Chip Ramsay, Rex Ranch June 16, 2016

Nirvana: What does that mean? In Search of Beef Producon • In the Buddhist tradion, nirvana is described as the exnguishing of the fires that cause suffering and .[29] These fires are typically idenfied as the fires of aachment (), aversion () and ignorance ( or avidya). • In Hindu philosophy, it is the union with Brahman, the divine ground of existence, and the experience of blissful Things a cow-calf producer learns when you egolessness.[8] own a feedyard: what drives profit?

Challenges we face: Rex Ranch • Weather volality •Price volality • Trust between segments • Adding real value to our producon • Answers come excruciangly slow (Environment or Genec?) • 2 year concepon to harvest Excel Beef •7 year genec interval Deseret Cattle • Applying research findings correctly in various systems Feeders

Weather Volality

Table 3. Rex Ranch Annual Calf Cost ($/head) The following events are based on a 201 Average true story. 1 2012 2013 2014 2015 Variao Calf Cost 453 635 876 591 579 n

Variaon from previous year (20) 182 241 (285) (12) 148

BIF 2016 General Session II 1 Chip Ramsay, Rex Ranch June 16, 2016

Trust between Price Volality segments • Weighing condions • Do what is best for the cale instead of worry • Streamline vaccinaon about who gets the Table 2. Percentage variaon in revenue per head from one year protocol advantage. to the next • Sharing in added value ???

201 201 201 201 5 year Avg. $/ 2 3 4 5 2016 avg.d head e Jan-Mar 550 lb. Steer a 16% -2% 26% 28% -30% 20% $ 241 Jan-Mar Fed Steer b 14% 1% 15% 12% -16% 11% $ 203

c a)Jul-Sep Fed Steer Formula for 2012 = From Table 1 (20125% price /2% 2011 price)30% – 1 -9% (rounded-17% to nearest percent)13% $ 218 b) Formula = From Table 1 (2012 price / 2011 price) – 1 (rounded to nearest percent) c) Formula = From Table 1 (2012 price / 2011 price) – 1 (rounded to nearest percent).) d) Sum of absolute values of the year to year percentage changes from 2012 to 2016 divided by the 5 years e) Sum of absolute values of the year to year dollar changes from 2012 to 2016 divided by the 5 years

Zero sum game vs. Adding Value Communicang Added Value • Need a common language • Contribuon CO margin (Revenue - ST variable costs) ADDED VALUE Maximize • System-wide Efficiencies Equal Effect on System-wide Contribuon Margin analysis to find VAL Output or Input addive value % Change Quanty UE Change

Fed price 2% increase $2.40 /cwt. Corn Price 8.9% decrease ($ 0.36 / bu.) Dry Maer Conv. 11.0% decrease (.66 lb.) Wean % 2.0% increase Stocking Rate 3.0% increase (Cows)

Adding Value Adding Value Increased % roughage in raon for first 60 days for Changed to a less aggressive implant strategy on Results: Florida calves holstein calves Results: • Increased DMI from 1.6% to 1.9% of BW • ADG 3.8 to 3.1 • Decreased founder incidence from 7% to 0% • DMC 6.7 to 6.2 • Hot Carcass Yield 58.5% to 61.5%

BIF 2016 General Session II 2 Chip Ramsay, Rex Ranch June 16, 2016

Adding Value Adding Value Correct use of EPDs can significantly change cale Correct use of EPDs can significantly change cale performance within a generaon interval. performance within a generaon interval. Example #1: Deseret Cale and Citrus (2000 to 2005): Example #2: Rex Ranch (2008 to 2015): Culled ⅓ of the bull baery based on low accuracy in- Focused on calving ease and marbling herd EPDs and temperament score Results: • Distocia moved from 25% to Results: 8% • Improved calf fed ADG from 2.6 to 2.9 lbs. • Choice or beer moved from • Decreased DMC from 6.7 to 6.2 lbs. 50% to 80%

Adding Value Adding Value

Nutrional environment maers from concepon to carcass.

Table 4. Calves weaned from two different ranches experiencing extreme drought a 2012 2013 Preg Preg Out Death Rate Rate In Wt. Wt. HCW Loss DoF ADG DMC COG

Ranch A 91% 92% 621 1,408 901 1.1% 209 3.74 5.57 $ 1.03

Ranch B 93% 91% 538 1,382 885 10.5% 288 2.71 6.34 $ 1.23

a) Both ranches calves had been weaned in growyards prior to entering the feedyard. Ranch A’s calves stayed in the growyards 45 days longer.

In search of Beef Producon Nirvana

• What role do I play in adding real value to the system?

• How can I improve?

• How do I get compensated fairly for my contribuon?

BIF 2016 General Session II 3