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Agricultural News

CAB's Vice President of Production Mark McCully Says There's Plenty of Room for More of the Best

Fri, 07 Sep 2018 12:31:41 CDT

CAB's Vice President of Production Mark McCully Says There's Plenty of Room for More of the Best The wide Choice-Select spread says markets - and ultimately consumers - are hungry for more of the best beef. But aiming for simply more Choice may be aiming too low, according to other spreads.

“What I think is maybe just as important, or more important, is looking at the premium Choice or CAB to Choose spread, and the Prime to Choice spreads. Those spreads have continued to grow and to be very, very significant in light of the fact that we've produced an awful lot more pounds in the marketplace,” said Mark McCully, Certified Angus Beef LLC (CAB) vice president of production. “That tells me the demand is really, really strong for high-quality beef.”

Watch a short video clip featuring Mark McCully, Certified Angus Beef LLC (CAB) vice president of production, outline how strong consumer demand for high-quality beef underscores the sustainability of producing more and more of the best, by clicking or tapping the PLAYBOX in the window below.

Some may worry that we can’t keep producing better and better beef - is that goal sustainable?

“I think when we look at the production efficiencies around quality, around marbling specifically, we don't have to give things up. We don't have to give up feedlot performance, we don't have to give up average daily gain and feed efficiency,” McCully said. “We don't have to give up maternal function and fertility in our cow herd. I don't want to say it's a free lunch, but it's maybe as close to a free lunch out there as what we've found. We can select for more high marbling cattle, higher quality grades, ultimately a better product, without sacrificing production. When we can grow demand without increasing our costs, I think that's a pretty sustainable model.”

Along with all the signs that look good for the long term, McCully says the near term holds more flexible options for those who feed cattle that can hit high-quality beef targets.

“Cattle feeders understand today when they feed these cattle that have a high marbling potential, it's almost another risk management strategy for them. By that, meaning they have the ability to possibly shorten the days on feed on those cattle if the market situation suggests they should. They can take advantage of some of the seasonal highs in the Choice-Select spread and maybe get in front of marketing those cattle a little bit early to take advantage of that,” he remarked. “Those cattle with high marbling potential have the ability, with those fewer days on feed, to go ahead and hit those premiums, to be Choice, be Premium Choice, be Prime. And that's a real benefit to the cattle feeder.”

That’s a real benefit for everyone from the pasture gate to the dinner plate, McCully says.

Source - Certified Angus Beef



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