1 00:00:02,159 --> 00:00:05,680 coming up Prime's better than Select and 2 00:00:04,319 --> 00:00:07,200 they might think Select is better than 3 00:00:05,680 --> 00:00:09,040 Prime we've seen that time and time 4 00:00:07,200 --> 00:00:10,559 again but what people have known is 5 00:00:09,040 --> 00:00:13,440 whenever they go and buy a product that 6 00:00:10,559 --> 00:00:15,280 says Angus on it it means quality 100% 7 00:00:13,440 --> 00:00:17,600 agree with you i think I think we have 8 00:00:15,280 --> 00:00:20,560 done a good job branding quality 9 00:00:17,600 --> 00:00:23,519 efficiency is uh yield pounds are still 10 00:00:20,560 --> 00:00:26,800 king and now we're going to have them 11 00:00:23,519 --> 00:00:28,560 into a harvest facility pounds are king 12 00:00:26,800 --> 00:00:30,240 too that's right around the corner on 13 00:00:28,560 --> 00:00:33,200 the Live Egg Ranch and livestock 14 00:00:30,240 --> 00:00:35,120 marketing we live at podcast but first a 15 00:00:33,200 --> 00:00:37,840 reminder if it's time to sell your 16 00:00:35,120 --> 00:00:39,600 cattle consign your cattle with Live A 17 00:00:37,840 --> 00:00:42,879 our summer auction schedule is on your 18 00:00:39,600 --> 00:00:44,640 screen and available at live-ag.com 19 00:00:42,879 --> 00:00:46,800 consign your cattle now and take 20 00:00:44,640 --> 00:00:49,280 advantage of Live A's generations of 21 00:00:46,800 --> 00:00:51,760 experience in livestock marketing now 22 00:00:49,280 --> 00:00:54,160 here's your hosts Tid Cordova and Casey 23 00:00:51,760 --> 00:00:56,800 Mabry welcome to Live A We Live It 24 00:00:54,160 --> 00:00:59,039 podcast uh from an exciting standpoint 25 00:00:56,800 --> 00:01:01,280 we got rid of Tai uh this week and we 26 00:00:59,039 --> 00:01:03,920 brought in a couple guests we got Dennis 27 00:01:01,280 --> 00:01:05,199 Mezer and Jared Warham uh in here this 28 00:01:03,920 --> 00:01:06,400 week and we're going to talk about some 29 00:01:05,199 --> 00:01:08,799 different things that are going on in 30 00:01:06,400 --> 00:01:10,799 the industry uh and Jared uh has brought 31 00:01:08,799 --> 00:01:12,560 in some different information here uh 32 00:01:10,799 --> 00:01:13,840 around some stuff so uh Jared why don't 33 00:01:12,560 --> 00:01:15,040 you go ahead and introduce yourself and 34 00:01:13,840 --> 00:01:16,720 kind of tell us who you are and where 35 00:01:15,040 --> 00:01:18,400 you've been uh and kind of some things 36 00:01:16,720 --> 00:01:20,320 that we're going to talk about today you 37 00:01:18,400 --> 00:01:22,400 bet so I appreciate you having me on and 38 00:01:20,320 --> 00:01:25,600 obviously I've known Dennis for a real 39 00:01:22,400 --> 00:01:27,200 for a lot of years now and and we've um 40 00:01:25,600 --> 00:01:29,280 you know both of us have worked in in 41 00:01:27,200 --> 00:01:31,119 the beef industry and and the marketing 42 00:01:29,280 --> 00:01:33,600 and livestock supply chain space for 43 00:01:31,119 --> 00:01:35,200 quite a while and so I thought uh it'd 44 00:01:33,600 --> 00:01:36,880 be a good day to come in here and and 45 00:01:35,200 --> 00:01:38,240 visit with that watch the live a sale 46 00:01:36,880 --> 00:01:40,400 that looked like it went really well so 47 00:01:38,240 --> 00:01:42,000 congratulations to you guys on that uh 48 00:01:40,400 --> 00:01:44,079 would love to talk about some of the 49 00:01:42,000 --> 00:01:45,840 maybe the updates to to like the USDA 50 00:01:44,079 --> 00:01:47,360 live animal spec uh things that are 51 00:01:45,840 --> 00:01:48,799 happening with that like the yield task 52 00:01:47,360 --> 00:01:51,360 force and what that may mean to the 53 00:01:48,799 --> 00:01:52,720 industry and how that may impact cattle 54 00:01:51,360 --> 00:01:53,600 that trade this summer which I know is 55 00:01:52,720 --> 00:01:55,119 an important thing because you're 56 00:01:53,600 --> 00:01:56,560 starting to book book summer sales 57 00:01:55,119 --> 00:01:59,840 schedules right now with as far as 58 00:01:56,560 --> 00:02:01,600 cattle and get them under contract and 59 00:01:59,840 --> 00:02:04,640 uh you know what that may look like as 60 00:02:01,600 --> 00:02:06,399 we go through the next 6 to 18 months as 61 00:02:04,640 --> 00:02:08,000 as like places like sustainable come 62 00:02:06,399 --> 00:02:11,599 online and start killing cattle and what 63 00:02:08,000 --> 00:02:13,599 that uh um may mean for you know as we 64 00:02:11,599 --> 00:02:15,120 migrate through the the change you know 65 00:02:13,599 --> 00:02:16,560 bottoming out maybe of supplies is this 66 00:02:15,120 --> 00:02:18,080 the smallest calf crop is next year's 67 00:02:16,560 --> 00:02:19,680 calf crop the smallest calf crop and 68 00:02:18,080 --> 00:02:21,440 things like that yeah who knows i guess 69 00:02:19,680 --> 00:02:22,879 you could probably uh shake your magic 70 00:02:21,440 --> 00:02:24,160 eightball and maybe figure out something 71 00:02:22,879 --> 00:02:25,520 there but probably still come up with 72 00:02:24,160 --> 00:02:26,959 some different information you know 73 00:02:25,520 --> 00:02:28,239 before we got on here Jar and I were 74 00:02:26,959 --> 00:02:30,640 talking i think the biggest thing that 75 00:02:28,239 --> 00:02:32,800 you wanted to talk about here was u the 76 00:02:30,640 --> 00:02:34,319 live animal spec uh in that way so 77 00:02:32,800 --> 00:02:37,120 traditionally speaking just to kind of 78 00:02:34,319 --> 00:02:39,120 educate people on that um cattle go into 79 00:02:37,120 --> 00:02:41,519 the cooler or cattle come into a packing 80 00:02:39,120 --> 00:02:43,840 plant uh they get designated as either 81 00:02:41,519 --> 00:02:46,480 Angus or non- Angus uh those cattle are 82 00:02:43,840 --> 00:02:48,800 then marked on some type of a way in 83 00:02:46,480 --> 00:02:51,599 that plant and designated as the ability 84 00:02:48,800 --> 00:02:53,599 to go into uh the branded box beef 85 00:02:51,599 --> 00:02:55,120 program the largest branded box beef 86 00:02:53,599 --> 00:02:57,120 program out there would be the first one 87 00:02:55,120 --> 00:02:59,120 that would do be the the G1 sort which 88 00:02:57,120 --> 00:03:01,120 is certified Angus beef and then a lot 89 00:02:59,120 --> 00:03:03,200 of programs get pulled out of that so 90 00:03:01,120 --> 00:03:05,760 since that was incepted or the inception 91 00:03:03,200 --> 00:03:07,120 of that was probably 1978 there's been a 92 00:03:05,760 --> 00:03:10,000 lot of different programs that have come 93 00:03:07,120 --> 00:03:12,000 off of that so now we probably got that 94 00:03:10,000 --> 00:03:14,959 was the G1 that was the first box beef 95 00:03:12,000 --> 00:03:16,720 program now we probably got 175 of them 96 00:03:14,959 --> 00:03:19,920 and as everybody knows out there this 97 00:03:16,720 --> 00:03:22,000 industry changes a drastic amount and um 98 00:03:19,920 --> 00:03:23,840 there's lots of different characters of 99 00:03:22,000 --> 00:03:26,400 cattle out there from a phenotypical 100 00:03:23,840 --> 00:03:27,840 standpoint and a genotypical standpoint 101 00:03:26,400 --> 00:03:29,599 uh to where we've got you know cattle 102 00:03:27,840 --> 00:03:31,120 that are just as high quality you know 103 00:03:29,599 --> 00:03:33,360 another breed like a red Angus or 104 00:03:31,120 --> 00:03:35,040 something like that so Jared talk about 105 00:03:33,360 --> 00:03:37,519 the the what what we talked about 106 00:03:35,040 --> 00:03:39,040 earlier yeah you bet so I I think you 107 00:03:37,519 --> 00:03:40,000 did a great job teeing that up so thank 108 00:03:39,040 --> 00:03:41,519 you for going through that because 109 00:03:40,000 --> 00:03:42,959 that's that is not that isn't something 110 00:03:41,519 --> 00:03:44,239 that's that's really common knowledge 111 00:03:42,959 --> 00:03:45,440 unless you've worked in the space that 112 00:03:44,239 --> 00:03:47,920 you've worked in right there's a lot of 113 00:03:45,440 --> 00:03:49,360 nuances to you know how Gstamps work and 114 00:03:47,920 --> 00:03:51,040 what happens inside that packing plant 115 00:03:49,360 --> 00:03:53,200 and how those carcasses get sorted and 116 00:03:51,040 --> 00:03:55,200 designated for different box beef 117 00:03:53,200 --> 00:03:57,840 programs etc but you know the recent 118 00:03:55,200 --> 00:03:59,680 update to the USDA live animal spec 119 00:03:57,840 --> 00:04:03,120 specifically you know which now includes 120 00:03:59,680 --> 00:04:05,360 red Angus cattle um as as an Angus uh 121 00:04:03,120 --> 00:04:07,280 because we know just genetically right 122 00:04:05,360 --> 00:04:08,640 there's there's black Angus cattle and 123 00:04:07,280 --> 00:04:10,560 then there's red Angus cattle but it's 124 00:04:08,640 --> 00:04:13,040 really the same breed uh all started 125 00:04:10,560 --> 00:04:14,560 with the same um you know origins etc 126 00:04:13,040 --> 00:04:16,320 and then just you know because some 127 00:04:14,560 --> 00:04:18,959 breeders wanted reds and blacks it kind 128 00:04:16,320 --> 00:04:21,280 of went bifurcated from there long time 129 00:04:18,959 --> 00:04:22,639 ago and you're right I mean CAB was 130 00:04:21,280 --> 00:04:25,520 really the pioneer that put us on the 131 00:04:22,639 --> 00:04:28,240 map to to identifying uh an Angus 132 00:04:25,520 --> 00:04:29,840 branded program and based on quality so 133 00:04:28,240 --> 00:04:32,000 it was it was something that needed to 134 00:04:29,840 --> 00:04:34,880 happen because we created raving fans of 135 00:04:32,000 --> 00:04:36,479 premium quality beef by doing that and 136 00:04:34,880 --> 00:04:38,320 you know created a lot of trust in our 137 