Beef (Exam 2) Flashcards
Describe the segmented nature of the beef cattle industry
Animals are sold as they move from 1 phase to the next (can also be consolidated
Define: Seedstock Producers
Purebred animals with particular characteristics may be more or less desirable for particular purposes
GENETICS
Define: Commercial Cow/Calf Producers
Sell animals to the marketplace for consumption (different breeds/production practices to meet marketplace demands)
CONVERT GRASS TO CALVES
Define: Yearly Stocker Operators
Convert grass to weight
Define: Feed Lots
Convert grain to beef
Define: Packers
Processing
Describe beef production demographics - operations and inventory
Large number of producers = SMALL (1-49 herd size) = primary income source
Small number of producers = LARGE (500+ herd size) = represents smallest number of operations but largest number of animals to end users; need supplemental income source
Describe beef production demographics - geographic location
Feedlots = high plains of Texas, Oklahoma, Colorado, Kansas, Nebraska, Iowa
Arid, dry; dust more a problem than mud
Describe the effects of beef as a commodity
Beef price cycle:
Prices are good = producers retain animals to build herd to produce more calves = increase income = keeping animals from slaughter = decrease supply = increasing price
National herd grows = supply begins to exceed demand = price drops = producers lose profitability = retain fewer animals, cull more cows = increased supply and decreasing price = producers face large losses = downsizing herds and decreasing supply
What role do individual producers play in the beef price cycle?
Individual producer cannot control this cycle = price takers!
What other factors impact the beef price cycle?
Drought (feed unavailable, high price for forage)
Export market changes (altered beef demand)
Describe the 10 year intervals of the beef price cycle
Cyclical changes in cattle prices as a response to supply/demand
Long generation time of cattle
Multi-year fluctuations in cattle numbers = influence calf production entering into cycle
Influenced by increasing productivity
Individual commodity producers can’t control overall market
What is a downside to commodity marketing?
Looking for alternative marketing strategies
What impact does number of cattle have on marketing beef?
Number decreased with high productivity/efficiency
What does the profitability of beef operations depend on?
animals sold x weight of animal x price/unit wt
Define: cow/calf income
Pounds of calf sold per breeding female
What does cow/calf income depend on?
Fertility, breeding (rate of pregnancy), calving rate, calf survival, calf weight at weaning sale
Cull cows and bulls sold
What percentage of income comes from calves vs cull animals?
80% calves
20% cull
Describe responsiveness to consumer demand in the beef market?
Cyclical changes in cattle prices as a response to supply/demand
What categories have effects on marketing beef as a commodity?
Beef price cycle
Number of cattle
Profitability of operations
Responsiveness to consumer demand
Define: Extensively Managed Range Cattle
Raised outside
Problems: exposure to weather & environmental hazard, heat/cold stress, storms, blizzards, injuries, parasites, flies, toxic plants, nutritional deficiencies, herd gathered/handled ind only few times/year-bare min (preg exam, vacc, calves processed)
Define: Intensively managed feedlot cattle
Control feed and genetics
What are feedlots and why are they used?
Designed to feed cattle for weight gain, size, and carcass quality for the “finishing” phase prior to slaughter
Response to consumer demand for choice and prime beef
Energetically very efficient
What feed is used in feed lots, why?
Cereal grains
High E density = cattle grow faster, more efficient use of E
Numerous grains used, depends on location, regional availability, cost = wheat, barley, milo, corn potatoes
Change to grains is gradual to adapt rumen microbes, use buffering agents, consider grain processing and particle size