Meat Industry INSIGHTS Newsletter

971252 Cattle Ranch Markets 100% USDA Choice Beef

December 18, 1997

Atkinson, Neb - "100% USDA Choice Quality Beef" -- We see the advertising on the T.V., the slogans on the billboards and the newspaper articles for the restaurants and grocery stores; now a ranch in North Central Nebraska can make the same claim.

HPH Company of Atkinson, Neb. recently had a set of 64 head of their black Angus steers go 100% USDA Choice or better. Bon View Bando 598 sired many of the steers through Artificial Insemination in the HPH commercial cowherd. They had over 84% qualify for CAB and had 27% Prime. There were only 2 Yield Grade 4's, with an average YG of 3.78. In addition to having excellent carcass quality, the steers converted less than 6 lbs. of feed per pound of gain and had a 0% death loss.

HPH Owners, Pete & Penny Horne were well satisfied with their herd's performance. "We fed over 400 head of steers this summer with an average 94.4% Choice quality grade or better, 13% Prime, 44% qualified for CAB and the average YG was 3.26. Over all the steers converted 5.78 lbs. of feed/lb. of gain, with a 0.2% death loss and cost of gain in the upper $30's to low $40's," Pete Horne said. "Though we are extremely pleased with the carcass quality we're not surprised. This is the kind of quality and performance we designed our breeding program to produce. Besides it's not the carcass quality, but the feed conversion which makes us the money. By comparison our steers had a Cost of Gain (COG) of less than $40/cwt versus the national COG average of $53/cwt. The HPH steers also gained nearly 600 lbs. during the feeding period. That's $78/steer we saved in feed costs through efficient gain -- more than twice the 'premium' we were paid for the high quality carcasses."

Eight years ago HPH started an intensive AI program designed and implemented by AGRI-PLAN Corporation's Tom Hogan. Hogan outlined the genetics, the Artificial Insemination system and recruited the labor to perform this large-scale program for a commercial herd, which numbers over 3,800 females. Hogan continues to be involved with the operation as HPH strives to have 100% of the steers and heifers grade choice or better and they work to expand their operation and diversify their marketing program. AGRI-PLAN is also assisting HPH with their animal identification, record keeping and performance analysis system as well as develop and implement a concise strategic plan.

"The Hornes have been great to work with and it's exciting to watch this herd progress," says Hogan. He added, "We started with a herd of Old Fashioned belt-buckle Angus cows. The cows averaged 950 lbs. and weaned only a 350 lb. calf. They raised steers that finished at 1075 lbs. at 18-20 months of age and converted 8-9 lbs. of feed per pound of gain, with carcasses that were mostly YG 3's, 20% YG 4's and only produced 70% Low Choice with a 61% dressing percentage. A willingness to change and improve, proper genetic selection and an efficient production system can work miracles in a short time."

Another technology utilized by the Hornes to determine market dates, precise feeding values and to develop genetically superior cattle was ultrasound sorting. Dr. Robert Owens, owner of UltraGenetics, O'Neill, Neb., has been using ultrasound sorting for finish cattle for several years on thousands of cattle. "Ultrasound is not an exact science, but what it does do is group the cattle so that you eliminate the 'outliers' within a group," Owen said. "We have found that if we can save the feeder just 3-4 days of feeding one way or the other, we have more than paid for the ultrasound," Owens said.

Owen was quick to point out cattle like that of the Hornes' make his job much easier as they all readily possess genetic superiority and are highly uniform. "Our value is in helping the feeders determine the proper shipping date for each individual," Owens said.

Horne, who now sells 200+ range bulls the 3rd Friday of each April at the Atkinson Livestock Market, Atkinson, Neb. said, "I don't know where we would be today if it weren't for Tom Hogan starting us on AI. With the past two years of tough cattle prices it was our cattle's efficient performance and top quality that pulled us through. Now with AGRI-PLAN assisting us with our Strategic Plan and Strategic Vision we're ready to move into the 21st Century and market the highest quality, genetically uniform cattle which produce more efficiently than those from any other herd."

"With the Hornes' willingness to embrace technology and desire to improve their herd, they will lead the way in the cattle industry for efficient, profitable production of quality beef," Hogan said. "Look out pork and poultry, we're shooting for feed conversions of less than 4 lbs. of feed/lb. of gain, carcasses that are Yield Grade in the 2's, 100% Choice Quality Grade or better and over 80% CAB. What is amazing is we're not far from those goals right now!" adds Hogan.

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