Genetics, Management Help Improve Beef

DODGE CITY, Kan. (DTN) -- The demand for high-quality beef has led to a shift in cattle genetics and management, to get better quality grades, according Paul Dykstra, supply management and analysis director for Certified Angus Beef.

Dykstra recently discussed how a shift has been seen in the percentage of cattle in the USDA prime and choice quality grades during the past five years and fewer in the select grade. Dykstra spoke at the Feeding Quality Forum in Dodge City, Kansas.

"If we go back to the low point for quality in 2006 in the United States, that wasn't so long ago. But, my, how far we've come since that period of time," he said. In 2006, 54.3% of carcasses were in the prime and choice category and 40.9% were in the select category. That has shifted to 83.7% prime and choice in 2024 and 13.1% select grade.

"Since 2006, we've had a lot of things emerging in the beef industry. We think about the inclusion of distillers byproducts in rations and the onset of camera grading, and we think about genetic improvement that has been happening. We also have seen the increase in carcass weights and extra days on feed," he added. "But we are truly offering our customers, the consumer, a much higher-quality product today than we ever have before."

QUALITY GAINS PREMIUMS

The increase in quality grade has also led to a higher percentage of carcasses qualifying for the Certified Angus Beef brand, which is at 22% of total fed cattle killed. This increase in quality grade generally means an increase in the value of the carcass as well. In 2024, there is a narrower price between choice and select, but it isn't as close as what was seen in 2020. More lean meat, but not from fed steers and heifers -- rather, from cow meat -- is needed to fill that market. When the cow slaughter is restricted, the choice-select price spread narrows.

Seeing changes in pricing when the high-quality and prime carcasses become available leads to the market not knowing what to do with the prime product.

"When we see improved supply so greatly, so quickly, we had to ask new customers to come on board. Those customers were in the retail sector, the grocery store sector, traditionally an area of business that didn't play around with prime," he said. "I think 2024 will show a 15% increase in prime, and the yield grades have also increased with heavier carcass weights and days on feed increased. This is just a sign of the times. Management is responding to the marketplace."

ANALYZING THE CARCASS DATA

Dykstra and those at Certified Angus Beef are always looking at the data as to why carcasses don't qualify for their brand. In some cases, it is in more than one category, but 10% of the total Angus-type carcasses are missing CAB by just 30 degrees of marbling or less. That is the difference between low choice and middle choice. The CAB carcasses for marbling qualification are middle choice or higher. On industry averages, these cattle are receiving a $5/cwt premium for each animal, which is more than $45 per head.

"We need to look at how we can move the needle to get a bunch more carcasses over the line," he said. "Potentially genetics, potentially management, probably both would be the best idea. By pushing 10% over the line, there will not only be an increase of CAB-qualified carcasses, but also USDA prime carcasses, and a decline in select carcasses."

Dykstra said this change could simply be by cattle producers selecting bulls to use with minimum genetic requirements of a marbling EPD (expected progeny difference) of +0.65 and a dollar grid carcass index of +55.0. Making some adjustments could help increase the quality grade of the cattle and get more premiums for producers, while providing consumers with a quality product.

Jennifer Carrico can be reached at jennifer.carrico@dtn.com

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