Herdquitter Blog

According to the Livestock Marketing Information Center (LMIC), the cost of producing a calf has increased from $384 in 2000 to $883 in 2014.   It more than doubled in just 14 years.   Keep in mind, though, that this is an average cost of production.   Some cow-calf producers have a much higher cost of production, while others have a much lower cost of production.

 Most longtime PCC customers have a cost of production of $400 to $500 per calf.   That is a $300 to $400 per calf advantage over average.   If you spend $300 to $400 less to produce a calf, you have essentially increased you profit per calf by $300 to $400.   In this business, that’s HUGE!

 There is another “Cost Per Calf” figure we should discuss…

 According to many university experts, you can only expect to get three years of use out of a high-maintenance, feedlot-developed Diesel Bull.   Even with supplementation, most Diesel Bulls can service no more than 20 cows their first year and no more than 30 cows their second and third years – for a lifetime total of 80 calves.   If the average Diesel Bull sells for $4000, your cost per calf is $50 ($4000 divided by 80).

 It is not at all uncommon for PCC Solar Bulls to provide at least six years of service.   In most cases, we are not afraid to turn our Solar Bulls out with 30+ females their first breeding season.   We expect our bulls to gain weight during their first breeding season – without being supplemented.   Our mature bulls can handle 50+ cows – for a lifetime total of at least 280 calves.   If the average PCC Solar Bull sells for $6000, your cost per calf is only $21 ($6000 divided by 280).

 Are you really saving money by purchasing a Diesel Bull for $2000 less than a PCC Solar Bull?   Hardly!   At $6000, a PCC Solar Bull is a bargain!   Your cost per calf will be nearly $30 less with a $6000 PCC Solar Bull than with a $4000 Diesel Bull.   Purchasing PCC Solar Bulls will also be one of the best investments you can make for the future of your business – and they come with a One-Year Warranty!

 NOTE: Most of today’s bulls are high-maintenance animals that require high levels of energy (grain, etc.) to perform.   We refer to these bulls as Diesel Bulls.   In contrast, our ultra-low-maintenance bulls can perform quite well on a year-round, all-grass diet.   We refer to these bulls as Solar Bulls because they don’t require anything other than free solar energy.

 In commodity agriculture, average is breakeven.   Below average producers are losing money.   The only way they can stay in business is to subsidize the farm or ranch with outside income.   Above average producers are profitable.   Some are extremely profitable.   They are profitable because their management differs substantially from average producers.   They have a distinct competitive advantage.

 Most PCC Customers are well above average.   Many have doubled their profits.   They are focused on production per acre – instead of production per cow (bragging rights).   They are using ultra-low-maintenance bulls – instead of the high-maintenance bulls everyone else is using.   They know nothing affects profitability as much as stocking rate and cost of production.

 Following the crowd and doing what everyone else is doing has never been the best way to manage a business.   In most cases, it is the absolute worst way to manage a business.   If you are part of the status quo herd, you will never be above average – and you will never have a competitive advantage.   Dare to be different.   Dare to be a Herd Quitter.

 John Nino, a PCC customer from California, showed up at our Nebraska Bull Sale last Saturday.   He and a couple of companions were in the area to buy some horses.   John purchased some bulls while at the sale.   While he was waiting for health papers, he came into the office to visit.   John shared the following story with everyone in the office – a story that I remember very well.

 The morning of our 2007 Colorado Fall Bull Sale (12 years ago), John called the PCC office at about 8:30 to submit some late sight-unseen bids on calving ease Black and Red Angus bulls.   I was in a hurry to get to the sale location in Burlington, Colorado – so I was probably a little short and rude with John.   Thankfully, John doesn’t remember it that way.

 John said he wanted five calving ease bulls and gave me a long list of bulls he wanted to bid $3000 on.   I promptly (and arrogantly) told him he would probably not get any of those bulls for $3000.   In response, John said he would increase his bid to $3500.   I told him he would be lucky get any of those bulls for $3500.

