natural beef - north dakota state university › ... › pps › natural_beef.pdf · natural...
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Natural Beef
What, Why, Who, How
John Dhuyvetter, NDSU Ext, NCREC
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What is Natural Beef?1 billion $ sales – 2% of market – growing 20+%/yr
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What is Natural BeefUSDA
Minimally processedNo artificial ingredients
Market Differentiated (Natural Branded Beef)Added Label Claims if documented with verification
No antibioticsNo hormonesNo animal by productsHumanely raisedEnvironmentally sustainableSource and AgeBreed
USDA hearings on definition of “Natural”
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Natural Beef Strategies
Never Ever Extended WithdrawalLaboratory Tested
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Natural is different than ..
Organic BeefOrganic Foods Protection ActNational standardsCertified by USDA accredited certifying agencySpecified criteria
Organic feedWelfareNo antibiotics, pesticides, implantsNo GMO
Grass Fed Beef90% of lifetime feed supply from foragesUSDA defined
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Market drivers for beef
AvailabilityPrice/valuePalatability – taste/tendernessConvenienceHealthfulness – nutrients/safetySocial responsibility – environment/animal careBrands – recognition/loyalty
“Sell them what they want and are willing to buy”
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Healthy Food, Happy Cows, Clean Environment, Caring People
Safe, healthy, wholesomeHumanely raised and handledAnimal welfare and compassionate careNatures waySustainable ranchingEnvironmental stewardsFamilies and communitiesFamily Farms and Ranches
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Consumers say
If regular sirloin cost $4.00/lb, and natural costs $5.60/lb, I would buy…..
Okla. State Univ. 2001
531843Regular
478257Natural
OklaCity
DallasKansas City
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New market opportunities
Driven by apparent customer demandSeveral companies expanding into natural beef
ND Natural Beef LLCPotential for adding value - premiums??Supplying “Natural” feeder calvesFeeding and Selling “Natural” beefBest management practices need attention
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Growing Natural Beef MarketTyson (natural CAB)SwiftColemanMeyers Natural AngusLaura’s LeanMaverick RanchOregon County BeefCreekstone FarmsPainted HillsBR3PM BeefNinman RanchND Natural Beef, LLC
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NORTH DAKOTANATURAL BEEF, LLC
“Never- Ever”
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ND Natural Beef - Specifications
NaturalNo growth promoting implantsNo MGA or ProstiglandinNo antibioticsNo ionophores (Rumensin, Bovatec, Cattlyst)
GeneticsNo bos indicus
FeedingMinimum of 100 days on concentrate diet feedingMinimum of 50% corn or corn by-products in diet
AgeNo more than 24 months
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Additional program affiliations
Certified Humane(Meyer Natural Angus)
Bio-Security PolicyFeed and WaterBody Condition ScoringFacilitiesWaste ManagementPest ControlAnimal Health ProceduresCasualty Stock PolicyEmergency Action RecordsEmployee Training
Food Alliance (Country Natural Beef)
Sustainable agricultural practicesEnvironmentally friendlySocially responsible
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Marketing Natural CattleNatural Beef Branded Programs buy compliant fed cattle Compliant cattle must be according to the program’s protocols
Genetics, husbandry, feeds, antibiotics, implants, vit E, country of origin, age, ….
(allowable and approved feeds and products lists)Documentation/pre-approvalSupplier affidavit
Most purchased for processing “slots”Contract for price and delivery
Base price + natural premium + grid adjustments$10 – 14/cwt carcass weight
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Supplying “Natural” feeder calves
Many North Dakota calves are managed as natural calves
No implantsFew treated with antibiotics
Must identify these animals and recordsCreep feeds without ionophoresReceiving diets may not contain antibiotics Supplements may not contain animal byproductsGood vaccination essentialSome latitude for parasite control
“Owner Certified Natural” (Superior Video Auction)Some potential for premiums
$2-5/cwt weaning 500 to 600 lbs$3-7/cwt backgrounded/yearling 800-1000 lbs
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Natural feeding
Conventional diets with grain most commonSeveral new additives on the marketFeed companies support natural feeding
Little restriction on diet formulationNo inonphores or animal by products
Grain levels may be lowered slightly in finishing rationFrom 85-90% to 80-85% concentrateMaintain more stable rumen phReduce risk of bloat and other problems
WDGS preferred feedRumen stabilization
Typically lower ADG and FE,Higher COG Higher BE
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Natural feedsFeed resources
GMO vs non-GMO, not an issueGrains
Corn, barley, peas, oatsCo-products
