Livestock and Forages News Articles
Articles published in Arkansas Cattle Business
Animal Science: Today and Tomorrow - October 2006
This month, we will report on the current strengths and limitations, future
opportunities and threats of the Arkansas purebred cattle industry as identified
by the Arkansas Beef Audit. This audit was supported by the Arkansas Beef
Council and conducted by the Division of Agriculture of the University of
Arkansas and the Arkansas Beef Council.
Five groups of 100 producers each were randomly picked from a total of
approximately 2,000. Those chosen and surveyed represented cow-calf (small and
large herds), purebred, stocker/feeder, and support industries in 66 counties.
The response rate from the purebred industry segment was 70.2%.
Next month, we will report the results from the support industries.
Demographics
Sixty-four percent of the purebred producer respondents were over 51 years of
age, and 70% had over 20 years experience. Only 12% of the respondents were less
than 40 years of age. A number of purebred producer respondents to the survey
commented on their concern over the lack of young people in the purebred
industry.
Current Strengths and Limitations
The purebred industry identified itself as a genetic resource to improve the
genomics of the cattle population by supplying better genetics to the cow-calf
industry. They see themselves in the adoption of technology that relates to
carcass quality, product consistency, EPD selection, and marketing. A second
strength of purebred cattle production within the state was a good production
and marketing environment. Arkansas’ climate was conducive to adaptation of
various breeds. In addition, the large number of small cow-calf operations
provided strong demand for herd sires. The main underlying limitation theme
suggested a concern with the value that commercial cow-calf producers placed on
herd sires. Buyers weren’t willing to pay more for better genetics and appeared
to be unconcerned with the quality of genetics (e.g. growth, carcass, etc.) they
purchased (Table 1).
Future Opportunities and Threats
Opportunities for the future of the purebred industry could be summarized
into categories of genetic advancements and education. Their focus included
educating producers (purebred and commercial cow-calf) on improved genetics
through better sire selection and emphasizing selection programs based on actual
performance and EPD’s. Findings related to future threats to the purebred
industry reiterated some of the threats identified by the large and small
cow-calf producer, stocker industry, and support industry which were
profitability and environmental and public issues. Environmental issues not only
included regulations but also land encroachment concerns as rural areas became
more urbanized. Public issues included consumer confidence, disease outbreak,
border closures, and animal rights groups that had the potential to affect red
meat consumption and the potential to negatively impact the sustainability of
production as a result of reduced demand for beef (Table 1).
Educational Opportunities
Educational opportunities that would benefit the purebred industry included
increasing the knowledge level of the cow-calf producer on sire selection.
Producing calves with greater demand would in turn demonstrate to the producer
the added value of paying more for quality genetics which would help to improve
the profitability of the purebred cattle industry. A second educational
opportunity included the continuation of maintaining consumer confidence and
demand for U.S. beef.
Table 1. Responses by Purebred Cattle Operators. (All responses are listed in
order of most important to least important)
Current strengths:
1. Better genetics
2. Understanding EPD information
3. More informed customer/buyers
4. Industry knows the value of consistent product
5. Adoption of new information and technology
6. Emphasize carcass data
7. Seedstock adapted to regional climate
8. Competitive land costs and tax rates
9. High bull demand from smaller cow-calf herds
10. Good locations for seedstock
11. Several breeds raised in Arkansas
Current limitations:
1. Bull buyers won't pay for quality genetics
2. Breeding stock value is low
3. Bull buyers not concerned with genetic quality
4. Capital investment is high—profit potential is low
5. Limited number of bulls available for buyers
6. Variety of bulls
Future opportunities:
1. Education on better bull selection
2. Educating producers on improved genetics
3. Increased demand for breeding stock
4. New technology and research
5. Emphasize bull selection by using actual data
6. Emphasize bull selection by using EPD's
7. Marketing for branded programs or alliances
Future threats:
1. Lack of profit
2. Consumer confidence in beef safety
3. National disease outbreak
4. Environmental regulations
5. Border closure issues
6. Land encroachment
Factors Affecting the Selling Price of Calves—Frame Score
USDA large-framed steers (frame scores ≥6) are expected to weigh over 1,250
pounds to grade USDA Choice. Medium (frame score 4 to 5) and small-framed (frame
score ≤ 3) steers are expected to weigh 1,100 to 1,250 pounds and less than
1,100 pounds respectively to grade USDA Choice.
In the Arkansas Livestock Auction Survey, large and medium-framed steers sold
for the same price ($118 per cwt.). Small-framed steers were severely discounted
over $22.00 per cwt. as compared to large and medium-framed steers.
For additional information, contact your local
county
Extension agent.
By: Dr. Keith Lusby and Dr. Tom Troxel
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