Producing quaility beef

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Powerpoint by Lynn Bliven on beef (meat) quality and customer perceptions

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  • from live animal through pre-slaughter handling to processing; helping you achieve eating quality excellence for your consumer.
    This workshop will identify ways producers can excel in the production of traits which directly affect profitability: growth, carcass quality, and yield under varied environments and different production systems.
  • 3% market grass-fed/organic
    97% commodity beef
  • Does not take into account environmental impact of planting, harvesting, transporting crops.
    Assumes all grass-fed beef is not efficiently raised and all grain fed beef is.
    Producing finished cattle at younger age is critical for profitability whether grain or grass finished.
  • 1. extending grazing season
    2. purposeful combinations of native, perennial and annual grazing options (warm and cool season grasses)
    3. Feeding systems: types of feeds, labor use, machinery required
  • Mid gestation (110 days) – nutrient requirements are the lowest
    Pre-calving (50 days) – period with the 2nd highest nutrient demand b/c fetus is rapidly growing. Cow should be gaining weight.
    Post calving- tough period (82 days) She must meet demand of lactation, repair her uterus for re-breeding.
    Pregnant and lactating (123 days). Highest nutrient demand, but she should be pregnant and nursing a calf.
    For BCS 6 TDN requirements increase 13% for every 10 degrees below 30 degree comfort zone
    For BCS 4 or less, requirements increase 30% for every 10 degrees below 30 degree comfort zone
  • AU grazing days
    Lb DM/Acre
    AU/Acre
  • Potential world grain shortage due to increased usage in foreign countries
    Consumer desire for favorable FA profile (health benefits)
  • cal·pain (k l p n) n. A proteolytic enzyme that is regulated by the concentration of calcium ions
    calpastatin [¦kal·pə′stat·ən] (cell and molecular biology) A protein found in all cells that is both the specific inhibitor and substrate of calpains
  • These characteristics differ in relative economic importance, especially when considering different phases of the production system.
    Reproduction traits, such as milk production and age at puberty, are the primary concern of a cow-calf producer.
    Efficiency of gain, rate of gain, and carcass traits are most important to stocker and feeder operations.
  • As USDA Quality grade goes from Standard to mid Choice
    number of dissatisfied consumers goes down
    taste increases
  • Source: Source: #207; Bowling et al., 1977 JAS 45:209
  • Why as beef producers do we need to understand cuts?
  • You need to understand break down of carcass and value of part regardless of marketing channel.
  • Price is the dollar amount that you ask for sales of a product or a service. It is one of the four P’s of Marketing: Price, Product, Placement, and Promotion. Price is critically important to the profit on the farm, but the other P’s of marketing contribute substantially to the price that you can get. Profit is the 5th P that keeps you in business. There are various costs that go into deciding what price you will charge for your product.
    1) Start with the input costs = Variable Costs (VC) i.e. fertilizer, seed, gas, labor
    If you don’t cover these you will have to shut down in a short amount of time.
    2) Add in ownership costs = Fixed Costs (FC) i.e. depreciation, interest, repairs, taxes, insurance
    If you cover these you will meet your breakeven cost to the business, but have nothing left for yourself. Every item should contribute to ownership costs. If you don’t cover ownership costs, you will have to shut down in a longer amount of time.
    3) Add in a return to you = Profitable Price - this is the price you need to survive in the long run.
    Allocate Expenses by Enterprise
    To track labor and equipment costs by product requires excellent records. You can keep track of tasks and expenses such as plowing time and fertilizer for the whole farm and allocate by square feet used by a particular product. Keep track of daily time spent for special efforts or expenses required by specific products such as transplanting separately. Add all of these together to determine costs per product. Be sure to keep track of harvestable yields or the amount of product that was actually sold, as this impacts the price per unit significantly.
  • Value vs. Price
    Many direct market farmers are afraid to charge what they need to in order to have some profit for themselves. You are providing more value to the buyer as you are closer to the customer. Ask yourself who are your competitors? Do you want to be a ‘price setter’ or a ‘price taker’? Value = Quality + Service + Price
     Your buyers want a quality product that you can provide because you can grow varieties for flavor instead of travel characteristics.
     Your buyers want to know how their food was grown. They like the fact that they have a relationship with you. This takes time on your part, but they are willing to pay for it.