00:04:36,479 --> 00:04:40,720 product not only domestically but 138 00:04:38,320 --> 00:04:42,080 globally um you know we've both uh done 139 00:04:40,720 --> 00:04:45,600 some stuff globally and we know that 140 00:04:42,080 --> 00:04:47,840 there's there is a um you know American 141 00:04:45,600 --> 00:04:50,400 beef has a has a you know other 142 00:04:47,840 --> 00:04:53,680 countries know what it is um and so I 143 00:04:50,400 --> 00:04:55,520 think uh you know that we have to give 144 00:04:53,680 --> 00:04:57,520 homage to them for what they've created 145 00:04:55,520 --> 00:04:58,800 in the trough it was cut by CAB and that 146 00:04:57,520 --> 00:05:01,280 G1 stamp 147 00:04:58,800 --> 00:05:03,199 but today I think the exciting thing 148 00:05:01,280 --> 00:05:05,600 about what what's happened and what the 149 00:05:03,199 --> 00:05:08,400 the team at Red Angus really pushed for 150 00:05:05,600 --> 00:05:10,560 uh is the expansion of you know include 151 00:05:08,400 --> 00:05:12,400 or the inclusion of red Angus cattle in 152 00:05:10,560 --> 00:05:14,880 Angus programs but as well not just red 153 00:05:12,400 --> 00:05:16,400 Angus uh cattle but red Angus and 154 00:05:14,880 --> 00:05:18,080 additional black Angus influence cattle 155 00:05:16,400 --> 00:05:20,720 like black angus Charlotte cross and red 156 00:05:18,080 --> 00:05:23,120 Angus Charlotte cross so now those those 157 00:05:20,720 --> 00:05:25,360 cattle can flow into an Angus branded 158 00:05:23,120 --> 00:05:26,800 program and and fall under a GC schedule 159 00:05:25,360 --> 00:05:29,280 if somebody wants to create their own GC 160 00:05:26,800 --> 00:05:30,960 schedule to to adopt uh that new live 161 00:05:29,280 --> 00:05:32,639 animal spec they can and some packers 162 00:05:30,960 --> 00:05:34,720 are starting to do that yeah which is 163 00:05:32,639 --> 00:05:37,120 probably allows I mean from a grander 164 00:05:34,720 --> 00:05:38,639 scope um let's say I'm a red Angus 165 00:05:37,120 --> 00:05:40,479 breeder out there and I've just been red 166 00:05:38,639 --> 00:05:42,160 Angus red Angus red Angus on top of each 167 00:05:40,479 --> 00:05:43,759 other and then you want to bring in you 168 00:05:42,160 --> 00:05:44,960 talked about the yield component you 169 00:05:43,759 --> 00:05:47,039 know those are going to push a lot of 170 00:05:44,960 --> 00:05:49,520 quality attributes and then maybe the 171 00:05:47,039 --> 00:05:51,919 antagonistic part of it would be taking 172 00:05:49,520 --> 00:05:53,440 the musling out of the cattle or um and 173 00:05:51,919 --> 00:05:54,880 there'll probably be people debate that 174 00:05:53,440 --> 00:05:56,639 with me or taking some of the average 175 00:05:54,880 --> 00:05:58,320 daily gain so like what you're 176 00:05:56,639 --> 00:06:01,039 discussing is possibly having the 177 00:05:58,320 --> 00:06:03,919 ability now to take a red Angus bull 178 00:06:01,039 --> 00:06:05,919 breed that to some Charlay cows or take 179 00:06:03,919 --> 00:06:08,000 a char could you take Charlay or is it 180 00:06:05,919 --> 00:06:09,759 got to all be red Angus sire well I 181 00:06:08,000 --> 00:06:12,080 think the you know it really depends on 182 00:06:09,759 --> 00:06:14,240 how they want to build a GCAMP to fit 183 00:06:12,080 --> 00:06:15,759 that that live animal spec update and I 184 00:06:14,240 --> 00:06:18,000 would I would honestly encourage 185 00:06:15,759 --> 00:06:20,000 listeners if they have questions that we 186 00:06:18,000 --> 00:06:21,759 can't answer today to reach out to the 187 00:06:20,000 --> 00:06:24,000 Red Angus or the Charlay Association 188 00:06:21,759 --> 00:06:25,600 teams to really get some of that detail 189 00:06:24,000 --> 00:06:26,639 on what they have to do it could get 190 00:06:25,600 --> 00:06:28,160 pretty confusing if you don't 191 00:06:26,639 --> 00:06:29,919 necessarily know you probably can't even 192 00:06:28,160 --> 00:06:32,080 go that deep into here anyway and get 193 00:06:29,919 --> 00:06:34,479 get it clear we know the new at least 194 00:06:32,080 --> 00:06:36,720 one of the newest G stamps is G161 so 195 00:06:34,479 --> 00:06:38,479 there's 160 some of those G-stamps for 196 00:06:36,720 --> 00:06:40,800 Angus and they're all different right 197 00:06:38,479 --> 00:06:42,240 and so to to be able to talk about each 198 00:06:40,800 --> 00:06:43,840 one of them today would take forever and 199 00:06:42,240 --> 00:06:45,520 so I think the best thing to do is to 200 00:06:43,840 --> 00:06:48,240 talk to those breed associations to 201 00:06:45,520 --> 00:06:49,919 learn more looking to earn a premium for 202 00:06:48,240 --> 00:06:51,840 doing things right at EarthClaims we 203 00:06:49,919 --> 00:06:53,520 provide private third-party verification 204 00:06:51,840 --> 00:06:55,360 services trusted by ranchers and 205 00:06:53,520 --> 00:06:57,280 preferred by retailers we offer the 206 00:06:55,360 --> 00:06:59,599 original animal welfare program Global 207 00:06:57,280 --> 00:07:01,599 Animal Partnership also known as GAP and 208 00:06:59,599 --> 00:07:03,199 now we've added NHTC and verified 209 00:07:01,599 --> 00:07:05,280 natural to provide the best thirdparty 210 00:07:03,199 --> 00:07:07,759 bundle in the business today plus Earth 211 00:07:05,280 --> 00:07:09,840 Claims offers grass-fed and organic 212 00:07:07,759 --> 00:07:12,240 programs to propel your access into the 213 00:07:09,840 --> 00:07:14,240 top markets and best prices our team has 214 00:07:12,240 --> 00:07:16,080 over 200 years of combined experience in 215 00:07:14,240 --> 00:07:17,759 animal husbandry and we understand the 216 00:07:16,080 --> 00:07:19,840 ins and outs of your operation because 217 00:07:17,759 --> 00:07:22,840 we've lived it too call us today at 218 00:07:19,840 --> 00:07:22,840 816-65220004 219 00:07:23,199 --> 00:07:27,360 or visit earthclaims.com to enroll your 220 00:07:25,440 --> 00:07:29,599 cattle and start earning more earth 221 00:07:27,360 --> 00:07:32,720 claims rancher trusted retailer 222 00:07:29,599 --> 00:07:35,199 preferred so what is G161 223 00:07:32,720 --> 00:07:36,800 that is a that is a a G stamp created by 224 00:07:35,199 --> 00:07:38,160 sustainable beef uh that's the new 225 00:07:36,800 --> 00:07:40,479 packing plant in North Path that's 226 00:07:38,160 --> 00:07:42,960 that's just started killing cattle and I 227 00:07:40,479 --> 00:07:44,960 think uh they wanted to be open-minded 228 00:07:42,960 --> 00:07:46,960 and not just go down that traditional 229 00:07:44,960 --> 00:07:49,199 path of hey if it's black heighted it's 230 00:07:46,960 --> 00:07:50,479 an Angus right they didn't want it to be 231 00:07:49,199 --> 00:07:52,240 um they didn't want to exclude 232 00:07:50,479 --> 00:07:53,680 themselves from a population or 233 00:07:52,240 --> 00:07:56,000 additional populations of very high 234 00:07:53,680 --> 00:07:57,680 quality cattle they knew that uh you 235 00:07:56,000 --> 00:07:59,520 know the black Angus Charlay cross the 236 00:07:57,680 --> 00:08:00,720 red Angus cattle the red Angus Charlay 237 00:07:59,520 --> 00:08:02,560 cross and then other crosses because 238 00:08:00,720 --> 00:08:04,080 right if it's if it's a black Angus 239 00:08:02,560 --> 00:08:05,520 cross with SH simmonl it's just going to 240 00:08:04,080 --> 00:08:06,720 look black and so I think we're we're 241 00:08:05,520 --> 00:08:08,000 not excluding those from this 242 00:08:06,720 --> 00:08:09,120 conversation we're just assuming 243 00:08:08,000 --> 00:08:11,280 everybody knows that they're already 244 00:08:09,120 --> 00:08:13,599 kind of in that conversation but we are 245 00:08:11,280 --> 00:08:17,520 now including the shark crosses uh with 246 00:08:13,599 --> 00:08:19,120 both those Angus types into a box that 247 00:08:17,520 --> 00:08:21,280 uh you know goes to a consumer as an 248 00:08:19,120 --> 00:08:23,520 Angus product not a hide color base but 249 00:08:21,280 --> 00:08:25,039 just an Angus product that is let's say 250 00:08:23,520 --> 00:08:27,360 it's you know if they're targeting X 251 00:08:25,039 --> 00:08:28,960 amount of supply of upper 2/3 upper 1/3 252 00:08:27,360 --> 00:08:30,879 prime and some select they can now do 253 00:08:28,960 --> 00:08:32,880 that through that mechanism to put that 254 00:08:30,879 --> 00:08:34,479 product in that box so let's say I send 255 00:08:32,880 --> 00:08:37,599 a set of cattle into there and Dennis 256 00:08:34,479 --> 00:08:39,200 you sold a set of cattle uh they're 80% 257 00:08:37,599 --> 00:08:41,519 blackhided from a phenotypical 258 00:08:39,200 --> 00:08:44,240 standpoint and then 20% of the cattle 259 00:08:41,519 --> 00:08:46,399 are other colors right so in trai in the 260 00:08:44,240 --> 00:08:48,320 traditional way uh we send those cattle 261 00:08:46,399 --> 00:08:50,080 in everything that's blackhided gets 262 00:08:48,320 --> 00:08:52,560 marked with an A or some type of a 263 00:08:50,080 --> 00:08:53,760 designation you know previous to this 264 00:08:52,560 --> 00:08:56,240 the rest of the cattle would just fall 265 00:08:53,760 --> 00:08:59,040 into a commodity sort today describe 266 00:08:56,240 --> 00:09:01,360 which animals now can get that same 267 00:08:59,040 --> 00:09:02,560 designation as the black heighted cattle 268 00:09:01,360 --> 00:09:03,839 yeah And of course they'd have to use a 269 00:09:02,560 --> 00:09:07,600 different stamp right they can't use the 270 00:09:03,839 --> 00:09:09,120 the G1A they would have to use I think a 271 00:09:07,600 --> 00:09:13,120 different type of stamp there in the 272 00:09:09,120 --> 00:09:14,640 plant but uh and you're so I think to 273 00:09:13,120 --> 00:09:17,120 answer your question it would be let's 274 00:09:14,640 --> 00:09:19,040 say you have a mix pin of bluff black 275 00:09:17,120 --> 00:09:21,040 and red heighted cattle and they're all 276 00:09:19,040 --> 00:09:24,320 Angus uh you know whether it's source 277 00:09:21,040 --> 00:09:26,080 and age or verified to be Angus desired 278 00:09:24,320 --> 00:09:27,760 they can all flow into that same program 279 00:09:26,080 --> 00:09:29,519 and under whatever stamp that would be 280 00:09:27,760 --> 00:09:31,120 and however the packing plant wants to 281 00:09:29,519 --> 00:09:34,320 handle it as far as as those carcasses 282 00:09:31,120 --> 00:09:36,880 are coming down the the chain uh which 283 00:09:34,320 --> 00:09:38,800 and I think that's another big uh 284 00:09:36,880 --> 00:09:40,000 important part to mention is let's say 285 00:09:38,800 --> 00:09:41,839 you have I mean because we know how it 286 00:09:40,000 --> 00:09:43,920 works I mean the straight loads of 287 00:09:41,839 --> 00:09:46,800 cattle are great but we know there's 288 00:09:43,920 --> 00:09:50,399 tons of blended lots and sorted lots and 289 00:09:46,800 --> 00:09:52,080 so let's say you have uh six or seven 290 00:09:50,399 --> 00:09:54,560 pins that include black heighted red 291 00:09:52,080 --> 00:09:56,240 heighted uh you know buckskins and 292 00:09:54,560 --> 00:09:58,240 silvers you know black angus charllay 293 00:09:56,240 --> 00:10:01,600 cross and all of them fall within the 294 00:09:58,240 --> 00:10:03,279 specs of that that live animal um update 295 00:10:01,600 --> 00:10:04,880 they could all go into that box And it 296 00:10:03,279 --> 00:10:08,080 could all go down the same chain it just 297 00:10:04,880 --> 00:10:09,920 has it happens to be it happens to need 298 00:10:08,080 --> 00:10:12,399 to fall under the guidance and however 299 00:10:09,920 --> 00:10:14,240 that particular harvest plant wants to 300 00:10:12,399 --> 00:10:15,839 to manage those carcasses as they come 301 00:10:14,240 --> 00:10:17,279 down the chain yeah and that harvest 302 00:10:15,839 --> 00:10:18,959 plant gets to make the decision because 303 00:10:17,279 --> 00:10:22,079 it would be their in-house brand yes 304 00:10:18,959 --> 00:10:23,839 that it's Angus and then of the Angus 305 00:10:22,079 --> 00:10:26,000 those cattle that fit that criteria 306 00:10:23,839 --> 00:10:28,240 deemed by what the USDA live animal spec 307 00:10:26,000 --> 00:10:30,000 changes are correct so no that's I think 308 00:10:28,240 --> 00:10:31,440 that's a little bit clearer than what I 309 00:10:30,000 --> 00:10:33,360 was thinking a little bit ago and it 310 00:10:31,440 --> 00:10:35,440 makes a heck of a lot of sense because I 311 00:10:33,360 --> 00:10:37,920 mean I know that we've got that word 312 00:10:35,440 --> 00:10:40,000 Angus means equality to a lot of people 313 00:10:37,920 --> 00:10:42,320 um you sit down and you start asking the 314 00:10:40,000 --> 00:10:43,600 consumer namely the GR grades of beef 315 00:10:42,320 --> 00:10:45,200 they may not know that prime's better 316 00:10:43,600 --> 00:10:46,640 than select and they might think select 317 00:10:45,200 --> 00:10:48,640 is better than prime we've seen that 318 00:10:46,640 --> 00:10:50,160 time and time again but what people have 319 00:10:48,640 --> 00:10:52,160 known is whenever they go and buy a 320 00:10:50,160 --> 00:10:55,360 product that says Angus on it it means 321 00:10:52,160 --> 00:10:57,040 quality to them and so um and so whether 322 00:10:55,360 --> 00:10:59,040 you're eating a Angus hot dog or you're 323 00:10:57,040 --> 00:11:00,720 eating an Angus ribeye I mean it means 324 00:10:59,040 --> 00:11:02,320 something to those people so now this 325 00:11:00,720 --> 00:11:05,440 just allows as the numbers have gotten 326 00:11:02,320 --> 00:11:07,760 tighter to include those red Angus type 327 00:11:05,440 --> 00:11:09,680 cattle absolutely and I I 100% agree 328 00:11:07,760 --> 00:11:13,440 with you i think I think we have done a 329 00:11:09,680 --> 00:11:16,399 good job branding quality um globally uh 330 00:11:13,440 --> 00:11:19,360 and CAB's to thank for that right but 331 00:11:16,399 --> 00:11:22,000 what we do know and this is just from 332 00:11:19,360 --> 00:11:24,640 you know water cooler talk with friends 333 00:11:22,000 --> 00:11:26,720 that are chefs and and uh uh in that 334 00:11:24,640 --> 00:11:28,640 space as well as butchers and and other 335 00:11:26,720 --> 00:11:30,399 studies it's Angus is the word that's 336 00:11:28,640 --> 00:11:32,720 key to that it's not a hide color it's 337 00:11:30,399 --> 00:11:35,600 not black Angus or red Angus it's just 338 00:11:32,720 --> 00:11:37,680 Angus and so again I think because 339 00:11:35,600 --> 00:11:39,200 supplies are tight and because we have 340 00:11:37,680 --> 00:11:41,360 to look at our industry from a 341 00:11:39,200 --> 00:11:43,600 sustainability standpoint the least 342 00:11:41,360 --> 00:11:46,160 sustainable thing we can do is say "Hey 343 00:11:43,600 --> 00:11:47,600 we're we're going to ignore logic and 344 00:11:46,160 --> 00:11:50,079 science and we're just going to say if 345 00:11:47,600 --> 00:11:51,600 it's black heighted it can only be Angus 346 00:11:50,079 --> 00:11:54,079 that's not very sustainable." And I 347 00:11:51,600 --> 00:11:55,920 think we can't have those conversations 348 00:11:54,079 --> 00:11:59,920 it's great we need to talk about other 349 00:11:55,920 --> 00:12:01,360 things like uh the climate smart and 350 00:11:59,920 --> 00:12:02,880 methane i know that's always going to 351 00:12:01,360 --> 00:12:05,600 dominate headlines because it's a big 352 00:12:02,880 --> 00:12:07,920 topic but to me yes that's great but 353 00:12:05,600 --> 00:12:10,000 there are simpler things we can do to 354 00:12:07,920 --> 00:12:11,760 make our industry more sustainable from 355 00:12:10,000 --> 00:12:13,600 an economic standpoint especially for 356 00:12:11,760 --> 00:12:15,760 ranchers i mean cattlemen and cattle 357 00:12:13,600 --> 00:12:18,720 women as you know that are involved in 358 00:12:15,760 --> 00:12:21,279 production side or or cattle feeding etc 359 00:12:18,720 --> 00:12:23,120 is allow them to put what is an Angus or 360 00:12:21,279 --> 00:12:25,519 an Angus influence product regardless of 361 00:12:23,120 --> 00:12:26,880 hide color into a box i mean we hate we 362 00:12:25,519 --> 00:12:28,320 can't keep stepping over a dollar to 363 00:12:26,880 --> 00:12:29,680 pick up a dime when that's that's 364 00:12:28,320 --> 00:12:31,839 something that's simple to fix 365 00:12:29,680 --> 00:12:33,600 absolutely so Dennis I mean as as you 366 00:12:31,839 --> 00:12:35,120 look forward here and you're starting to 367 00:12:33,600 --> 00:12:36,639 go out there and talk to your guys that 368 00:12:35,120 --> 00:12:38,000 are booking sales and you know kind of 369 00:12:36,639 --> 00:12:40,720 setting up cattle and things like that 370 00:12:38,000 --> 00:12:42,320 or even the other ones you know uh how 371 00:12:40,720 --> 00:12:45,200 do you think this is going to impact to 372 00:12:42,320 --> 00:12:47,680 your to your operators well to to a lot 373 00:12:45,200 --> 00:12:49,600 of my longtime friends and customers 374 00:12:47,680 --> 00:12:52,160 that uh you know my start was with the 375 00:12:49,600 --> 00:12:54,079 Charlay and so when I first started in 376 00:12:52,160 --> 00:12:57,519 the marketing business I was primarily a 377 00:12:54,079 --> 00:13:00,399 Charlay influenced uh go-to guy for to 378 00:12:57,519 --> 00:13:03,600 market that product but this is a this 379 00:13:00,399 --> 00:13:06,000 is and and kudos to Mr tom Brink he kind 380 00:13:03,600 --> 00:13:07,680 of pushed this thing through uh and has 381 00:13:06,000 --> 00:13:09,760 been working on it for several years so 382 00:13:07,680 --> 00:13:12,240 I think I'd certainly like to reach out 383 00:13:09,760 --> 00:13:14,560 to him and give him a major portion of 384 00:13:12,240 --> 00:13:17,120 the credit cuz he he brought it on and 385 00:13:14,560 --> 00:13:21,440 and stood behind it and and drove it 386 00:13:17,120 --> 00:13:26,480 through um cattle quality has changed a 387 00:13:21,440 --> 00:13:28,959 lot in in my short career um and and we 388 00:13:26,480 --> 00:13:31,519 can give a lot of credit to to the Angus 389 00:13:28,959 --> 00:13:33,760 side of it for that but uh from an 390 00:13:31,519 --> 00:13:36,639 economical standpoint from a customer 391 00:13:33,760 --> 00:13:39,440 standpoint I think it's a huge step 392 00:13:36,639 --> 00:13:42,720 forward because there's a lot of 393 00:13:39,440 --> 00:13:45,360 territories that uh have to have a 394 00:13:42,720 --> 00:13:48,959 crossbreeding program in order to stay 395 00:13:45,360 --> 00:13:53,279 viable and I think that uh we've been 396 00:13:48,959 --> 00:13:55,760 we've been driven or or psychologically 397 00:13:53,279 --> 00:13:58,079 we've been kind of schooled that it had 398 00:13:55,760 --> 00:14:01,120 to be a one breed rotation in order to 399 00:13:58,079 --> 00:14:02,959 be able to sell the product at a premium 400 00:14:01,120 --> 00:14:05,680 and and which is true to a certain 401 00:14:02,959 --> 00:14:07,440 degree but I think now that uh now that 402 00:14:05,680 --> 00:14:09,199 we've got other options it's going to 403 00:14:07,440 --> 00:14:11,680 open the door and you know I've seen a 404 00:14:09,199 --> 00:14:13,760 lot of a lot of my customers that has 405 00:14:11,680 --> 00:14:15,839 went to a one breed rotation just 406 00:14:13,760 --> 00:14:19,440 because that's what supposedly the 407 00:14:15,839 --> 00:14:21,680 industry wanted