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Small Farm Beef Enterprises

Small Farm Beef Enterprises. Dr. John Comerford Penn State Beef Specialist. To get cattle to do what you want them to do takes a knowledge of. Animal Behavior Corral Design Proper handling techniques. How cattle perceive the world. They have panoramic vision. Crowding Tub.

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Small Farm Beef Enterprises

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  1. Small Farm Beef Enterprises Dr. John Comerford Penn State Beef Specialist

  2. To get cattle to do what you want them to do takes a knowledge of • Animal Behavior • Corral Design • Proper handling techniques

  3. How cattle perceive the world • They have panoramic vision

  4. Crowding Tub • “Funnel cattle to working alley

  5. Sweep Gate • Solid sweep • See-through small alley gates

  6. Working Chute • 20 feet long (22-26 inches wide: cows)

  7. Direct Sales of Beef • Commodity Beef • a. Carcass size 300-400 lbs. for a side ($500-$700) • b. Grain fed • c. Lean • d. Young at harvest (under 20 months old) • e. No implants or sub-therapeutic antibiotics • 2. High Quality Beef • a. Specialized breeding and management program • b. Heavily grain fed • 3. Grass-Beef

  8. Beef production is not the production of cattle !

  9. It is the production of FOOD!

  10. Be a BQA Certified Producer!

  11. Consumer Preference and Value of Beef Sitz, Calkins, Umberger, Feuz -U of Neb., 2004 Denver (131 consumers) -Chicago (141 consumers) • 1=extremely desirable; 5 = not at all desirable

  12. Desirable characteristics of beef(1=extremely desirable; 5 = not at all desirable) • Freshness (1.23) • USDA Inspected for safety (1.45) • Color (1.60) • Price (1.72) • Leanness (1.76) • High Quality Grade (1.79) • Tender (1.86) • Nutritional Value (2.20)

  13. Desirable characteristics of beef(1=extremely desirable; 5 = not at all desirable) 9. Country-of-origin Labeling (2.41) 10. Marbling (2.43) 11. Source assurance (2.56) 12. Environmentally friendly prod. (2.61) 13. Raised in Your region of the US (2.64) 14. Convenience (2.66) 15. Fat Content (2.75) 16. Organic/natural (3.01)

  14. The #1 Reason ConsumersPurchase Beef TASTE!

  15. Today’s Consumer • More working couples • More single person households • Less knowledge about cookery • More disposable income • More health concerns • “chemical issues” • microbial issues

  16. Positive Consumer attributes for Grass-fed 1. Freshness 5. Leanness 8. Nutritional Value (fat, cholesterol, omega 3) 11. Source assurance 12. Environmentally friendly prod. 13. Raised in Your region of the US 15. Fat Content • Organic/natural Calkins et al. , 2004

  17. Management Is A Key Factor • Early castration • Prior to 7 to 8 months of age • Implants • Aggressive vs. Mild • Androgens vs. Estrogens • Intramuscular injections • Nutrition • Vitamin D supplementation • Cattle handling

  18. Grass-fed beef can meet the needs of many consumers • Local production – face to face with farmer • (source verification) • Smaller carcass size • (less total cost) • Beef you feel good about • (production verification) • BUT- it must TASTE good!

  19. Storage and cooking • Package and store adequately • If frozen, freeze rapidly to prevent excess purge which will make meat drier • Thaw slowly in refrigerator or cold water • Cook from room temperature • DON’T OVERCOOK • 150OF maximum (medium rare- medium)

  20. Post-mortem aging • Strive for 14 days (10 minimum) • dry or wet aging • May consider high temperature aging • Hold at ambient temperature for 2 hours to speed post-mortem glycolosis -- especially if fat is less than .20 inches

  21. External Fat • A target of 0.3 - 0.4 inches is good • Allows slower chilling and prevents strong cross bonds between muscle filaments. • Also demonstrates animal has adequate energy for rapid growth and that muscle tissue growth is stopping

  22. Growth Rate • Faster is better for palatability • Strive for 2.0 lb/day for at least the last 100 days • Improves calpain/calpastatin • Animals will be ready for market at younger age