     You can introduce them to new products and ways to cook specialty items. This is education that they are willing to pay for.
     Fresh un-waxed products, less fuel used, and community support are also cited as reasons many
    consumers are willing to pay more for local products.
  • Calculations for Determining Price
    Cost and Profit Method
    Add your variable cost + your fixed costs + profit needed for the particular product = Income Divide by number of units produced = price/unit
    For example:
    If it costs you $3,000 total variable costs and $2,000 total fixed costs and you want $2,000 of profit for a specific product then your total income from that product needs to be $7,000.
    Divide this by the number of units produced, and you will have the price per unit. $7,000 / 950 units = $7.38/unit
    Gross Margin Method
    This method derives from the whole business sales, costs, and planned profit. This method is usually used by retail businesses that resell products. An example of gross margin method in a vegetable business might be:
    Know your total expected vegetable sales = $10,000
    Know your total fixed costs + desired profit = $3,000 - this is the gross margin needed.
    Divide your gross margin by total sales: $3,000/$10,000 = 30%
    Know your unit variable cost = $5.00
    You divide the unit price by 1- 30% of the unit variable cost to determine the price
    $5.00 / (1-30%) = $5.00 / .7 = $7.14 per unit
    Plan for Profit – Don’t Drop Prices
    What if you have corn at $3.50/dozen according to your calculations and your neighbor has $3.00/dozen? Can you still make a profit by lowering your price? Sometimes it is better to sell fewer at the higher price than sell more at the lower price. For example, if your margin on the $3.50 is $0.50 toward profit. If you sell 300 dozen that will give you $150 in profit. You would have to sell 600 dozen if you sold at $3.25 to get the same profit. For a 7% decrease in price you have to sell twice as much product.
    Do not price your farm product below the market just because the farm income is inconsequential for you. For example, you may be able to afford to sell a dozen fresh brown eggs for $1.00, but other local farmers who rely on farm income for their families cannot - they might need the full price of $3.00 a
    dozen to cover their expenses and do not have the off-farm income you do. They could lose sales unfairly due to your indiscretion. In the interest of cooperating fully with your local farm community, keep your prices in line with market rates for any farm product, even if you can afford not to.
    Going Rate for Market Area
    Many beginning farmers start out with a pricing strategy that reflects what everyone else is charging. While this is a good place to begin, it is not where you want to be forever. It is important to know your costs and price for profit.
  • Producing quaility beef

    1. 1. Producing Quality Beef Customers Seek Lynn A Bliven Association Team Coordinator Cornell Cooperative Extension Allegany/Cattaraugus County
    2. 2. What factors affect eating quality?
    3. 3. With rising demand and shrinking beef supply, consumers may face higher prices at the meat case.
    4. 4. How will you provide the product consumers desire at a price they are willing to pay?
    5. 5. “The greatest agricultural resource of New York is its exceptional adaptation for the growth of grass. Yet the hay crop has received little attention and pastures have rarely received any care… It would certainly seem good policy to consider means of increasing the efficiency of our pastures”. --Dr. G. F. Warren. 1910
    6. 6. Traditional Production At any given time, about 15-20% of all beef cattle in the US are housed in feedlots. They account for about 10% of all corn use in the US. 80-85% of the life cycle of traditionally-raised beef cattle in the US depends on grass and forages as the sole nutritional source.
