USPB vice president highlights beef marbling, demand and production management

In a Certified Angus Beef (CAB) press release titled “Taste Drives Demand and Profit” on Dec. 2, U.S. Premium Beef LLC (USPB) Vice President of Field Operations Brian Bertelsen discussed marbling’s impact on grid marketing during the CAB annual Feeding Quality Forum Aug. 23-24. 

He noted quality starts long before feedyard rations reach the bunk, and it weighs heavily on the bottom line. 

“Quality is not a recent trend, but instead a long-term trend,” Bertelsen said. 

With a Choice/Select spread of $12 per hundredweight (cwt) in 2020 and $18.50 per cwt in 2021, the highest in 10 years, the numbers speak for themselves. Prime percentages keep growing, averaging 10 percent in recent years, but rewards on the grid are actually larger. 

Our industry is supplying a higher-quality product, with better eating satisfaction and consumer demand drives this higher premium in the wake of increased supply, he noted.

Historically, most Prime is purchased by restaurants. When supplies increase, it allows for wider retail availability.

Bertelsen elaborated, “Due to decreasing percentage of Select in the industry from 37 percent to 14 percent in just six years, the industry has pushed retailers to purchase less Select and instead buy higher-quality meat. Select may be cheaper for the grocery store, but consumers notice the taste difference.”

What does demand all come down to? Marbling.

“You can use expected progeny differences (EPDs) to build genetic potential, but then you have to manage the animal to express it,” Bertelsen said.

Specifically, producers must carefully manage body condition scores, herd health, docility, calving season and colostrum. To tweak it even further, bull calves should be castrated early and once weaned, they should be fed grain-based growing rations.

While the calories in corn enhance marbling, the key management component is targeting an optimal end weight or body fatness, according to Bertelsen. This is where partnering with a seasoned cattle feeder becomes critical. Summarizing individual animals marketed on the USPB grid, sorted by Yield Grade, showed as Yield Grade increases so does carcass weight, marbling and total dollars per head on the grid.

Bertelsen noted marbling continues to influence the grid and adds to the bottom line.

In the 2021 packer survey conducted by CAB, premiums from cattle qualifying for CAB reached $182 million – more than $3 million per week paid to producers. The top reason cattle don’t qualify for the brand has always been insufficient marbling.

In search of those premiums, cattlemen may wonder if it’s possible to meet the specification on marbling by feeding cattle longer, and Bertelsen believes it definitely helps.

According to Bertelsen, cattle with the most genetic potential are the ones that should be fed longer. If an additional three weeks on feed is the line between achieving a higher quality grade, those extra days will increase total value because it adds marbling, carcass weight and total dollars per head.

“Marbling has the biggest effect on the price per pound of a carcass on a grid, but ribeye size and backfat are the best indicators for muscling and leanness. For cow/calf producers, it’s a balance between carcass quality and maternal traits,” Bertelsen said.

This balance comes down to personal preference, genetics and the market.

“How long we feed them depends on the potential for the animal and market conditions, or premiums on the grid,” Bertelsen said. “If cattle producers are willing to change their mindset, there can be significant increases in total income through feeding to the proper endpoint and marketing on a value-based grid.”

“Taking the time to fine-tune marbling potential affects the cattleman’s bottom line and consumer demand,” he concluded.

Lauren Mosher is an intern at CAB and can be reached via e-mail at info@cabcattle.com. Find more Feeding Quality Forum coverage at feedingqualityforum.com.