcass Feed Efficiency

Dressing Yield Ribeye Fat Shear Time Fat ThicknessBreed % Grade Area Thickness Force Flavor 187-d 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

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

BREEDER SPOTLIGHT

Want to advertise in the BREEDER SPOTLIGHT section?It’s easy! Call Jonathan Beitia at303-220-1693 for all the details.

NORTH CENTRAL REGION BREEDERS

Lonely Valley LimousinPUREBRED AND ANGUS COMPOSITE BREEDING FOR 20 YEARS

Annual Bull Sale last Monday of FebruaryStan, Mike, Mark, Dean and Chad Settje

Mail us at [email protected] (402) 285-9013 • Dean (402) 783-2105

560th Ave. • Creston, NE 68631

SOUTH CENTRAL REGION BREEDERS

Hiram and Darenda ◆ 806/375-2346Bret, Hayley, McKinley & Boone ◆ 806/375-2345Box 110, Allison, Texas [email protected] ◆ www.begertranch.com

Your Homozygous Headquarters

◆ A large number of breeding-age bulls available. ◆

◆ Trophy hunts available (deer, quail & turkey). ◆

Charles Linhart: (641) 340-1306

David Linhart: (641) 446-6906

Linhart Limousin27195 175th St.Leon, IA 50144www.linhartlimousin.com

When in the market for top-quality genetics, give us a call.

21314 OSRMadisonville, TX 77864Mobile (281) 808-3473Home (903) 344-2331

www.counsilfamilylimousins.com

BQA II Certified HerdCertified Brucellosis and TB Free

Your call or visit is welcome

Davis Limousin RanchBrad, Norma & Blair Davis12500 Hwy. 279 • Brownwood, TX 76801325/784-5071 • 325/784-7674 fax325/647-7681 cell • [email protected]

www.davislimousin.com

L I M O U S I N R A N C HC H A R L E S H U N T F A M I L Y

PRIVATE TREATY SALES• Bulls • Females • Semen

308-473-852110329 Highway 136 · Oxford, NE 68967

Dan Hunt · cell [email protected] · www.huntlimousin.com

Schott Limousin RanchJim & Priscilla Schott27601 108th St.McLaughlin, SD [email protected]

6 0 5 - 8 2 3 - 4 9 7 4

Straight Limousin

www.straightlimousin.com

Jay & Lori Straight * Jordan & JacksonJamie, Scott & Brayton MyerJenelle & Adam Klein

2173 Morgan Ave. * Logan, Iowa 51546712-648-2180 * 712-592-1350 (Jay’s cell)

Austin, Leah, Bailee & Pitch Hager4651 2nd Ave. NE

Karlsruhe, ND 58744(701) 525-6363 ■ (701) 626-2345 mobile

Your visit to the ranch is always welcome!

“Breedin’ theFeedin’ Kind”

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

47694 320th St. * Morris, MN 56267Farm (320) 392-5802 * Fax (320) 392-5504

Jerry Wulf (320) 392-5988Jim Wulf (320) 392-5966

10 miles south of Morris on Hwy 59

L e o n a r d Wu l f & S o n s

Production Sale Last Friday In March

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 17

DeMar Farms“Unparalleled

black Limousin genetics”AI and ET bulls for the commercial market

Joe & Margaret Hoot630 VZ CR 4124

Canton, Texas 75103(903) 829-8082

[email protected]

Craig LaroueRanch Manager(903) 292-9080

EXPRESS RANCHES2202 N 11TH STREET

YUKON, OKLAHOMA

BOB FUNK, OWNER

800-664-3977 405-350-0058 FAX

[email protected]

www.expressranches.com

RANCH RAISED BULLS & HEIFERS FOR SALE

JIM DYERHCR 74, Box 146 “Se Hablo Spanglish”Fort Davis, TX 79734-5005 [email protected](915) 426-3435 • fax (915) 426-3126 www.bigbendtrailers.com

Absarokee, MT406-328-4393

[email protected]

h

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

KEETON LIMOUSIN10510 CR 1100 • Wolfforth, TX 79382

Leonard & Betty Keeton Lyle & Shana Keeton806-866-9440 fax: 806-866-9441 [email protected] BULLS • CLUB CALVES • HEIFERS

Gene & Virginia Raymond Arne & Stacy Hanson(785) 448-3708 (785) 448-6142

“Th e Br a n d o f Br e e d e r r e s pe c T a n d c o mme r c ia l a ppe a l ”

For Quality Limousin Genetics You Can Count On

9700 Slaughterville Rd.Lexington, Oklahoma 73051

405/[email protected]

Edna Manning Judy Bugher405/306-1316 cell 405/306-1315

RIVERDALE RANCHRed & Black Limousin

Registered & Commercial

3830 Huckleberry Road • West, MS 39192Jim Jolley, Manager [email protected] fax: 601-605-4724

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

Bruce, Paula & Lee Roy LawrenceJohnny, Amber & Tucker ParkinsonPO Box 299 ■ Anton, TX 79313

e-mail: [email protected]

(806) 997-5381Your call or visit is always welcome.