    7. 7. If you do the calculations based on the YAN prediction equation and account for the time, manure production, and total meat production from 20% forage to 100% forage in the diet, the methane production increases by 500% Per pound of beef produced. Canadian, US, and Australian studies have confirmed these results. The bigger picture is more than methane. Source: 2008 http://snipurl.com/methanecartoon, Last accessed May 7, 2010
    8. 8. Beef Cattle Options Cow/calf Stocker Finishing
    9. 9. Profitability    20% of variation due to productivity 80% of variation due to costs 60% of variation in costs due to feed costs
    10. 10. Difference between profitable and unprofitable cow/calf operations       Lower feed cost, less debt and lower operating expense Productivity: higher sale weights, conception rate and pounds weaned/cow exposed Better management of genetics, herd health and pastures Measuring performance, benchmarking and choosing the right replacement stock Matching genetics to market Correct use of technology
    11. 11. Cost reduction Shift in costs occurred through: 1. Adding grazing days (extended grazing) 2. Shift in grazing systems 3. Adjustments in feeding systems
    12. 12. Nutrient Requirements of a Beef Cow 52% TDN 10% CP 22 52% TDN 10% CP 20 52% TDN 8% CP 16 52% TDN 8% CP ion 14 g in lv ca re P Post Calving Pregnant and lactating e -g id M ge s tat 12 Mi d- 10 n tio a st Month D EC V N O T O C P SE AU G JU L JU N AY M AP R AR C H M FE B 8 JA N TDN lb/day 18
    13. 13. Stocking Method Comparison Animal Unit Grazing Days/Ac Adapted from Emmick, Fox, and Seaney, 1990 300 285 250 7410 200 150 100 50 0 16-Paddock 173 1.7 125 4-Paddock 3250 4498 Continuous 1.1 .76 Stocking Method 1
    14. 14. Grass Fed Beef is an important part of the Beef industry because: 1.It engages customers that may not eat any other beef. 2.It meets the criteria for customers that desire information about how their food is produced 3.It meets the needs of customers that do not wish to have animals confined. 4.It is usually produced and marketed locally so customers are face-to-face with farmers. 5.It is an important lifestyle for many farmers.
    15. 15. Increased interest in beef finished on forage •Reduced cost of gain •Potential world grain shortage •Energy conservation •Consumer desire for leaner meat •Philosophical predisposition to no grain feeding •Health benefits
    16. 16. Can cattle be finished on all forage? Forage finished beef is more variable: • flavor • tenderness •lean color •retail shelf life
    17. 17. Can cattle be finished on all forage? Discriminated by packers: • lower Dressing Percentage • increased Cooler Shrink • lower Quality Grade
    18. 18. Winter Performance Requirements Assumptions: •BW 85 lb •Calving date May 1 •WW 578 lb (2.5 WDA) •Harvest weight 1100 lb. To finish on grass: Cattle must gain 1.5 -2.0 lb/day during winter feeding period. If WDA through weaning is only 2.0 lb, then winter gain must be 2.0/day
    19. 19. Performance of cattle fed hay crop silage and dry hay during winter feeding period Feed ADG, lb Source Hay 0.3-2.0 Gallagher, et al., Baker & Buchanan, Baker & Ketchen HCS 1.3 – 2.1 Baker & Buchanan, Baker & Ketchen
    20. 20. Performance of cattle grazing BMR Sorghum Sudan Grass Weight, lb ADG, lb Source 1156 2.7 Cornell 453-566 2.4 - 2.8 Texas A&M
    21. 21. Growth Rate  Faster is better for palatability  Strive for 2.0 lb/day for at least the last 100 days   Improves calpain/calpastatin Animals will be ready for market at younger age
    22. 22. External Fat  A target of 0.3 - 0.4 inches is good   Allows slower chilling and prevents strong cross bonds between muscle filaments. Also demonstrates animal has adequate energy for rapid growth and that muscle tissue growth is stopping
    23. 23. Maturity (animal age)  Strive for < 24 months    Less connective tissue cross linking Older animals are less tender Fewer problems with BSE regulations (cattle are aged by dentition which is not always precise)
    24. 24. Maturity (animal age)  Strive for < 24 months    Less connective tissue cross linking Older animals are less tender Fewer problems with BSE regulations (cattle are aged by dentition which is not always precise)
    25. 25. Key Points  Multiple and varied benefits of grazing  Economic benefits vary  Forage can meet nutrient requirements of cattle of all ages  Research needed to manage meat quality  Consistent market required
    26. 26. Frame Score  What is it?  Measurement based on observation and height measurements when claves are evaluated at 205 days of age  Uses?   To estimate expected size of animal when it reaches maturity Sire selection
    27. 27. Carcass Value vs. Meat Quality  Commodity market 1. 2. Carcass value Meat quality  Specialty market 1. 2. Meat quality Carcass value
    28. 28. Major characteristics important in beef production include: • mature body size, • milk production, • age at puberty, environmental adaptability, • rate and efficiency of gain, • • muscle expression, • cutability, and • marbling.
