Following the money

[pandiana]

It seems to me the stage is set for major changes in the beef industry. My take on these changes are as follows:
1. The vast majority of the American herd is black. On a recent visit to Houston Livestock Show, greater than 80% of the bos taurus cattle were black (Simmental on display were 100% black). Eared cattle were still traditionally colored but are most often found in Texas and southernmost states because of the adaptability to the harsh climate. The push for black has come from a push to increase the quality of the high price cuts and the 'eating experience'. Of course, the black hide itself is not the issue but the fact that British breeds carried a higher level of intermuscular fat which was believed to be associated with tenderness and flavor. For cattle buyers, Angus and Angus cross cattle were easy to pick out. Obviously, all beef is not high priced cuts, and as long as producers were getting paid for pounds of beef, the market still favored Yield Grade (Continental breeds predominantly)over Quality Grade (British Breeds). Continental breeds tend to grow fast, in some cases bigger framed, with a higher percentage of lean meat yield. British breeds tend to grow slower, with frequently a high degree of waste fat, but more grade Choice and Prime. Much of our Triple A beef goes to the US and restaurant trade. As our large packers are American and a large portion of our exports were American I am surprised that black was so long in coming. The bottom line was, we werent getting a premium and there was still a good demand for lean meat yield.

2. More and more producers are using planned breeding which in turn allows for more calves to be sold on a grid that produces premiums for quality and uniformity. Buyers are rewarding producers for uniformity and breed composition. Feeders target uniformity which allows them to finely tune feeding to target finish on calves to maximize return on their investment. British cattle tend to finish much earlier than Continental cattle which may or may not be an advantage, depending on the market.

3. Heterosis or hybrid vigor is the singlemost economic factor in beef production next to fertility. Maximum hybrid vigor is attained in the F1 cross. According to Harlan Ritchie, "Montana researchers recently put a dollar value on maternal heterosis. They reported that crossbred cows return $50 to $70 more per year than purebred cows. If the average cow stays in the herd for 6 years, the advantage for a crossbred cow would range from $300 to $420 over her lifetime. However research has shown that crossbred cows stay in the herd longer than straightbreds indicating that lifetime returns could be even greater". Traditionally, rotational crossbreeding sysems use to maternal breeds to produce the momma cow and a terminal sire to produce the calf. Introducing too many breeds into a system reduces uniformity and increases mongrolization. One of the consequences of the 'color war' has been to change all breeds black by upgrading with Angus genetics. The consequence of this is the hybrid vigor can be lost in earlier generations as was pointed out in earlier posts. On a recent trip to Agribtion and Farmfair it was very evident that the characteristics that determined breeds were disappearing. Angus was becoming larger, with more growth and also higher birthweights. Continental breeds were beginning to look more like Angus. It would appear that we are inexorably being pulled in the direction of the hog industry where a very few breeds will be used by seedstock producers to produce a crossbred cow maximizing hybrid vigor, uniformity and quality.
At this point, it seems to me that the ideal beef cow is a BritishxContinental Cross. I would personally go with Angus or Red Angus crossed with Gelbvieh or Simmental. If the market for large frame heavy calves was still profitable, Charolais could be used as a terminal sire.
4. Crossbred bulls? Not a problem if you still maximize hybrid vigor by using bulls that are the same breeds as you cow base. i.e. Angus Gelbvieh bull on Angus Gelbvieh cows will keep max. hybrid vigor. This is why some breeds have developed crossbred bulls like the "Balancer" Gelbvieh x Angus in order to reduce the steps in a rototional breeding program. These bulls have all the advantages of a purebred in that they are registered, with known pedigree, performance data and EPD's.

[Bruce14]

pandiana what can I say except EXCELLENT POST!

