DMancwnr Fanning, Saturday. February 19, 1994 BOVINE CONNECTIONS Lowell L. Wilson Professor Of Animal Science The “bovine industries” beef cattle, dairy cattle, and veal calves are particularly segmented. In the beef cattle industry alone there are cow-calf, grower, and feedlot segments. Each segment must be concerned not only about its own economic viability, but in the con text of all segments. When we specialize in one seg ment of an industry, we may lose sight of its relationships with other segments. Cow-calf producers want high prices for feeder cattle, but a major determinant of profit for the cattle feeder is the cost of feeder cattle. Every industry segment must be profitable if any is to thrive. Profi tability of each segment ultimately depends on the price the consumer pays for beef, which in turn is determined to some extent by cattle numbers and the amount of beef on the market. Such interdependence is not unique to the traditional beef industry. There is interdependence among the three major “bovine industries” beef cattle, dairy cattle, and veal calves as well. Granted, the veal industry fs small er in dollar value than either the beef or the dairy. But the relation ships among the three industries make veal important to the other two. Need Your Farm Buildings Painted? Let us give you a price! Write: Daniel’s Painting 637-A Georgetown Rd. Ronks, PA 17572 (or leave message) (717) 687-8262 Spray on and Brush in Painting Diesel Engine Service • Industrial - Agricultural - Automotive • New - Rebuilt - Used Engines & Power Units • New & Used Replacement Parts • Parts & Service On Twin Disc & Rockford Clutches • Diesel Engine Rebuilding & Repair Service • Detroit Diesel Series 53-71-92 & 8.2 Diesels 48-500 HP Animal activists have attacked the beef, dairy, and veal industries, respectively, at different times and with different criticisms. The beef cattle industry was first. As early as the 19605, it was accused of being a wasteful user of grains. It was alleged that the nutri tional status of people in develop ing countries could be markedly improved by feeding grains direct ly to them instead of to cattle. Renewed attacks on the beef industry, based on bad science or no science, came in the late 1980 s. The dairy industry was not the target of activism until the early 19905. Cow and calf care, infre quent practices (such as tail bob bing), antibiotic residues, nonam bulatory cows, and BST formed the bases for these attacks. The special-fed veal industry has been targeted by activists since the late 1970 s and still is the most frequently attacked. Primary points of contention are individual stall rearing systems, blood hemo globin concentration, and abuse of medicines. The arguments against special fed veal production systems have been more frequent and diligent— and probably more effective than those aimed at any other seg ment of animal agriculture. If an industry is using production or processing practices that do not properly consider animal well being or food product safety, then it should be appropriately changed or stopped. j Unfortunately, no animal indus- —a 13 Pleasant Valley Rd Ephrata, PA 17522 (717) 733-3890 (717) 738-3146 FAX Criticism By Activists BINS AND AUGERS NSfISPjPNMIPfa Jh#A mm %Sr Jk JUL v MJr Jkmk%>J Take ’em Down! We Will Assemble & Deliver Bins To Your Farm CTST!iBS! agn systems try has comprehensively research ed new or existing systems to chal lenge the activists* contentions. Effects Of Veal On Beef In 1992-1993, about 800,000 special-fed veal calves. 160,000 “other” calves (mostly dairy-type), and 400,000 bob veal calves were processed. Animal activists have relent lessly pressured the veal industry. But what would happen if no calves were used for Veal of any kind, and all of these 1,360,000 calves were raised to 1,250 pounds? Assuming these calf-slaughter figures—a 1,250-pound slaughter weight, 60 percent dress, and 750-pound carcass a total of 531,675 tons of additional carcass beef would be produced each year. How many beef cows would be required to produce 531,675 tons of carcass beef? To arrive at this estimate, first assume an 85 per cent calving rate. 10 percent of the heifers kept as replacements, and fed heifers marketed at 1,100 pounds, which results in an aver age of 543 pounds of carcass pro duced annually per beef cow. (The National Cattlemen’s Association estimates 537 pounds.) Using the 543-pound estimate, then 1,958,287 cows would be required to produce the 531,675 tons of car cass beef that would result from feeding all the calves now going the bob, special-fed, or “other” veal route to 1,250 pounds instead. This is not a criticism of the beef industry’s efficiency. A large por tion of land used by the nation’s cow herd has few or no alternative uses, and by-products from many agricultural and nonagricultural industries are recycled through beef cattle. Also, unlike veal and dairy, beef cattle are a low-tabof enterprise. Expansion Of Dairy-Beef Feeding One reason for the recent decrease in special-fed veal pro duction and increase in the price Pennsylvania’s Authorized Master Distributor H m Northeast Agrl Systems, Inc, Flyway Business Park 139 A West Airport Road Utltz.PA 17543 Ph- (717) 569-2702 1-800-673-2580 ® for dairy bull calves has been the expansion of dairy-beef feeding. Calves now sell for four times the price they commanded 15 years ago. Buyer competition for calves at three to lOdaysofagehas placed pressure on special-fed veal producers, but it has been benefi cial to the dairy industry. The dairy-beef carcass fits a low-fat, relatively high-quality marketing niche, assuming high grain feeding. The availability of dairy-beef feeders has helped cattle feeders, especially in periods of'decreased feeder cattle num bers. However, dairy-beef steers compete with feeder calves pro duced in beef herds. As beef cow numbers increase and more feeder cattle are avail able, prices for beef calves will go down, providing more effective competition for dairy-beef steers. Additionally, finishing systems for beef breeds can use less grain and more forage, while dairy-beef sys tems rely on high-grain systems. Therefore, grain price may influ ence the profitability of dairy-beef feeding more than that of feeding cattle of beef type. Whether or not special-fed veal producers can successfully com pete with dairy-beef feeders for calves will depend on the relative profitability of the two enterprises. Beef and veal usually don’t compete directly in retail markets, thus retail prices of beef and veal in the meat case are not closely related. The USDA’s estimate of 400,000 bob veal calves slaugh tered annually can be questioned by those knowledgeable about veal and dairy-beef feeding systems. In many areas, 5 percent or less of the bull calves go for bob veal; the rest are returned from markets to farms for feeding in one way or another. Many of these calves are not up to conventional standards for health or quality to be profitable for special-fed veal growers or dairy beef feeders. With more appropri ate care at certain dairy farms, per haps more of these calves could be profitably used. We Stock Truckloads Of Chore-Time Bins & Miles Of Chore-Time FLEX-AUGER Bins... Large Or Small STORE HOURS Mon-Fri 7 30t0430 Sot 8 00 to Noon 24 Hr 7 Day Repair Service Effect Of Veal On Dairy Although there is a clear differ ence between bob veal and special fed veal meat, the price for bob veal depends on the success of special-fed veal. In many markets, veal is veal, whether it comes from bob calves or special-fed calves. When veal is rejected by the consumer, part of the dairyman’s income from bob veal also is reduced. The value to the dairy industry of bob calves plus that of those going into special-fed veal feed ings totals about $lBO million. (This does not include the value of other calves.) In 1989, Penn State’s John Malone and Lou Moore estimated that each year, $l7O million in dairy products and by-products were used in veal diets in Pennsylvania. Most veal feed manufacturers add or subtract dairy products and by-products from veal diets as commodity prices change. If we assume by now this has decreased to $l5O million, the veal industry annually returns at least $330 mil lion to Pennsylvania’s dairy indus try —slBo million for calves plus $l5O million for dairy products and by-products. Milk price has not kept up with inflation or production cpst increases. However, prices for cull cows and bull calves have more than kept pace with inflation and have outstripped any long-term increase in milk price. Of course, cow and calf income is roughly 10 percent of the dairyman’s total income, but it nevertheless has increased steadily over the past IS years, and this has at least paigglly compensated for the static fmlk price. State and national beef and veal check-off programs deserve credit for increasing demand Jtpr these by-products of the dafry industry. Progressive Industry Programs As an example of progressive (Turn to Pag* 03) Put ’em Up! ■«s fir Custom Applications FOR FREE ESTIMATES CALL OMR TOLL-FREE CUSTOMER SERVICE NUMBER: 1-SOO-675-288Q
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