and stood for and and 408 00:14:19,440 --> 00:14:23,600 that handful of cattle that we seen in 409 00:14:21,680 --> 00:14:25,920 them niche markets and I won't mention 410 00:14:23,600 --> 00:14:28,720 those names but that's a small portion 411 00:14:25,920 --> 00:14:30,800 of the of the whole 29 million cows that 412 00:14:28,720 --> 00:14:32,880 we have you know and but that's the one 413 00:14:30,800 --> 00:14:34,320 that got the most recognition because we 414 00:14:32,880 --> 00:14:37,440 sell them in a competitive bidding 415 00:14:34,320 --> 00:14:40,560 system and those premiums they remember 416 00:14:37,440 --> 00:14:42,639 that 250,000 hit of cattle a year that 417 00:14:40,560 --> 00:14:45,519 was getting the the big premiums through 418 00:14:42,639 --> 00:14:49,120 a vigo environment so from my standpoint 419 00:14:45,519 --> 00:14:52,320 it's it's got great hope and and knowing 420 00:14:49,120 --> 00:14:54,959 that we can we we've got another outlet 421 00:14:52,320 --> 00:14:56,880 for that product i think time was going 422 00:14:54,959 --> 00:14:59,760 to help that anyway but this is going to 423 00:14:56,880 --> 00:15:03,360 enhance it and bring it back to uh a 424 00:14:59,760 --> 00:15:04,959 quicker uh switch you know where most of 425 00:15:03,360 --> 00:15:07,040 the most of the entities I work with 426 00:15:04,959 --> 00:15:08,880 have always been a two breed rotation 427 00:15:07,040 --> 00:15:12,720 you know we'll see a a black or red 428 00:15:08,880 --> 00:15:15,199 heighted cow base and a and a char bull 429 00:15:12,720 --> 00:15:17,279 side of it you know and then it's not 430 00:15:15,199 --> 00:15:19,040 those Charlay and Red Angus are the two 431 00:15:17,279 --> 00:15:20,800 that's that it's going to probably fit 432 00:15:19,040 --> 00:15:24,079 the best but there's a couple other 433 00:15:20,800 --> 00:15:26,560 continental breeds that could have uh 434 00:15:24,079 --> 00:15:28,240 benefit from it too so yeah no I think 435 00:15:26,560 --> 00:15:29,360 that's if you look at other species and 436 00:15:28,240 --> 00:15:30,880 different things like that i mean 437 00:15:29,360 --> 00:15:31,920 especially on the hog side they've been 438 00:15:30,880 --> 00:15:33,440 able to take lots of different 439 00:15:31,920 --> 00:15:35,519 attributes from different breeds and 440 00:15:33,440 --> 00:15:37,279 composite them i mean what's interesting 441 00:15:35,519 --> 00:15:38,720 Dennis and and Jared like when I sit 442 00:15:37,279 --> 00:15:41,839 back and I think about I would have 443 00:15:38,720 --> 00:15:44,560 started in this industry in 2005 444 00:15:41,839 --> 00:15:47,120 and um the industry was probably grading 445 00:15:44,560 --> 00:15:49,120 somewhere around 60% choice and higher 446 00:15:47,120 --> 00:15:52,320 uh from a black heighted standpoint the 447 00:15:49,120 --> 00:15:54,639 industry was probably about 65 to 70% 448 00:15:52,320 --> 00:15:57,120 black heighted um and like you said the 449 00:15:54,639 --> 00:15:59,920 market signal uh that came out not only 450 00:15:57,120 --> 00:16:01,519 just from CAB but then as we piggybacked 451 00:15:59,920 --> 00:16:03,920 on those I would I'm not going to 452 00:16:01,519 --> 00:16:07,040 necessarily I'll say copycat programs uh 453 00:16:03,920 --> 00:16:09,600 that copied that it forced uh the packer 454 00:16:07,040 --> 00:16:11,920 to bid more on black heighted cattle i 455 00:16:09,600 --> 00:16:13,839 give premiums for those cattle uh and 456 00:16:11,920 --> 00:16:14,959 then you would give premiums back into 457 00:16:13,839 --> 00:16:16,880 the country because they're like "Hey 458 00:16:14,959 --> 00:16:19,040 look if I'm if I'm going to get a 459 00:16:16,880 --> 00:16:20,560 premium in the in from the packer they 460 00:16:19,040 --> 00:16:22,480 need to be black hided when I purchase 461 00:16:20,560 --> 00:16:24,880 those." And so the market signals been 462 00:16:22,480 --> 00:16:26,320 there and so then the the interesting 463 00:16:24,880 --> 00:16:27,759 thing that I think about from an 464 00:16:26,320 --> 00:16:29,680 efficiency standpoint so let's just say 465 00:16:27,759 --> 00:16:31,920 you take single breed rotation and 466 00:16:29,680 --> 00:16:33,920 you're taking all the quality attributes 467 00:16:31,920 --> 00:16:36,160 for those cattle what you've done is 468 00:16:33,920 --> 00:16:38,959 you've advanced the grade now I said we 469 00:16:36,160 --> 00:16:42,240 were 65% choice and higher maybe 60 as 470 00:16:38,959 --> 00:16:44,320 an industry u and today we're like 85 471 00:16:42,240 --> 00:16:47,440 and so consistent yeah we were used to 472 00:16:44,320 --> 00:16:50,079 be 2% prime now we're 12 to 15% prime 473 00:16:47,440 --> 00:16:52,320 consistently and so we've definitely uh 474 00:16:50,079 --> 00:16:54,000 done that now the spread between cost of 475 00:16:52,320 --> 00:16:55,199 gain and cattle price has helped that 476 00:16:54,000 --> 00:16:57,199 because we've made cattle bigger and 477 00:16:55,199 --> 00:16:58,880 fatter and all that stuff but man what 478 00:16:57,199 --> 00:17:01,040 we probably need to focus on a little 479 00:16:58,880 --> 00:17:03,279 bit as an industry is that yield grading 480 00:17:01,040 --> 00:17:05,280 component uh because again quality and 481 00:17:03,279 --> 00:17:07,280 yield are antagonistic with each other 482 00:17:05,280 --> 00:17:09,679 we're the industry you know us having 483 00:17:07,280 --> 00:17:13,679 you know corn uh in the bunk at you know 484 00:17:09,679 --> 00:17:15,679 450 475 it covers a lot of sins up um 485 00:17:13,679 --> 00:17:16,799 now I think we need to work on you know 486 00:17:15,679 --> 00:17:18,640 probably some of the terminal 487 00:17:16,799 --> 00:17:21,919 characteristics you know the average 488 00:17:18,640 --> 00:17:24,799 daily gain uh feed conversion because if 489 00:17:21,919 --> 00:17:26,319 we start to narrow up 490 00:17:24,799 --> 00:17:27,839 um 491 00:17:26,319 --> 00:17:29,679 we've kind of started to narrow up the 492 00:17:27,839 --> 00:17:31,360 spreads prime spreads not as big as what 493 00:17:29,679 --> 00:17:33,679 it was choice spread's not as big as 494 00:17:31,360 --> 00:17:36,080 what it was but if we start to narrow up 495 00:17:33,679 --> 00:17:39,360 now the spread between cost of gain and 496 00:17:36,080 --> 00:17:41,440 cattle price those efficiencies matter 497 00:17:39,360 --> 00:17:42,559 um and so if you wanted like so so let's 498 00:17:41,440 --> 00:17:44,080 just talk about that for a minute so 499 00:17:42,559 --> 00:17:45,919 then if you allow guys to bring in 500 00:17:44,080 --> 00:17:48,320 cattle that are buckkins skins or 501 00:17:45,919 --> 00:17:49,520 silvers or whatever um terminology you 502 00:17:48,320 --> 00:17:51,039 use there on the different colored 503 00:17:49,520 --> 00:17:52,320 cattle it probably allows them to 504 00:17:51,039 --> 00:17:54,640 probably dig from a different a bigger 505 00:17:52,320 --> 00:17:58,160 pool of of bulls 506 00:17:54,640 --> 00:18:00,880 so efficiency is uh yield pounds are 507 00:17:58,160 --> 00:18:04,320 still king and now we're going to have 508 00:18:00,880 --> 00:18:07,760 them into a harvest facility pounds are 509 00:18:04,320 --> 00:18:11,200 king too agre yield is is a big part of 510 00:18:07,760 --> 00:18:13,280 their bottom line so if and and it's 511 00:18:11,200 --> 00:18:15,919 also a big part of of the cow calf 512 00:18:13,280 --> 00:18:20,880 operation and the stalker operation so 513 00:18:15,919 --> 00:18:23,840 it's one area one efficiency area that 514 00:18:20,880 --> 00:18:26,240 can benefit all segments of the industry 515 00:18:23,840 --> 00:18:29,679 in my mind and and if and I'm not saying 516 00:18:26,240 --> 00:18:32,480 there isn't one bull rotation programs 517 00:18:29,679 --> 00:18:34,400 that have you know they've done a Angus 518 00:18:32,480 --> 00:18:35,919 have done a great job black Angus have 519 00:18:34,400 --> 00:18:38,880 done a great job of having higher 520 00:18:35,919 --> 00:18:42,240 performing genetics too but but we've 521 00:18:38,880 --> 00:18:46,559 changed the industry to to where quality 522 00:18:42,240 --> 00:18:48,720 grade is not really a a big issue as far 523 00:18:46,559 --> 00:18:50,559 as it's pretty easy to make one grade oh 524 00:18:48,720 --> 00:18:51,760 I mean the variation in cattle i mean I 525 00:18:50,559 --> 00:18:55,280 think back to when I was buying fat 526 00:18:51,760 --> 00:18:57,360 cattle even like in 2010 to 12 that time 527 00:18:55,280 --> 00:18:59,840 period i mean I I remember buying a set 528 00:18:57,360 --> 00:19:02,000 of cattle that graded 4% choice and I 529 00:18:59,840 --> 00:19:03,760 thought I was going to get fired uh and 530 00:19:02,000 --> 00:19:04,960 now I mean honestly that same type of 531 00:19:03,760 --> 00:19:07,120 animal is going to grade a heck of a lot 532 00:19:04,960 --> 00:19:10,480 higher than that so the variability has 533 00:19:07,120 --> 00:19:12,240 changed a lot um but you know what we're 534 00:19:10,480 --> 00:19:13,760 50% you'll grade fours and fives right 535 00:19:12,240 --> 00:19:16,559 now probably you know so I mean we've 536 00:19:13,760 --> 00:19:18,400 made these cattle just super fat and you 537 00:19:16,559 --> 00:19:20,240 know we Jared we talked a little bit ago 538 00:19:18,400 --> 00:19:22,080 there's a task force on that right so 539 00:19:20,240 --> 00:19:24,640 understanding yield grade understanding 540 00:19:22,080 --> 00:19:26,960 how that is because man we're so quality 541 00:19:24,640 --> 00:19:28,720 driven you know 15 years ago again we 542 00:19:26,960 --> 00:19:30,960 weren't necessarily quality driven