coming up Prime's better than Select and they might think Select is better than Prime we've seen that time and time again but what people have known is whenever they go and buy a product that says Angus on it it means quality 100% agree with you i think I think we have done a good job branding quality efficiency is uh yield pounds are still king and now we're going to have them into a harvest facility pounds are king too that's right around the corner on the Live Egg Ranch and livestock
marketing we live at podcast but first a reminder if it's time to sell your cattle consign your cattle with Live A our summer auction schedule is on your screen and available at live-ag.com consign your cattle now and take advantage of Live A's generations of experience in livestock marketing now here's your hosts Tid Cordova and Casey Mabry welcome to Live A We Live It podcast uh from an exciting standpoint we got rid of Tai uh this week and we brought in a couple guests we got Dennis
Mezer and Jared Warham uh in here this week and we're going to talk about some different things that are going on in the industry uh and Jared uh has brought in some different information here uh around some stuff so uh Jared why don't you go ahead and introduce yourself and kind of tell us who you are and where you've been uh and kind of some things that we're going to talk about today you bet so I appreciate you having me on and obviously I've known Dennis for a real
for a lot of years now and and we've um you know both of us have worked in in the beef industry and and the marketing and livestock supply chain space for quite a while and so I thought uh it'd be a good day to come in here and and visit with that watch the live a sale that looked like it went really well so congratulations to you guys on that uh would love to talk about some of the maybe the updates to to like the USDA live animal spec uh things that are happening with that like the yield task
force and what that may mean to the industry and how that may impact cattle that trade this summer which I know is an important thing because you're starting to book book summer sales schedules right now with as far as cattle and get them under contract and uh you know what that may look like as we go through the next 6 to 18 months as as like places like sustainable come online and start killing cattle and what that uh um may mean for you know as we migrate through the the change you know
bottoming out maybe of supplies is this the smallest calf crop is next year's calf crop the smallest calf crop and things like that yeah who knows i guess you could probably uh shake your magic eightball and maybe figure out something there but probably still come up with some different information you know before we got on here Jar and I were talking i think the biggest thing that you wanted to talk about here was u the live animal spec uh in that way so traditionally speaking just to kind of
educate people on that um cattle go into the cooler or cattle come into a packing plant uh they get designated as either Angus or non- Angus uh those cattle are then marked on some type of a way in that plant and designated as the ability to go into uh the branded box beef program the largest branded box beef program out there would be the first one that would do be the the G1 sort which is certified Angus beef and then a lot of programs get pulled out of that so
since that was incepted or the inception of that was probably 1978 there's been a lot of different programs that have come off of that so now we probably got that was the G1 that was the first box beef program now we probably got 175 of them and as everybody knows out there this industry changes a drastic amount and um there's lots of different characters of cattle out there from a phenotypical standpoint and a genotypical standpoint uh to where we've got you know cattle
that are just as high quality you know another breed like a red Angus or something like that so Jared talk about the the what what we talked about earlier yeah you bet so I I think you did a great job teeing that up so thank you for going through that because that's that is not that isn't something that's that's really common knowledge unless you've worked in the space that you've worked in right there's a lot of nuances to you know how Gstamps work and what happens inside that packing plant
and how those carcasses get sorted and designated for different box beef programs etc but you know the recent update to the USDA live animal spec specifically you know which now includes red Angus cattle um as as an Angus uh because we know just genetically right there's there's black Angus cattle and then there's red Angus cattle but it's really the same breed uh all started with the same um you know origins etc and then just you know because some breeders wanted reds and blacks it kind
of went bifurcated from there long time ago and you're right I mean CAB was really the pioneer that put us on the map to to identifying uh an Angus branded program and based on quality so it was it was something that needed to happen because we created raving fans of premium quality beef by doing that and you know created a lot of trust in our product not only domestically but globally um you know we've both uh done some stuff globally and we know that there's there is a um you know American
beef has a has a you know other countries know what it is um and so I think uh you know that we have to give homage to them for what they've created in the trough it was cut by CAB and that G1 stamp but today I think the exciting thing about what what's happened and what the the team at Red Angus really pushed for uh is the expansion of you know include or the inclusion of red Angus cattle in Angus programs but as well not just red Angus uh cattle but red Angus and
