Overview of the U.S. Beef Industry

1
Overview of the U.S. Beef Industry

• Adv Animal Science
• Sutherlin AST
• September 7, 2011

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Size of the Industry

• World Production
• US Beef veal 12,298 (1000 metric tons)
• EU Beef veal 7,462 (1000 metric tons)
• Brazil Beef veal 6,520 (1000 metric tons)
• Country with most cattle?

3
US Cattle Industry

• Factors that dictate where beef production
  occurs
• Land area
• Outlets for market
• Strong correlation between corn/cow concentration
• 100.0 million head as of July 1, 2011 (down 1.1
  from 2010) lowest since 1973

4
US Cattle Industry

• Cattle population by state
• Texas
• Nebraska
• Kansas Why these states?
• Oklahoma
• California
• 22. Oregon - 1.33 million head of cattle/calves
  (1/1/11)

5
Oregon Beef Production

• Beef is 2 commodity in Oregon (behind
  greenhouse)
• Factors
• Markets
• Climate
• Land

6
Oregon Beef Production

• Major counties (beef dairy) 2009
• Malheur (158,000 head)
• Harney (115,000 head) Why these counties?
• Baker (94,000 head)
• Klamath (87,000 head)
• Morrow (78,000 head)
• 9. Douglas (54,000 head)

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Oregon Beef Production

• Major counties (beef dairy) 2011
• Malheur (200,000 head)
• Morrow (105,000 head)
• Harney (100,000 head) Why these counties?
• Klamath (88,000 head)
• Lake (75,000 head)
• 8. Douglas (50,500 head)

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Organization

• The US Beef industry involves four major segments

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Organization
Type Size
Seedstock 120,000 producers 80 breeds
Commercial cow-calf 830,000 producers 33.4 million beef cattle
Feedlot 1,171 feedlots 23.2 million fed cattle yearly
Packers 780 packers Most owned by 3 firms
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Cow-Calf Operations

• Two types
• Commercial producing product animals
• Seedstock producing genetics

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Cow-Calf Operations

• Seedstock
• Provide genetics for commercial producers
• Market through show ring/annual sales
• Keep EPDs, records (purebred, registered
  breeders)
• Genetic engineers of the Beef Industry

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Cow-Calf Operations

• Seedstock continued
• Large players (500-2000) provide for other
  seedstock operations
• Very active in livestock shows (Denver is
  largest)
• Can become disconnected from commercial industry

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Cow-Calf Operations

• Seedstock continued
• Registered breeders primary source of income is
  selling bulls to commercial operations
• Must remain cognizant of what is happening in the
  industry

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Cow-Calf Operations

• Commercial
• Keep feed costs low by using range/forage
• Primary emphasis calf production
• calf crop calves weaned X 100
• cows exposed

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Cow-Calf Operations

• Commercial continued
• Concerns
• calf crop
• Weaning weights
• Longevity of cows (takes 5-7 years
• to pay for female)
• Majority of producers sell
• calves at weaning

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Cow-Calf Operations

• Commercial continued
• Retained ownership raise cattle until weaning
  and own through harvesting
• May allow for more profit to calf producer
• Also increases risk
• May encourage
• production of better
• quality, more uniform
• product

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Stocker/Yearling/Forage

• Usually short term owners
• Buy weaned cattle in fall, sell in spring/summer
• Primary purpose put weight on cattle using
  forage

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Stocker/Yearling/Forage

• Calves may need to grow so they dont finish too
  light
• Preferred weight 300-500 pounds
• Can improve or even out cattle

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Stocker/Yearling/Forage

• Concerns
• Buy low/sell high
• Live weight gain (look for light, thin cattle)
• Survival of cattle
• Health management
• Timing

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Feedlots

• Increase value of beef through finish
• Finish fat more finish means better quality
  grade
• Increase marbling for palatability, tenderness,
  eating experience

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Feedlots

• May increase consistency
• Found where corn is grown
• All cattle in feedlots fed concentrates
• Concentrates feeds high in energy (grains)

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Feedlots

• Concerns
• Cattle ownership versus custom feeder
• Health
• Feed prices
• Average Daily Gain (ADG) and Feed Conversions

23
Packers

• Convert live animal to eatable product
• Large packers next to large feedlots
• All industry controlled by three firms
• IBP, Conagra, Excel

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Packers

• Concerns
• Food safety
• Yield grade
• Quality grade
• Shelf life
• Dressing percentage

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Map it Out!

• Create a flow-chart diagram that shows how cattle
  move through the industry
• Dont forget the last step all products end up at!

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Examples of Operations

• Use the Internet to find two US cattle
  operations. They must be involved in two
  different segments (cow-calf, stocker, etc).
• Prepare a brief description of this operation
• Who are they/where are they
• What segment of the industry they are in
• 4-5 sentences describing their business