    29. 29. Carcass Physiological Age/Maturity Younger cattle produce beef with: Superior Color Finer Texture Superior Firmness Maturity Score Age In Months A 9-30 B 30-42 C 42-72 D 72-96 E 96+
    30. 30. Beef Quality Grades Maturity Click to add text Marbling A Abundant Mod. Abund. Prime Sl. Abund. Moderate Modest Choice Small Slight Select Traces Standard Pract. Dev. B C D Commercial Utility E
    31. 31. Pricing Grid, Value Discovery, 2012 Factor Premium, $/cwt Quality grade Prime +$0.08 Choice $0.00 Select -$0.08 Sex Heifer -$0.01 Yield grade YG2 +$0.02 Weight, lb <550 -$0.15 >949 -$0.15 Dark,NR -$0.18 Defect
    32. 32. Slight Moderate Small Modest Slightly abundant Moderately abundant
    33. 33. USDA Beef Quality Grades         Most Desirable  M A R B L I N G  USDA Prime USDA Choice USDA Select USDA Standard USDA Commercial USDA Utility USDA Cutter USDA Canner Least Desirable Beef quality refers to the expected palatability of the final cooked product USDA Quality Grades are used to reflect differences in expected eating quality among slaughter cattle and their carcasses
    34. 34. How Do Quality Grades Work? How Do Quality Grades Work? Percent of Loin Steaks Receiving Desirable and Percent of Loin Steaks Receiving Desirable and Undesirable Overall Palatability Ratings Undesirable Overall Palatability Ratings Smith et al. (1987) Smith et al. (1987) 5.6% Prime 10.8% Choice 26.4% Select 59.1% Standard 8 7 6 Extremely Desirable 5 4 3 2 1 Extremely Undesirable
    35. 35. Meat Quality- Sensory Characteristics Tenderness factors a. b. c. d. e. f. g. Sarcomere shortening Aging Animal age Genotype Time on feed Gender Degree of doneness
    36. 36. Sensory Tenderness 7 6 5 4 3 0.04 0.09 0.16 0.23 0.30 0.37 Fat thickness, in. Shear Force, kg 10 9 8 7 6 5 0.04 0.09 0.16 0.23 0.30 0.37 Fat thickness, in. Sarcomere Length, mm 2 1.9 1.8 1.7 0.04 0.09 0.16 0.23 Fat thickness, in. 0.30 0.37
    37. 37. Meat Quality - Days On Feed DOF 0 30 60 90 100 130 160 200 230 % of Panel Ratings Higher than 5.00 Overall Flavor Tenderness Palatability 64 59 51 93 48 59 90 90 70 79 68 63 95 100 93 100 93 91 100 100 93 100 95 95 100 100 97 Source: Dolezal et al., (1982)
    38. 38. Meat Quality- Sensory Characteristics Tenderness factors a. b. c. d. e. f. g. Sarcomere shortening Aging Animal age Genotype Time on feed Gender Degree of doneness
    39. 39. Relationship between body condition score and body fat Body Condition Score Percent Total Body Fat Subcutaneous Fat Cover (inches) 1 0.7 0 2 5.0 0.004 3 9.3 0.005 4 13.7 0.11 5 18.0 0.19 6 22.3 0.29 7 26.7 0.41 8 31.0 0.54 9 35.3 0.68 Rick Hardin. Using Body Condition Scoring In Beef Cattle Management. The University of Georgia College of Agricultural & Environmental Sciences Cooperative Extension Service Circular 817/December, 1990. http://www.ces.uga.edu/pubcd/c762-w.html
    40. 40. Effect of Rates of gain vs. Fat in gain Fat in gain, % 60 50 40 0.6 kg/d 1.0 kg/d 1.3 kg/d 30 20 10 0 200 300 400 Shrunk Body Weight, kg 500
    41. 41. Suggested window of acceptability for strategic alliances Minimum 100 days in a high energy diet Carcass weight 650-800 lb. Low Choice QG Yield grade 3 or better Manage for tenderness – maximum age of 18 months – fat depth .3-.5 in. for insulation – electric stimulation of carcass – min. aging in box of 14-21 days
    42. 42. Juiciness Marbling Marbling stimulates the salivary glands and influences the perceived juiciness of beef  Insulatory effect during cooking   Juiciness  Fat slows down the migration of heat and decreases the shock effect of heat on protein degradation and moisture loss. The amount of water and fat lost during cooking is reduced