[grassfarmer]

Yes Pandiana good post,
I see two dangers in the way the industry is going with regard to hybrids though.
1) is the lack of genetic diversity that you mentioned. It is probably the biggest threat to cattle genetics I can see as the same handfull of bulls are used to improve and "colour" other breeds like Leachmans did.
We will fall into the same trap as the dairy industry where a huge percentage of the global dairy herd is off 16(?) Holstein bulls. It was sheer stupidity to mongrelise the Ayrshire cattle breed in Scotland for example by incorporating Holstein - also the Norwegian Red.
2) Hybrids in the pig and poultry industry predominate which leads to speculation they will in the beef industry to. One thing to be kept in mind is that these animals live in totally "controlled" environments with no variation in temperature or humidity and rations that never vary and carry antibiotics at trace levels. Take them out of that environment and they are useless - they don't have the brains or knowledge to root for food and couldn't survive outside in fluctuating weather conditions and temperatures. If we breed cows that can produce well on tightly controlled rations and conditions what use would they be to graze mountain range? or in a drought? or if feed supplies are stretched like they were last winter? I would be very wary of relying on hybrids as the major source of beef production.

[cowman]

I would ask you what is a purebred? Are Angus cattle purebreds? Was that amazing growth the result of selection alone? Now I'm sure we'll hear a whole lot of talk about the integrity of the breeders or the breed association etc. but it is the best known dirty little secret that the "British breeds" got a little help.
Take the hereford breed as an example. What was Titan 777? How about Perfection? Well I used Titan semen and I'll bet you dollars to doughnuts he sure wasn't a hereford! He had a healthy dose of Simmental! And how about Perfection? He won just about every show in the states and what was he? Well his momma was a red Holstein! I knew a lot of old hereford breeders and they could pick the Sims out right away.
As far as the continental breeds go they were mostly bred up from an open herd book.
The work that the Alberta government did at Kinsella showed very clearly that heterosis can be maintained and even slightly improved over the F1 cross by using a large number of breeds. It also showed that some dairy breeds in that cross improved overall productivity. Of course the various beef breed associations condemned the whole program as being sacriligious or something. And if you've ever been to Kinsella you know it is not some cow paradise but about the toughest environment a cow could want. Read Sherm Ewings book.
It would be nice if all of us could get info on how our cattle grade and maybe be paid for that? We just might be surprized!

[pandiana]

cowman, technically, in most Breed Associations, a purebred animal is one that is registered to purebred parents. Animals in some associations have open herdbooks which allow the introduction of other breeds in order to 1) strengthen a small gene pool (i.e. increase diversity) or 2) specifically to introduce desirable economic traits not already found in the breed or that are in such low numbers as to not be feasible to breed up (such as spontaneous mutuation such as occur in polled animals). To become 'purebred' these animals must be bred up 3 or 4 generations (>88% or 92%). These animals will always be classified as purebred, never fullblood. Fullblood animals are those that can be traced back to the original herdbook without any contamination and in some breeds must be DNA typed to verify this. In this country, as has been pointed out, there are fewer fullblood genetics available. Economics dictate that regardless of the breed, what counts is what you can sell. The essense of genetic selection, regardless of the breed, is to concentrate desirable traits most usually by strong selection for these traits, often involving line breeding. For hundreds of years this has been the method used for producing the breeds that we see today. No doubt, other breed contaminants work into pedigrees, but for the most part this is of little consequence as they would soon be diluted out.

I am certainly not aware of the study that you refer to. If this is indeed the case, it would go against every principle of genetic selection that forms the basis of modern seedstock production.

The reason that crossbreeding produces healthier, long lived offspring stems from the fact that in the process of selecting for wanted traits, you also increase the probability of undesirable traits that are recessive (not seen) as there is only a single copy of the gene. But when two animals are mated that carry the defective gene they defect is present. By outcrossing, you would significantly reduce the probability of defective genes occurring.

[pandiana]

"It would be nice if all of us could get info on how our cattle grade and maybe be paid for that? We just might be surprized!"
I guess this topic on change in the beef industry wouldn't be complete without discussing your comment on how our cattle grade.
For the most part, this is a non-issue for cow/calf producers that sell their calves in the fall and are interested only in a live calf with excellent WWt.

However, more progressive seedstock producers are anticipating that some primary producers will want to get paid for their quality product and conversely, as markets tighten, buyers are looking for that uniform, feed efficient and healthy calf that will grade near the top for either Yield, Quality of both.

Some seedstock producers have been using ultrasound to identify carcass quality in their herdsires and their offspring in order to propogate the best genetics.