additional black Angus influence cattle like black angus Charlotte cross and red Angus Charlotte cross so now those those cattle can flow into an Angus branded program and and fall under a GC schedule if somebody wants to create their own GC schedule to to adopt uh that new live animal spec they can and some packers are starting to do that yeah which is probably allows I mean from a grander scope um let's say I'm a red Angus breeder out there and I've just been red
Angus red Angus red Angus on top of each other and then you want to bring in you talked about the yield component you know those are going to push a lot of quality attributes and then maybe the antagonistic part of it would be taking the musling out of the cattle or um and there'll probably be people debate that with me or taking some of the average daily gain so like what you're discussing is possibly having the ability now to take a red Angus bull breed that to some Charlay cows or take
a char could you take Charlay or is it got to all be red Angus sire well I think the you know it really depends on how they want to build a GCAMP to fit that that live animal spec update and I would I would honestly encourage listeners if they have questions that we can't answer today to reach out to the Red Angus or the Charlay Association teams to really get some of that detail on what they have to do it could get pretty confusing if you don't necessarily know you probably can't even
go that deep into here anyway and get get it clear we know the new at least one of the newest G stamps is G161 so there's 160 some of those G-stamps for Angus and they're all different right and so to to be able to talk about each one of them today would take forever and so I think the best thing to do is to talk to those breed associations to learn more looking to earn a premium for doing things right at EarthClaims we provide private third-party verification services trusted by ranchers and
preferred by retailers we offer the original animal welfare program Global Animal Partnership also known as GAP and now we've added NHTC and verified natural to provide the best thirdparty bundle in the business today plus Earth Claims offers grass-fed and organic programs to propel your access into the top markets and best prices our team has over 200 years of combined experience in animal husbandry and we understand the ins and outs of your operation because we've lived it too call us today at
816-65220004 or visit earthclaims.com to enroll your cattle and start earning more earth claims rancher trusted retailer preferred so what is G161 that is a that is a a G stamp created by sustainable beef uh that's the new packing plant in North Path that's that's just started killing cattle and I think uh they wanted to be open-minded and not just go down that traditional path of hey if it's black heighted it's an Angus right they didn't want it to be um they didn't want to exclude
themselves from a population or additional populations of very high quality cattle they knew that uh you know the black Angus Charlay cross the red Angus cattle the red Angus Charlay cross and then other crosses because right if it's if it's a black Angus cross with SH simmonl it's just going to look black and so I think we're we're not excluding those from this conversation we're just assuming everybody knows that they're already kind of in that conversation but we are
now including the shark crosses uh with both those Angus types into a box that uh you know goes to a consumer as an Angus product not a hide color base but just an Angus product that is let's say it's you know if they're targeting X amount of supply of upper 2/3 upper 1/3 prime and some select they can now do that through that mechanism to put that product in that box so let's say I send a set of cattle into there and Dennis you sold a set of cattle uh they're 80% blackhided from a phenotypical
standpoint and then 20% of the cattle are other colors right so in trai in the traditional way uh we send those cattle in everything that's blackhided gets marked with an A or some type of a designation you know previous to this the rest of the cattle would just fall into a commodity sort today describe which animals now can get that same designation as the black heighted cattle yeah And of course they'd have to use a different stamp right they can't use the
the G1A they would have to use I think a different type of stamp there in the plant but uh and you're so I think to answer your question it would be let's say you have a mix pin of bluff black and red heighted cattle and they're all Angus uh you know whether it's source and age or verified to be Angus desired they can all flow into that same program and under whatever stamp that would be and however the packing plant wants to handle it as far as as those carcasses
are coming down the the chain uh which and I think that's another big uh important part to mention is let's say you have I mean because we know how it works I mean the straight loads of cattle are great but we know there's tons of blended lots and sorted lots and so let's say you have uh six or seven pins that include black heighted red heighted uh you know buckskins and silvers you know black angus charllay cross and all of them fall within the specs of that that live animal um update