now 543 00:19:28,720 --> 00:19:33,039 we're choice now we're trying to get now 544 00:19:30,960 --> 00:19:34,640 make a choice product and it have the 545 00:19:33,039 --> 00:19:37,120 cutability attributes of that that make 546 00:19:34,640 --> 00:19:38,480 it a lot better too so moving livestock 547 00:19:37,120 --> 00:19:40,320 isn't just about getting animals from 548 00:19:38,480 --> 00:19:41,840 point A to point B it's about doing it 549 00:19:40,320 --> 00:19:43,760 with the care and precision that keeps 550 00:19:41,840 --> 00:19:46,000 your investment safe and sound since 551 00:19:43,760 --> 00:19:47,520 1987 Agar Transportation has been the 552 00:19:46,000 --> 00:19:49,600 name that ranchers across the country 553 00:19:47,520 --> 00:19:51,200 trust with their herds their experienced 554 00:19:49,600 --> 00:19:53,120 drivers understand that your livestock 555 00:19:51,200 --> 00:19:55,039 is your livelihood and they trust each 556 00:19:53,120 --> 00:19:57,039 load like it's their own i've personally 557 00:19:55,039 --> 00:19:58,559 used Agar to move my own livestock and I 558 00:19:57,039 --> 00:20:00,160 can tell you nobody takes better care of 559 00:19:58,559 --> 00:20:01,840 your animals on the road whether you're 560 00:20:00,160 --> 00:20:03,840 moving herd bulls or a full truckload of 561 00:20:01,840 --> 00:20:07,799 cavs give AAR Transportation a call 562 00:20:03,840 --> 00:20:07,799 today that's 2084525011 563 00:20:07,919 --> 00:20:12,559 or visit agar transportation.com for a 564 00:20:10,400 --> 00:20:15,600 quick quote agar Transportation moving 565 00:20:12,559 --> 00:20:17,360 your cattle with care since 1987 u what 566 00:20:15,600 --> 00:20:19,280 do you know about this uh the the task 567 00:20:17,360 --> 00:20:20,480 force on the yield grade component i 568 00:20:19,280 --> 00:20:22,240 think the easiest way to to 569 00:20:20,480 --> 00:20:24,320 compartmentalize that is to say there is 570 00:20:22,240 --> 00:20:25,840 a group of individuals uh from academia 571 00:20:24,320 --> 00:20:29,120 and from the industry that have been 572 00:20:25,840 --> 00:20:30,960 challenged to add the clarity to the 573 00:20:29,120 --> 00:20:32,640 yield equation that we've been really 574 00:20:30,960 --> 00:20:34,799 been missing for the last several 575 00:20:32,640 --> 00:20:36,080 decades so again to your guys' point I 576 00:20:34,799 --> 00:20:38,799 mean we've really done a great job 577 00:20:36,080 --> 00:20:41,039 genetically and then now recently with 578 00:20:38,799 --> 00:20:42,559 genomically enhanced EPDS improving 579 00:20:41,039 --> 00:20:44,720 quality grade to a level that you're 580 00:20:42,559 --> 00:20:47,520 right I mean it's not hard to get really 581 00:20:44,720 --> 00:20:49,440 good cattle to to find good cattle even 582 00:20:47,520 --> 00:20:51,200 from tons of blended pin out of Florida 583 00:20:49,440 --> 00:20:53,120 right you could pull a bunch of Florida 584 00:20:51,200 --> 00:20:55,120 together put them on grass in Kansas and 585 00:20:53,120 --> 00:20:57,520 then uh you'll finish them in somewhere 586 00:20:55,120 --> 00:20:59,600 in Kansas at a feed yard and still have 587 00:20:57,520 --> 00:21:02,080 pretty good results whereas 20 30 years 588 00:20:59,600 --> 00:21:03,679 ago that was a total different story so 589 00:21:02,080 --> 00:21:05,520 um and again on the feed efficiency 590 00:21:03,679 --> 00:21:06,880 piece we've we went down that road 591 00:21:05,520 --> 00:21:08,480 pretty hard and we're still working very 592 00:21:06,880 --> 00:21:10,080 hard on that one so we've we've covered 593 00:21:08,480 --> 00:21:11,840 those two buckets and the last one to 594 00:21:10,080 --> 00:21:15,120 your point is is the yield grade so I 595 00:21:11,840 --> 00:21:17,120 think the the desire from the industry 596 00:21:15,120 --> 00:21:18,320 is to figure out the clarity that needs 597 00:21:17,120 --> 00:21:19,600 to come and you're right I mean when 598 00:21:18,320 --> 00:21:22,320 you're when you're bumping I mean I've 599 00:21:19,600 --> 00:21:24,240 seen plant averages uh especially in 600 00:21:22,320 --> 00:21:27,200 April you know March April May i mean 601 00:21:24,240 --> 00:21:30,240 they'll bump 35 45% yield grade fours 602 00:21:27,200 --> 00:21:32,000 and fives um and we just don't I think 603 00:21:30,240 --> 00:21:35,760 as an industry truly know how to 604 00:21:32,000 --> 00:21:37,919 quantify the losses that come from the 605 00:21:35,760 --> 00:21:39,600 reduced amount of yield that is that is 606 00:21:37,919 --> 00:21:41,520 uh that exists and so until we get 607 00:21:39,600 --> 00:21:43,120 clarity on that we don't know how to 608 00:21:41,520 --> 00:21:45,280 economically figure some of those things 609 00:21:43,120 --> 00:21:47,520 out and so I think um we see the 610 00:21:45,280 --> 00:21:49,679 premiums that come from from a set of 611 00:21:47,520 --> 00:21:52,240 cattle that'll be 95% choice or better 612 00:21:49,679 --> 00:21:54,400 and 40% primes and we we oo and awe 613 00:21:52,240 --> 00:21:56,400 about it and which is great we need to 614 00:21:54,400 --> 00:21:58,640 focus on that still but we can't 615 00:21:56,400 --> 00:22:01,039 understand yet what is lost from the 616 00:21:58,640 --> 00:22:02,799 yield equation we focus in my opinion 617 00:22:01,039 --> 00:22:05,120 too much on dressing percentage and not 618 00:22:02,799 --> 00:22:06,960 enough on what the actual yield equation 619 00:22:05,120 --> 00:22:08,960 should look like so that's what the task 620 00:22:06,960 --> 00:22:10,880 force is is being challenged with and we 621 00:22:08,960 --> 00:22:12,640 hope we we add clarity to that part of 622 00:22:10,880 --> 00:22:15,120 the industry and that that will then 623 00:22:12,640 --> 00:22:17,440 flow back down to individuals that are 624 00:22:15,120 --> 00:22:19,679 using breeds heavily like Charlay and 625 00:22:17,440 --> 00:22:21,760 that rotational cross to Dennis's point 626 00:22:19,679 --> 00:22:24,159 because to be sustainable we need a 627 00:22:21,760 --> 00:22:25,679 maternal component we need a terminal 628 00:22:24,159 --> 00:22:28,000 component and we put them together just 629 00:22:25,679 --> 00:22:30,080 like every other protein's done so if we 630 00:22:28,000 --> 00:22:32,240 can figure out those those yield pieces 631 00:22:30,080 --> 00:22:35,600 it then adds that much more value and 632 00:22:32,240 --> 00:22:37,840 power to breeds like Charlay that uh you 633 00:22:35,600 --> 00:22:40,480 know and for the years I spent running 634 00:22:37,840 --> 00:22:43,840 hard in the feedard space uh working for 635 00:22:40,480 --> 00:22:46,240 Tom there at Top Dollar I I'd want to 636 00:22:43,840 --> 00:22:47,919 talk about you know Red Angus and Black 637 00:22:46,240 --> 00:22:49,760 Angus influenced feeder cattle and all 638 00:22:47,919 --> 00:22:52,000 they wanted to talk about was was 639 00:22:49,760 --> 00:22:53,440 Charlay Black Angus and Charlay Red 640 00:22:52,000 --> 00:22:54,640 Angus influenced i mean there's not a 641 00:22:53,440 --> 00:22:56,080 feed yard in this country that wouldn't 642 00:22:54,640 --> 00:22:57,600 take a good set of those cuz they just 643 00:22:56,080 --> 00:22:59,039 they just clip a coupon and make money 644 00:22:57,600 --> 00:23:00,640 so yeah so if you think about the 645 00:22:59,039 --> 00:23:02,720 incentive and I always I always make the 646 00:23:00,640 --> 00:23:04,320 statement incentive drives outcome um 647 00:23:02,720 --> 00:23:07,039 and the incentive today is to make 648 00:23:04,320 --> 00:23:09,360 cattle big we got to get pounds on them 649 00:23:07,039 --> 00:23:11,200 the byproduct of making cattle big is 650 00:23:09,360 --> 00:23:12,799 like what are you producing like when we 651 00:23:11,200 --> 00:23:14,159 crack the hide off of the cattle and we 652 00:23:12,799 --> 00:23:16,320 or we hang them up and then we crack the 653 00:23:14,159 --> 00:23:18,799 hide off of the cattle and then we look 654 00:23:16,320 --> 00:23:20,480 at that that deal so if we were to lay 655 00:23:18,799 --> 00:23:22,240 them out and go what's the muscle bone 656 00:23:20,480 --> 00:23:24,240 and fat you'd lay it out on three deals 657 00:23:22,240 --> 00:23:25,760 and say from a percentage standpoint i 658 00:23:24,240 --> 00:23:27,679 used to debate this like when I worked 659 00:23:25,760 --> 00:23:30,080 at Cargill and we would say all right 660 00:23:27,679 --> 00:23:32,480 look the cost of gain today is a buck 10 661 00:23:30,080 --> 00:23:34,559 right i'm going to sell them for 240 in 662 00:23:32,480 --> 00:23:36,240 the north right so every day that I add 663 00:23:34,559 --> 00:23:38,559 that to them it's two it's you know I'm 664 00:23:36,240 --> 00:23:39,520 making a$130 a pound right so let's it's 665 00:23:38,559 --> 00:23:42,400 going to tell you to feed them to 666 00:23:39,520 --> 00:23:43,919 infinity but in in in hindsight when you 667 00:23:42,400 --> 00:23:45,360 step back and you crack those cattle 668 00:23:43,919 --> 00:23:47,520 open and you then you break them into 669 00:23:45,360 --> 00:23:49,440 that muscle bone and fat what are you 670 00:23:47,520 --> 00:23:51,600 producing in those incremental spinal 671 00:23:49,440 --> 00:23:54,080 stages right at the beginning it's 672 00:23:51,600 --> 00:23:55,200 probably 70% muscle i'm just throwing 673 00:23:54,080 --> 00:23:56,960 numbers out there i have no idea but 674 00:23:55,200 --> 00:23:58,960 it's a lot of percentage of muscle it's 675 00:23:56,960 --> 00:24:00,799 going to be muscle beef that makes the 676 00:23:58,960 --> 00:24:02,400 composition of the carcass right but I 677 00:24:00,799 --> 00:24:04,000 think