L i b e r t y R a n c hLimousin cattle raised with the commercial industry in mind.

Annual Bull Sale 3rd Weekend in January ~ 125 Bulls Available

308 West MillPlainville, KS 67663Roger Comeau: Mike Smith:

(785) 434-4686 (785) 885-4882

WW I E SI E S LL I M O U S I NI M O U S I NRR A N C HA N C H

BOB & EUVONNE WIES636-441-2439

RED AND BLACK LIMOUSIN CATTLE

WELLSVILLE, MO 63384 573-684-2773

WESTERN REGION BREEDERS

Coleman Limousin Ranch, Inc.53717 Gallagher Road

Charlo, MT 59824

Larry & Anita Coleman(406) 644-2300

Trent & Melissa Coleman(406) 644-2707

Annual Production Sale, Second Monday in April

colemanlimousinranch.com

Limousin & Lim-Flex Bulls and Females for Sale Privately!“Ranch Tested, Customer Approved”

30849 CR 56 • Iliff, CO 80736 • [email protected] & Elaine Lewis • 970-362-4321 • Les Cell 970-630-1283

Mat & Wendy Lewis • 970-521-0545 • Mat Cell 970-580-8209

Raising Bulls For The Commercial

Cattleman

Gordon & Earline Schuppe25653 C.R. 63 Annual Bull Sale (970) 522-8195Iliff, CO 80736-9625 1st Saturday in March (970) 580-8195

Email: [email protected]

Page 18 Spring 2011 BOTTOM LINE

BREEDER SPOTLIGHT

Seedstock ConsultantsSpecialized Sales2300 Monument Ave. * Richmond, VA 23220Ph: (804) 353-2220 * Fax: (804) 353-2221Keith Kissee * Cell: (817) 821-6263Email: [email protected]

“Marketing Limousin Seedstock Throughout North America”

LIMOUSIN SERVICES

Randall O. Ratliff3610 Bear Creek Ln

Thompson’s Station, TN 37179

Office: 615.791.8982Fax: 615.791.8983

Mobile: 615.330.2735

www.rrmktg.come-mail: [email protected]

REGiSTEREd LiMOu Sin“Breeding Prime Cattle”

[email protected]

BOB MinERiChOWNEROFFiCE: (859) 328-7118Fa x: (859) 328-7120hOME: (859) 328-4104

inerich Land and Cattle Co.

2003 Barnes Mill RoadRichmond, Kentucky 40476-0536

John & Kitty Goodish 724-235-2178152 Florida Lane Joint bull sale on April 8, 2011New Florence, PA 15944 in Harrisonburg, VA

www.tubmillcreekfarms.com

Bob Millerberg * (801) 566-4665 home * (801) 561-9911 office * (801) 673-9911 [email protected]

Jim Millerberg * (801) 254-6610 home * (801) 303-6017 office * (801) 301-2953 cell

491 E. 12000 S.

Draper, Utah 84020

Brad & Janet Waddle440 Road 161Pine Bluffs, WY 82082

[email protected]

V i s i t o r s a l w a y s w e l c o m e

BULLS AND FEMALES AVAILABLE AT THE RANCH

Kevin & Julie Ochsner and family30300 WCR 388 • Kersey, CO 80644 • H: 970-351-6008 • M: 970-396-5525

[email protected]

Convenientlylocated 60 miles

northeast ofDenver, CO.

Give us a call for more

information about our

private-treaty offerings

of Limousin and

Lim-Flex® genetics.

Little Luckiamute Limousin Little Luckiamute Limousin

Font used for Ranch name is Watson regular

Font used for Ranch name is Watson regular

Ves and Marge Garner, Harlen and Anita Garner4952 N. Rd. I Vale, OR 97918

541-473 – BEEFwww.luckilimo.com

We Cater To Commercial Cattlemen

Larry Smith347 Davidson Road

West Harrison, Indiana 47060Evening: (812) 637-2303

Day: (513) 367-0218www.loganhills.com

Scott Minges, Manager(812) 637-5554

Cell: (513) 616-8499

EASTERN REGION BREEDERS

The Greenbrier Cattle CompanyJim and Jay Justice and Family Office – 540-423-1200Jeff Kaufman, manager Jeff – 540-280-538828011 Horseshoe Rd., [email protected], VA 22701

Joint Bull Sale on April 8, 2011 in Harrisonburg, VA

P.O. Box 190 • Platteville, Colorado 80651Gary Magness, owner • Wendell Geeslin, manager(970) 785-0434 (home) • (970) 785-6170 (office) (303) 659-3822 (fax) • [email protected]

The Brand You Trust...The Results You ExpectThe Brand You Trust...The Results You Expect“Since 1981”

V

RUNNING CREEK RANCHJoe Freund, Sr.