they could all go into that box And it could all go down the same chain it just has it happens to be it happens to need to fall under the guidance and however that particular harvest plant wants to to manage those carcasses as they come down the chain yeah and that harvest plant gets to make the decision because it would be their in-house brand yes that it's Angus and then of the Angus those cattle that fit that criteria deemed by what the USDA live animal spec
changes are correct so no that's I think that's a little bit clearer than what I was thinking a little bit ago and it makes a heck of a lot of sense because I mean I know that we've got that word Angus means equality to a lot of people um you sit down and you start asking the consumer namely the GR grades of beef they may not know that prime's better than select and they might think select is better than prime we've seen that time and time again but what people have
known is whenever they go and buy a product that says Angus on it it means quality to them and so um and so whether you're eating a Angus hot dog or you're eating an Angus ribeye I mean it means something to those people so now this just allows as the numbers have gotten tighter to include those red Angus type cattle absolutely and I I 100% agree with you i think I think we have done a good job branding quality um globally uh and CAB's to thank for that right but
what we do know and this is just from you know water cooler talk with friends that are chefs and and uh uh in that space as well as butchers and and other studies it's Angus is the word that's key to that it's not a hide color it's not black Angus or red Angus it's just Angus and so again I think because supplies are tight and because we have to look at our industry from a sustainability standpoint the least sustainable thing we can do is say "Hey we're we're going to ignore logic and
science and we're just going to say if it's black heighted it can only be Angus
that's not very sustainable." And I think we can't have those conversations it's great we need to talk about other things like uh the climate smart and methane i know that's always going to dominate headlines because it's a big topic but to me yes that's great but there are simpler things we can do to make our industry more sustainable from an economic standpoint especially for ranchers i mean cattlemen and cattle women as you know that are involved in production side or or cattle feeding etc
is allow them to put what is an Angus or an Angus influence product regardless of hide color into a box i mean we hate we can't keep stepping over a dollar to pick up a dime when that's that's something that's simple to fix absolutely so Dennis I mean as as you look forward here and you're starting to go out there and talk to your guys that are booking sales and you know kind of setting up cattle and things like that or even the other ones you know uh how do you think this is going to impact to
your to your operators well to to a lot of my longtime friends and customers that uh you know my start was with the Charlay and so when I first started in the marketing business I was primarily a Charlay influenced uh go-to guy for to market that product but this is a this is and and kudos to Mr tom Brink he kind of pushed this thing through uh and has been working on it for several years so I think I'd certainly like to reach out to him and give him a major portion of
the credit cuz he he brought it on and and stood behind it and and drove it through um cattle quality has changed a lot in in my short career um and and we can give a lot of credit to to the Angus side of it for that but uh from an economical standpoint from a customer standpoint I think it's a huge step forward because there's a lot of territories that uh have to have a crossbreeding program in order to stay viable and I think that uh we've been we've been driven or or psychologically
we've been kind of schooled that it had to be a one breed rotation in order to be able to sell the product at a premium and and which is true to a certain degree but I think now that uh now that we've got other options it's going to open the door and you know I've seen a lot of a lot of my customers that has went to a one breed rotation just because that's what supposedly the industry wanted and stood for and and that handful of cattle that we seen in them niche markets and I won't mention
those names but that's a small portion of the of the whole 29 million cows that we have you know and but that's the one that got the most recognition because we sell them in a competitive bidding system and those premiums they remember that 250,000 hit of cattle a year that was getting the the big premiums through a vigo environment so from my standpoint it's it's got great hope and and knowing that we can we we've got another outlet for that product i think time was going
to help that anyway but this is going to enhance it and bring it back to uh a quicker uh switch you know where most of the most of the entities I work with have always been a two breed rotation you know we'll see a a black or red heighted cow base and a and a char bull side of it you know and then it's not those Charlay and Red Angus are the two that's that it's going to probably fit the best but there's a couple other continental breeds that could have uh benefit from it too so yeah no I think
that's if you look at other species and different things like that i mean especially on the hog side they've been able to take lots of different attributes from different breeds and composite them i mean what's interesting Dennis and and Jared like when I sit back and I think about I would have started in this industry in 2005 and um the industry was probably grading somewhere around 60% choice and higher uh from a black heighted standpoint the industry was probably about 65 to 70%
