50 years of pharmaceutical technology and its impact on the beef we provide to consumers

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50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

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Page 1: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To

Consumers

Page 2: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers
Page 3: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

Thomas E. Elam, Ph.D.

Rodney L. Preston, Ph.D.

AUTHORS

Page 4: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

Technology Is a Key Factor in Keeping Beef

Competitive in theConsumer’s Food

Basket

THEME

Page 5: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

PHARMACEUTICALTECHNOLOGY

Applied to the beef industry over the past 55 years is one of the

major contributors to providing the consumer with affordable

and wholesome beef

Page 6: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers
Page 7: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

None of these technologies alone is solely responsible

But, together, they have revolutionized the U.S. beef production system

Page 8: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

DOMESTIC BEEF PRODUCTION/HEAD,TOTAL JAN. 1 CATTLE HERD

1955-2003 Actual, 2004-2005 Forecast

Domestic Beef Production/Head, Total Jan. 1 Cattle Herd

1955-2003 Actual, 2004-2005 Forecast

Trend Equation:Beef/Head = 131.58 + 2.3364*Time

R2 = 94.23%

0

50

100

150

200

250

300

19

55

19

57

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59

19

61

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63

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65

19

67

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69

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71

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99

20

01

20

03

20

05f

Pou

nds/H

ead

+119% improvement!

2011 Actual = 289 Lbs.

2011 Trend = 262

Lbs.

Page 9: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0.450

400

450

500

550

600

650

700

750

Har

vest

/Jan

. 1

Cat

tle I

nve

nto

ry

Car

cass

Wei

ght,

Pou

nds

/Hea

d,

Dom

estic

Sla

ugh

ter

Estimated Carcass Pounds/Head of Domestic Cattle Harvest

Harvest/Head Inventory

CARCASS BEEF POUNDS/HEAD ANDHARVEST/HEAD OF JAN. 1 TOTAL INVENTORY

+36% increase in head harvested per head inventory

+50% increase in carcass weight

2011

Page 10: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

WHICH HAS ALLOWED US TO…

More than double total beef production From about the same herd size as in

1955 Reduce real consumer beef prices Reduce our impact on the environment And increase the quality of beef by grain

feeding a higher proportion of cattle

Page 11: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

COMPARISONS OF BEEF & VEAL PRODUCTION PER HEAD OF INVENTORY, 2011

0

50

100

150

200

250

300

Poun

ds B

eef/

Hea

d H

arve

sted

Page 12: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

WHAT IF TECHNOLOGY WERE FROZEN IN 1955?

Lower beef production/consumption Higher cost/pound of beef produced Higher cattle/beef prices Larger cattle herd, but lower beef production Greater environmental impact

More waste produced More land needed for pasture and feed

Higher retail price/pound of beef Greater market share for alternative meats

Page 13: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

50,000

75,000

100,000

125,000

150,000

175,000

200,0001

955

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

He

ad (

00

0)

Total Cattle (1955 Productivity) Total Cattle (actual)

TOTAL HEAD OF CATTLE REQUIRED TO PRODUCE THE DOMESTIC BEEF SUPPLY

2011

Page 14: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

200183 million cattle would need

About 500 million additional acres (at current stocking rates)

That is more than the combined area of: Texas Arizona NM Kansas Colorado

Clearly, this amount of additional land would be expensive, and entail environmental consequences

Unrealistic? Brazil is the same size as the U.S., produces beef at about our 1955 level, uses 190 million head, and has cleared rain forest for pasture

Page 15: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

-23%

218%

199%

229%

-6%

-20%

-36%

-63%

-69%

-16%

-28%

700%

-200% -100% 0% 100% 200% 300% 400% 500% 600% 700%

Feed Conversion Ratio

100 lbs. fed beef production/acre corn

100 lbs. of fed beef production/acre roughage

Feedlot LW pounds of beef produced

Bushels corn consumed by fed cattle

Acres of corn required for all fed cattle

Value of corn used ($1982-84)

Tons of roughage consumed by fed cattle

Acres of roughage required for all fed cattle

Value of roughage used ($1982-84)

Total acres used for corn and roughage

Value of corn and roughage used ($1982-84)

% Change 1955-2005

% Change in Feedlot Performance and Feed Use,

1955-2005

Page 16: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

SOURCES OF TECHNOLOGY CHANGE

Animal Health; Pharmaceuticals Genetics Nutrition & management Grain yields & feed costs

Page 17: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

PHARMACEUTICALTECHNOLOGY

Antibiotics Implants Ionophores Repartitioning agents Parasiticides Vaccines Estrus regulation

Page 18: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

ESTIMATES OF PERFORMANCE GAINS FROM KEY PHARMACEUTICAL TECHNOLOGIES

Feed Efficiency, Feedlots

Average Daily Gain, pounds,

Feedlots

Feed Efficiency, Stockers

Average Daily Gain, pounds,

Stockers

Weaning Weights,

pounds, Calves1955 8.0 2.2 n/a n/a 4002004 6.2 3.5 n/a n/a 500% difference -23% 59% n/a n/a 25%

Improvement from:Implants 10% 17% 7% 12% 20Ionophones 6% 3% 10% 10% n/aAntibiotics 7% 7% n/a n/a n/aEstrus Control 5% 5% n/a n/a n/aParasiticides n/a n/a n/a n/a 30

Beta agonists yield ~15-25 pounds of added carcass weight on same days and feed.

Page 19: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

GENETICS

Beef cattle genetics is a mixed bag Small frame (1950) vs. large frame English vs. exotic breeds Dairy genetics has greatly increased

milk production/cow; fewer dairy cows Quantitative genetic measures (EPD)

and gene marker technology will identify gene combinations for improved growth, efficiency & eating qualities of beef

Page 20: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

NUTRITION

Research has defined the nutrient requirements of cattle (NRC)

Feeding for optimum breeding performance in large frame cattle

Pasture & stocker cattle supplemented to maximize roughage utilization

Predicted gains, efficiency and final weight of feedlot cattle facilitate break-evens & hedging to lock in profit

Page 21: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

GRAIN (CORN) YIELDS

While not exactly beef technology, corn yields and relative price have had a major influence on the U.S.

beef production system, beef technology application, and the cost

of beef to the consumer

Page 22: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$/B

ush

el

Actual Price Inflated 1955 Price

CORN PRICES - ACTUAL AND INFLATED 1955

Page 23: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

Beef from Grain-Fed& Non-Fed Cattle

7,490

22,8825,723

3,607

-

5,000

10,000

15,000

20,000

25,000

30,000

1955 2005

Mill

ion

Po

un

ds,

Ca

rca

ss W

eig

ht

Beef from Non-Fed CattleBeef from Fed Cattle

Page 24: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

BEEF QUALITY

USDA grades are the industry’s standard of quality measurement

For several reasons, their relation to the eating quality of beef is marginal

Little change in grain-fed beef quality over last 50 years

No strong relation between use of pharmaceutical technologies and fed beef quality

Overall beef quality has increased due to higher proportion of grain-fed beef

Page 25: 50 years of Pharmaceutical Technology and Its Impact On The Beef We Provide To Consumers

CONCLUSIONS

Over the past 55 years, efficiency of U.S. beef production has improved over 100%

Several technologies have played important roles in efficiency gains

Without these improvements, environmental impact would be greater

Pharmaceutical technologies are an integral part of the efficiency improvement

Technology has kept beef competitive in the consumer’s food basket

By helping to increase cattle feeding, technology has improved beef quality