Simmental marketing grid delivers premiums

Cattle Market & Farm Reports, Editorials
Dec 2, 2008
Simmental marketing grid delivers premiums

After nearly one year of operation, the 7070 grid marketing arrangement co-promoted by JBS Swift & Co., the American Simmental Association (ASA), and Two River Cattle Company is living up to its promise to deliver additional value to cattle that combine quality with outstanding retail yield. “Even before age and source premiums are paid, the 7070 beef grid is returning an average premium of $40.86 per head when compared to the reported Nebraska Weighted Average,” according to Mark Guge, 7070 grid manager and owner of Two River Cattle Company. “A plan to combine exceptional USDA Quality Grade with optimal USDA Yield Grade is crucial for keeping all segments of the beef business profitable,” according to Jerry Lipsey, executive vice president of ASA. It has been estimated that Yield Grade 2 carcasses return between $50 and $100 per head more to packers alone when compared to YG 4s or even a high YG 3s. “The key is to produce beef with all the taste fat with less of the waste fat, and using superior genetics and logical breed complementarity are important steps toward achieving this goal,” according to Marty Ropp, director of Field Services for ASA. “Combining high marbling British genetics with high marbling, high retail yield Continental breeds is a proven system designed to move the beef business toward the goal of 70 percent Choice and higher, 70 percent USDA Yield Grades 1 and 2, with far fewer ‘out’ or reduced value carcasses.” Check out www.7070beef.com for more information on the 7070 beef-marketing grid. — WLJ

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