More recently, DNA tests are coming on stream which measure marbling (leptin gene) or calpain/calpistatin (tenderness). Variations in the desirable allele are correlated with increased marbling or tenderness, respectively. These allelles are not breed specific although the desired genes do show up with increased frequency in breeds that are known to have these traits. However, there are some cattle, Angus included, which have no copies of these desirable traits. The ABS and Genex semen catalogues have added the results of these test where available to their selection criteria.

Along the same line and incorporating results from carcass data from packers, ultrasound, and now DNA testing, new EPD's have been developed. The Gelbvieh breed was probably the first to make available and EPD for Grid Merit (GM) and Feedlot Merit (FM) units are in $ which allow comparison of the $ you would expect in comparing one animal with another for this trait. Grid Merit roughly correlates with Quality Grade and Feedlot merit would look at Yield Grade (Carcass weight, Ribeye). Most other breeds seem to be coming up with similar EPD's including Simmental and Angus this year.

I believe these additional tools will used by commercial cattlemen looking for a competitive edge in marketing their cattle in order to capture maximum value, just as the progressive seedstock producers is working to this end.

[ALICIA]

What would you think a 2 year old first time calver would grade as. But all I know is I got $200.00 so I guess it dosn't matter, she was a cull and sold as one.

[cowman]

Pandiana: The experiments at Kinsella were carried out by Roy Berg of the University of Alberta. He certainly thought outside the box! He infuriated just about every breed association in North America because of his work. Except of course the guys who were working up composite breeds...like beefbooster, Hays Converters etc. Oh, and the commercial guys.
I don't know if these "composites" are now considered purebred or not?
Every purebred breed started out as something on somebodys farm. Whether it was in England or Scotland or Germany doesn't really matter. And a good cow is a good cow whether she is Angus or hereford or Gelvieh? I suspect some of the best cows in the world don't carry around a little piece of paper telling you how "royal" they are. Sort of like our so called royalty in humans? I mean Prince Charles has sort of shown what a dog he is?

[pandiana]

Two very good points, grassfarmer.
"is the lack of genetic diversity that you mentioned. It is probably the biggest threat to cattle genetics "

On one hand I agree that using a few AI sires, such as seen in the Holsteins, reduces genetic diversity to a dangerous level. On the other hand, the Holstein is a perfect example of how powerful genetic selection is in that for the economic trait selected, milk production, there is no equal. However, as for hybrid vigor and stayability, I understand the average life of a Holstein is about 3.5 lactations. Therefore, selection of economic traits by seedstock producers, coupled with crossbreeding for hybrid vigor would seem to me the best possible scenario.

"totally "controlled" environments with no variation in temperature or humidity and rations that never vary and carry antibiotics at trace levels."
This is probably the most often cited reason that the hog model will never fit the cattle industry. Without a doubt, most of us cannot see cattle in a similarly controlled environment. On the other hand, cattle breeds have proven to be very adaptable to different climates and feeds although some significant differences exist between breeds. In view of this it would still seem prudent to match your breed choices to your own environment. Hereford, for example, will never compete with continental breeds for bringing in the big calves, but has a reputation of making do in the poorest environment and coming home bred (at least this was the old Hereford). So by crossbreeding F1 using purebred seedstock you should still be able to get uniform calves that meet the market ideal. For example in the above case you could use Hereford and black continental.

[cowman]

Actually Pandianna every AI school teaches that the optimum cross breeding program is a terminal breed on a F1 maternal female. The reason for this is the F1 female is vastly superior to the straight bred female. When I say optimum cross I am speaking of actual production. Roy Berg showed that you could maintain and actually slightly increase that production through the use of many breeds.
But the terminal breed used on the F1 female is pretty well the gospel at the AI schools.
I believe the first cross gives you a 20% hybrid vigor kick while the "optimum" cross mentioned above adds another 10%, thus 30%. I remember my instructor telling us that if you are commercial and not crossbreeding then you'd better have a lot of oil wells!

