Thoughts for more profit??? Your Call!!! (cont.)
Bumping the Wall Per-animal production may be approaching the limits of beef cattle’s ability, while straining outer limits of the industry’s economic model. Cracks are beginning to show in the Beef System! Beef cattle’s biologic and physiological system is beginning to show strain. In pastures and feed yards, Field sees more foot and leg problems, abnor - malities like scissor-claw that he never saw before. He adds that similar issues occur in the swine and poultry industries. “What I worry about: we haven’t made dramatic improvements in reproduc - tion in any species without increasing inputs”, Field says. “Our production has required us to put more into the system. That works as long as inputs are cheap. What happens when interest rates increase to 10% to 15%? The answer discovered in recent years is that increased production could not overcome the increase in production costs. Even without consider - ing biologic or physiologic constraints, continuous increases in per-animal production, in the name of sustainability, proved to be economically un- sustainable. “From a pure profit perspective, at what point in time does one more pound of production not return value?” Field wonders. Ironically, the industry’s penchant for balanced, multi-trait selection for traits of economic importance has steered the industry successfully toward its singu- lar goal of increased production per animal, a collective single-trait approach . “In business, one of the key management responsibilities is managing polarities, the decisions that are short-term in nature and the choices that are long-term,” Field explains. “If I focus on a single trait long enough, it will have consequences . What are the system limits? What are the short- term gains and will they yield long-term benefit? As an industry, I think we need to pickup our heads and look.” “Nature limits us all of the time,” Field says. “We can’t be afraid of those limits but we have to be respectful of them. Once you cross that threshold you have a world-class wreck on your hands.” - Dr. Tom Field - As I continue to work as a speaker for livestock producer meetings, I hear more and more stories of herds where conception rates were in a range of 90% to 96% a decade or two ago. Now they struggle to get conception rates exceeding 80%. As I question further, it becomes apparent that their cows have gotten too big, are trying to produce more milk than their environments will allow, and have too little or even no heterosis. These cows have lower body condi - tion in spite of often being fed much more in the wintertime. The owners are now either running fewer cows or buying more feed. The great maternal herds are those that are more profitable at the ranch level. The cows have these characteristics; very good fertility, longevity, good udders, good feet and legs providing good locomotion, disease and parasite resistance, calving ease; young age at puberty, good disposition and great mothering abilities. - Burke Teichert -
The road to profitability lies in optimums with cattle that are genetically custom fit for a producer’s operation’s unique matrix of environment, feed resources, management and market. - Dr. Bob Hough - As technology continues to expedite the genetic discovery process, this gap might only get bigger. Unintended consequences, arise under the strain of scientific and economic achievement. It will take time and discipline to bring traits like soundness up to speed. I am by no means making an argument against genetic advancement. On the contrary, I am a firm believer in improvement and making wise use of all genetic selection tools. I simply see the road to change is not straight and narrow. It winds and turns with plenty of peaks and valleys, as well as, the occasional switch back. As a breeder, you need to understand the trade-offs that come with accelerated genetic selection. Can you afford to add that next unit of performance or milk? Or, should you keep pace just behind the curve and capture value as the rest of the systems catch up? If you continue to select for growth and milk genetics, be prepared to adjust the feed input requirements that will follow. Our push to discover that next elite genetic package is changing the beef herd from independent foragers to concentrate dependents. There are other phenotypic systems that desperately need to catch up with a hastily advancing genotype population. Evidence of this can be seen in the national beef herd by simply looking at their feet. The push to discover cattle that can be marketed as the next top genetic package for extreme calving ease, growth and marbling, is creating a significant gap in animal soundness. - Jared Wareham - Historically, the beef industry is challenged with selection of traits (breed - ing goals?) that rest within the concept that more is always better . Re - gardless of trait, we want more growth, more muscle, great average daily gain, greater feed efficiency, more marbling, more ribeye, greater percent pregnant, greater percent weaned, greater longevity, greater, more, great- er, more and on and on . Biologically, this push for more does not work. Everything has an end, and living things are best if they tend to function in a midrange, somewhat buffered from extremes. A producer selecting a bull based on the previous assumptions certainly will achieve a desired outcome, but how that bull fits into the breeding system at home simply may be unknown. - Dr. Kris Ringwall - So, why do I recommend: Terminal matings? Do it for greater profitability, simplicity of operations and to facilitate better grazing. Greater profit - ability comes because every cow can produce a calf to sell. Operational simplicity reduces cost and adds to profit. Improved grazing will ultimately add to carrying capacity and profitability. - BurkeTeichert - The “short-term cow” is a long-term problem. Lack of female longevity will cripple an operation. She can’t make a fan - cy enough calf or a heavy enough calf to make that okay. Lack of cow “stayability” has become rampant, as many have forgotten the value of responsible crossbreeding as they chase terminal benefits without regard for a whole-enterprise profit picture. Maybe this isn’t true at your ranch. However, I’d wager that if most of us did a thorough business analysis, we would find that we have built an unsustainable business trajectory by not being honest with ourselves about the maternal merit of our cow herd. - Chip Kemp -
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