I took John’s late sight-unseen bids – and I am really glad I did.   John purchased five bulls for an average of $3120 – with a range of $2750 to $3500.   He would have only purchased two bulls with his original $3000 bid.   Two of the bulls he purchased would have been no-sale bulls if I had not taken his sight-unseen bids.

 John was concerned when the five grass-developed bulls arrive in California because they were not as big or as fat as the feedlot-developed bulls he was accustomed to.   John closed he eyes and turned those five bulls out with 300 heifers (60 heifers per bull).   Based on past experience, he expected only 120 to 150 of the heifers to get bred.   John was happily surprised when over 80% (245 out of 300) were bred.

 My favorite John Nino quote is, “The ability of your bulls to breed a large number of heifers in a short period of time has greatly improved my profitability.”   Since that sale in the fall of 2007, John Nino has purchaser 151 PCC Solar Bulls.   Most of those bulls were purchased for $3000 to $5000.   I am so glad I did not blow John off because I was in such a hurry to get to the sale in 2007.

 Instead of complaining about the markets or the weather or anything else, John says he feels blessed to be in the cow-calf business.   I agree with John 120%!   The cow-calf business is easy, it is fun and it is very profitable once you remove yourself from the status quo herd and the status quo, herd-mentality way of thinking.

The most gratifying part of my job is hearing from people who made the transition from high-input, break-even ranching to low-input, profitable ranching.   I receive emails on a weekly basis from those who are so glad they made the transition when they did.   Most wonder why it took so long to see the light.   I can remember having the same thoughts myself over 30 years ago.   Making a paradigm shift of this magnitude is not easy.

I visited with many PCC customers at our spring bull sales.   Most long-term customers have operations that are much more profitable, enjoyable and sustainable than they ever thought possible prior to making the transition.   I also visited with people who were very enthusiastic about taking the first steps in making the transition.   They saw the light, and they are extremely excited about the future for their family and their business.

A few new customers will admit they are a little nervous about making the transition.   It requires going against what their neighbors and family believe to be right.   They have seen the light – but they are reluctant to enter what we call the New Frontier in Beef Production.   I remind them that the New Frontier is not totally uncharted territory.   Well over 2000 PCC customers and others are already there.   Those who are part of the New Frontier are two to five times more profitable than their status quo neighbors will ever be.   Their lifestyle is also substantially better than their neighbors.

Status quo ranching may have made sense 40 to 50 years ago – but it is making less and less sense every year.   As cattle prices continue to go up and down, up and down, the cost of land and inputs continues to increase – sometimes at unprecedented rates.   Most status quo producers are slowly but surely going broke.   Some status quo producers see the futility in what they are doing – but it seems as though they would rather fail conventionally than succeed unconventionally.

The fact that most status quo producers will not change until they are forced to change gives the rest of us HUGE opportunities.   Throughout history, the first to enter new territories and new frontiers have always had HUGE advantages over the late-comers.   I continue to believe the next ten years will be remembered as the best of times for some – and the worst of times for others.

By Tim Goodnight

 Over the past two weeks, we have discussed several important areas that producers must address in order to produce high-quality grassfed beef.  This week, I would like to discuss two of the most frequently asked questions we hear when visiting with customers.

 Endophyte-infected fescue is one thing many PCC customers ask about.  With endophyte-infected fescue accounting for 35 million acres of grassland and hosting 8.5 million head of cattle, it is the main forage resource for many PCC customers.  Simply put, endophyte is a fungus that exists within the plant that produces toxic ergot alkaloids.  These toxic alkaloids, when consumed by cattle, can result in fescue toxicity, fat necrosis and fescue foot.  Symptoms such as a reduction in feed intake, reduced daily gains, elevated body temperature, increased respiration rate and lowered reproductive performance have all been documented. 

 While there is limited research on the flavor profiles of grassfed beef finished on endophyte-infected fescue, testimonials seem to indicate that beef quality, flavor and texture are all negatively affected.  With that said, there are several successful grass-finishers in the “fescue belt.”  They have accomplished this by adopting grazing techniques that have improved soil health and significantly increased plant species diversity.  These producers are also using superior grass-based genetics that have been bred and selected for fescue tolerance.