[grassfarmer]

Cowman I would agree with what Pandianna says in her last post which highlights the role of the hereford in the tough conditions of SE Alberta. This is the kind of terrain that hybrids will struggle on commercially - yes they can breed at an earlier age and wean a bigger calf but not without an uneconomic level of supplementation.
Experiments at Ag research places are fine but how many of these run a herd through it's entire lifetime in these tough conditions?(and at a profit?) The families that have made a success of ranching tough terrain anywhere in the world through several generations know the kind of cow that pulls them through.

[cowman]

grassfarmer: I can't argue with success! However I would point out that wherever a herford can cut it so can a black baldie? So there is a tough F1 female. Go out to Kamloops and that is just about all you see? And Kamloops is pretty tough?
The experiments at Kinsella ran for over twenty years and they were run with the idea of making the rancher more money. Roy Bergs ideas were radical to say the least. It is a tribute to the government that they kept financing him even with all the pressures from the various breed associations to shut him down. The man did some very necessary work.
Believe it or not I am not against the purebred business. Everything I own was paid for by purebred Hereford bulls. I was raised in the business and my anscestors are probably rolling in their graves right now by all my sacriligious ways! I can honestly say my old AI instructor(Alex Mills, a fine Scotchman) planted the seeds that led to my downfall!
But I've raised a few cattle in my days. I've probably tried about every breed there is and I've had good ones from every breed...and quite a few that I wish I'd never seen! And I definitely don't know it all and I'll frankly admit that. All I can do is what works for me and what puts the most money in my pocket.

[pandiana]

Actually grassfarmer, I agree with cowman and would contend that a Hereford cow crossed with either Continental or British would outperform a straightbred cow almost all of the time even in this harsh environment. By using Hereford as your starting place you are building in the do-ability you need for that environment and then adding heterosis. I believe commercial cattlemen should let seedstock producers handle the purebreds so that the commercial man can get maximum bang for his buck on these F1 crossbreds.

[ALICIA]

Herefords are the British bred. I just love sitting and reading about all the bad traits the Herefords have. I guess seeing that Herefords are the most knowen beef bred in the world. Everybody must of owned one or two to be able to say that they all have bad feet, bad this, bad that.
BUT you know I'll bet the the price of your top cull old cow that I could go out tomarrow and buy a Charla, Semie, Angus, limo and she would be so bad you's would not what to adment want bred she was.
Funny you know 75% off all breds have hereford in their some were. The other 25% is all the rest. So yes I guess you can find falt with the HEREFORD they are just in everything that is beef.
Herefords- easy to keep
less bone wieght
most or all grade A or
beter on less feed
ready for market sooner
at the customer carcuss
weight of 650lbs. or
700lbs.
keep 2 herefords over
one of another bred
etc. 2 hereford calfs
1400lbs (good
herefords)
1 charla calf
900lbs (good
Charla)
difference 500lbs and
2 herefords eat what
1 charla would eat.
I'm a good hereford breeder and my Herefords don't have bad feet.

[cowman]

When I first embarked into crossbreeding I went whole hog! Syncronized everthing and AIed 120 over two days. Simmental and red Angus and some herford on the better purebred cows. Then out with 3 Char two year olds that I paid an average of $3700 each for. This was about 1980.
Well my AI rates were not very good...think I got 47 AI calves or something!
Come fall guess which calves were the biggest and the best? You guessed it the Chars! The steers outweighed the others by over 70 lbs.!
I continued to AI but on a smaller scale(with much better results,usually in the 80% range)...about thirty a year, always using Char bulls for cleanup. In 1992 I weaned my char steers at 832 lbs. with an overnight stand and they sold for $962 after all deductions. That was the best bunch of steers I ever raised...they even asked me to stand up in the auction mart for a standing ovation! I still have a video of those calves. In those days tan calves rocked!
So you might understand why I like Charlais! I will admit I have had Sim calves who have been just as good but they never sold like that.
I guess you could say my cow herd are now a bunch of "mongrels". The crossbred cows are about one third hereford, one third red angus, one third Simmental with a slight dash of Gelvieh in there. I haven't bought a bull in years but just keep a couple or three AI calves each year out of my better older cows. Sim And Char cross bulls. Two years on the job and then they are gone. I don't think I've got any kind of an inbreeding problem.