By: Lauren Kimble, Manager of ProfitSOURCE® and Low Carbon Technologies Supply Chains, Select Sires Inc.
Let’s break down some ProfitSOURCE results on a typical packer grid. Most beef x dairy (BxD) carcasses are paid on a packer grid.
Select Sires is closely monitoring ProfitSOURCE progeny through various supply chains. Carcass performance for 7AN526 CHECK IT progeny has been impressive with 27% grading Prime at one of our commercial packing partners. Let’s group these progeny together as an example.
We will use the following grid specs, which reflect a real, current grid at a large packer:
You’ll notice that the spread for Quality Grade (QG) premiums and discounts is much more dramatic than the spread for Yield Grade (YG). That is quite typical in the current marketplace. Consumers continue to demand high-quality beef and this has driven QG spreads to record highs. While these premiums have been reined in slightly, they are still intensely favoring animals bred for high Marbling – a hallmark of the ProfitSOURCE genetic lineup and highly heritable trait.
Now, let’s take CHECK IT’s 73 progeny carcass records from “Packer B” and crunch the data as if they were one lot marketed together on the grid. The Yield Grade results and Quality Grade results are illustrated below.
It’s clear, quality adds real value, and we can breed for quality by using ProfitSOURCE sires. We can’t neglect quantity, though. Consider an analogy to milk marketing: more pounds of fat and protein solids yield more income but it’s even better in high volumes of milk. Similarly, marbling leads to a higher Quality Grade and generates more revenue on more pounds of carcass since these premiums are paid by the hundredweight. Check out the ProfitSOURCE sire lineup to find terminal powerhouses to attain both high Carcass Weight and high Marbling goals for your program.