black heighted um and like you said the market signal uh that came out not only just from CAB but then as we piggybacked on those I would I'm not going to necessarily I'll say copycat programs uh that copied that it forced uh the packer to bid more on black heighted cattle i give premiums for those cattle uh and then you would give premiums back into the country because they're like "Hey look if I'm if I'm going to get a premium in the in from the packer they
need to be black hided when I purchase
those." And so the market signals been there and so then the the interesting thing that I think about from an efficiency standpoint so let's just say you take single breed rotation and you're taking all the quality attributes for those cattle what you've done is you've advanced the grade now I said we were 65% choice and higher maybe 60 as an industry u and today we're like 85 and so consistent yeah we were used to be 2% prime now we're 12 to 15% prime consistently and so we've definitely uh
done that now the spread between cost of gain and cattle price has helped that because we've made cattle bigger and fatter and all that stuff but man what we probably need to focus on a little bit as an industry is that yield grading component uh because again quality and yield are antagonistic with each other we're the industry you know us having you know corn uh in the bunk at you know 450 475 it covers a lot of sins up um now I think we need to work on you know probably some of the terminal
characteristics you know the average daily gain uh feed conversion because if we start to narrow up um we've kind of started to narrow up the spreads prime spreads not as big as what it was choice spread's not as big as what it was but if we start to narrow up now the spread between cost of gain and cattle price those efficiencies matter um and so if you wanted like so so let's just talk about that for a minute so then if you allow guys to bring in cattle that are buckkins skins or
silvers or whatever um terminology you use there on the different colored cattle it probably allows them to probably dig from a different a bigger pool of of bulls so efficiency is uh yield pounds are still king and now we're going to have them into a harvest facility pounds are king too agre yield is is a big part of their bottom line so if and and it's also a big part of of the cow calf operation and the stalker operation so it's one area one efficiency area that
can benefit all segments of the industry in my mind and and if and I'm not saying there isn't one bull rotation programs that have you know they've done a Angus have done a great job black Angus have done a great job of having higher performing genetics too but but we've changed the industry to to where quality grade is not really a a big issue as far as it's pretty easy to make one grade oh I mean the variation in cattle i mean I think back to when I was buying fat
cattle even like in 2010 to 12 that time period i mean I I remember buying a set of cattle that graded 4% choice and I thought I was going to get fired uh and now I mean honestly that same type of animal is going to grade a heck of a lot higher than that so the variability has changed a lot um but you know what we're 50% you'll grade fours and fives right now probably you know so I mean we've made these cattle just super fat and you know we Jared we talked a little bit ago
there's a task force on that right so understanding yield grade understanding how that is because man we're so quality driven you know 15 years ago again we weren't necessarily quality driven now we're choice now we're trying to get now make a choice product and it have the cutability attributes of that that make it a lot better too so moving livestock isn't just about getting animals from point A to point B it's about doing it with the care and precision that keeps
your investment safe and sound since 1987 Agar Transportation has been the name that ranchers across the country trust with their herds their experienced drivers understand that your livestock is your livelihood and they trust each load like it's their own i've personally used Agar to move my own livestock and I can tell you nobody takes better care of your animals on the road whether you're moving herd bulls or a full truckload of cavs give AAR Transportation a call today that's 2084525011
or visit agar transportation.com for a quick quote agar Transportation moving your cattle with care since 1987 u what do you know about this uh the the task force on the yield grade component i think the easiest way to to compartmentalize that is to say there is a group of individuals uh from academia and from the industry that have been challenged to add the clarity to the yield equation that we've been really been missing for the last several decades so again to your guys' point I
mean we've really done a great job genetically and then now recently with genomically enhanced EPDS improving quality grade to a level that you're right I mean it's not hard to get really good cattle to to find good cattle even from tons of blended pin out of Florida right you could pull a bunch of Florida together put them on grass in Kansas and then uh you'll finish them in somewhere in Kansas at a feed yard and still have pretty good results whereas 20 30 years
ago that was a total different story so um and again on the feed efficiency piece we've we went down that road pretty hard and we're still working very hard on that one so we've we've covered those two buckets and the last one to your point is is the yield grade so I think the the desire from the industry is to figure out the clarity that needs to come and you're right I mean when you're when you're bumping I mean I've seen plant averages uh especially in April you know March April May i mean
