CAB: Feedlot Size Can Affect Cattle Grades

Feedlot sizes have been steadily increasing, while quality grades of cattle continue to drop.

“We think that’s more than a coincidence,” says Larry Corah, Certified Angus Beef LLC (CAB) vice president.

“Larger feedlots face a number of challenges that contribute to this decrease in quality grades.”

More than 50% of today’s cattle are fed at yards with more than 32,000-head capacity. Data from CAB’s Feedlot Licensing Program shows yards larger than 20,000 head have a 41% lower Certified Angus Beef ^â brand acceptance rate than the average of their counterparts. They also drop 17 to 20 points in the number of cattle grading Choice or higher.

“We recognize that some of the difference could be due to feedlot location, as most of the larger yards have access to Southern-type cattle,” says Mark McCully, director of supply development for CAB. “But cattle that find their way into our dataset tend to be of similar quality.”

Large and small feedlots generally have differences in the number of health problems, feeding methods and marketing focus, he says.

“Most larger feedlots use steam-flaked grain, which has been shown to have a negative effect on marbling,” Corah says. A 1999 Oklahoma State University (OSU) research review shows steam flaking rather than dry rolling corn can drop a carcass from a Small marbling score, 524 points, to a Slight marbling score, or 482 on a 1,000-point scale.

“Feeding steam-flaked corn can lead to external fat deposition instead of marbling,” Corah says. “This practice is pretty common in yards greater than 20,000 head. In yards under 5,000 it’s almost unheard of.”

Health is another issue when classifying cattle by feedlot size.

“The closeout data that I’ve seen indicates smaller feedlots tend to have less death loss,” says Dan Loy, animal science professor at Iowa State University (ISU). “That may indicate that they have fewer health problems. The data suggests cattle that get sick are less likely to grade than cattle that are healthy.”

ISU studies show cattle treated twice or more for bovine respiratory disease (BRD) have a 33% reduction in grading premium Choice.

Animal scientists indicate an increase in health problems at larger yards could be caused by the labor-to-cattle ratio, feeding younger commodity cattle and added stress.

Ted McCollum, Texas A&M Extension beef cattle specialist, says health might be related to demographics.

“A lot of the smaller feedlots buy more calves locally,” he says. “With the larger feedlots, a lot of those cattle are being transported for longer distances. They’re subjected to a different level of stress.”

That doesn’t mean large feedlots must resign themselves to poorer quality. Mark Sebranek, general manager of the 34,000-head Irsik & Doll Feedyard (IDFY), takes steps to prevent health problems from hurting quality grades and efficiencies.

“One of the more significant steps we take is to work with the customers and document the vaccination programs being performed at home,” Sebranek says. “We try to complement the customer’s vaccines with the ones used at the feedyard.”

IDFY, near Garden City, Kan. , also consults with veterinarian Tom Noffsinger on animal health and handling issues.

“If you can keep the adrenalin out of the cattle, by keeping them relaxed the whole time, those cattle are going to go to the bunk and eat more feed,” Sebranek says. “They’ll also stay healthier.”

“There are some yards in the feeding belt that do a really good job of feeding cattle the right number of days to get that grade,” grants Chris Reinhardt of Kansas State University , “but the further you move from the Corn Belt , grain cost may pressure yards to sell cattle greener.”

The weekly slaughter reports typically show 40% to 45% USDA Choice in the Southern Plains, with the Midwest and Northern Plains often hitting about 15 points higher.

“That may be reflecting differences in time on feed and in feeding strategies,” says McCollum. “You can also look at the yield grades (YG) on those cattle. You’ll see a much higher percentage of yield grade 3s and 4s in the North. The cattle are fed to a fatter endpoint than what we normally do in the South.”

Success in sorting keeps YG in check and allows feedlots in all regions to move beyond averages. IDFY sells about 80% to 85% of its cattle on a grid. From January to October, it posted a 25.86% CAB acceptance rate, more than 10 points above the average of all 67 CAB-licensed feedlots.

“What we do by sorting the tops off the cattle—not sending the entire pen at one time—really helps, especially with the small customers,” says Sebranek. A variation of 300 to 500 pounds is not uncommon on calves coming into the same pen at the feedyard.

Loy says sorting is not often linked to high-volume feeding. “That’s not something the large feedlots have the labor to do, but in the Corn Belt it’s fairly common,” he says. “By sorting and marketing in more than one group, you’re more likely to market the animal closer to it’s optimal time, from both a quality and a yield-grade standpoint.”

Sebranek admits IDFY recruits cattle that have the potential to marble.

“In part, the high acceptance rate is because of the cattle received,” he says. By working with CAB, the feedyard returns detailed carcass data to many of the customers. “They’re using that information to find their replacements and buy bulls.”

Although high-quality genetics are important, Reinhardt says they can’t explain all the differences in grade between small and large yards. However, coupled with geographic herd trends, genetics may be more significant. McCollum says, “The genetics are quite different in Texas than what would be accessed by somebody in Iowa or Nebraska .”

Sebranek, who feeds many Texas cattle, compliments the staff for getting the most out of each animal. “Much credit is due to the crew, who take a lot of pride in the detailed work,” he says. “They respond as if they owned the cattle themselves.”

The people in charge of sorting, pen riding and feeding make daily decisions that can help or hinder how those cattle grade.

 “If you get your crew in tune with that pride,” Sebranek says, “there should be no differences between a large yard and a small one.”