 Protein/Energy Ratio.   Protein content of finishing forages is another topic many customers ask about.  Most ranchers we speak to talk about protein when discussing forage quality.  In nearly every case, protein is not the most limiting nutrient in grass-finishing pastures.  Energy is.  Too much protein and/or not enough energy in the animal’s diet will create “off-flavors” in the meat.  Excess protein that is capable of creating “off-flavors” is often seen when producers finish cattle on immature forages that are high in soluble and degradable proteins.

 When grass-finishing cattle on planted annuals, it is important to monitor Total Digestible Nutrients (TDN)/ Crude Protein (CP) ratios.  TDN at 70% or above and CP at 18% or below should be the target.  TDN/CP ratios between 3.5 to 5.5 would be ideal in most cases.  Typically, when the ratio drops below 3.5, you encounter too much protein and not enough energy.  When the ratio climbs above 5.5, you likely have overly mature forages that are low in both energy and protein.  This is a general guideline and there are exceptions.

 In addition to forage analysis, producers can determine forage quality by measuring plant BRIX levels using a refractometer.  Plant BRIX is a measure of the soluble sugars, proteins, minerals, amino acids, lipids, and pectins in the plant.  While many universities have animal nutrition tables that predict performance based on forage analysis, we have found plant BRIX to be more accurate at projecting ADG and animal performance.  Forages with high BRIX levels have been shown to produce beef that is superior in flavor, texture and nutritional profile.

 You are what you eat.  This is true for cattle as well as for people.  Grass-finishing beef is best accomplished by taking a systems approach.  Soil health, forage quality and diversity and adapted grass-based genetics are all required to produce high quality grassfed beef. 

By Kit Pharo

Whether you want to believe it or not, your long-term success in the cow-calf business will be dependent on your willingness to make some changes.   We all have the ability to change – but not everyone has the willingness to change.   Unfortunately, most producers will not change until they are forced to change.

Cattle prices will continue to go up and down, up and down – while the cost of inputs will continue to go up, up, up.   In the last 50 years, the cost of inputs has risen four times faster than cattle prices.   As time moves on, more and more producers will fail to have enough income to cover their expenses.

 WHATCHA GONNA DO?   

 Those who would like to increase their long-term profit need to start thinking in terms of production and profit per acre – instead of per animal.   They need to work with nature – instead of against nature.   They need to implement proper grazing management to make the most of every ray of sunshine and drop of rain that falls on the land they control.   They need to reduce and eliminate expenses.   And… they need to produce cattle that fit their environment – instead of artificially changing the environment to fit their cattle.

 Pharo Cattle Company has the low-input, grass-based genetics you will need to produce efficient, easy-fleshing, 3 to 4-frame momma cows that can increase pounds and profit per acre.   Our 3 to 4-frame cows weigh 1100 to 1250.   That’s big enough!   In contrast, most seedstock producers have high-maintenance, 5 to 7-frame cows.   Their bulls will continue to take you farther and farther in the wrong direction.

By Tim Goodnight

 In last week’s discussion on what is required to produce quality grassfed beef, I focused on animal genetics.   While selecting the right genetics is essential to producing quality grassfed beef, there are several other factors to consider.

 Grassfed beef producers face many challenges that the feedyards do not.   Feedyards are very good at producing vast amounts of beef in confined areas using formulated rations.   Unfortunately, many consumers feel these production practices produce beef that lacks flavor.   A growing number of consumers are also concerned about the environmental, human health and animal welfare aspects of conventional production practices.

 When it comes to producing flavorful beef that is better for the environment, the consumer and the animal, grassfed beef producers have an incredible story to tell.   While this story is important, it must be backed by a high-quality eating experience. 

 Soil Health is at the top of the list when it comes to producing quality grassfed beef.   While the chemistry of the soil may be useful in determining yield and dry matter production, soil biology is a better tool for predicting forage quality and animal performance.   Moving away from the use of synthetics and tillage, while maintaining a living root system and introducing adaptive grazing principals will stimulate soil biology and build soil organic matter.   Improving soil health will benefit animal performance and health, as well as the quality of the meat produced.