45400 Road 21 (303) 840-1850 homeElizabeth, CO  80107 (303) 341-9310 office

Email: [email protected] Freund(303) 841-7901

Pat Kelley(303) 840-1848QQu a l i t yu a l i t y ii nn VVo l u meo l u me

Lance SennettRR 1 Box 82 • Waynetown, IN 47990

(765) 234-8506Cell (765) [email protected]

Clark Sennett(765) 234-2621

Coleman Limousin RanchProduction Sale

130 Yearling Bulls20 Open Yearling HeifersMany carry the Homozygous Black or Polled Traits!

Selling 150 LotsLimousin & Lim-Flex

Monday, April 4 - 1 p.m. MSTMissoula Livestock Exchange - Missoula, Montana

COLE XCEPTIONAL 39X2/21/10 - HOMO Black - HOMO Polled50% Lim-Flex - BW: 88 - Adj. WW: 899S: Coleman Production 608MGS: COLE First Down 46DBW: 0.5 WW: 68 YW: 124 MA: 33RE: -.06 MS: .48 $MI: 64

COLE X FACTOR 97X3/3/10 - HOMO Black - PolledPurebred - BW: 94 - Adj. WW: 840S: COLE Toolbox 89T MGS: COLE First DownBW: 3.4 WW: 55 YW: 96 MA: 17 RE: .55MS: .01 $MI: 47

Complete Performance Data Ribeye, Backfat & Marbling Scores

Bulls Semen Tested & Scrotals Measured Pelvic Measurements for Heifers Trucking Arrangements Available

Sale-Day Phone:(406)728-3052

Auctioneer:C.K. “Sonny” Booth

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

COLEMAN PRODUCTION 608Lim-Flex sons and daughters sell!

53717 Gallagher Road • Charlo, MT 59824Larry & Anita Coleman • (406) 644-2300

Trent & Melissa Coleman • (406) 644-2707 www.colemanlimousinranch.com

Visit our Websitewww.ColemanLimousinRanch.com

for complete sale information. Give us a call for a sale catalog. Watch the sale online

at www.dvauction.com

Page 22 Spring 2011 BOTTOM LINE

W. E. Beal, Professor EmeritusDepartment of Animal and Poultry SciencesVirginia Tech

The “biggest loser” in a cow-calf operation is the cow thatfails to become pregnant. Therefore, most producers designtheir breeding program to “get as many cows pregnant as possi-ble.” The effort to maximize reproductive efficiency shouldn’tstop there, however. Instead, the emphasis should be ondecreasing the number of open cows in the herd and reducingthe income lost from cows breeding late in the breeding season.

Effect of Reproductive Efficiency onProfit

A study done by Agriculture Canada was very specific inidentifying how reproduction, production and price variablesinfluenced profit. That study estimated the change in netfarm income that would be caused by a 1% change in each ofthe five traits listed in Table 1. Improving pregnancy rate waspredicted to have the greatest influence on income. In fact,improving pregnancy rate by 1% was more beneficial thanincreasing the price of calves or decreasing the cost of feed-ing cows in a commercial herd.

The signal to commercial cow-calf producers should bevery clear. Even though producers can control the geneticdecisions that ultimately determine post-weaning perform-ance and carcass quality, at the present time they are morelikely to be rewarded for management decisions that improve

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

Cost of Open Cows or Cows Bred LateA 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 calcu-lating the cost of replacing her with a pregnant cow (Table 2).After removing transportation and sales commission, thevalue of a 1200-lbs open/cull cow sold at $62/cwt is $684. Ifthat salvage value isapplied back towardsthe purchase of a bredcow ($1350 for a goodquality bred cow),then it costs $666 toreplace an open cowwith a bred cow.Unlike the open cow,the purchased bredcow will calve andraise a calf to wean-ing. Therefore, if thecost of keeping thecow until her calf isweaned is added tothe expenses, and thevalue of the weanedcalf is deducted fromthe expenses, the totalcost of replacing an open cow with a bred cow will be $363.It is clear when considering the value of an open/cull versus abred cow on today’s market – replacing an open cow isexpensive.

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

Economic Impact ofReproductive Rate

Table 1. Contribution of Production Variables toNet Cow-Calf Incomea

Effect on net farm incomeProduction variables $ / 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.