they'll bump 35 45% yield grade fours and fives um and we just don't I think as an industry truly know how to quantify the losses that come from the reduced amount of yield that is that is uh that exists and so until we get clarity on that we don't know how to economically figure some of those things out and so I think um we see the premiums that come from from a set of cattle that'll be 95% choice or better and 40% primes and we we oo and awe about it and which is great we need to
focus on that still but we can't understand yet what is lost from the yield equation we focus in my opinion too much on dressing percentage and not enough on what the actual yield equation should look like so that's what the task force is is being challenged with and we hope we we add clarity to that part of the industry and that that will then flow back down to individuals that are using breeds heavily like Charlay and that rotational cross to Dennis's point because to be sustainable we need a
maternal component we need a terminal component and we put them together just like every other protein's done so if we can figure out those those yield pieces it then adds that much more value and power to breeds like Charlay that uh you know and for the years I spent running hard in the feedard space uh working for Tom there at Top Dollar I I'd want to talk about you know Red Angus and Black Angus influenced feeder cattle and all they wanted to talk about was was
Charlay Black Angus and Charlay Red Angus influenced i mean there's not a feed yard in this country that wouldn't take a good set of those cuz they just they just clip a coupon and make money so yeah so if you think about the incentive and I always I always make the statement incentive drives outcome um and the incentive today is to make cattle big we got to get pounds on them the byproduct of making cattle big is like what are you producing like when we crack the hide off of the cattle and we
or we hang them up and then we crack the hide off of the cattle and then we look at that that deal so if we were to lay them out and go what's the muscle bone and fat you'd lay it out on three deals and say from a percentage standpoint i used to debate this like when I worked at Cargill and we would say all right look the cost of gain today is a buck 10 right i'm going to sell them for 240 in the north right so every day that I add that to them it's two it's you know I'm
making a$130 a pound right so let's it's going to tell you to feed them to infinity but in in in hindsight when you step back and you crack those cattle open and you then you break them into that muscle bone and fat what are you producing in those incremental spinal stages right at the beginning it's probably 70% muscle i'm just throwing numbers out there i have no idea but it's a lot of percentage of muscle it's going to be muscle beef that makes the composition of the carcass right but I
think in those very very tail ends you're producing kidney pelvic and heart fat oh yeah and you're producing ex external fat that's going to get trimmed off and then you trim that off the muscle beef today the carcass is worth 360 the cutout value is 360 um but then you break the components of that cutout out if it's pure fat that pure fat's probably worth a from a yielded standpoint we got tallow that's real high and you got the FTB way to do it but let's just say the fat is worth if
the muscle's worth 350 a pound the fat's worth 50 cents a pound okay so we're adding uh we're we're putting on a pound of gain that pound of gain cost a$110 it's worth when you buy it from the them at 250 but what's the packer turning around and selling it for right the packer's paying 360 hanging for it and then they turn around they're going to sell that fat that incremental fat that they paid 360 for for 50 cents a pound right and and so that's the part that I
think if the easiest thing to do is say I added a pound of weight and it's worth 260 or 240 the hardest thing to do is go "What is that?" And and and the cattle are the only thing out there that truly go that direction and it's the hardest thing to quantify right because you can't you can't kill the same cattle twice you don't know if there was really fat well what you got to do is go when we add this incremental deal and so to your point when you talk about the yield component of it the
yield grading component the task force component of it the incentive is to still overfeed cattle even if they're 50% yield grade force but hopefully now you know what's in that 240 right yeah i think I think that you know if you go back 100 years ago or 50 years ago when all the fragmentation was done and we had all these little mom and pop shops the guy that's buying cattle and selling meat sat at a desk next to each other and they went out in the packing plant
and the guy that there was that there was that that uh that pain point of the guy at the plant going hey these things are too fat and then the sales guy pushing back going I can't do this and then the procurement guy going okay I'll give that market signal go back but now our system's gotten so large that the procurement team is sitting in a in a corporate office somewhere very far away from the packing plant the operations guys at the plant going "Hey these
things are fat but whatever." And then you got the sales guys selling some other product so it's not that you don't have that you know you know what I'm saying that conversation going "What you're paying what I'm paying for doesn't make sense."