 Forage Diversity is also important to both animal performance and meat quality.   The benefits of species diversity in grazing programs has been well documented.   The symbiosis that takes place between plant species when a variety of root systems exist cannot be ignored.   Increased dry-matter production, improved animal health and performance along with significant increases in soil organic matter have all been documented.   While introducing diversity is easy to accomplish in planted cover crop mixes, the latent seed bank present in our pastures can also be accessed to increase diversity through the implementation of adaptive grazing techniques.   

 Water Quality is another critical factor when it comes to animal performance and the flavor of the meat.   The muscle of an animal is roughly 75% water.   Water quality problems such as high concentrations of minerals, nitrates, bacterial contamination, algae growth, fertilizers and/or other chemicals can impact flavor.   If water quality is poor or tastes bad, cattle will limit how much they drink.   Limited water intake will reduce forage consumption and daily gains.   Knowing that water consumption is essential for animal performance and that the rate of gain effects carcass quality, it should be no surprise that water quality impacts not only the flavor but several other meat attributes as well.

 Finally, grass-finishers must place an emphasis on Stockmanship.   Producers can do everything right when it comes to genetics, soil health, forage diversity and water quality but can lose it in an instant with poor stockmanship.   Poor animal handling will stress cattle.   This stress causes several chemical reactions that negatively impact meat flavor and texture.   How the animal is handled from the time it’s a calf to the time it’s processed is critical in achieving quality grassfed beef.

 Whether you are a grass-finisher or not… the issues discussed above are the same issues that determine your success on the ranch.   This alignment between cow-calf producers and grass-finishers is one of the most exciting developments in the beef industry.   Never have the interests of the ranchers and finishers been more closely aligned than they are in the grassfed beef sector.

 We will continue this discussion next week…

By Kit Pharo

Over the years, I have probably had over 200 people say, “I know PCC genetics work great on the ranch – but how do they work in the feedlot?”   I don’t get asked that question nearly as often as I did just five years ago – but often enough that I feel the need to publicly answer it. 

 Let me begin by saying, nearly all of a ranch’s profit or loss is a result of what happens within the ranch’s fences (on the ranch).   That is the primary reason we don’t spend much time discussing what happens beyond the ranch.   Ranchers who have increased their production and profit per acre by 50 to over 200 percent may not have exactly what the sale barn guy, the feedlot guy or the packer guy say they want – but they are much more profitable than 99.9% of their neighbors will ever be.

 What do custom feedlots get paid for?   They sell feed and days.   Therefore, they want to fill their pens with lean, late-maturing, high-maintenance cattle that eat a lot of feed and take a long time to finish.   They do not want low-maintenance, PCC-type cattle that can finish with much less feed and days.   As soon as a pen of low-maintenance steers is sent to the packing plant, the feedlot guy has to go to work to fill the vacancy.   This is why he prefers status quo, high-maintenance cattle that take much longer to finish.

Studies conducted by Iowa State University livestock economist John Lawrence show that low-maintenance cows produce calves that can be more profitable in the feedlot.   He said, “The most profitable steers in the feedlot in a grid marketing situation came from lower maintenance, moderate-sized, lower-cost cows.   It’s not a conflict.   The ones that are cheaper to feed at home produce more money on the other end.   The opposite is also true.   The higher-cost cows tended to produce less profitable steers in the feedlot.”

 To look for correlations between cow traits, steer performance and carcass traits, Lawrence looked at the cow feed costs for producers consigning steers to Iowa’s Tri-County Steer Carcass Futurity.   The steers were divided into two groups, based on the feed costs (maintenance requirements) of their dams.   The average cow costs for the two groups differed by $20 per cow.   “Interestingly, the low-cost cow group had the higher feedlot return,” reports Lawrence.   “The average feedlot returns for steers from these cow groups differed by $6.50 to nearly $9 per head, depending on the Choice-Select spread.”   The greater the Choice-Select spread, the more profitable the low-maintenance steers will be.

