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Arkansas - Agricultural Communication Services - University of ...

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AAES Research Series 488<br />

6. Dressing Percentage – The relationship between<br />

dressing percentage and feedlot net return was positive. As<br />

dressing percentage increased so did feedlot net return. Many<br />

<strong>of</strong> the factors that affect hot carcass weight also affect dressing<br />

percentage.<br />

Table 6 summarizes the performance and carcass data<br />

from the steers that were in the bottom 25% and top 25%<br />

(based on returns over specified costs) and the average <strong>of</strong> all<br />

the steers. In summary, the calves in the bottom 25% had high<br />

feed and medicine cost, low dressing percentage and failed to<br />

grade Choice. The cattle that performed the best were medium<br />

to large framed, heavy muscled, gained well, had a high<br />

dressing percentage, did not get sick, and graded Choice.<br />

The beef cattle industry has set the standard that quality<br />

grade should be Choice, yield grade should be < 3.5, and<br />

hot carcass weight between 550 and 950 lb. This year 37% <strong>of</strong><br />

the steer calves fit all those requirements. Steers that met the<br />

industry standards had higher average daily gain (3.40 vs.<br />

3.20 lb) and averaged $65 more per head than those that did<br />

not fit the industry standards (P < 0.01). They had higher carcass<br />

values ($1.18 vs. $1.06) because they graded Choice,<br />

were not discounted for yield grades greater than 4.0 and no<br />

carcasses were outside the weight range (550 to 950 lb).<br />

Implications<br />

Extremes in feedlot return over specified costs, health<br />

costs, performance factors and carcass parameters exist in the<br />

beef industry. A producer's goal should be to reduce these<br />

variables and produce a product that meets the needs <strong>of</strong> all<br />

segments <strong>of</strong> the beef industry. Value-based marketing at all<br />

levels <strong>of</strong> the industry is rapidly becoming a reality. Ranchers<br />

who produce a product that meets the demands will be more<br />

competitive in the market place.<br />

Table 1. 1999-00 <strong>Arkansas</strong> steer feedout summary<br />

financial results.<br />

Item<br />

Gross income<br />

Expenses<br />

Feed<br />

Medicine<br />

Freight,processing, yardage,<br />

interest, etc<br />

Total feedlot expenses<br />

Feedlot return<br />

Steer calf in value<br />

Return over<br />

specified cost<br />

Average Range<br />

$878.05 $593 to $1,102<br />

$222.07 $151 to $274<br />

4.32 0 to 72<br />

35.14<br />

_______<br />

31 to 39<br />

___________<br />

$261.53 $182 to $342<br />

$616.52 $298 to $806<br />

$504.22<br />

_______<br />

$345 to $661<br />

___________<br />

$112.30 $-138 to $259<br />

85

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