Page 24 - B&L Red Angus Bull and Heifer Sale – March 24, 2021

TM
$PROFIT
$PROFIT TM
Why $Profi t: t:
Why $Profi
T
Today, ranchers have to make proper genetic decisions to improve profi tability and the return on their investment. However, most seedstock oday, ranchers have to make proper genetic decisions to improve profi tability and the return on their investment. However, most seedstock
providers confuse potential customers with too many EPDs. Most Angus have over 25 EPDs plus DNA rankings are also often provide
providers confuse potential customers with too many EPDs. Most Angus have over 25 EPDs plus DNA rankings are also often provided. While d. While
this data is useful, it is also ver
this data is useful, it is also very hard to analyze. This makes buying the best bull very diffi cult. Every bull is good on some traits and weak on y hard to analyze. This makes buying the best bull very diffi cult. Every bull is good on some traits and weak on
others. The challenge is fi guring out how each of those traits is going to impact your bottom line. Buyers try to determine which bull will make guring out how each of those traits is going to impact your bottom line. Buyers try to determine which bull will make
others. The challenge is fi
the most money from birth to slaughter, but most of the time, they end up guessing. , but most of the time, they end up guessing.
the most money from birth to slaughter
When Boeing Airlines starts to build a plane, do you think they guess how it is going to fl y? How much fuel it is going to use? How many y? How much fuel it is going to use? How many
When Boeing Airlines starts to build a plane, do you think they guess how it is going to fl
pounds of cargo it can carr
pounds of cargo it can carry? No, they don’t guess – instead they use their knowledge to build a computer program the simulates the out-y? No, they don’t guess – instead they use their knowledge to build a computer program the simulates the out-
comes based on the design of the plane that they have in mind. This same simulation technology can be used in beef cattle to improve selec-prove selec-
comes based on the design of the plane that they have in mind. This same simulation technology can be used in beef cattle to im
tion decisions.
tion decisions.
How $Profi t works: t works:
How $Profi
$Profi t is based on results from an advanced simulation model, developed by Dr. Steve Miller (now the Director of Genetic Research at the t is based on results from an advanced simulation model, developed by Dr. Steve Miller (now the Director of Genetic Research at the
$Profi
American Angus Association) in conjunction with other geneticists at Guelph University. The simulation develops partial budgets that look at that look at
American Angus Association) in conjunction with other geneticists at Guelph University. The simulation develops partial budgets
how a genetic factor infl uences cost and/or revenue. The model factors in all of the effects on both income and expense to come up with a net uences cost and/or revenue. The model factors in all of the effects on both income and expense to come up with a net
how a genetic factor infl
profi t fi gure for each bull. t fi gure for each bull.
profi
$Profi t assumes that the average commercial bull will have 100 progeny over its lifetime. The model assumes that you keep 30% of your t assumes that the average commercial bull will have 100 progeny over its lifetime. The model assumes that you keep 30% of your
$Profi
heifers as replacements and that you retain ownership on the remainder of the calves through harvest. Further, it assumes that you will sell on vest. Further, it assumes that you will sell on
heifers as replacements and that you retain ownership on the remainder of the calves through har
a grid with premiums for quality grade and yield grade.
a grid with premiums for quality grade and yield grade.
Most importantly, $Profi t allows you to easily compare any two bulls and calculate the difference in profi t that they are expected to generate in t allows you to easily compare any two bulls and calculate the difference in profi t that they are expected to generate in
Most importantly, $Profi
your herd. Let’
your herd. Let’s compare a $14,000 $Profi t bull to $10,000 $Profi t bull. The predicted difference between the bulls is $4,000 or about $40 per s compare a $14,000 $Profi t bull to $10,000 $Profi t bull. The predicted difference between the bulls is $4,000 or about $40 per
calf. For comparison, the average 2015 Angus bull has a $Profi t of approximately $9000. t of approximately $9000.
calf. For comparison, the average 2015 Angus bull has a $Profi
What traits are included in $Profi
What traits are included in $Profi t: t:
$Profi t includes nearly every trait that impacts profi tability. The effect of most traits on profi t is fairly simple to understand. Here is the list of t includes nearly every trait that impacts profi tability. The effect of most traits on profi t is fairly simple to understand. Here is the list of
$Profi
what is included and its effect:
what is included and its effect:
Revenue Traits raits
Revenue T
Calving ease = more calves means more revenue.
Calving ease = more calves means more revenue.
Weaning & yearling EPD = more weight equals more revue.eaning & yearling EPD = more weight equals more revue.
W
Fertility (days to conception) = more weight and more calves
Fertility (days to conception) = more weight and more calves
Carcass weight = worth more up to 477 kg. cass weight = worth more up to 477 kg.
Car
Marbling = valued based on grid premiums
Marbling = valued based on grid premiums
Ribeye area = value as impacts yield grade
Ribeye area = value as impacts yield grade
% Retail Product = more yield is more saleable meat
% Retail Product = more yield is more saleable meat
Cost T
Cost Traits raits
Cow mature size = bigger eats & costs more
Cow mature size = bigger eats & costs more
Cow intake = more intake eats & costs more
Cow intake = more intake eats & costs more
Feedlot feed effi ciency = more feed per kg of gain means more cost ciency = more feed per kg of gain means more cost
Feedlot feed effi
Some traits are not so easily characterized for $Profi t. Milk, for example, is a good thing until you get too much. When over +25, milk EPD has t. Milk, for example, is a good thing until you get too much. When over +25, milk EPD has
Some traits are not so easily characterized for $Profi
a more negative effect on fertility than it has a positive effect on weaning weight. There are a few traits not yet included in
a more negative effect on fertility than it has a positive effect on weaning weight. There are a few traits not yet included in $Profi t: longevity, $Profi t: longevity,
structure, and disposition. These traits are important but diffi cult to express in dollars. cult to express in dollars.
structure, and disposition. These traits are important but diffi
Feed Effi
Feed Effi ciency EPDs Explained: ciency EPDs Explained:
Feed:Gain: Difference in the amount of feed a bull’s progeny will consume to produce one pound of gain. Difference in the amount of feed a bull’s progeny will consume to produce one pound of gain.
Feed:Gain:
Example:
Example: A -0.50 F:G EPD means this animal’s progeny will consume 1/2 pound less feed per pound of gain than would progeny of a A -0.50 F:G EPD means this animal’s progeny will consume 1/2 pound less feed per pound of gain than would progeny of a
zero F:G EPD sire.
zero F:G EPD sire.
Feed Intake: Difference in feed consumption of each of a bull’s progeny in a 112 day feeding period. Difference in feed consumption of each of a bull’s progeny in a 112 day feeding period.
Feed Intake:
Example:
Example: A steer whose sire has a -100 In¬take EPD will eat one hundred pounds less feed in 112 days than one whose sire had a A steer whose sire has a -100 In¬take EPD will eat one hundred pounds less feed in 112 days than one whose sire had a
zero Intake EPD.
zero Intake EPD.
22 B&L Red Angus Bull Sale