 NOTE: The Choice-Select spread has been nearly $30/cwt for several months.   That is a difference of $180 to $250 per animal!   WOW!   If you are getting paid a premium for marbling, our low-maintenance genetics should give you the biggest bang for your buck.

 Low-maintenance cattle do not need to eat as much as high-maintenance cattle to meet their energy requirements – both on the range and in the feedlot.   Keep in mind that absolutely no weight gain can take place until maintenance requirements have been met.   Once maintenance requirements have been met, the animal is able to grow, marble and finish.   It’s all about the bottom line!   Nothing else matters.   Many PCC customers are finishing their low-maintenance cattle to USDA Choice on grass.   While the demand for conventional beef has been struggling, the demand for grassfed beef has been increasing by leaps and bounds.

 We still believe… most cow-calf producers have the ability to double their profit on a sustainable basis – once they stop focusing on the wrong things.   Many PCC customers have proven this to be true.   The opportunity to double your profit, however, has nothing to do with what happens in the feedlot.   It has everything to do with what kind of cows you have and how you manage your forage resources.

Low-input ranching uses thinking (management) to solve problems – instead of money.   What could be more cost effective?

Those who sell inputs – whether pharmaceuticals, equipment, machinery, feed supplements, chemicals, etc., etc. – are NOT at all concerned with how much money you make as long as you stay in business (just barely) and continue to support them.

Quote Worth Re-Quoting –

“Most ranchers get out of bed looking for ways to spend money, rather than ways to make money.”   ~ Bud Williams

As stated in previous PCC Updates and Newsletters, the grassfed sector is the only bright spot in today’s beef industry.   It has had an annual growth rate of 25% for the past 20 years.   In contrast, the commodity beef sector has shrunk nearly 20% over the last 15 years.   It is becoming harder and harder to be profitable in the commodity beef business.   We believe this trend will increase at an even faster pace as the Millennials replace the Baby Boomers.   That’s the “good” of grassfed beef.

Now, let’s take a look at the “bad.”   There are significant differences in the quality of the grassfed beef being produced and marketed today.   These differences are highlighted in Mark Shatzker’s book, titled Steak: One Man’s Search for the World’s Tastiest Piece of Beef.   In this book, Mark mentions that the best steak he has ever eaten and the worst steak he has ever eaten were both grassfed.

Grassfed beef producers face challenges that the feedlot sector does not face.   Soil health, forage chain management and the nutrient density of the forages are all crucial factors grassfed producers must address.   I plan to discuss these in more detail next week.   In addition to these, animal genetics play a critical role in the quality of the beef produced.   Truth be known, most of the genetics available today are unable to finish to a Choice grade in less than 24 months on forages.

In terms of beef quality, tenderness, juiciness and flavor are the consumer’s top three demands.   When grass finishing, it is impossible to achieve these attributes without starting with the right genetics.   Meat tenderness, juiciness and flavor are correlated to the deposition of fat – both outside and intramuscular.   The aging process, which requires ample backfat, also plays a critical role in the tenderness and flavor of the beef.   Without ample backfat, the aging process can impart rancid flavors to the beef.   Tenderness is also affected by the age of the animal at time of slaughter.

The common denominator in producing grassfed beef that is tender, juicy and has great flavor is the use of early-maturing genetics that have the ability to deposit fat on forages alone.   It seems obvious that working with a seedstock producer who specializes in grass-efficient, low-maintenance, easy-fleshing genetics should be the grassfed beef producer’s first step.

At Pharo Cattle Company, every bull we sell has been evaluated and scored for grass-efficiency, maintenance energy requirements and fleshing ability.   In addition to that, we utilize both ultrasound and DNA data to quantify carcass traits.   If you’re interested in working with a partner that focuses on your profitability – both in the cowherd and in the finishing stage – then we invite you to take a look at the 390 bulls we will be offering in our two fall bull sales.