Table 2. Effect of ReplacingOpen Cows on Cash Flow

Open Cow Salvage

1200# @ .62 +$744Transport & Marketing –$ 60

+$684

Buy Bred Cow

1 head @ $1350 –$1350Less salvage +$684

–$666

Sell Open / Buy Pregnant Cow

Replacement cost –$666Interest ($666 x 10%) –$ 67Annual cow cost –$345

–$1078Value of weaned calf +$715

Cost to replace open cow –$363

calving season was 97 pounds more than that ofcalves born in the last 20 days of the calving sea-son (Table 3). Although the older, heavier calvesbrought less per pound because of being in ahigher weight bracket, they consistentlyreturned more total dollars than calves bornlater. When averaged over both years, the costof being bred a day later and calving a day laterwas $1.74. Based on the VT data, calves born onthe last day of a 90-day calving season wouldreturn $157 less than calves born on the first dayof the calving season.

Crossbreeding ImprovesReproduction

Data from the Meat Animal Research Center (MARC)demonstrated that lifetime productivity of crossbred cows is25% greater than that of straightbred cows in the same herd.Much of this advantage was due to the beneficial effects ofcrossbreeding on reproduction. Analysis of the data from theMARC experiment indicated that 3% more crossbred cowsbecame pregnant during the breeding season and amongthose cows, the crossbred cows calved an average of 3 daysearlier in the calving season than straightbred cows of thesame breeds.

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

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

SummaryThe cost of replacing open cows and the revenue lost from

cows bred late emphasize the importance of incorporating (orcontinuing) the following management practices whichincrease the likelihood of cows breeding early in the breedingseason:

■ 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

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 23

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

Year #1 Year #21st 2nd 3rd 1st 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 $1.70 $1.78

Average cost for each day bred late $1.74

Page 26 Spring 2011 BOTTOM LINE

1 PLD – Polled Status of the animal with Pdenoting a polled animal

2 BLK – Black color status of the animalwith B denoting a black animal

3 CED – Calving Ease Direct EPD andaccuracy. When sires A and B are bred to

similar replacement heifers, you’d expect 5percent (the difference between +10% and +5%)more of sire A’s calves to be born unassisted ascompared to sire B’s calves. Said another way,due to genes for calving ease passed on fromthe sires to their calves, each of sire A’s calvesout of first-calf heifers have a 5 percent greaterchance of being born unassisted as compared tosire 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 4.0lbs. less at birth than progeny of sire B (-1.0 –3.0) , due to genes for birth weight passed onfrom the sires.

5 WW – Weaning Weight EPD and accuracy.Weaning weight EPDs are predictors of pre-

weaning growth of progeny. Of the two siresrepresented above, progeny of sire A areexpected to weigh 6 lbs. less than progeny ofsire B (44-38) at 205 days of age (when bred todams of equal value), due to genes inherited forpre-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 daysof age (when mated to equal dams), due togenes 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 genesfor milk the daughters inherit from the parent inquestion. For example, daughters of sire A areexpected to wean calves which are 7 lbs. heavierthan calves from daughters of sire B (30 – 23lbs.), due to genes for milk passed on todaughters.

8 CEM – Calving Ease Maternal EPD andaccuracy. When daughters of sires A and B

are bred to similar bulls, daughters of sire Ahave a 4 percent (14% –10%) greater chance ofcalving unassisted with their first calf ascompared to daughters of sire B, due todifferences in genes the daughters inheritedfrom their sires for easy delivery of their firstcalves.

9 SC – Scrotal Circumference EPD, andaccuracy. Scrotal EPDs are expressed in

centimeters (cm), with higher values indicatingthe expectation of genes for larger averageyearling scrotal circumferences to be passed onto sons. If mated to equal dams, sire B would beexpected to produce sons which average 1.0 cmlarger (1.0 – 0) than the average of sons of sireA. Scrotal circumference has also beencorrelated to the age of puberty in heifers

10 ST – Stayability EPD and accuracy.Stayability EPDs predict genetic

differences in the probability that daughters willproduce calves at the age of six years or beyond,given that at least one calf was produced prior tothe age of six. Generally, higher stayability EPDsrepresent genetics for greater longevity. Sire Babove is expected to have 15% more daughtersstill in production at the age of six or beyond(+20% vs. +5% = 15% difference) as comparedto the percentage of daughters of sire A.

11 DOC – Docility EPD and accuracy.Docility EPDs predict genetic

differences in the probability that offspring arescored as 1 (docile) or 2 (restless) as opposedto 3, 4, 5 or 6 (nervous to very aggressive). Thehigher docility EPD for sire A above is preferredto 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 tohave scores of 1 or 2 as compared to offspringof sire B. Generally, the higher the accuracyvalue, the more progeny with docility scores ingroups which have contributed to the EPD,making the EPD more reliable and less subjectto change. Only groups with variation in docilityscores are used in EPD evaluation.

