LIMOUSIN TODAY Dec:Jan18-19_LimToday_WEB | Page 13

Executive Summary We can attempt to hedge cattle and feed utilizing futures markets and still get burned by wild swings on basis as we lift the hedge. Many of these things are out of our control. risk that is inherent with the cattle business, not to mention the equity requirements. The things we can control and have strong oversight on, like our genetic production, is what has kept people in business over the years, along with a strong sense of determination and the willingness to adapt to get the job done. When we look at our shift to BOLT, it is important to keep in mind that when we compare Limousin cattle across the board for the 17 traits, they rank extremely well in the vast majority of EPDs when compared to other breeds. Yet, risk and production practices that we can manage, are actually done better by folks involved in production agriculture that manage risk better than any other business in the world. It requires tough, smart people that are up to the task, that are fully engaged in the business they love. You have to love it, because the fact of the matter is, it ain’t easy! Thirty years of managing feedyards and having the pleasure to feed cattle for folks that came to us from other businesses that wanted to make strong financial investments into the cattle industry is an experience I will never forget. Many had strong backgrounds in real estate, banking, transportation, hotels, food service and sales, just to name a few. Many times, after a couple years of actually getting their financial skin in the game, many commented that they had never seen a business where so many factors are actually out of your control that are difficult, if not impossible to manage risk on. They felt like they had just been involved in a high stakes poker game or could have just as well been gambling in Las Vegas for the amount of when many other breeds were between 20-22 lbs. Some breeds are actually working to get their milk number down because of the maintenance requirements of the cow up until weaning. If we can push for more marbling over the next five years, you really have a complete set of numbers on cattle that are commercially acceptable across the board. Once again, Limousin do not need to be Angus, we just need more cattle at or over the “zero” line. Your NALF board is currently working on a project that will soon be made available that will provide suggested EPD mating targets for the membership, if they wish to utilize it. This is not meant to tell you how to breed your cattle, most of you know how to do that on your own depending on your environment, geographical location and market. Rather than that, it is intended to display areas that we can further improve upon for all three classifications of Limousin cattle. Change is difficult, but change can also lead to enhanced profitability if utilized correctly. This is due to the previously mentioned attention that Limousin breeders have devoted to their record keeping and use of EPDs over the years. It’s why you now rank number one in docility and excel in weight trait data, calving ease, cutability, and stayability in the cowherd. Yes, we had a downward shift in milk which has been hard for breeders to get used to, along with some re-ranking that came with the effect of the genomic markers for milk, but we also know that a 27 lb. breed average was too high This is also partly why the Performance Committee was changed by name to Breed Improvement Committee two years ago. It is also why your board has invested heavily the last five years in your registry system, SNP parentage, DNA testing platforms, and genetic defect tracking systems in order to provide updated LIMOUSIN Today | 11