Notes
Slide Show
Outline
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Raising Natural Beef - Opportunities and Risks
  • Dan Loy
  • Iowa State University
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What is Natural Beef?
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USDA Definition of Natural
  • - A Product containing no artificial ingredient or added color and is only minimally processed
  • - Can add label claims to further define natural, if you can document the verification process.
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Examples of Natural Beef “negative” labeling claims
  • - No implants
    • - lifetime or last 100 days
  • - No subtheraputic antibiotics
  • - Grass fed
  • - No animal byproducts
  • - Family farm raised
  • - No pesticides, herbicides or anthelmentics
  • - Tested for residues
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Non-Hormone Treated Cattle (EU)
  • - USDA certification program
  • - requires traceability
  • - documentation and records
  • - control and segregation
  • - affidavits
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Organic Beef
  • - USDA rules currently being written
  • - Private certifying agents
  • - Example of one organic beef company requirements
    • - organic feeds, no animal byproducts, GMOs
    • - no antibiotics, implants or pesticides
    • - no inhumane animal treatment, no irradiation
    • - no genetically modified cattle, embryo transfer
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Response to Implants (Yearling Steers)
  • - Comparison of Estrogen (E), Estrogen Reimplant (E/E), Combination (ET) and Combination reimplant(ET/ET) vs controls
  • - Treatments increased returns $23.21, $34.95, $45.02 and $55.84 per head
  • - Equally treated comparisons as part of a 7-trial ISU summary
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Response to Implants
(Younger Steers)
  • - Comparison of Estrogen reimplant (E/E), Combination reimplant (ET/ET) and delayed implant (C/ET) vs Controls
  • - Treatments increased returns $20.64, $61.11 and $61.51 per head
  • - Equally treated comparisons as part of a 7-trial ISU summary
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Typical response to Ionophores (% of controls)
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Expected average response to implants and ionophores in a finishing ration
  • - Implants
    • - ADG increased 15%
    • - F/G improved 8%
  • - Ionophores
    • - no change ADG
    • - F/G improved 5%
  • - Implants + Ionophores
    • - ADG increased 15%
    • - F/G improved 13%
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Economic cost of not implanting and feeding ionophores
  • - Feed cost at $100 per ton
  • - Non-feed cost at $.40/day
  • - ADG decreased for 3.0 to 2.6
  • - Feed/gain increased form 7.0 to 7.91
  • - Feed cost increases from $.35 to $.40
  • - Non-feed cost increases from $.13 to $.15
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Total cost difference for 600 lb. of gain
  • - implanted and fed ionophore:
    • $.48*600 = $288
  • - no implant or ionophore:
    • $.55*600 = $330
  • - Premium need to offset performance:
    •  $42
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Minnesota Reduced Management Study
  • - 160 yearling steers (857 lb)
  • - with and without the following treatments
    • - Rumensin
    • - Synovex-S
    • - Warbex (grubs)
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Effect of Implant and Ionophore on performance
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Total cost difference calculated for Minnesota study
  • - $219.08 vs $244.16
  • - Difference of $25.10
  • - No reference to feed and non-feed cost assumptions
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What about feeding bulls rather than implanting?
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ISU Fast Food Bull Beef Studies/Demos
  • - 1,023 Beef bulls and 263 Holstein bulls were fed in commercial feedlots
  • - Objectives were to evaluate practical management problems and retail cutout of young bulls for grinding beef
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ISU Fast Food Bull Beef Studies/Demos
  • - Few management problems in the beef bulls (riding)
  • - High death loss in the Holsteins (4.6% from 110 to 200 lb.)
  • - Low summer intakes in Holsteins (all bulls in one pen)
  • - Beef bulls produced 80% lean carcasses
  • - Holsteins had less fat and 5% more bone
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Production Risk/Market Risk
  • - Figuring Increased costs of production is much easier than developing a market
    • - Reducing marketing risks
      • - Market into an existing, established brand
      • - Join an existing marketing co-op
      • - Do lots of market research (look before you leap)