The status quo beef industry is the result of a time when land was unbelievably cheap – at least by today’s standards.   It is also the result of cheap feed and cheap fuel.   Gasoline could be purchased for 25 cents per gallon in the early 1970s.   Labor was cheap – and equipment was cheap.   The status quo way of doing things made sense 40 to 50 years ago.   Unfortunately, that era is over – and it ain’t coming back.

There will always be more opportunities to advance during times of change than at any other time.   Nearly all opportunities to advance will come through deliberate change – not by chance or luck!   During times like this, opportunities to advance are relatively plentiful and easy because most people are afraid of change.   I firmly believe we have not seen opportunities of this magnitude for several decades.   The future belongs to those who are not afraid to change with the times.   If you don’t take control of your life and your business, you are leaving everything up to chance.

Johan Zietsman once said, “Grass-efficient animals look like eight pounds of sugar in a 5-pound sack.”   We believe that is an accurate analogy.   We have provided a grass-efficiency score for all of the bulls selling in our two fall bull sales.   Bulls with a 4+ or 5-star rating for grass efficiency will be the very best at producing early-maturing, highly-fertile, long-lasting replacement females.   They will also be the very best at producing steers that will excel in grass-finishing programs.

As you know, the genetics that work best for the feeders and the packers do NOT work best on the ranch.   They are too tall, too lean and too late-maturing.   They grow and grow and continue to grow.   They are way too big before they start putting on fat.   This has been the mainstream trend for 40+ years – and it continues to get worse.

As you also know… the genetics that work best on the ranch are low-maintenance, moderate-sized, early-maturing and easy-fleshing.   Ironically, the genetics that work best on the ranch are exactly what works best for grass finishing.   This is the type of animal that can grade USDA Choice on forages in less than 24 months.   There is no downside to grass-efficient genetics!

To Request a Catalog for our Fall Bull Sales

800-311-0995           Bulls@PharoCattle.com

If you are a cow-calf producer, I’m sure you’ve noticed cattle prices have been struggling for most of the past year.   When that happens, most cow-calf producers don’t want to think about it or talk about it.   They just hope prices will recover before they need to sell their calves.   There is nothing wrong with hope – but it is not a good management strategy.

Compared to one year ago, 500-pound calves are selling for $100 less.   One hundred dollars per head is a significant reduction in income.   As long as we are selling calves into the commodity system, we will never have control over the prices we receive.   Therefore, we would do well to focus on the two things we do have control over.

Since we have no control over the markets, we need to focus our attention on increasing production and/or decreasing expenses.   When I talk about increasing production, I am always referring to production per acre – NOT per animal.   Focusing on production per animal (bragging rights) will actually decrease production and profit per acre.   The status quo beef industry has been focused on the wrong thing for the last 40+ years.

I know many PCC customers who have increased pounds and profit per acre by 50 to over 200 percent.   That’s HUGE!   These producers have implemented proper grazing management to make the most of every ray of sunshine and drop of rain that falls on the land they control.   They also have smaller, more efficient cows that fit their environment – instead of artificially changing the environment to fit their cows.   If they can do it, why can’t everyone else?

The average cost of producing a calf has more than doubled in the last 20 years.   That makes it very difficult for most producers to make a decent living.   In contrast, most long-time PCC customers have a cost of production that is 40 to 50 percent less than the national average.   That’s a huge advantage of $300 to $400 per calf!    The easiest money you will ever make is the money you don’t spend – and it is tax free!    If they can do it, why can’t everyone else?

Nothing affects profitability – or lack thereof – as much as stocking rate and cost of production.   Period!   As cow-calf producers we do have control over both of these.   Unfortunately, most cow-calf producers are doing the exact opposite of what they should be doing.   Most are still focused on increasing pounds per animal – instead of per acre.   If you are still trying to increase pounds per animal, you will never be able to increase stocking rate and you will never be able to reduce cost of production.

What are you focused on – production per animal or production per acre?