in those very very tail ends 678 00:24:02,400 --> 00:24:05,679 you're producing kidney pelvic and heart 679 00:24:04,000 --> 00:24:07,120 fat oh yeah and you're producing ex 680 00:24:05,679 --> 00:24:10,320 external fat that's going to get trimmed 681 00:24:07,120 --> 00:24:12,559 off and then you trim that off 682 00:24:10,320 --> 00:24:16,880 the muscle beef today the carcass is 683 00:24:12,559 --> 00:24:18,320 worth 360 the cutout value is 360 um but 684 00:24:16,880 --> 00:24:20,799 then you break the components of that 685 00:24:18,320 --> 00:24:22,880 cutout out if it's pure fat that pure 686 00:24:20,799 --> 00:24:24,400 fat's probably worth a from a yielded 687 00:24:22,880 --> 00:24:27,279 standpoint we got tallow that's real 688 00:24:24,400 --> 00:24:28,960 high and you got the FTB way to do it 689 00:24:27,279 --> 00:24:31,200 but let's just say the fat is worth if 690 00:24:28,960 --> 00:24:34,080 the muscle's worth 350 a pound the fat's 691 00:24:31,200 --> 00:24:36,880 worth 50 cents a pound okay so we're 692 00:24:34,080 --> 00:24:40,400 adding uh we're we're putting on a pound 693 00:24:36,880 --> 00:24:42,720 of gain that pound of gain cost a$110 694 00:24:40,400 --> 00:24:45,120 it's worth when you buy it from the them 695 00:24:42,720 --> 00:24:47,520 at 250 but what's the packer turning 696 00:24:45,120 --> 00:24:50,320 around and selling it for right the 697 00:24:47,520 --> 00:24:51,440 packer's paying 360 hanging for it and 698 00:24:50,320 --> 00:24:53,279 then they turn around they're going to 699 00:24:51,440 --> 00:24:56,559 sell that fat that incremental fat that 700 00:24:53,279 --> 00:24:59,200 they paid 360 for for 50 cents a pound 701 00:24:56,559 --> 00:25:02,320 right and and so that's the part that I 702 00:24:59,200 --> 00:25:04,240 think if the easiest thing to do is say 703 00:25:02,320 --> 00:25:07,600 I added a pound of weight and it's worth 704 00:25:04,240 --> 00:25:10,240 260 or 240 the hardest thing to do is go 705 00:25:07,600 --> 00:25:14,559 "What is that?" And and and the cattle 706 00:25:10,240 --> 00:25:16,720 are the only thing out there that truly 707 00:25:14,559 --> 00:25:19,039 go that direction 708 00:25:16,720 --> 00:25:21,200 and it's the hardest thing to quantify 709 00:25:19,039 --> 00:25:23,279 right because you can't you can't kill 710 00:25:21,200 --> 00:25:24,880 the same cattle twice you don't know if 711 00:25:23,279 --> 00:25:26,559 there was really fat well what you got 712 00:25:24,880 --> 00:25:28,000 to do is go when we add this incremental 713 00:25:26,559 --> 00:25:29,600 deal and so to your point when you talk 714 00:25:28,000 --> 00:25:31,760 about the yield component of it the 715 00:25:29,600 --> 00:25:33,919 yield grading component the task force 716 00:25:31,760 --> 00:25:35,440 component of it the incentive is to 717 00:25:33,919 --> 00:25:37,360 still overfeed cattle even if they're 718 00:25:35,440 --> 00:25:40,000 50% yield grade force but hopefully now 719 00:25:37,360 --> 00:25:41,760 you know what's in that 240 right yeah i 720 00:25:40,000 --> 00:25:44,480 think I think that you know if you go 721 00:25:41,760 --> 00:25:46,720 back 100 years ago or 50 years ago when 722 00:25:44,480 --> 00:25:48,880 all the fragmentation was done and we 723 00:25:46,720 --> 00:25:51,039 had all these little mom and pop shops 724 00:25:48,880 --> 00:25:52,880 the guy that's buying cattle and selling 725 00:25:51,039 --> 00:25:54,880 meat sat at a desk next to each other 726 00:25:52,880 --> 00:25:56,320 and they went out in the packing plant 727 00:25:54,880 --> 00:25:59,760 and the guy that there was that there 728 00:25:56,320 --> 00:26:01,840 was that that uh that pain point of the 729 00:25:59,760 --> 00:26:04,240 guy at the plant going hey these things 730 00:26:01,840 --> 00:26:05,919 are too fat and then the sales guy 731 00:26:04,240 --> 00:26:08,480 pushing back going I can't do this and 732 00:26:05,919 --> 00:26:10,960 then the procurement guy going okay I'll 733 00:26:08,480 --> 00:26:13,919 give that market signal go back but now 734 00:26:10,960 --> 00:26:16,480 our system's gotten so large that the 735 00:26:13,919 --> 00:26:18,320 procurement team is sitting in a in a 736 00:26:16,480 --> 00:26:20,640 corporate office somewhere very far away 737 00:26:18,320 --> 00:26:22,559 from the packing plant the operations 738 00:26:20,640 --> 00:26:24,480 guys at the plant going "Hey these 739 00:26:22,559 --> 00:26:26,159 things are fat but whatever." And then 740 00:26:24,480 --> 00:26:28,240 you got the sales guys selling some 741 00:26:26,159 --> 00:26:30,400 other product so it's not that you don't 742 00:26:28,240 --> 00:26:32,159 have that you know you know what I'm 743 00:26:30,400 --> 00:26:33,520 saying that conversation going "What 744 00:26:32,159 --> 00:26:35,520 you're paying what I'm paying for 745 00:26:33,520 --> 00:26:37,600 doesn't make sense." 746 00:26:35,520 --> 00:26:39,840 Go ahead i got a question we all go yeah 747 00:26:37,600 --> 00:26:44,080 so you know from my perspective and how 748 00:26:39,840 --> 00:26:46,320 it how this this new uh grid or uh 749 00:26:44,080 --> 00:26:48,240 possibility of sustainable fits me i 750 00:26:46,320 --> 00:26:50,000 work mostly with cow calf guys i also 751 00:26:48,240 --> 00:26:52,320 feed some cattle too so I understand 752 00:26:50,000 --> 00:26:55,120 both sides of it or think I understand 753 00:26:52,320 --> 00:26:58,640 both sides of it but what's relevant to 754 00:26:55,120 --> 00:27:02,799 me is mostly the cow kef guy where where 755 00:26:58,640 --> 00:27:06,799 I need to keep him and her viable in the 756 00:27:02,799 --> 00:27:08,880 industry sustainable if you will and you 757 00:27:06,799 --> 00:27:10,880 know probably one of the sharpest cow 758 00:27:08,880 --> 00:27:12,320 men that I've ever had the pleasure of 759 00:27:10,880 --> 00:27:13,919 being around and I've been around a lot 760 00:27:12,320 --> 00:27:15,679 of them you know he always told me you 761 00:27:13,919 --> 00:27:17,600 take you take a product and make it fit 762 00:27:15,679 --> 00:27:19,919 your environment and it'll take care of 763 00:27:17,600 --> 00:27:21,840 you in the next environment and that was 764 00:27:19,919 --> 00:27:23,600 very true i mean he was running a a 765 00:27:21,840 --> 00:27:25,440 pink-nosed purebred Charlay that he 766 00:27:23,600 --> 00:27:28,720 retained ownership in getting them to 767 00:27:25,440 --> 00:27:30,720 grade 80 some percent as keeds so I 768 00:27:28,720 --> 00:27:33,360 think I think all this has to have some 769 00:27:30,720 --> 00:27:36,080 common sense to it in every segment a 770 00:27:33,360 --> 00:27:38,640 lot of times we're not able to control 771 00:27:36,080 --> 00:27:40,640 what happens after it leaves the cow 772 00:27:38,640 --> 00:27:44,000 side of it so we build the best product 773 00:27:40,640 --> 00:27:45,919 we can that's got the most marketability 774 00:27:44,000 --> 00:27:47,600 but I would also include in there that 775 00:27:45,919 --> 00:27:50,799 we got to throw some common sense in 776 00:27:47,600 --> 00:27:55,039 with it and that that char red or black 777 00:27:50,799 --> 00:27:56,880 angus cross has a bigger window to 778 00:27:55,039 --> 00:27:59,600 manage i mean you can manage if you're 779 00:27:56,880 --> 00:28:02,000 fighting the market or or or in in 780 00:27:59,600 --> 00:28:03,520 today's case you're just making them big 781 00:28:02,000 --> 00:28:05,600 because that's the only way these cattle 782 00:28:03,520 --> 00:28:07,919 are working for them on the other end 783 00:28:05,600 --> 00:28:10,399 because of uh you got to make them big 784 00:28:07,919 --> 00:28:12,559 and and and the industry is calling for 785 00:28:10,399 --> 00:28:15,440 us to make them big now because you know 786 00:28:12,559 --> 00:28:18,159 tight supplies we're not that far behind 787 00:28:15,440 --> 00:28:20,320 in in total pounds from previous years 788 00:28:18,159 --> 00:28:23,039 but we're just making them bigger so you 789 00:28:20,320 --> 00:28:25,440 put yourself in a position yield we we 790 00:28:23,039 --> 00:28:28,240 we could anticipated it was coming a 791 00:28:25,440 --> 00:28:30,640 couple years ago those people that are 792 00:28:28,240 --> 00:28:32,480 still doing a two or three breed 793 00:28:30,640 --> 00:28:33,760 rotation with their Charlays and make 794 00:28:32,480 --> 00:28:35,760 building their own replacements they're 795 00:28:33,760 --> 00:28:37,760 in the driver's seat now they're selling 796 00:28:35,760 --> 00:28:39,840 pounds they're selling a product that 797 00:28:37,760 --> 00:28:42,720 that you can manage different and I 798 00:28:39,840 --> 00:28:44,960 think management is is a factor that we 799 00:28:42,720 --> 00:28:47,679 don't measure scientifically 800 00:28:44,960 --> 00:28:50,080 um but management is a big part of the 801 00:28:47,679 --> 00:28:53,520 final outcome too you know I can take I 802 00:28:50,080 --> 00:28:55,919 can take a set of about anything um 803 00:28:53,520 --> 00:28:57,360 breed wise and if I manage them right 804 00:28:55,919 --> 00:29:00,000 I'm going to put them at least in a 805 00:28:57,360 --> 00:29:01,679 pretty high percentage quality grade if 806 00:29:00,000 --> 00:29:05,760 I'm managing them even better I'm going 807 00:29:01,679 --> 00:29:07,840 to make them yield so I think from from 808 00:29:05,760 --> 00:29:10,480 a cow cave side from the start of the 809 00:29:07,840 --> 00:29:12,799 production line I think this is putting 810 00:29:10,480 --> 00:29:15,279 them in a position to really be in the 811 00:29:12,799 --> 00:29:17,520 driver's seat both from their 812 00:29:15,279 --> 00:29:20,080 