Page 4 - Effertz Key Ranch Annual Charolais, Salers/Optimizer Bull Sale – March 10, 2022

CURRENT INDUSTRY

I’d like to point out a few things that we have learned about the current status of our industry. Our packers have a
labor issue, and with efficiency being one of their main motivators, every hook in a processing plant that carries
a 900lb carcass vs a 700lb carcass is huge for their bottom line. Their costs to that point are fairly close to equal,
and a 200lb difference in carcass weight tells us that pounds are of the upmost importance right now. With that in
mind, here are the data results of our last two years finishing our own cull calves in an audited program:

- 93% of the 262 head total graded Prime and Choice - 245 out of the 262 head.
- 94% yield graded 1,2 or 3. 248 out of 262 head.
- Average dressing percent was 65% over both 2020 and 2021

Now, those stats reflect a premium set of cattle, and the packer rewarded it to the tune of a $1.22 live price on a
$1.09 base in 2020, and a $1.43 price on a $1.30 base in 2021. The total premium reflected in 2020 was $175/
head and $182/head in 2021. The common denominator in the ability of these cattle to grade that well is the
prevalence of the Leptin gene we have been striving for in our herd. The tremendous dressing percent on these
cattle can be credited to the performance bred into them. Combining pounds, carcass and yield is a “win-win” for
every part of the industry.

WHY DO WE LEPTIN TEST OUR BULLS?

Dr. Eric DeVuyst, OSU Ag Economist wrote in an
Oklahoma Extension Service circular The Economics
of Gene Testing…

Genotype (TT) fed cattle are more profitable than lean
genotype (CC) cattle. Differences in profit range from
$14 to $60 per head.

The same mutation has been investigated in milk production and beef calf weaning weight. DeVuyst et al. (2008) also report heavier calf
weaning weights for TT and CT cows. The effect was significant in crossbred cows. TT cows wean heavier calves than CC cows. Crossbred
TT cows wean calves weighing 27 pounds more than calves weaned from crossbred CC cows.

Their analysis found that TT and CT cows were more profitable than CC cows due to 1) higher calf weaning weights and 2) longer produc-
tive lives. Differences in profitability ranged from $15 to $39 per year depending on breed.

2 *Yearling weights, final performance, profit index, ultrasound and scrotal measurement will be available in late February.