Nov. 5, 2014
Angus University: Tom Brink
Entrepreneurialism, Innovation
and Why Quality Matters
“The combina-on of research and enterprise are the supreme source of produc-vity and wealth.” -­‐-­‐George Gilder Tom Brink Top Dollar Angus, Inc. Research produces knowledge. Knowledge plus enterprise = new technology New technology creates produc-vity, efficiency, and new business opportuni-es. U.S. Average Corn Yield (bushels per acre)
3: 2
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342
322
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Angus Means Business National
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Nov. 5, 2014
Angus University: Tom Brink
Three types of practices in your operation:
Innovation
Convention
550-lb. Steer Calf Price
$278.38/cwt.
Tradition
Innovation — doing what could work
Convention — doing what does work
Tradition — doing what did work
Innovation –what could work
RISK
Convention –what does work
Tradition –what did work
Let’s examine a few prac-ces… Rotational vs. Continuous grazing
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Nov. 5, 2014
Angus University: Tom Brink
Examining a few more prac-ces… •
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Pregnancy tes-ng A.I. and embryo transfer Fetal sexing Vac45 programs DNA tes-ng Selling non-­‐castrate commercial males Marke-ng assistance for customers Ac-ve selec-on for carcass traits Would you like to own these feedyard caTle? Lot 8412 45% pulled once 16% pulled twice One dead out of 113 head. Lot 8413 47% pulled once 15% pulled twice Three dead out of 117 head. Un-­‐weaned calves @37 days on feed in TX. Circle two that best fit your opera-on Mindsets can be bound by TRADITION too… •
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Con-nental caTle perform beTer than Angus in the feedyard Low birth weight caTle can’t be growth caTle Dehorning is not really that much work EPDs do not work Always use a hotshot to keep those %&+@?*#’s moving You can’t have maternal caTle that are carcass caTle too All Angus caTle are high in marbling Keep costs down-­‐-­‐-­‐starve a profit out of your cows I don’t care about my commercial calves a^er they’re sold Circle two that best fit your opera-on Innovation
Convention
Tradition
Circle two that best fit your opera-on Innovation
Innovation
Convention
Convention
Tradition
Tradition
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Nov. 5, 2014
Angus University: Tom Brink
Innovation
20%
Part of being an innovator is providing gene-cs that benefit the en-re beef supply chain. Probably a good
balance for most
operations.
Convention 70%
Tradition
10%
Wholesale Meat Values (31-Oct-14)
Why Quality MaTers &522
Beef competes on
taste and quality,
not on price.
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Future of Pork Produc-vity?! Industry Average
Nebraska Operation
Market Hogs Per 500-lb.
Sow Per Year
< 7,000 lbs.
> 9,000 lbs.
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Always listen to the market. Marbling creates price
premium opportunity. Yield Grade 4 discounts have
gotten SMALLER in the past 10 years on most grids.
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Nov. 5, 2014
Angus University: Tom Brink
Big Grid Winners versus Average Cattle
Superior quality
grades drive grid
premiums higher.
100%
90%
Profiling Real Value Crea-on for Feeders and Packers Same calf crop (59 head in total)
Sold April 2014
Prime
80%
Top 10 steers
Bottom 10 steers
70%
Choice
Difference
Carcass
Weight
975
819
Marbling
Score
572
457
Ribeye
Area
15.0
13.3
Backfat
0.60
0.59
Per Head
Live Sale
Value
Price
$ 2,397
$ 160.30
$ 1,940
$ 154.52
156
115
1.70
0.02
$ 457 $ 5.77
60%
Top steers grew faster, had heavier weights, more
marbling, larger ribeyes, same degree of finish.
50%
They were healthier and had better genetics.
40%
Average Cattle
$125 Premium
$164 Premium
HEALTHY ca1le that GROW & GRADE are Winners! Certified genetics in the
Top 25% for growth and
carcass traits.
One million head of
demand at $50+ per head
above the average market.
On being an Entrepreneur… •
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Takes a really good idea Spend money slowly and carefully Pa-ence, pa-ence, more pa-ence Eat the word “No” for breakfast Link up with the like minded Genetics so good, they need their own name.
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Nov. 5, 2014
Angus University: Tom Brink
Thanks to Angus for listening to the market, paying attention to
all segments of the industry, AND for giving us better genetics
to help the beef business prosper.
Angus wins the award for most entrepreneurial U.S. beef
breed during the past 25 years.
The End tom.brink@topdollarangus.com
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