12 CW – Carcass Weight EPD andaccuracy. Carcass weight EPDs are

used to genetically design carcasses withweights that fall within an acceptable industryweight range. Optimum carcass weight EPDs forsires will vary according to the types of cows towhich the sires are mated and the calfgrowing/finishing management regime. If matedto cows of equal value, sire A would be expectedto produce progeny with carcasses 10 poundsheavier (20 – 10) at harvest than sire B.

13 REA – Ribeye Area EPD and accuracy.Ribeye area EPDs offer an objective

measurement of genetic differences inmuscularity. EPDs for ribeye area are expressedin units of square inches, with larger valuesindicating larger ribeye area and increasedexpected overall carcass muscularity. Sire A is

expected to produce progeny with ribeye areasthat are .30 square inches larger (.50 – .20) onaverage 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 YGEPDs are favored and indicate geneticdifferences for yield grade and cutability ofoffspring. When bred to similar cows, offspring ofsire A are expected to average .10 (–.10-0) unitsof yield grade lower than offspring of sire B.

15 MARB – Marbling Score EPD andaccuracy. The marbling score EPD is

expressed in units of numeric USDA marblingscore, with higher values indicating genes forgreater deposition of intramuscular fat, or higherexpected marbling score and USDA quality gradeat a constant age. When mated to similar sets ofcows, sire A would be expected to produceprogeny with average marbling scores .20 unitslower (-.10 – .10) than sire B.

16 $MTI – Mainstream Terminal Index.The mainstream terminal index takes

both genetics and economics into account torank animals in terms of expected profit percarcass produced from weaning to mainstreammarket endpoints of yield grade 1s and 2s andSelect to low-Choice quality grades. It is basedon the assumption that Angus-Hereford cows ina two breed rotation are mated to Limousin-influenced terminal sires and is determinedprimarily by genetics and economics associatedwith post-weaning growth and yield and qualitygrade. In this example, if sire A and sire B weremated to similar sets of black baldy cows, sire Awould produce progeny with carcasses worth$15 ($55 – $40) more than those of sire B. Themainstream terminal index does not have anassociated accuracy value.

*ACC – Accuracy. Accuracy is a measure of thereliability associated with an EPD. For Limousincattle, accuracy is designated by either a P(pedigree only), P+ (interim pedigree plus ownperformance in contemporary group) or anumeric value (performance of individual andsubsequent progeny in contemporary group)which ranges from 0 to 1. Accuracy indicates theamount of performance information which wasused to calculate the EPD.

Note: Carcass EPDs are only calculated foranimals have had carcass data collected onthem, their parents, or their progeny by eitherultrasound or actual carcass data collection. Soin the case of Bull B, for him to have pedigreeestimates for his carcass values, his parentswould have had data collected on themselves ortheir progeny.

Understanding Limousin EPDs1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

CED BW WW YW MA CEM SC ST DOC CW REA YG MARB MTI PLD BLK

EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC EPD/ACC P 10 .65 -1 .75 38 .45 72 .47 30 .65 14 .50 0.0 .30 5 .50 15 .45 20 .45 .50 .40 -.1 .40 -.1 .40 55 B 5 .05 3.0 .05 44 .05 92 .05 23 .05 10 .05 1.0 .05 20 .05 -10 .05 10 P .20 P 0 P .10 P 40

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

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 27

LONELY VALLEY LIMOUSIN

HOMO Blk HOMO Pld HOMO Pld HOMO Blk HOMO Pld

“Keepin’ Kind”Production Sale

LONELY VALLEY LIMOUSIN20th Annual

At The FarmCreston, Nebraska

New Sale

Date...

Selling 85 Lots

“ “ “ “ “ “ “ “New Sale New Sale

Date...New Sale New Sale

Date...New Sale New Sale New Sale New Sale New Sale

Date...Date...Date...Date...Date...Date...Date...Date...New Sale New Sale

ONEONEONELYYLLLYLYONEONEONELONELLL V VALLEYEY L LIMOUSINIMOUSIN L LIMOUSIN LIMOUSINEYEY LLLLLLLEYLLEYAALLALL V VA VAYY V IMOUSINIMOUSINIMOUSINIMOUSINIMOUSINIMOUSIN

crossbreeding by commercial producers. With straightbreed-ing in our rearview mirror, producers with a well thought outuse of heterosis, can expect returns up to 25 percent higherfrom crossbreeding systems. These are econom-ics that simply cannot be ignored by profit-dri-ven producers. Through the use of hybrid cattleand across breed genetic evaluations, scientifi-cally sound use of heterosis can now be used byeven the smallest producers without the compli-cations of multiple breeding pastures and otherformer obstacles.

