OK Jeanne":j7pn57ex said:
Do many producers retain ownership and get paid by the
packer on a grade/yield basis? In that case, I thought
that the feedlot people are paid by the animals owner?
I guess there are all sorts of arrangements available
through different feedlot owners. I am not familar with
the system because we have never been part of the
commodity beef production system. We decided to go
a different route in 1995 when we saw no relationship
between the price of cattle at the sale and the price of
beef in the grocery store.
Feedlot production for the commodity market and feeding out your own cattle for direct marketing are two very different business. Heavy weights and larger framed cattle tend to produce a lower percentage of choice grade carcasses even though they may be more efficient producers of lean. I don't see any problem with your weights at all. Some of my Herefords and Angus go to slaughter at lighter weights than that. It also depends if they have been backgrounded before being put on full feed, - in that case heavy finished weights but lower percentage yield of choice and prime. If put on full feed at 450-500 pounds than slaughtering at 1000-1200 pounds may be a more efficient weight to slaughter while producing a premium grade product but low quantity grade, otherwise producing a lot of fat, especially for heifers. The latest National Beef Quality audit just came out and it showed that despite more percentage of cattle being USDA inspected, a lower percentage are grading choice and more are being prodcuced with high surface fat. On a lot of my 1000 pounders I am still taking home 400 lbs. of meat.