Page 34 - B&L Red Angus Bull and Heifer Sale – March 23, 2022

$PROFIT TM
$PROFIT
TM
Why $Profit:
Why $Profit:
Today, ranchers have to make proper genetic decisions to improve profitability and the return on their investment. However, most seedstock
T oday, ranchers have to make proper genetic decisions to improve profitability 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 provided. While
providers confuse potential customers with too many EPDs. Most Angus have over 25 EPDs plus DNA rankings are also often provide d. While
this data is useful, it is also very hard to analyze. This makes buying the best bull very difficult. Every bull is good on some traits and weak on
this data is useful, it is also ver
l ver
l is good on some traits and weak on
y difficult. Ever
y hard to analyze. This makes buying the best bul
y bul
others. The challenge is figuring out how each of those traits is going to impact your bottom line. Buyers try to determine which bull will make
others. The chal lenge is figuring out how each of those traits is going to impact your bottom line. Buyers tr y to determine which bul l wil l make
, but most of the time, they end up guessing.
the most money from birth to slaughter, but most of the time, they end up guessing.
the most money from birth to slaughter
How many
When Boeing Airlines starts to build a plane, do you think they guess how it is going to fly? 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 fly? How much fuel it is going to use?
y? No, they don’t guess – instead they use their knowledge to build a computer program the simulates the out
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- -
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-
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 prove selec -
tion decisions.
tion decisions.
How $Profit works:
How $Profit works:
. Steve Mil
ler (now the Director of Genetic Resear
ch at the
$Profit is based on results from an advanced simulation model, developed by Dr
$Profit is based on results from an advanced simulation model, developed by Dr. Steve Miller (now the Director of Genetic Research at the
American Angus Association) in conjunction with other geneticists at Guelph University. The simulation develops partial budgets that look at
American Angus Association) in conjunction with other geneticists at Guelph University. The simulation develops partial budgets that look at
how a genetic factor influences cost and/or revenue. The model factors in all of the effects on both income and expense to come up with a net
l of the effects on both income and expense to come up with a net
how a genetic factor influences cost and/or revenue. The model factors in al
profit figure for each bull.
profit figure for each bul l.
cial bul
l wil
l have 100 progeny over its lifetime. The model assumes that you keep 30% of your
$Profit assumes that the average commercial bull will have 100 progeny over its lifetime. The model assumes that you keep 30% of your
$Profit assumes that the average commer
heifers as replacements and that you retain ownership on the remainder of the calves through har
vest. Further
heifers as replacements and that you retain ownership on the remainder of the calves through harvest. Further, it assumes that you will sell on
l sel
l on
, it assumes that you wil
a grid with premiums for quality grade and yield grade.
a grid with premiums for quality grade and yield grade.
Most importantly, $Profit allows you to easily compare any two bulls and calculate the difference in profit that they are expected to generate in
Most importantly, $Profit al lows you to easily compare any two bul ls and calculate the difference in profit that they are expected to generate in
your herd. Let’ s compare a $14,000 $Profit bul l to $10,000 $Profit bul l. The predicted difference between the bul ls is $4,000 or about $40 per
your herd. Let’s compare a $14,000 $Profit bull to $10,000 $Profit bull. The predicted difference between the bulls is $4,000 or about $40 per
calf. For comparison, the average 2015 Angus bull has a $Profit of approximately $9000.
calf. For comparison, the average 2015 Angus bul l has a $Profit of approximately $9000.
What traits are included in $Profit:
What traits are included in $Profit:
$Profit includes nearly every trait that impacts profitability. The effect of most traits on profit is fairly simple to understand. Here is the list of
$Profit includes nearly ever y trait that impacts profitability. The effect of most traits on profit is fairly simple to understand. Here is the list of
what is included and its effect:
what is included and its effect:
Revenue Traits
Revenue T raits
Calving ease = more calves means more revenue.
Calving ease = more calves means more revenue.
W
Weaning & yearling EPD = more weight equals more revue.
eaning & yearling EPD = more weight equals more revue.
Fertility (days to conception) = more weight and more calves
Fertility (days to conception) = more weight and more calves
Car cass weight = worth more up to 477 kg.
Carcass weight = worth more up to 477 kg.
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 raits
Cost Traits
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 efficiency = more feed per kg of gain means more cost
Feedlot feed efficiency = more feed per kg of gain means more cost
Some traits are not so easily characterized for $Profit. Mil
k EPD has
Some traits are not so easily characterized for $Profit. Milk, for example, is a good thing until you get too much. When over +25, milk EPD has
k, for example, is a good thing until you get too much. When over +25, mil
a more negative effect on fertility than it has a positive effect on weaning weight. There are a few traits not yet included in $Profit: longevity,
a more negative effect on fertility than it has a positive effect on weaning weight. There are a few traits not yet included in $Profit: longevity,
lars.
structure, and disposition. These traits are important but difficult to express in dollars.
structure, and disposition. These traits are important but difficult to express in dol
Feed Efficiency EPDs Explained:
Feed Efficiency EPDs Explained:
Feed:Gain: Difference in the amount of feed a bull’s progeny will consume to produce one pound of gain.
Feed:Gain: Difference in the amount of feed a bul l ’ s progeny wil l consume to produce one pound of gain.
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
Example: A -0.50 F:G EPD means this animal ’ s progeny wil l 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.
Feed Intake: Difference in feed consumption of each of a bul l ’ s progeny in a 112 day feeding period.
l 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 wil
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
Example:
zero Intake EPD.
zero Intake EPD.
32 B&L Red Angus Bull Sale