When the nation’s cow herd looks again toexpansion based on the positive economic sig-nals we are seeing, crossbred females willundoubtedly be what profit-minded commercialproducers will rely upon. That is because the greatest bene-fits of heterosis are seen in lowly heritable traits such as cowlongevity and reproduction. This means commercial produc-ers with excess replacement quality heifers from a plannedcrossbreeding system, should be looking at excellent demandfor their product in the years to come.

With the return of crossbreeding and the use of heterosis,the industry is again enjoying the benefits of breed compli-

mentary. The blending of British and Continental breedsmeans the end of excessive Yield Grade 4’s and improvedfeed efficiency. Continental breeds have changed greatlyfrom their early importation, and gone are the days of worry-ing about horns, calving difficulty and bad disposition. In

many ways, Continental breeds have kept theireye on the ball better than their counterparts bynot trying to be all things to all people. This hasmeant keeping their strengths of cutability andgrowth, while maintaining moderate mature cowsize compared to many British breeds.

All this means commercial producers shouldbe looking to add the highest quality geneticsthrough bull purchases this spring. Study afterstudy has shown that investing in superior genet-ics always pays. Given that the majority of thiscountry’s cow herd is British based, the purchase

of Continental bulls, or their hybrids’, is the logical move forprofit-minded commercial producers.

We are in for exciting, profitable times in our industry.Looking at the history of the beef industry, we have never hada beef cycle that mirrors our current one. However, with theuse of heterosis, high quality genetics, smart management andmarketing, there is as much upside potential as we have seenin generations.

The Future Looks Great for theBeef Industry continued from page 2

With the return

of crossbreeding

and the use

of heterosis,

the industry is

again enjoying the

benefits of breed

complimentary.

Page 28 Spring 2011 BOTTOM LINE

Why crossbreed?The use of crossbreeding offers two distinct and important

advantages over the use of a single breed. First, crossbred ani-mals have heterosis or hybrid vigor. Second, crossbred ani-mals combine the strengths of the parent breeds. The term‘breed complementarity’ is often used to describe breed com-binations that produce highly desirable progeny for a broadrange of traits.

What is heterosis?“Heterosis is defined as the average advantage of a cross-

bred individual over the average of its purebred parentalbreeds,” explains Dr Larry Kuehn. Kuehn is a research geneti-cist at the USDA’s Meat Animal Research Center, Clay Center,Nebraska. He continues that, “While it is possible for one ofthe parental breeds to be more advantageous for a specifictrait, it is unlikely that any one breed can be superior to acrossbred animal for all overall productionefficiency. The crossbred advantage is particu-larly pronounced in the performance of cross-bred dams.”

Heterosis results from the increase in theheterozygosity of a crossbred animal’s geneticmakeup. Heterozygosity refers to a statewhere an animal has two different forms of agene. It is believed that heterosis is the resultof gene dominance and the recovery fromaccumulated inbreeding depression of purebreeds. Heterosis is, therefore, dependant onan animal having two different copies of agene, each originating from a different breed.The level of heterozygosity an animal has depends on the ran-dom inheritance of copies of genes from its parents. In gener-al, animals which are crosses of unrelated breeds, such asAngus and Brahman, exhibit higher levels of heterosis, due tomore heterozygosity, than do crosses of more genetically sim-ilar breeds such as a cross of Angus and Hereford.

Heterosis generates the largest improvement in lowly heri-table traits. Moderate improvements due to heterosis are seenin moderately heritable traits. Little or no heterosis isobserved in highly heritable traits. Heritability is the propor-tion of the observable variation in a trait between animalsthat is due to the genetics that are passed between genera-tions and the variation observed in the animal’s phenotypes,which are the result of genetic and environmental effects.

Dr. Larry Cundiff, retired research geneticist at the USDAMeat Animal Research Center, reinforces the point by adding,“Purebred superiority is more likely when traits are moderate-ly heritably (e.g, milk production in dairy cattle, carcassmerit), partially due to the effectiveness of past selection. Onthe other hand, traits with lower heritability, such calf sur-vival, longevity, and fertility, benefit significantly from hetero-sis.” Improvement in these traits via selection has beendifficult. Crossbreeding has been shown to be an efficient

method to improve reproductive efficiency and productivityin beef cattle.

Improvements in cow-calf production due to heterosis areattributable to having both a crossbred cow and a crossbredcalf. The two tables below detail the individual (crossbredcalf) and maternal (crossbred cow) heterosis observed forvarious important production traits. Dr. Cundiff says“Research has demonstrated that heterosis favorably influ-ences the output per cow in a herd by approximately 25%.