Go ahead i got a question we all go yeah so you know from my perspective and how it how this this new uh grid or uh possibility of sustainable fits me i work mostly with cow calf guys i also feed some cattle too so I understand both sides of it or think I understand both sides of it but what's relevant to me is mostly the cow kef guy where where I need to keep him and her viable in the industry sustainable if you will and you know probably one of the sharpest cow
men that I've ever had the pleasure of being around and I've been around a lot of them you know he always told me you take you take a product and make it fit your environment and it'll take care of you in the next environment and that was very true i mean he was running a a pink-nosed purebred Charlay that he retained ownership in getting them to grade 80 some percent as keeds so I think I think all this has to have some common sense to it in every segment a
lot of times we're not able to control what happens after it leaves the cow side of it so we build the best product we can that's got the most marketability but I would also include in there that we got to throw some common sense in with it and that that char red or black angus cross has a bigger window to manage i mean you can manage if you're fighting the market or or or in in today's case you're just making them big because that's the only way these cattle
are working for them on the other end because of uh you got to make them big and and and the industry is calling for us to make them big now because you know tight supplies we're not that far behind in in total pounds from previous years but we're just making them bigger so you put yourself in a position yield we we we could anticipated it was coming a couple years ago those people that are still doing a two or three breed rotation with their Charlays and make
building their own replacements they're in the driver's seat now they're selling pounds they're selling a product that that you can manage different and I think management is is a factor that we don't measure scientifically um but management is a big part of the final outcome too you know I can take I can take a set of about anything um breed wise and if I manage them right I'm going to put them at least in a pretty high percentage quality grade if I'm managing them even better I'm going
to make them yield so I think from from a cow cave side from the start of the production line I think this is putting them in a position to really be in the driver's seat both from their perspective and then for every segment of the industry yeah you bet you bet so Jared what were you going to say a second ago yeah you just just listened to you talk I I kind of had just some questions pop up in my head you know the the there's several hamsters up there when the wheels get to go and they're
all kind of in different directions as long as they all go the same way no they don't and they aren't the same speed either so it it can be kind of confusing at times but I wonder you know in our in our in our as we have strived as an industry to you know chase uh trust of the consumer by by putting a product in front of them that they really wanted because at the end of the day we're in the food business right whether we're you know we we love breeding cattle and
we're passionate about it because that's what we love to do but we're still in the food business and so we've we've built trust because we focused on um you know the product and the endpoint and and so to to listen to you talk through that scenario i wonder what you know so we haven't had a lot of motivation to solve the yield issue till now it's coming but is it because it's been so easy and there's such a huge demand for grind in this country that because of
the trimmings and because that fat can go out and we can blend it and so the fact that they can bring in um you know cow meat etc blended to make that grind and we eat like how many hamburgers a day in this country i mean is that something that's maybe covered this up a little bit i don't know it just popped in my head that be I mean how many how many pounds of grind so if you go to other countries they don't they don't feed cattle as hard as we do obviously
they don't have the grain base that we do and they don't produce the fat that we do uh so it ends up making us you know bring it in and people like fat i mean my favorite cut we're sitting here at Cooper's Barbecue and they offered brisket on the deal for free and I went and bought a short rib cuz it's 50% fat and that's I'm a fat dude right so anyway that's that's what people like and so yeah to that point absolutely but I think that we're truly subsidizing
that hamburger if you really think about it um with import meat that's cheaper than what we're having to pay here that's what I was getting at is is the 50 cents is the is the discount that they're paying for that fat after they're trimming that carcass out but because they bring in that import meat it it raises the value it raises overall value because we have so much demand for grind and hamburgers it kind of washes i don't know yeah know what's funny i mean
you talk about the blend between the hamburgers is like if you go to any food service restaurant your your hamburger patties are like a 73 mhm um and then what's everybody want when they go home when they go buy an 85 because they feel fat if they're pulling up there and getting the 73s or something like that we cook out the water on the leaner stuff and we cook out the fat on the fatter stuff but no to your absolutely to your point I mean the consumer in the
US likes that uh the consumer in the US is there but I mean from a dollars and cents standpoint I think we've gotten too far past the deal we've been in the situation before back in 15 and 16 we had the same economic signal out there now the market prices were a little bit different but we had super cheap corn we had really high cattle we overfed cattle it allowed us to do that during this time period and then what what'll happen though in my mind um is you'll get to a
point at where we have more equilibrium as far as the demand and the supply cattle today it's too it's way out there right we got too many shackles not enough cattle that that'll ride itself i mean the packer margin is very very tough and then so the ones that start to really understand the cutability attributes and and really it's not the cutability attributes it's what am I paying for this stuff and this is the only industry really as I think through it that doesn't know what when they're
