SG_USA_October_2022

Time for Change TASK FORCE AIMS TO CHANGE THE WAY FEEDER CATTLE ARE PRICED By Jessie Topp Becker, Managing Editor It’s no secret that for decades, the U.S. feeder cattle market has used hide color as a proxy for genetic merit and cattle quality. Across the United States, black-hided cattle frequently bring a higher price than colored cattle of equal weight, quality, sex and health history. But is hide color a characteristic that can accurately predict performance? The answer is a resounding no, and a recent survey conducted by the Red Angus Association of America (RAAA) reveals that the industry may be ready to change the way cattle are valued.

G enetic merit should matter more, not hide color, the survey reveals. Results show cattle feeders and other industry stakeholders would like to see the feeder cattle market become more objective in its pricing methods. Respondents believe the current hide color emphasis has endured beyond its point of greatest benefit and needs to be replaced. “These results portray the sentiment of the cattle feeding sector and many others involved in the beef industry,” says Tom Brink, RAAA CEO and survey administrator. “The logic of moving in the direction cattle feeders desire certainly makes sense. A market that rewards objective value charac teristics above superficial traits sends a strong signal for real improvement in feeder cattle quality and value.” There is recognition by those sur veyed that market emphasis on a black hide did lead to an overall improvement in feeder cattle and carcass quality. However, survey data indicates 92 percent want changes for the future. Price discovery using specific genetic and genomic information on individual

“We want to put wheels under the survey results,” Brink says. “We’re working to really rally the indus try around the topic of moving the feeder cattle market from superficial evaluation to objective valuation, more objective-based pricing.” The Genetic Merit Pricing Task Force will be an industry-based, voluntary group charged with increasing the use of genetic merit in pricing in the feeder cattle market. The task force will also seek ways to reduce and/or eliminate the influence of hide color in the com mercial feeder cattle and calf markets. Its purpose will therefore be to identify ways to bring about significant change in how feeder cattle are priced. “We need to look at different ways to change and better this industry and the verification of cattle based on their quality vs. their hide color,” Koester says. The task force will include repre sentatives from all segments of the beef supply chain, including commer cial cow-calf, stocker/backgrounder, cattle feeders, auction/video auction, packers, retail/food service and breed associations.

groups of feeder cattle can lead the industry in the direction of consistently better feeder cattle quality in the years ahead and is preferred over hide color for that purpose. “To me, the most exciting thing about the survey results is the overwhelm ing sentiment that we need to make a change,” says Steve Koester, RAAA president. “It’s not in favor of any single breed. It’s not against any single breed. This is absolutely just trying to find a way to market feeder cattle based on quality vs. a phenotypic trait like hide color.” Genetic Merit Pricing Task Force With survey results revealing that cattle feeders support a change in the way value is assigned and strongly desire to shift the market’s emphasis from hide color to pricing decisions based on value-oriented, objectively determined attributes – such as genetic potential for growth, efficiency and carcass performance – the journey to determine the best way to move forward, and where the industry wants to change the market for the better has begun with the formation of the Genetic Merit Pricing Task Force.

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