Quote Worth Re-Quoting –

“If you need high prices to stay in business, you will eventually go out of business.”   ~ Tim Goodnight

Someone shared an internet article with the PCC Discussion Group that was entitled “Nearly One-In-Four have Tried Meatless Fast Food.”   This group loves to discuss things that most cow-calf producers would rather not acknowledge – much less talk about.   That’s just our nature.   One of the responses came from Dr. Allen Williams, who is an industry expert in grass-fed beef, grazing methodology, regenerative agriculture – and much more.   I thought his email was very eye-opening and worth sharing.   This is somewhat of a follow-up to last week’s article entitled “Flavorless Beef.”

Fake meat is not going away, and is not just a fad.  Too much has been invested and too many consumers simply have no dedicated allegiance to beef (or other meat proteins).  They want flavor, juiciness, eating quality and perceived health benefits.  Those of us in the beef industry ignore this at our own peril and demise.  

I am writing a series of articles on fake meats and the unintended consequences, but this will not stem the tide of consumer demand.  It will simply point out the facts of how and why we got to this point.  

All the major packers have invested heavily in fake meats and continue to invest.  They have no allegiance to those of us who are livestock producers.  Their allegiance is to the customer who will pay for whatever food products that can be sold.  They will not hesitate to shut down their packing plants in the future – IF fake meats dominate.  They view their packing plants as liabilities anyway – OSHA, animal welfare audits, workman’s comp, HACCP, ICE, HR, etc., etc. 

We have to point the finger back at ourselves as being culpable in this.  The beef industry (of which we are a part) has put out an ever-declining product in terms of end product eating quality.  The fact is an Impossible Burger patty IS juicier and has MORE flavor than the typical fast food beef hamburger patty.  It is a highly processed food and terrible for you from a health standpoint, but the consumer perceives otherwise due to the marketing jargon.  The typical fast food beef hamburger is barely tolerable.  It is cooked to the consistency of a lump of coal, has little to no flavor, and little to no juiciness.  Because the Impossible Burger does not have to be cooked to temps of 165 or higher and its number one ingredient is water, it is a juicy product.  

There are numerous reasons why today’s beef is far more bland in flavor and far less juicy than it used to be.  As stated in an earlier discussion thread, DDGs are a big part of that problem.  However, so are the GMO grains (genetically modified), total mixed rations, the aggressive implant and beta-agonist programs, poor genetics, etc., etc.

If we continue to rely on packers to be our customer, we are making a huge mistake.  If we do not figure out how to take better control of our own markets and produce a better end product, we will lose out to the fake meats.  Slowly but surely.  If that happens, only one in three of you will still be ranching ten to fifteen years from now.  

Do not ignore this, thinking it will go away!  Take control of your own destiny!  That is a huge part of being a Herd Quitter.  

 Allen

For the most part, I agree with Allen.   I hope you are able to see what is going on – with open eyes and with an open mind.   This is NOT the time to hide your head in the sand and hope things will get back to the old normal.   If you are a cow-calf producer, the future of your family and the future of your business are at stake.   We MUST make a concerted effort to Make BEEF Great Again.   I do not think we will be able to save the entire beef industry.   Most of the industry does not want to be saved.   We do, however, need to save ourselves and protect our interests.

Grassfed beef has gained a significant market share over the last several years.   With an annual growth rate of 25% and a market share that doubled from 5% in 2015 to a projected 10% in 2019, the grassfed sector is the only bright spot in the beef industry.   Like fake meat, grassfed beef is NOT going away – and it is NOT just a fad.   Consumers are looking for a healthier product that is produced in a more natural and sustainable way – and they are willing to pay a substantial premium for it.   There will be huge opportunities for advancement for those who choose to get involved.

One month ago, we had a busload of farmers and stockman from Argentina stop by PCC Headquarters for a visit.   I have heard from a few of them since they returned home.   If you are a beef producer, the following email from Pen Gunningham should will give you something to think about.

Dear Kit,

I was in the group of Argentine farmers who visited your cattle ranch last month.  It was a very interesting visit, as you have a different approach to cattle breeding than what appears to be the norm in the US.  The group and I have a specific question about the end product… beef.