buying that animal it's all a prediction on what the value is going to be i mean you go into any other industry the lumber industry and things like that they buy wood there or they buy these logs they know and they can analyze it we don't know we we single trade cattle or double trait we go yield quality grade and then we start to measure you know fat thickness and ribeye area compared to a standard to get that yield grade component but man I'll just tell you this anytime that I've ever been at
a packing plant I sit there and I just look at carcasses and I try to understand it and I cut my teeth in meat judging and trying to understand what's the value of it and then I've boned cattle myself uh and it had not in any recent time but I've I've boned cattle myself and then you go and lay it out there like I said a pile of muscle a pile of bone and a pile of fat the muscles worth a lot of money today we're not discounting cattle that much mhm because to Dennis's point earlier he was
talking about yield is the driver and pounds are the driver pounds are definitely the driver you could sell cattle today at a discount because you overfed them and it still makes more sense to to overfeed them because the economics incentive the roll back's there right and so the beneficiary of that in my opinion Dennis is the rancher today because the feedard has done he's he's said "All right look this is what I can pay for the cattle i can pay more because the markets the the the
component of the cost of gain is so small from a feed cost standpoint that they're putting it back into the feeder cattle so I think as we move forward here the ones that the people that need to understand it is like all right how do I make the animal more efficient because from a competing protein standpoint I think those other proteins have done a a good job i'm not going to say a better job but they've done a good we we've we've definitely been in the quality attribute of it um from a beef
standpoint because honestly there's not very many of us that'll sit down and enjoy a pork chop we like we like the sausage but it's you know 30% fat like it's all fat give me some pork belly buddy so but it it's a longer process for us to make a change i mean we're we're two and a half times probably longer than that i think it's longer than that cuz you have generational mindset but well even gestation wise I'm saying though you know we it generational Yeah not going to put a limousine on my
cows because my grandpa did it and it didn't work or hey I'm going to put all limousines on there whatever you know I'm not trying to pick on breeds but uh it it it and it's hard I think in the other in the other industries that that the the life cycle of them so short and and the environment's controlled in the pork and the poultry industry right y um ours is so different you can't if you're in you know in the southeast it's going to be hard for you to run Angus cows and if
you're in the northwest it's going to be hard for you to you know anything with kind of humps or you know anything thin hided so I think it's all geographical driven but no I think those conversations have been awesome and um you guys I appreciate you being on here for sure i know Ty definitely missed out this uh this episode getting off here but Ty might be one of the best yeah Tai's right over here we just didn't have four chairs and we he was uh he was the one we booted him out of this
deal but I appreciate you guys getting on here this week i mean it's Do you have any other closing comments you want to say man I don't think so i enjoyed this thanks for having me enjoyed the sale always enjoy catching up with Dennis and and and well the crew here cuz there's a lot of years we spent uh kind of in the same space right so um but no I I I I I think I appreciate your opportunity to to come hang out with you guys and talk about this stuff cuz we're all we're all passionate about the
industry and so just talking about it's a lot of fun for me and and I do think it's important to educate the industry and I and I not only on the the things like the the the yield task force which we hope is going to bring about some some needed change but also with this new USDA live animal spec update it impacts a lot of ranchers a lot of men a lot of women all up down the supply chain and and It could uh be something that helps uh you know as we go through this tight supply of the next two or
three years and we have some new packing plants come online it might be the one thing that saves them instead of competing only for those black heighted cattle that they have to that they used to have to force into that that box now they have a bigger pool of cattle to maybe scale out and and make their business a little more robust from that standpoint and get through the next few years because we do need diversity in the packing space right so I think we
need to be conscientious of of ways that we can as an industry help them survive yeah you bet no I think all those things are very very important and I mean like always we're trying to get some information out there to you guys and really stimulate thought and conversation so if y'all ever have any questions or something just reach out to us uh whether it's on Facebook or any kind of social media platform we can get you connected with Jared or or uh or Dennis or myself or Ty on any of these
things if you guys have any topics you want to hear about uh dang sure let us know we can do that or have any interest on getting on here we're trying to get like a diverse audience to get onto this deal um and just like I said we we want to make sure that we're it's more educational than anything else and you kind of learn something from it so uh appreciate everybody listening uh thanks for getting on the live act we live it podcast again casey Mabry here uh
usually I got Ty this time I got Dennis and that's that's a lot better for this one but uh like and subscribe your uh on the on the social media uh because that's the first time that I've ever said that but uh again if you guys have any questions whatsoever let us know have a great [Music] battling in