    43. 43. The #1 Reason Consumers Purchase Beef T E! ST A
    44. 44. Beef Flavor Intensity/Desirability/Overall Species-specific carbonyl compounds located in the intramuscular fat determine flavor Primary determinants of beef flavor desirability are: 1) 2) 3) Nutritional regime Feeding duration Flavor increases as marbling/fat increases
    45. 45. Factors affecting meat quality: Live animal/production factors 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Weight (initial & final) Breed ADG Age Weight/DOA Gender Pasture days Feedlot days Total days Dietary fat
    46. 46. Tenderness and sensory characteristics by sire breed 9.1 5.8 9.2 Tend. score 5.6 4.9 5.7 Sensory panel Flavor Juiciness score score 4.9 5.3 5.4 4.9 5.4 Simmental Gelbvieh Limousin Charolais 9.5 10.0 9.5 9.6 5.6 5.3 5.6 5.5 4.9 4.8 4.9 4.9 5.3 5.2 5.3 5.2 LSD<.05 0.7 0.3 0.1 0.1 Sire Breed Hereford Angus Red Angus WBS, lb. 8.9
    47. 47. Meat Quality-Physical Factors #1-Total fat = 135 lb. #2 – Total fat = 207 lb.
    48. 48. Regression equations Marbling impacts  Tenderness  Juiciness  Flavor intensity  Overall desirability
    49. 49. Regressions of meat quality indices on carcass measurements Factor Prediction equation R2 Tenderness 4.95 – 0.002 x marbling 0.04 Flavor desirability 6.47+.02 x HCW - .0836 x REA 0.30 Flavor intensity 0.005 x marbling 0.44 Overall desirability 3.81 + .0063 x Mrb – .0267 fat 0.24 Owens and Gardner, 1999
    50. 50. “For overall maximum meat quality, these equations indicate that the preferred animal is one with a high degree of marbling but minimal fat cover.” Owens and Gardner, 1999
    51. 51. Regressions of meat quality indices on beef production factors Factor Prediction equation R2 Tenderness 7.86 - .0027 x FW +.643 x ADG – 1.39 x Wt/DOA 0.49 Flavor desirability 8.26 + .0063 dietE – 2.62 x Wt/DOA 0.55 Flavor intensity 15.04 - .0029 x FW – .0031 x DOF – 6.43 x Wt/DOA 0.95 Overall desirability 8.92 – 3.115 x Wt/DOA 0.71 Owens and Gardner, 1999
    52. 52. External Fat Thickness and Beef Palatability Tenderness, % Very Desirable Desirable Undesirable Fat Thickness (3/ 4 measure) < .20 .20 - .40 > .40 24 43 33 33 44 24 49 47 4 Overall Palatability, % Very Desirable 6 Desirable 50 Undesirable 44 17 61 22 38 52 10 Source: Dolezal et al., 1982
    53. 53. “For optimum overall meat quality, the ideal animal appears to be one that is older (but still under 30 months) and that has gained rapidly, but not excessively heavy at harvest.” Owens and Gardner, 1999
    54. 54. “No Better Bull” Profit Tips 1. 2. 3. 4. 5. Smaller cows Later calving Hybrid vigor-wean 23% more Use composite bulls Develop heifers to 55% of mature weight 6. 7. 8. 9. 10. Avoid scours Fenceline weaning Pre-condition Select for feed efficiency Capitalize asset base
    55. 55. Pricing On the hoof On the rail By the piece
    56. 56. Pricing
    57. 57. Know your Costs Price for Profit  1) Start with the input costs = Variable Costs  2) Add in ownership costs =  3) Add in a return to you = Price Fixed Costs Profitable
    58. 58. Value vs. Price  Value = Quality + Service + Price    Your buyers want quality Your buyers want to know how their food was raised Your buyers are wiling to pay for education
    59. 59. Calculations for Determining Price  Cost and Profit Method  Gross Margin Method  Plan for Profit – Don’t Drop Prices  Going Rate for Market Area
    60. 60. Questions?? Credit for contribution of content: Michael J. Baker, Cornell University Beef Extension Specialist

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