This is a guest post written by Frank Hendrix of Callipyge Genetics and Tenet® Beef.
I attended a regional cattlemen’s meeting last Wednesday that featured Dr. John Nalivka, a specialist in the cattle industry and marketing.
According to Dr. Nalivka, the American cattle herd is currently matching 1946 levels. Cow-calf producers, stocker grazers and cattle feeders are making money. Packers, on the other hand, are showing significant losses on every animal. They are running below 80% capacity.
At least two new slaughter plants are scheduled to open in 2025. These new plants are vertically integrated within the industry, meaning the ownership includes large retail companies like Walmart. They are looking for value-added beef – NOT the way-overfat beef that comes from the 1700-pound cattle that are currently being fed for 220 days. There is a strong probability that some existing slaughter plants will close. Packers are currently losing $200 per animal.
Americans continue to buy beef with very little movement toward other proteins. Consumer preference, however, is showing a larger percentage of hamburger – which makes for an interesting situation. Feeders and packers continue to allow extremely large carcass weights to dominate. These animals have levels of fat never seen before! To balance these extremely fat carcasses, lean beef is being imported from Mexico, South America and Australia. When beef is imported from other countries, American cow-calf producers are losing out.
Dr Nalivka recommended cow-calf producers focus their efforts and management on creating a young, value-added cowherd. He believes a slow expansion of the American cowherd will start with the 2025 heifer calves. When questioned, Dr. Nalivka said, “Focus on added VALUE – NOT added POUNDS.” He said a new genetic advancement is available that will greatly increase the value of beef.
Tenet® is that new genetic advancement! A Certified Tenet® animal has the genetics for superior beef tenderness. If we rank beef tenderness from 1 to 10, the average American beef animal ranks 3 to 4 on a bell-shaped curve. In contrast, a Tenet® animal is 10. Certified Tenet® cattle do not need grain to produce beef of the highest eating quality.
To increase Added Value in your cowherd and program, you need to start using Certified Tenet® bulls. Pharo Cattle Company™ is the only place to find Certified Tenet® bulls and AI sires.