Wide variety availableHighly digestible fiber
ForagesQuality importantVegetative vs. mature hay/residues
SupplementsYeasts, enzymesFermentation productsMinerals and vitamins
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Non-approved feed supplements
Ionophores, Antibiotics, Animal Byproducts
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Health management
Vaccinations encouragedWork with local veterinarian4-way MLV, pasturella, 7-way, mycoplasma?, deworm?cow herd, branding, preweaning, recieving
Treat calves needing therapyIdentify calf and keep recordsMarket these calves in conventional channels
BQA proceduresMinimize stress
Pre wean castrate, dehornBedding and protectionOn ranch preconditioning
Good mineral and nutrition
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Ionophores -
Improve gain 1-6 %Improved efficiency 6-8%Estimated returns $12/hd
Manage digestive upsetsBloatAcidosiscoccidiosis
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Carrington REC –ionophore feeding research project
128 preconditioned steers-16 pens Cattle sources
Carrington Research Ext CenterEastern Dakota Feeder Calf Club
Four treatments (4 reps/tmt)Conv suppl, 85% grain- NEg 57 McalNat suppl, 85% grain – NEg 57 McalNat suppl, 70% grain – NEg 52 McalNat suppl, 55% grain - NEg 47 Mcal
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Trial protocol
Fenceline bunk fed TMR once daily28 day weights, feed intake, feed eff calcCattle were not implantedCalves bedded with strawWind protection with wind fence and treesCarcass data collected at slaughterEconomics calculated for feed cost/lb gain
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Supplements used in natural feeding
Rumensin® used in control rationImproves feed efficiencyReduces bloat potentialElanco Animal Health
Bovi-Sacc ®Combination of yeast, enzymes, microbialsYea-Sacc ® and Fibrozyme ®Supports rumen stability and digestionAlltech, Inc.
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Diets for naturally fed cattle(Percent dry matter basis)
2.02.02.02.0Suppl
37.623.09.49.4Oat Hay
22.022.515.315.3Corn Sil
8.2712.712.912.9Peas
30.039.760.460.6Barley
N-55N-70N-85C-85
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Results
Start DateDec 10
Days on feedC85 - 154N85 - 154N70 - 180N55 – 210
No difference in disease or treatment %6.3 to 9.7% treated
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Performance of natural fed steers
.8022.021.721.421.7DMI, lb/d
.781190117111671199Final wt
.99715718716725Initial wt
P Value
N-55N-70N-85C-85
1
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ADG and feed efficiency for naturally fed cattle
0123456789
10
C-85 N-85 N-70 N-55
ADGFd Eff
aa
b
c
a ab c
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Carcass traits of natural fed steers
.6762.859.369.875.0% Choice
.272.702.582.772.97Yld Grade
.012.3b1.8b2.2a2.3aKPH, %
.0811.411.812.111.9REA, sq in
.02.32b.36b.43a.46aFat Th, in
.16421421481454Marb Sc
.62678.0687.3690.0707.4Hot Carc,
P ValueN-55N-70N-85C-85
1
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Feed costs for naturally fed cattle
05
1015202530354045
C-85 N-85 N-70 N-55
$/lb gain
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Cost increase for natural feeding over conventional feeding
0
10
20
30
40
50
60
70
C-85 N-85 N-70 N-55
$/hd
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Conclusions – Dr Vern Anderson
Natural fed steers can be competitive in performance and cost at the same energy levels
Implant vs. no implant may alter resultsPreconditioning period critical
Increasing forage decreases rate of gain and increases cost
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Implants - OSU
FeedlotIncrease gain 15-20%Improve efficiency 8-20%Estimated returns $30-60/hd
CalfhoodIncrease gain +20lbsEstimated returns $11/hd
LifetimeEstimated returns $55/hd
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Univ of WY Implant study
80 Angus x GelbviehsteersCON – no implantIMP – 1 TBA+E implant$12 CH-SE spread$30 implant response
782729Carcass
127132Price
$995$965Value
13231229Weight
6.16.8F/G
2321DMI
3.743.08ADG
IMPCON
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Response to Implants - ISU
- Comparison of Estrogen reimplant (E/E), Combination reimplant (ET/ET) and delayed implant (C/ET) vsControls - Treatments increased returns $20.64, $61.11 and $61.51 per head - Equally treated comparisons as part of a 7-trial ISU summary
0%
5%
10%
15%
20%
25%
E.E ET/ET C/ET
ADGF/G
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Backgrounding Finishing550-750 $80/ton 750-1250 $100/ton
$.971.02BE
.648.733COG
1%2%Death
7180Days
2.82.5Gain
110.0112.5Price
ConNat
$.89$.83BE
.57.66COG
1%2%Death
135156Days
3.73.2Gain
1.001.05Price
ConNat
+$37 +$75
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Summary
Growing marketBiggest premium for “best” natural cattle
HealthCarcassperformance
Understand requirements of the marketCommunication with marketers and programs
Be a good record keeperCoordinate placement and slots for fed cattle
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Questions?