perspective and then for every segment 813 00:29:17,520 --> 00:29:21,039 of the industry yeah you bet you bet so 814 00:29:20,080 --> 00:29:22,880 Jared what were you going to say a 815 00:29:21,039 --> 00:29:25,360 second ago yeah you just just listened 816 00:29:22,880 --> 00:29:27,200 to you talk I I kind of had just some 817 00:29:25,360 --> 00:29:29,279 questions pop up in my head you know the 818 00:29:27,200 --> 00:29:30,640 the there's several hamsters up there 819 00:29:29,279 --> 00:29:32,960 when the wheels get to go and they're 820 00:29:30,640 --> 00:29:34,640 all kind of in different directions as 821 00:29:32,960 --> 00:29:36,880 long as they all go the same way no they 822 00:29:34,640 --> 00:29:39,520 don't and they aren't the same speed 823 00:29:36,880 --> 00:29:41,760 either so it it can be kind of confusing 824 00:29:39,520 --> 00:29:46,000 at times but I wonder you know in our in 825 00:29:41,760 --> 00:29:50,159 our in our as we have strived as an 826 00:29:46,000 --> 00:29:52,399 industry to you know chase uh trust of 827 00:29:50,159 --> 00:29:53,279 the consumer by by putting a product in 828 00:29:52,399 --> 00:29:54,240 front of them that they really wanted 829 00:29:53,279 --> 00:29:56,000 because at the end of the day we're in 830 00:29:54,240 --> 00:29:57,520 the food business right whether we're 831 00:29:56,000 --> 00:29:58,480 you know we we love breeding cattle and 832 00:29:57,520 --> 00:29:59,840 we're passionate about it because that's 833 00:29:58,480 --> 00:30:01,840 what we love to do but we're still in 834 00:29:59,840 --> 00:30:05,120 the food business and so we've we've 835 00:30:01,840 --> 00:30:06,640 built trust because we focused on um you 836 00:30:05,120 --> 00:30:08,240 know the product and the endpoint and 837 00:30:06,640 --> 00:30:10,880 and so to to listen to you talk through 838 00:30:08,240 --> 00:30:12,559 that scenario i wonder what you know so 839 00:30:10,880 --> 00:30:14,880 we haven't had a lot of motivation to 840 00:30:12,559 --> 00:30:16,720 solve the yield issue till now it's 841 00:30:14,880 --> 00:30:19,039 coming but is it because it's been so 842 00:30:16,720 --> 00:30:21,120 easy and there's such a huge demand for 843 00:30:19,039 --> 00:30:23,440 grind in this country that because of 844 00:30:21,120 --> 00:30:25,120 the trimmings and because that fat can 845 00:30:23,440 --> 00:30:27,520 go out and we can blend it and so the 846 00:30:25,120 --> 00:30:29,360 fact that they can bring in um you know 847 00:30:27,520 --> 00:30:31,440 cow meat etc blended to make that grind 848 00:30:29,360 --> 00:30:33,440 and we eat like how many hamburgers a 849 00:30:31,440 --> 00:30:35,279 day in this country i mean is that 850 00:30:33,440 --> 00:30:36,240 something that's maybe covered this up a 851 00:30:35,279 --> 00:30:38,399 little bit i don't know it just popped 852 00:30:36,240 --> 00:30:40,640 in my head that be I mean how many how 853 00:30:38,399 --> 00:30:42,080 many pounds of grind so if you go to 854 00:30:40,640 --> 00:30:43,919 other countries they don't they don't 855 00:30:42,080 --> 00:30:45,200 feed cattle as hard as we do obviously 856 00:30:43,919 --> 00:30:46,559 they don't have the grain base that we 857 00:30:45,200 --> 00:30:48,799 do and they don't produce the fat that 858 00:30:46,559 --> 00:30:50,399 we do uh so it ends up making us you 859 00:30:48,799 --> 00:30:51,600 know bring it in and people like fat i 860 00:30:50,399 --> 00:30:53,679 mean my favorite cut we're sitting here 861 00:30:51,600 --> 00:30:55,120 at Cooper's Barbecue and they offered 862 00:30:53,679 --> 00:30:57,360 brisket on the deal for free and I went 863 00:30:55,120 --> 00:30:59,360 and bought a short rib cuz it's 50% fat 864 00:30:57,360 --> 00:31:01,039 and that's I'm a fat dude right so 865 00:30:59,360 --> 00:31:03,360 anyway that's that's what people like 866 00:31:01,039 --> 00:31:05,120 and so yeah to that point absolutely but 867 00:31:03,360 --> 00:31:06,640 I think that we're truly subsidizing 868 00:31:05,120 --> 00:31:09,679 that hamburger if you really think about 869 00:31:06,640 --> 00:31:10,880 it um with import meat that's cheaper 870 00:31:09,679 --> 00:31:13,039 than what we're having to pay here 871 00:31:10,880 --> 00:31:15,279 that's what I was getting at is is the 872 00:31:13,039 --> 00:31:16,799 50 cents is the is the discount that 873 00:31:15,279 --> 00:31:18,320 they're paying for that fat after 874 00:31:16,799 --> 00:31:20,000 they're trimming that carcass out but 875 00:31:18,320 --> 00:31:22,080 because they bring in that import meat 876 00:31:20,000 --> 00:31:24,559 it it raises the value it raises overall 877 00:31:22,080 --> 00:31:26,880 value because we have so much demand for 878 00:31:24,559 --> 00:31:28,399 grind and hamburgers it kind of washes i 879 00:31:26,880 --> 00:31:29,840 don't know yeah know what's funny i mean 880 00:31:28,399 --> 00:31:32,399 you talk about the blend between the 881 00:31:29,840 --> 00:31:34,320 hamburgers is like if you go to any food 882 00:31:32,399 --> 00:31:37,120 service restaurant your your hamburger 883 00:31:34,320 --> 00:31:38,399 patties are like a 73 mhm um and then 884 00:31:37,120 --> 00:31:40,159 what's everybody want when they go home 885 00:31:38,399 --> 00:31:41,519 when they go buy an 85 because they feel 886 00:31:40,159 --> 00:31:43,679 fat if they're pulling up there and 887 00:31:41,519 --> 00:31:45,200 getting the 73s or something like that 888 00:31:43,679 --> 00:31:46,480 we cook out the water on the leaner 889 00:31:45,200 --> 00:31:48,799 stuff and we cook out the fat on the 890 00:31:46,480 --> 00:31:50,559 fatter stuff but no to your absolutely 891 00:31:48,799 --> 00:31:52,720 to your point I mean the consumer in the 892 00:31:50,559 --> 00:31:54,640 US likes that uh the consumer in the US 893 00:31:52,720 --> 00:31:56,320 is there but I mean from a dollars and 894 00:31:54,640 --> 00:31:58,320 cents standpoint I think we've gotten 895 00:31:56,320 --> 00:32:01,120 too far past the deal we've been in the 896 00:31:58,320 --> 00:32:03,120 situation before back in 15 and 16 we 897 00:32:01,120 --> 00:32:04,640 had the same economic signal out there 898 00:32:03,120 --> 00:32:06,960 now the market prices were a little bit 899 00:32:04,640 --> 00:32:09,360 different but we had super cheap corn we 900 00:32:06,960 --> 00:32:10,880 had really high cattle we overfed cattle 901 00:32:09,360 --> 00:32:12,799 it allowed us to do that during this 902 00:32:10,880 --> 00:32:15,760 time period and then what what'll happen 903 00:32:12,799 --> 00:32:18,880 though in my mind um is you'll get to a 904 00:32:15,760 --> 00:32:20,399 point at where we have more equilibrium 905 00:32:18,880 --> 00:32:22,399 as far as the demand and the supply 906 00:32:20,399 --> 00:32:24,000 cattle today it's too it's way out there 907 00:32:22,399 --> 00:32:26,480 right we got too many shackles not 908 00:32:24,000 --> 00:32:28,240 enough cattle that that'll ride itself i 909 00:32:26,480 --> 00:32:30,240 mean the packer margin is very very 910 00:32:28,240 --> 00:32:32,080 tough and then so the ones that start to 911 00:32:30,240 --> 00:32:34,399 really understand the cutability 912 00:32:32,080 --> 00:32:36,480 attributes and and really it's not the 913 00:32:34,399 --> 00:32:39,919 cutability attributes it's what am I 914 00:32:36,480 --> 00:32:41,679 paying for this stuff and this is the 915 00:32:39,919 --> 00:32:44,480 only industry really as I think through 916 00:32:41,679 --> 00:32:46,559 it that doesn't know what when they're 917 00:32:44,480 --> 00:32:48,640 buying that animal it's all a prediction 918 00:32:46,559 --> 00:32:50,080 on what the value is going to be i mean 919 00:32:48,640 --> 00:32:51,279 you go into any other industry the 920 00:32:50,080 --> 00:32:52,880 lumber industry and things like that 921 00:32:51,279 --> 00:32:55,120 they buy wood there or they buy these 922 00:32:52,880 --> 00:32:57,679 logs they know and they can analyze it 923 00:32:55,120 --> 00:33:00,880 we don't know we we single trade cattle 924 00:32:57,679 --> 00:33:03,840 or double trait we go yield quality 925 00:33:00,880 --> 00:33:05,760 grade and then we start to measure you 926 00:33:03,840 --> 00:33:08,240 know fat thickness and ribeye area 927 00:33:05,760 --> 00:33:10,640 compared to a standard to get that yield 928 00:33:08,240 --> 00:33:12,240 grade component but man I'll just tell 929 00:33:10,640 --> 00:33:14,080 you this anytime that I've ever been at 930 00:33:12,240 --> 00:33:15,679 a packing plant I sit there and I just 931 00:33:14,080 --> 00:33:17,440 look at carcasses and I try to 932 00:33:15,679 --> 00:33:19,519 understand it and I cut my teeth in meat 933 00:33:17,440 --> 00:33:21,279 judging and trying to understand what's 934 00:33:19,519 --> 00:33:23,840 the value of it and then I've boned 935 00:33:21,279 --> 00:33:25,840 cattle myself uh and it had not in any 936 00:33:23,840 --> 00:33:27,519 recent time but I've I've boned cattle 937 00:33:25,840 --> 00:33:29,279 myself and then you go and lay it out 938 00:33:27,519 --> 00:33:30,880 there like I said a pile of muscle a 939 00:33:29,279 --> 00:33:33,279 pile of bone and a pile of fat the 940 00:33:30,880 --> 00:33:36,000 muscles worth a lot of money today we're 941 00:33:33,279 --> 00:33:38,960 not discounting cattle that much mhm 942 00:33:36,000 --> 00:33:41,120 because to Dennis's point earlier he was 943 00:33:38,960 --> 00:33:43,120 talking about yield is the driver and 944 00:33:41,120 --> 00:33:44,880 pounds are the driver pounds are 945 00:33:43,120 --> 00:33:47,039 definitely the driver you could sell 946 00:33:44,880 --> 00:33:49,679 cattle today at a discount