Beef Improvement Federation
Defining Efficient Red Meat Production
By Troy Smith
Michael Genho would argue that the U . S . cattle-feeding industry is not as efficient as it thinks it is . Genho , who is director of feedyard business for Elanco Animal Health , said as much in comments delivered to the 2018 Beef Improvement Federation Convention hosted June 20-23 in Loveland , Colo . He suggested that cattle feeders need to look at efficiency differently .
Genho cited a business dictionary definition of economic efficiency as , “ the comparison of what is actually produced or performed with what can be achieved with the same consumption of resources ( money , time , labor , etc .).” That means what is actually produced must be compared with optimal production .
“ I would submit that common feedyard efficiency metrics don ’ t do that ,” said Genho , calling feed conversion ratio the most common efficiency measure . He explained that feed conversion does not account for costs or the value of what is produced .
“ It fails to look at what ’ s optimal , not answering the question , ‘ efficient compared to what ?’” added Genho .
Noting the current practice of feeding cattle to very heavy market weights , Genho acknowledged the reason is to take advantage of marginal profit opportunity . But is it efficient ? Genho cited Elanco feedyard data suggesting that it has a negative impact on feed required per pound of carcass weight gain — not live weight gain , but carcass weight gain . The data shows a 20-year trend toward worsening feed conversion among feedyard steers .
Genho believes that many cattle are reaching an optimal end point before managers realize it . Some cattle feed better than expected , hitting their end point earlier than projected .
Therefore , those cattle are not managed effectively for efficiency .
Suggesting a goal of optimal days on feed , Genho said a better endpoint metric is empty body fat ( the percentage of body fat in a carcass ) calculated from back fat , hot carcass weight , ribeye area and marbling score . Genho said cattle lot averages for empty body fat range from near 27 % to 32 %. However , there is “ a boatload ” of variation among animals within a lot .
“ There is a ton of opportunity to improve feed efficiency , but we need to measure it in terms of what is optimal ,” stated Genho . “ We need to focus on optimal end point .” I
This article is reprinted with permission from www . BIFconference . com , Angus Media ’ s online coverage site of the 2018 Beef Improvement Federation Research Symposium and Annual Meeting .
22 | AUGUST 2018