  23. Maturity(animal age) • Strive for < 24 months • Less connective tissue cross linking • Older animals are less tender • Fewer problems with BSE regulations (cattle are aged by dentition which is not always precise)

  24. Recommendations for producing HIGH QUALITY Grass-fed Beef

  25. Marbling Degree Pictures

  26. Can You Use Quality Grade to Determine Palatability? A maturity Source: Smith et al., 1984

  27. Cattle Need100 DOFto producebeef with thedesired flavor

  28. Taste Panel overall acceptability Schmidt et al., 2003

  29. Taste Panel Flavor Schmidt et al., 2003

  30. Fat/Cholesterol: • Is It Really an Issue? • Cholesterol content will not be different between grass-fed and grain-fed beef. • External fat will be trimmed equally with grain fed..

  31. So, Where does Grass-fed Beef Fit?

  32. Budgeting Grass-Fed Beef Production Dr. John Comerford Beef Extension Specialist Penn State University

  33. $Profit= $Returns - $Cost

  34. Enterprise Costs • Opportunity Cost: • There is an alternative use value and no cash cost

  35. Enterprise Costs 2. Variable Costs: a. Annual cash used to produce one carcass b. The purchase is “used up”

  36. Enterprise Costs 3. Fixed Costs: Annualized value of fixed resources

  37. SteerFour Costs • Purchase price (800#X$.88) $704.00 • Trucking cost 5.00 • Death loss (1%) 7.04 • Interest (2% for 6 mo) 7.04 Total $723.08

  38. Feed • Minerals (.25#/d x 180d x $300/ton) $8.75 • Supplemental grain or protein ? Total $8.75

  39. Vet Costs • Dewormer ($3.50/head X 2) $7.00 • Vaccinations 3.00 • Fly control 4.00 • Treatment (5% treated @$6/hd) .30 Total $14.30

  40. Machinery Cost • Calculate Stocking Rate: Average weight while grazing=962# (based on 1.8 lbs/day gain X 180 days) Stock at 1.5 AU/acre=.64 acres/steer .64 acres X $20/acre= $12.80 * Insurance, repairs, misc. cost $2.00

  41. Other Costs • Pasture fertility ($15.00/ac)x.64 $9.60 • Marketing costs trucking 5.00 commissions checkoff 1.00 Returns (1 of 50 x75% recovered) 12.14 Total $18.14

  42. Total Variable Costs • Steer $723.08 • Non-steer $63.61 • Interest on non-steer $.63 • Total $787.32

  43. Fixed Costs 1. Pasture establishment ($80/ac)/10 years)) X .64 hd $5.12 2. Fences for 4-paddock rotation (40 ac base w/ 30 yr life) Perimeter (1 mi @ $2/ft) $10,560 Interior (1/2 mi @$1/ft) $2640 Per steer cost $7.04

  44. Fixed Costs 3. Water System $2/acre X .64 acres $1.28 4. Land Charge $2,000/acre X 2% X .64 ac $25.60 **$2,000/ac X 8% X 30 yr $112.71 5. Handling facilities, buildings, etc. ($10,000 /30 yr) / 40 acres X.64 acres $5.33 6. Interest on fixed costs $.44 7. Total fixed costs $44.81

  45. Returns • 800 lb. steer x 1.8 lbs./day x 180 days 1124 lb. final weight 60% dress 674 lb. carcass $1.20/lb. Net returns $809.28

  46. Net Returns • Total costs= $832.13 • Total returns= $809.28 • Net Value = ($22.85) • Breakeven value= $1.24/ lb carcass

  47. Grain-Fed Steers • Steer costs $723.08 Vet costs $14.30 Insurance, etc. $2.00 Yardage ($.40/hd/dayx140d) $56.25 Feed (7# DM/lb.X140dX3.2 #/d)@ $90/ton $176.40 Interest $.61 Total $972.64 Breakeven 1250 lbs. X .63 dressing %= 787 # carcass 978.08/787= $1.24 /lb.

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