Over half of this increase is from the use of acrossbred cow. Economic analyses have shownthat this increase in output equates to a reduc-tion of 8-10% in cost of production. Herdlife ofcrossbred cows is almost 1.5 years longer onaverage relative to purebred cows under normalcommercial production.”

The heterosis generated in calves that are theprogeny of straight bred parents of differentbreeds or crossbred parents is called individualheterosis. While this type of heterosis hasimport effects on economically important traits,it only accounts for approximately one-third ofthe total economic benefits of having crossbred

cows and calves. Thus if you only have crossbred calves (i.e.straight bred cows) you’re missing the biggest share of eco-nomic benefit from crossbreeding. Individual heterosisimproves performance in a number of traits measured oncalves including survival and growth (Table 1). For example,individual heterosis can improve weaning weights by nearly4% which on a 500 lb. weaned calf is 20 lbs.

A recent report by Daley and Earley, 2010, of a crossbreed-ing trial comparing Hereford and Angus sired calves pro-duced by Angus dams, revealed that the crossbred calveswere 15 pounds heavier at weaning and worth $18.00 moreper head. While performance improvements of feedlot andcarcass traits due to crossbreeding are generally smaller thanat the cow calf sector, these modest improvements can havean important role in profitability for producers retaining own-ership and others. For instance, Daley and Earley report thatthe crossbred calves, (there were approximately 300 for eachsire breed) had the same live weight at placement and uponharvest from feed yard and both groups were on feed 155days. The crossbred calves had the same average daily gainas the straight bred calves, but had significantly better feedconversion ratio (5.52 for straightbreds vs. 5.25 for cross-breds). Reduced morbidity and treatment costs of crossbreds

The Value of Hererosis andCrossbreeding continued from page 1

Table 1. Effects of individual heterosis onperformance 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

“Research has

demonstrated that

heterosis favorably

influences the output

per cow in a herd by

approximately 25%.

Over half of this

increase is from the use

of a crossbred cow.”

– Dr. Larry Cundiff

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 29

further decreased expenses and reduced total cost of gainby $4.37 per hundredweight. These performance improve-ments resulted in the crossbred calves being $27.50 perhead more valuable at the end of feeding period. Carcassparameters were not significantly different except formarbling and percent choice. Angus superiority in thesetraits resulted in the Angus sired carcasses being $15.60more valuable than the crossbred calves. Summarizedvalue from birth to harvest revealed the crossbred calveswere $29.90 more valuable than the straight bred calves.In this study, pregnancy rates of crossbred heifers were7% higher than for the straight bred heifers.

Research by Snowder and others, 2005, revealed thatcrossbred calves had a reduced incidence of bovine res-piratory disease before weaning. Calves that were cross-es of two Continental breeds or crosses of Continentaland tropically adapted breeds had less BRD incidencethat British by British crosses which had less BRD thanpurebreds.

Why is it so important to havecrossbred cows?

The production of crossbred calves yields advantagesin both heterosis and the blending of desirable traits fromtwo or more breeds. However, the largest economic bene-fit of crossbreeding to com-mercial producers comesfrom having crossbred cows.Maternal heterosis improvesboth the environment a cowprovides for her calf as wellas improves the longevityand durability of the cow.The improvement of thematernal environment a cowprovides for her calf is manifested in the improvements incalf survivability to weaning and increased weaningweight. Crossbred cows exhibit improvements in calvingrate of nearly 4% and an increase in longevity of morethan one year due to heterotic effects (Table 2). Heterosisresults in increases in lifetime productivity of approxi-

Table 2. Effects of maternal heterosis on calftraits affected by maternal environment, cowproductivity 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

Lifetime Productivity

Number of Calves 0.97 17.0

Cumulative Weaning Wt., lb. 600 25.3

Maternal heterosis

improves both the

environment a cow

provides for her calf

as well as improves

the longevity and

durability of the cow.

continued on page 8

mately one calf and 600 pounds of calf weaning weight overthe lifetime of the cow (Table 2). Crossbreeding can have pos-itive effects on a ranch’s bottom line by not only increasingthe quality and gross pay weight of calves produced but alsoby increasing the durability and productivity of the cow facto-ry. Crossbred cows maybe the only free lunch in the world.

The effects of maternal heterosis on the economic meas-ures of cow-calf production have been shown to be very posi-tive. The added value of maternal heterosisranges from approximately $50/cow/year to near-ly $100/cow/year depending on the amount ofmaternal heterosis retained in the cowherd(Ritchie, 1998). Maternal heterosis accounted foran increase in net profit per cow of nearly$75/cow/year (Davis et al., 1994). A recent study(Pierce, 2010) of a Hereford X Angus crossbreed-ing system compared to a straight Angus systemin Missouri estimated that the crossbred cowshad a $514.00 per head advantage over a ten yeartime horizon or $51 per cow per year. Theirresults suggested that the benefits of maternalheterosis on profit were primarily the reducedcost per cow exposed. Crossbred cows had higher reproduc-tive rates, longer productive lives, and required fewer replace-ments than straight bred cows in their study. All of thesefactors contribute to reduced cost per cow exposed. Further,they found increased outputs, including growth and milkyield, were offset by increased costs.