One evening we were treated to a steak dinner.  The beef came from an Angus herd of excellent looking cattle and was eaten in a restaurant exclusively provided with beef from this herd.  The opinion was unanimous – very edible and tender but totally tasteless.  On other occasions at different locations, the opinion was the same.  On my return to Buenos Aires, to make sure I wasn´t dreaming, I went to a prime beef restaurant, and had a steak of good texture with a taste from a completely different world. 

Our big question is why? 

It can’t be the breed as the beef came from an excellent Angus herd.  Possibly not enough grass fed.  Maybe it is the result of a long period of intensive over-fattening in a feedlot.  When visiting a feedlot, we were told that one group of cattle had 60 more days to go – but, in our mind, they should have been slaughtered yesterday.  Maybe it is a cooking problem, but that would seem unlikely.

We would be interested to hear your opinion.  I invite you to come to Argentina and eat some tasty beef.  I have a son and a daughter who live in the US, but seldom eat beef.  Now I know why.  Surely it can`t be worse than chicken?

Sincerely, Pen Gunningham

My mind was filled with many thoughts.   However, before attempting to share my opinions, I decided to send this email to PCC Discussion Group.   I’m glad I did.   There are several experts in this group who know what they are talking about.   I will share just a few of their comments.   I learned a thing or two – and I think you will too.   This goes along perfectly with our Make BEEF Great Again campaign.   There is no better place to start than with flavor!

• I think excessive fattening in the feedlots is a big part of the problem.
• As someone who travels extensively, I can attest to the fact that nearly all beef throughout the USA and Canada is bland and tasteless.  In my opinion, this is because a very small percent of the beef sold in the USA and Canada is grass-fed or grass-finished.
• Bland diets (rations) lacking in diversity lead to bland flavored beef.  The beef may be tender and juicy but it will only taste like whatever it was seasoned with.   The same is true with chicken breasts.
• Beef needs a diverse forage-based (mineralized) diet to create flavor.
• One of the primary reasons for very poor flavor profiles and poor texture in feedlot beef, as well as commodity poultry and pork, is the heavy use of DDGs in the rations.  DDG’s have virtually no bioflavonoids and cannot depart any flavor to the end product.
• DDGs create a very poor, almost mushy, texture.   It also creates a way-out-of-whack omega-6 to omega-3 ratio.  We’ve seen ratios as high as 55:1.   That’s deadly!
• Since every feedlot feeds a “least cost” ration, there is no such thing as a “typical” feedlot ration.  The incorporation of cheap DDG has been very bad for beef’s perception by the consumer.  That is why Impossible Burger, Beyond Meat, etc. have been able to make significant inroads.
• The so-called allergies to beef are not really an allergy to the beef but to the traces of DDGs and other residues that are in commodity-fed beef. 
• When commodity beef is compared to properly finished grass-fed beef, the grass-fed beef has far better ratings for initial flavor, sustained flavor, initial juiciness, sustained juiciness and texture.
• Beef will continue to lose market share to other proteins and fake meat until we decide to take charge of our industry and provide consumers with a product that is truly flavorful, tender and healthy.

Consumer perception of beef is eroding much faster than I ever thought possible.   For good reason, more and more of today’s consumers are becoming disenchanted with industrial agriculture and the way conventional beef is finished.   If we do not make a concerted effort to Make BEEF Great Again, the beef industry will eventually become a fraction of its former self.   Unbeknownst to most cattlemen, the commodity beef industry has shrunk nearly 20% in just the last 15 years.

The obvious solution to this problem is grass-finished beef.   Notice, I said “grass-finished,” not “grass-fed.”   Cattle were designed to eat high-fiber forages that most animals cannot utilize.   Cattle were not designed to eat corn or DDG.   Grazing cattle are extremely beneficial to the environment.   Industrial agriculture and confinement feeding of livestock are harming the environment.   Grass-finished beef has a much better omega-6 to omega-3 ratio – which will greatly improve consumer health.   On top of all that, grass-finished beef tastes great!   All you need to add is a little salt and pepper.