GAR Steers Move the Profit Bar Higher to Finish 2010

Closing out 2010 with another pen of steers earning far above industry average is definitely a great end to the year. Thirty-seven head of GAR steers fed at Triangle H Feeders, Garden City, KS, sold through U.S. Premium Beef and harvested at National Beef in late December continue to document profitability through earned superior carcass premiums.

Data on the last pen of GAR steers finished in 2010 look much like the first pen of the year (GAR Steers Ring Up Big Grid Premiums). The most recent pen netted $130.49 per head in total premiums above the cash market. The net live price for the pen was $109.01 per live cwt. during a week where the USDA Kansas Weekly Average was $99.75 (a $9.26 per cwt advantage).

The steers earned $89.38 per head for outstanding quality grades. The entire pen, 100%, were USDA Choice or higher, with 20% of the pen grading USDA Prime. An additional $20.19 per head was earned for carcasses meeting Certified Angus Beef® and Black Canyon Premium Reserve® brand specifications.

A 65.64% dressing percentage more than offset discounts incurred for the few head exceeding the 1,000 pounds and up carcass weight threshold and YG 4 penalties. In fact, the 1.89% increase yield above plant averages in Kansas resulted in an additional 27 pounds of saleable red meat per head. Since 100% of the pen received $9.66 per hundred in premiums for excellent quality grades, add another $45.35 per head to the bottom line for increased carcass yields.

*No direct premium is paid for above average dressing percent. However, higher dressing percentages do translate into more carcass weight per pound of live weight, which results in more total dollars per head compared to selling cattle on a live weight basis.

The fact every pen of cattle GAR fed this year earned significant premiums is no real surprise. “The results from our own feeding experiences confirm what we tell our customers everyday. You can have it all. The cattle are performing the way they were bred to perform,” says Mark Gardiner. “We’re grateful to have a company like U.S. Premium Beef that’s designed to reward higher quality cattle and ultimately the producer for a value-added end product.”

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