How can I harness the power of breedcomplementarity?

Breed complementarity is the effect of combining breedsthat have different strengths. When considering crossbreed-ing from the standpoint of producing replacement females,one could select breeds that have complementary maternaltraits such that females are most ideally matched to their pro-duction environment. Matings to produce calves for marketshould focus on complementing the traits of the cows andfine tuning calf performance (growth and carcass traits) tothe market place.

There is an abundance of research that describes the corecompetencies (biological type) of many of today’s commonlyused beef breeds. Traits are typically combined into group-ings such as maternal/reproduction, growth and carcass.When selecting animals for a crossbreeding system, theirbreed should be your first consideration. What breeds youselect for inclusion in your mating program will be dependanton a number of factors including the current breed composi-tion of your cow herd, your forage and production environ-ment, your replacement female development system, andyour calf marketing endpoint. All of these factors help deter-mine the relative importance of traits for each productionphase.

Kuehn summarizes these points by adding, “Beyond het-

erosis, breed complementarity is also a useful tool in cross-breeding mating systems. For example, based on resultsreported in the yearly across-breed EPD adjustment factoranalysis from USMARC, some breeds have superior averagesfor marbling potential but are generally poor relative to meas-ures of yield. Crossbreeding can help to produce animals thatgrade select to choice with a lower probability of high yieldgrades. Large docking categories in carcass premium grids(yield grade 4 or 5, standard) are less likely from these cross-breds.” It’s clear that effective crossbreeding systems offerbenefits in all segments of the beef value chain.

What are the keys tosuccessful crossbreedingprograms?

“As a final note, commercial producers haveoften enjoyed the benefits of crossbreeding in aninitial cross, only to see those benefits erode dueto mating back to the same breed of bull in thenext generation; the progeny become graded-uppurebreds thereby losing the benefits of heterosis.This erosion of heterosis can be effectively man-aged through the use of crossbreeding systems(terminal cross, composites, rotational breeding,etc.),” concludes Dr. Cundiff.

Many of the challenges that have been associated withcrossbreeding systems in the past are the result of undisci-plined implementation of the system. With that in mind, oneshould be cautious to select a mating system that matches theamount of labor and expertise available to appropriatelyimplement the system. Crossbreeding systems range in com-plexity from very simple programs such as the use of hybridgenetics, which are as easy to use as straight breeding, toelaborate rotational crossbreeding systems with four or morebreed inputs. The biggest keys to success are the thoughtfulconstruction of a plan and the sticking to it! Be sure to setattainable goals. Discipline is essential.

Literature cited:Cundiff, L. V., and K. E. Gregory. 1999. What is systematic crossbreeding?

Paper presented at Cattlemen’s College, 1999 Cattle Industry AnnualMeeting and Trade Show, National Cattlemen’s Beef Association. Char-lotte, North Carolina, February 11, 1999.

Daley, D. A. and S. P. Earley. 2010. Impacts of crossbreeding on profitabili-ty in vertically coordinated beef industry marketing systems. Califor-nia State University, Chico, Chico, California.

Davis, K.C., M.W. Tess, D.D. Kress, D.E. Doornbros, and D.C. Anderson.1994. Life Cycle Evaluation of Five Biological Types of Beef Cattle in aCow-Calf Range Production System: II. Biological and Economic Per-formance. J. Anim. Sci. 72:2591-2598.

Pierce, V. 2010. Comparison of the economic value of Hereford sired herdsversus Angus sired herds on long run economics: A simulation basedon performance data. University of Missouri. Columbia, Missouri.

Ritchie, H.D. 1998. Role of Composites in Future Beef Production Sys-tems. http://www.msu.edu/~ritchieh/papers/BEEF201.ppt. AccessedOctober 2, 2005.

Snowder, G. D., L. D. Van Vleck, L. V. Cundiff and G. L. Bennett. 2005.Influence of breed, heterozygosity, and disease incidence on estimatesof variance components of respiratory disease in pre-weaned beefcalves. J. Anim. Sci. 83:1247–1261

LIMOUSIN’S COMMERCIAL CONNECTION Spring 2011 Page 31

The Value of Hererosis andCrossbreeding continued from page 29

Many of the

challenges that

have been

associated with

crossbreeding

systems in the

past are the result

of undisciplined

implementation of

the system.

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