7/21/99

Contacts:
Allen Trenkle, Animal Science, (515) 294-8314
Barbara McManus, Agriculture Information, (515) 294-0707

SPECIALTY MARKETS REQUIRE STRATEGIC PLANNING BY BEEF PRODUCERS

INDIANAPOLIS -- Beef producers face a balancing act when it comes to planning the growth of their animals before taking them to market.

Iowa State University animal scientist Allen Trenkle has been studying how growth implants fit into producers' plans to address shifting markets. At one time cattle were fed with one goal in mind -- weight gain. Now, there isn't an easy formula for producers because of variables in cattle genetics, feeding programs and markets, Trenkle said.

Today producers need to consider several factors to meet demand for specialty products. Weight, carcass quality and the amount of red meat determine cattle prices. Trenkle said the role of growth implants should be another factor to weigh in the marketing equation.

The use of growth implants increases weight gain but reduces marbling in meat, Trenkle said. Meat marbling determines the quality or grade of meat. Prime is the highest grade followed by choice and select.

"On average the use of hormone implants during the finishing period will reduce the proportion of carcasses that are graded choice by 10 percent," Trenkle said. "Use of growth implants may come down to which consumer preference a producer wants to address. Some like their beef lean and some want more marbling. The market discriminates on how beef is graded and prices can vary week to week."

Trenkle said producers should consider taking a grid marketing approach in planning growth programs. Grid marketing is a spreadsheet tool that lists characteristics that producers need to consider long before cattle are taken to market.

"Most producers don't want to commit their cattle to a packer six to seven months ahead of time," Trenkle said. "That makes it more difficult to recommend a growth program, including when and if growth implants should be used."

Using grid marketing can help producers decide what they want as an end product and how to best attain that product.

"I think as people learn to use alternative marketing plans, then it will be easier to make recommendations on growth implants," Trenkle said.

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