genemax™ mark mccully certified angus beef llc. supply challenges for future growth?
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GeneMax™
Mark McCullyCertified Angus Beef LLC
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Fiscal Year
Mill
ion
Poun
dsSupply challenges for
future growth?
Average Grid Premiums, Oct 22, 2012
Prime CAB Select Standard
Average Premium, $/cwt
+ $23.14 + $4.84 - $16.94 - $30.18
Premium/hd (850 lb HCW, Choice base)
+ $196.69 + $41.14 - $143.99 - $256.53
Source: USDA Weekly Reported Grid Premiums (USDA LM_CT 169)
The market is paying for quality
Making Progress for Marbling and Gain
Health
Implants
Nutrition
Etc.
GeneMax™• DNA test for Marbling and Post-weaning Gain• Intended Use:– By commercial cattlemen– On Angus-sired cattle
• Selection, Marketing & Decision tool– Commercial replacement heifers– Feeder cattle
What do you get?
GMX Score
GMX Marbling
GMX Gain
Optional Sire Match
GMX™ Score Description99 Top 1%75 Top 25%50 Average25 Top 75%1 Top 99%
GMX™ Score
GMX™ SCORE = Economically weighted value for marbling and
post-weaning gain combined
GMX™ Marbling and Gain
Description
5 Top 20%4 61-80%3 Middle 20%2 21-40%1 Bottom 20%
GMX™ Trait = Individual value for marbling or post-weaning gain
GMX™ Component Traits
GMX™ Sire Match
Sire Match Features• Potential sires must be 50K tested• Included in the cost of the GMX test• Request at the same time as GMX™
or anytime later• NOT AAA Parentage Verification
GeneMax™ Field Study and Economic Analysis
Field Study• Validation study conducted by CAB, AGI and Pfizer Animal
Genetics– 1,975 hd of high percentage Angus feeder cattle with performance and
carcass data1
• Study findings– GMX Score was associated with increased likelihood of achieving
higher Quality Grade (P < 0.0001) and increased carcass value (P < 0.0001)
– GMX Score was associated with increased ADG (P = 0.03)
– GMX Score was associated with greater carcass value per day on feed (P < 0.0001)
1Certified Angus Beef and Angus Genetics Inc., Data on file
GMX™ 25 GMX™ 75
Starting Weight: 600 lbs, DOF: 200, End Weight: 1300 lbs
GMX™ Score – Economics• Conclusion:
– For every 10 unit increase in GMX™ Score, animal value increases by $3.30/head for every 100 days on feed
– Assuming an $8 Choice/Select spread and $325/ton DM ration cost
+$33/head
GMX™ Field StudyPratt Feeders
• 205 head of AngusSourceTM steers sorted into 2 pens based on GMX™ Score*
GMX™ Score
GMX™ Score Range
GMX™ Marbling
GMX™ Gain
High Group 89.4 78-99 4.5 4.6Low Group 51.1 4-77 2.6 3.6
GMX™ Field StudyPratt Feeders – Preliminary Results
Pen Feedlot ADG
Avg Marbling Score
Percent CAB
High GMX™
4.30 541 71.1%
Low GMX™
4.29 490 44.7%
GMX™ Field StudyPratt Feeders – Preliminary Results
Applications for the Cow-calf Producer
• Heifer selection and breeding tool– Select the best growth and marbling genetics– Make more strategic breeding decisions– With Sire Match, improve selection and mating
decisions• Culling tool• Marketing tool– Feeder cattle– Heifers
Avg of 9/21 Superior Sale*
GMX™ <60 GMX™ 60-80 GMX™ > 801,000
1,200
1,400
1,600
1,800
2,000
2,200
$1,362
$1,712
$1,987$2,100
Average Selling Price of GMX™ Tested Commercial HeifersGardiner Angus Ranch, Sept 2012
Sale
Pri
ce, $
*Superior Livestock Cattlemen’s Fall Classic, 9/21/12All Bred Heifers, Regions 3 and 4; Range: $1085-$1500
Applications for the Feedlot
• Procurement tool to more accurately assign value to feeder cattle
• Management tool for sorting, technology use, and marketing
• “Genetic risk management”
How it works• Available through Certified Angus Beef– www.CABPartners.com
• Order test kits– Card and lancet = $0.50 each– Test = $17 each
• Collect blood (preferred) samples and mail to AGI for processing
• Test results returned in less than 4 weeks
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Thank youMark McCully [email protected]