because you 947 00:33:47,039 --> 00:33:52,240 overfed them and it still makes more 948 00:33:49,679 --> 00:33:54,720 sense to to overfeed them because the 949 00:33:52,240 --> 00:33:57,120 economics incentive the roll back's 950 00:33:54,720 --> 00:33:59,200 there right and so the beneficiary of 951 00:33:57,120 --> 00:34:02,159 that in my opinion Dennis is the rancher 952 00:33:59,200 --> 00:34:03,760 today because the feedard has done he's 953 00:34:02,159 --> 00:34:07,519 he's said "All right look this is what I 954 00:34:03,760 --> 00:34:09,760 can pay for the cattle i can pay more 955 00:34:07,519 --> 00:34:12,960 because the markets the the the 956 00:34:09,760 --> 00:34:15,119 component of the cost of gain is so 957 00:34:12,960 --> 00:34:16,399 small from a feed cost standpoint that 958 00:34:15,119 --> 00:34:18,800 they're putting it back into the feeder 959 00:34:16,399 --> 00:34:20,000 cattle so I think as we move forward 960 00:34:18,800 --> 00:34:21,200 here the ones that the people that need 961 00:34:20,000 --> 00:34:22,960 to understand it is like all right how 962 00:34:21,200 --> 00:34:24,960 do I make the animal more efficient 963 00:34:22,960 --> 00:34:26,720 because from a competing protein 964 00:34:24,960 --> 00:34:29,119 standpoint I think those other proteins 965 00:34:26,720 --> 00:34:30,320 have done a a good job i'm not going to 966 00:34:29,119 --> 00:34:31,760 say a better job but they've done a good 967 00:34:30,320 --> 00:34:34,399 we we've we've definitely been in the 968 00:34:31,760 --> 00:34:37,040 quality attribute of it um from a beef 969 00:34:34,399 --> 00:34:38,320 standpoint because honestly there's not 970 00:34:37,040 --> 00:34:41,440 very many of us that'll sit down and 971 00:34:38,320 --> 00:34:44,560 enjoy a pork chop we like we like the 972 00:34:41,440 --> 00:34:46,560 sausage but it's you know 30% fat like 973 00:34:44,560 --> 00:34:48,800 it's all fat give me some pork belly 974 00:34:46,560 --> 00:34:50,800 buddy so but it it's a longer process 975 00:34:48,800 --> 00:34:52,960 for us to make a change i mean we're 976 00:34:50,800 --> 00:34:53,919 we're two and a half times probably 977 00:34:52,960 --> 00:34:55,119 longer than that i think it's longer 978 00:34:53,919 --> 00:34:56,720 than that cuz you have generational 979 00:34:55,119 --> 00:34:58,960 mindset 980 00:34:56,720 --> 00:35:02,400 but well even gestation wise I'm saying 981 00:34:58,960 --> 00:35:03,920 though you know we it generational 982 00:35:02,400 --> 00:35:05,680 Yeah not going to put a limousine on my 983 00:35:03,920 --> 00:35:07,200 cows because my grandpa did it and it 984 00:35:05,680 --> 00:35:08,640 didn't work or hey I'm going to put all 985 00:35:07,200 --> 00:35:10,960 limousines on there whatever you know 986 00:35:08,640 --> 00:35:13,920 I'm not trying to pick on breeds but uh 987 00:35:10,960 --> 00:35:15,599 it it it and it's hard 988 00:35:13,920 --> 00:35:17,599 I think in the other in the other 989 00:35:15,599 --> 00:35:20,160 industries that that the the life cycle 990 00:35:17,599 --> 00:35:22,000 of them so short and and the 991 00:35:20,160 --> 00:35:24,880 environment's controlled in the pork and 992 00:35:22,000 --> 00:35:27,280 the poultry industry right y um ours is 993 00:35:24,880 --> 00:35:28,560 so different you can't if you're in you 994 00:35:27,280 --> 00:35:30,000 know in the southeast it's going to be 995 00:35:28,560 --> 00:35:31,119 hard for you to run Angus cows and if 996 00:35:30,000 --> 00:35:32,160 you're in the northwest it's going to be 997 00:35:31,119 --> 00:35:33,680 hard for you to 998 00:35:32,160 --> 00:35:35,440 you know anything with kind of humps or 999 00:35:33,680 --> 00:35:38,000 you know anything thin hided so I think 1000 00:35:35,440 --> 00:35:39,280 it's all geographical driven but no I 1001 00:35:38,000 --> 00:35:41,760 think those conversations have been 1002 00:35:39,280 --> 00:35:43,839 awesome and um you guys I appreciate you 1003 00:35:41,760 --> 00:35:45,839 being on here for sure i know Ty 1004 00:35:43,839 --> 00:35:49,200 definitely missed out this uh this 1005 00:35:45,839 --> 00:35:51,119 episode getting off here but Ty might be 1006 00:35:49,200 --> 00:35:53,839 one of the 1007 00:35:51,119 --> 00:35:55,839 best yeah Tai's right over here we just 1008 00:35:53,839 --> 00:35:58,560 didn't have four chairs and we he was uh 1009 00:35:55,839 --> 00:36:00,400 he was the one we booted him out of this 1010 00:35:58,560 --> 00:36:02,000 deal but I appreciate you guys getting 1011 00:36:00,400 --> 00:36:03,200 on here this week i mean it's Do you 1012 00:36:02,000 --> 00:36:04,720 have any other closing comments you want 1013 00:36:03,200 --> 00:36:06,400 to say man I don't think so i enjoyed 1014 00:36:04,720 --> 00:36:08,400 this thanks for having me enjoyed the 1015 00:36:06,400 --> 00:36:11,359 sale always enjoy catching up with 1016 00:36:08,400 --> 00:36:13,359 Dennis and and and well the crew here 1017 00:36:11,359 --> 00:36:15,839 cuz there's a lot of years we spent uh 1018 00:36:13,359 --> 00:36:18,320 kind of in the same space right so um 1019 00:36:15,839 --> 00:36:20,320 but no I I I I I think I appreciate your 1020 00:36:18,320 --> 00:36:21,839 opportunity to to come hang out with you 1021 00:36:20,320 --> 00:36:23,200 guys and talk about this stuff cuz we're 1022 00:36:21,839 --> 00:36:24,640 all we're all passionate about the 1023 00:36:23,200 --> 00:36:26,800 industry and so just talking about it's 1024 00:36:24,640 --> 00:36:28,720 a lot of fun for me and and I do think 1025 00:36:26,800 --> 00:36:30,960 it's important to educate the industry 1026 00:36:28,720 --> 00:36:33,760 and I and I not only on the the things 1027 00:36:30,960 --> 00:36:35,040 like the the the yield task force which 1028 00:36:33,760 --> 00:36:37,119 we hope is going to bring about some 1029 00:36:35,040 --> 00:36:39,680 some needed change but also with this 1030 00:36:37,119 --> 00:36:41,920 new USDA live animal spec update it 1031 00:36:39,680 --> 00:36:43,280 impacts a lot of ranchers a lot of men a 1032 00:36:41,920 --> 00:36:46,320 lot of women all up down the supply 1033 00:36:43,280 --> 00:36:48,800 chain and and It could uh be something 1034 00:36:46,320 --> 00:36:50,400 that helps uh you know as we go through 1035 00:36:48,800 --> 00:36:51,760 this tight supply of the next two or 1036 00:36:50,400 --> 00:36:53,920 three years and we have some new packing 1037 00:36:51,760 --> 00:36:55,119 plants come online it might be the one 1038 00:36:53,920 --> 00:36:56,720 thing that saves them instead of 1039 00:36:55,119 --> 00:36:58,400 competing only for those black heighted 1040 00:36:56,720 --> 00:37:00,400 cattle that they have to that they used 1041 00:36:58,400 --> 00:37:02,320 to have to force into that that box now 1042 00:37:00,400 --> 00:37:04,000 they have a bigger pool of cattle to 1043 00:37:02,320 --> 00:37:05,440 maybe scale out and and make their 1044 00:37:04,000 --> 00:37:07,280 business a little more robust from that 1045 00:37:05,440 --> 00:37:09,119 standpoint and get through the next few 1046 00:37:07,280 --> 00:37:11,440 years because we do need diversity in 1047 00:37:09,119 --> 00:37:14,240 the packing space right so I think we 1048 00:37:11,440 --> 00:37:16,800 need to be conscientious of of ways that 1049 00:37:14,240 --> 00:37:18,400 we can as an industry help them survive 1050 00:37:16,800 --> 00:37:20,640 yeah you bet no I think all those things 1051 00:37:18,400 --> 00:37:21,920 are very very important and I mean like 1052 00:37:20,640 --> 00:37:23,359 always we're trying to get some 1053 00:37:21,920 --> 00:37:24,560 information out there to you guys and 1054 00:37:23,359 --> 00:37:26,400 really stimulate thought and 1055 00:37:24,560 --> 00:37:27,920 conversation so if y'all ever have any 1056 00:37:26,400 --> 00:37:30,240 questions or something just reach out to 1057 00:37:27,920 --> 00:37:32,079 us uh whether it's on Facebook or any 1058 00:37:30,240 --> 00:37:34,160 kind of social media platform we can get 1059 00:37:32,079 --> 00:37:36,160 you connected with Jared or or uh or 1060 00:37:34,160 --> 00:37:37,760 Dennis or myself or Ty on any of these 1061 00:37:36,160 --> 00:37:39,680 things if you guys have any topics you 1062 00:37:37,760 --> 00:37:41,280 want to hear about uh dang sure let us 1063 00:37:39,680 --> 00:37:42,720 know we can do that or have any interest 1064 00:37:41,280 --> 00:37:44,560 on getting on here we're trying to get 1065 00:37:42,720 --> 00:37:46,720 like a diverse audience to get onto this 1066 00:37:44,560 --> 00:37:48,000 deal um and just like I said we we want 1067 00:37:46,720 --> 00:37:49,440 to make sure that we're it's more 1068 00:37:48,000 --> 00:37:51,280 educational than anything else and you 1069 00:37:49,440 --> 00:37:53,760 kind of learn something from it so uh 1070 00:37:51,280 --> 00:37:55,440 appreciate everybody listening uh thanks 1071 00:37:53,760 --> 00:37:57,760 for getting on the live act we live it 1072 00:37:55,440 --> 00:37:59,839 podcast again casey Mabry here uh 1073 00:37:57,760 --> 00:38:01,280 usually I got Ty this time I got Dennis 1074 00:37:59,839 --> 00:38:03,760 and that's that's a lot better for this 1075 00:38:01,280 --> 00:38:05,680 one but uh like and subscribe your uh on 1076 00:38:03,760 --> 00:38:06,880 the on the social media uh because 1077 00:38:05,680 --> 00:38:09,119 that's the first time that I've ever 1078 00:38:06,880 --> 00:38:11,359 said that but uh again if you guys have 1079 00:38:09,119 --> 00:38:14,680 any questions whatsoever let us know 1080 00:38:11,359 --> 00:38:14,680 have a great 1081 00:38:16,860 --> 00:38:20,560 [Music] 1082 00:38:18,000 --> 00:38:20,560 battling in