Beef Industry: Structure, Function, Challenges

Question 1

what is the average beef herd size?

Answer 1

40 head

Question 2

describe the general distribution of the beef industry

Answer 2

1. widely distributed across all 50 states
   -so in all different climates
2. necessitates use of breeds suited to a specific environmental niche
   -bos taurus and bos indicus and crosses
   -continental breeds put on more muscle mass while island breeds better marbling
   -differences in heat tolerance and insect resistance as well

Question 3

why is beef cattle production centralized in the midwestern US?

Answer 3

*in 2022 there was a drought and wildfires so beef numbers dropped in this region

cows can be across the country though because everywhere has grass, but centralized in the midwest because:

1. lots of land and not very expensive
2. packing plants there so shorter distance to haul animals
3. generally dryer more temperate climate

Question 4

describe the beef cattle contribution to the US economy

Answer 4

1. 27 billion lbs consumed
   -57lbs/person at $4.82/lb
2. 77 billion economic value
3. US beef export value: 8.3 billion
   -mainly to Japan, Canada, Mexico, South Korea
   -cattle have to be <30 months old for export because BSE will not show up generally before then

Question 5

describe the general structure of the beef industry

Answer 5

1. most production systems are pasture based
   -brief portion of life spent in confinement for finishing in a feedlot
2. technology driven to improve efficiency
   -genetics: cannot make quick improvements (one calf per year, 2 years to maturity)
   -reproductive management
   -growth promotants: implants (increase lean muscle but lower IM and back fat so lower carcass quality), no longer use abx (thanks to VFD), ionophores (shift rumen microflora to make more efficient VFA production to grow faster)

Question 6

describe the cattle production cycle

Answer 6

1. heifers bred at 15 months of age to calve by 2 years of age
2. cows bred naturally by bull on range or pasture environment:
   -ideally conceive within 80d of previous calf to maintain 12 month calving interval
   -calve 9 months later
3. calves weaned at 6-8 months of age
   -more efficient than having to provide nutrients, milk is great nutrient source
   -mom should be 4-6 months pregnant when wean, allow for udder involution and improvement in BCS before calve in again
4. weaned cattle have 3 possible fates:
   -kept as replacements
   -sent directly to feedlot until slaughter (approx 40% of all calves)/calf-feds
   -sent to stocker/backgrounder operations and then placed into feedlot (approx 60% calves)

Question 7

describe the seedstock segment (4)

Answer 7

1. purebred/registered breeders
2. ID and propogation of genetics:
   -genetic info
   -breeding animals
   -semen
   -embryos
3. one function:
   -provide genetics that can be utilized by industry to enhance productivity and profitability
4. if breeding stock (heifers, cows, bulls) are sold:
   -100-150 mile radius of breeding operations
   -production and market programs optimized for producers in a specific area (ex. what works in south carolina may not work in florida)

Question 8

describe the cow-calf segment

Answer 8

1. maintain cow herds and raise calves from birth to weaning
2. cow is expected to produce one calf per year
   -can get twins, but generally undesirable
3. calves produced have 2 functions:
   -revenue for farm
   -source of heifers to replace cows that die or are culled
4. disease challenges:
   -reproductive diseases
   -neonatal and juvenile disease: calf scours is largest loss (outside of dystocia)

Question 9

describe the economics of cow-calf production

Answer 9

1. most are small scale
   -hobby farmers: do it for fun or tax purposes
   -no defined calving season: little uniformity, inability to build “lot loads” of calves (40-60 head to ship out west)
   -semi-seasonal schedule: to market in early to late fall (want to avoid feeding calves through winter)
2. market single calves at a time at local auction markets
   -cultural and economic factors
   -not suitable for movement directly to feedlot: unweaned, unvaccinated, high parasite burdens, males intact, poor nutritional status (negative energy balance and dehydration)
3. risk of stockers/buyers when combine groups from these sales:
   -respiratory disease
   -overcome stress and challenges before sned to feedlot

Question 10

describe the stocker/backgrounder segment

Answer 10

1. link between cow-calf operations and feedlot
2. add weight to calves prior to shipment to feedlot
   -grow calves on forage and supplemental feed
3. straighten out mismanaged calves:
   -train to feedbunk and waterer
   -castrate and dehorn
   -vaccinate
4. sort into uniform groups for a value-added product
   -size, weight, color
5. buffer for irregular supply of feeder cattle:
   -cattle feeding constant throughout year but feeder calf supply irregular, so they can effectively meet needs of indutry and consumer
   -absorb excess calf supply when feedlots are full; supply calves when feedlots inventory down
6. allow small producers to remain viable and competitive!!

Question 11

describe stocker/backgrounder management of animal health

Answer 11

challenging due to:

1. comingling from different sources
2. little to no vaccination history and high parasite burdens
3. nutritionally compromised
4. social stress without adaptation
5. castration at time of initial processing
   -trending to change initial processing to decrease stress (abx and dewormer first, settle in, then vaccinate and castrate)
6. disease challenges:
   -respiratory disease is primary challenge

Question 12

describe the feedlot segment

Answer 12

1. final step of production cycle prior to harvest
2. focus on feeding catle high energy rations to achieve economically efficient gains:
   -100-200d, depending on weight at arrival
   -fed long enough to attain sufficient body fat
   -to improve palatability of final retail product
3. 27,000 feedlots currently operating in the US
   -61% have fewer than 100 head
   -77% of animals fed in lots with >1000 head
4. produce beef from young cattle (<30 months of age) with ample tenderness and high intramuscular fat content
   -penalized for small (<250kg) or large (>430kg) carcasses
5. disease challenges:
   -respiratory is number 1
   -lameness due to high plane of energy nutrition
   -GI upset (rumina acidosis, bloat)

Question 13

describe the packer segment

Answer 13

1. responsible for harvest and processing of final product
2. > 80% of product sold by packers is “boxed” as primal and subprimal cuts
   -more effective use of bone and excess fat
   -vacuum-packing for longer shelf life
   -more economically efficient: labor and transportation
3. also market “case-ready” beef:
   -already fabricated: packed fresh and also pre-cooked products
   -control over multiple aspects of final product: food safety, labor cost, consistency and yield to meet consumer preference
4. major challenges:
   -food safety
   -carcass composition: body condition of cull cows (too thin or too fat), yield grade of fed cattle (too large)
   -welfare (cull animals): lameness, bruising
   -official condemnations

Question 14

describe some future trends of the beef industry

Answer 14

1. increasing population with less individuals involved in ag production
2. increased demand by export markets
3. sustainability
4. traceability
5. antimicrobial resistance
6. challenges to convention production markets
   -branded beef programs (mostly marketing)
   -antimicrobial use regulations, restricted OTC availability
7. NCBA statement of principles related to ethical use and consumption