JANUARY/FEBRUARY 2004


Profits In The Premiums

Article by Raylene Nickel
Photos by Gary Martin


A top grading beef carcass may be worth $100, even $200 more than lower grading beef.

Keith Burgett bought an 80-acre farmstead, and on that land he put two boys, 12 purebred Angus cows, and a bull. It must have been a good combination, because the boys are still there 20 years later, and the herd has grown to 250 head.

The Carrollton, Ohio, veterinarian watched as his boys grew up and took an increasing interest in the cattle. As young men they were soon doing the “biggest part of the work,” Dad said. Today, bulls and heifers from the Burgett herd are sold to commercial producers and purebred breeders. Steers go to a nearby feedlot.

Dr. Keith Burgett, left, and his sons, Bryan and Phillip, of Burgett Angus Farm, Carrollton, Ohio.

The demand for cattle from the Burgett Angus Farm is consistently strong because the herd not only produces steers with top carcass quality, but it is also certified free from Johne’s disease.

95 Percent Choice

Both sons, Phillip and Bryan, came back to the farm after graduating from Ohio State. Building the herd became an important goal, and today Dad and the sons run the farm together. They are breeding their cows for carcass quality and selling them on a grade-and-yield basis. The resulting steers grade 95 percent Choice. The national average among processed cattle is 50 percent Choice.

Carcass data comes back to them after their cattle are slaughtered. It tells them the quality grade, yield grade, backfat thickness, intramuscular fat or marbling, size of ribeye, and the percent of retail cut.

A sufficient amount of this type of information has been gathered and banked by the American Angus Association to make carcass quality a measurable genetic trait, along with other desirable traits such as weanling and yearling growth. A sire’s performance data predicts the degree and the likelihood that the animal will produce these traits in his offspring. This information is expressed as EPD, or expected progeny difference.

“Most of our cows are bred by Artificial Insemination (AI), and for the last eight years we’ve used only sires that have a positive EPD for marbling, ribeye, and percent of retail cut,” said Keith.

Certified Angus

About 65 percent of Burgett steers grade high enough to qualify as Certified Angus Beef, a program of the American Angus Association which supplies consistently high-quality beef to CAB-licensed stores and restaurants. Beef marketed through this program must be from Angus-bred cattle and have a quality grade falling within the upper two-thirds of the Choice grade. A range of marbling scores determines each grade.

A beef carcass in the CAB program might return $20–$30 more than one of average quality, Bryan said. In this case, the feeder, or person owning the cattle at the time of processing, receives this added value.

Because the Burgetts sell their cattle to the owner of the feedlot, they negotiate for a price premium based on the high performance expected. “We try to get a premium of $8 to $10 per hundredweight over the conventional market price,” Bryan said.

Ultrasound On Bulls

The quality is evident in this Angus cow and calf.

Ultrasound is used on young bulls at about one year to assure buyers they are receiving animals with a prepotency to produce high carcass-quality calves. Readings of each bull’s backfat, ribeye, and intramuscular fat (marbling) are taken as the bulls are coming through the chute to be weighed.

Information from the report that is produced is used to cull poorer performing bulls. It is also shared with customers to help them select bulls to fit the needs of their herd.

Replacement heifers also provide ultrasound data, which gives them information about the strengths and shortfalls of the AI sires being used. Once their herd numbers level off at 250 to 300 head and there is no reason to keep so many replacement females, they will use the information to cull heifers whose carcass and reproductive traits are below the herd average.

Certified Johne’s Free

All cattle on this farm are tested annually for Johne’s disease, and for nine years the herd has been certified Johne’s-Free by the Ohio Department of Agriculture. To reduce the likelihood that their herd will be infected by diseased cattle, the Burgetts never buy females and seldom purchase bulls. If they do buy a bull, he is tested for Johne’s whether or not the previous owner had tested him.

The disease prevention has paid off. “Last spring and summer we sold every bull we had, about 30 head,” Phillip said. They also sell a few females and expect to sell more when their herd stops expanding.

A few bulls are marketed each year from the Ohio Bull test station, where they have been tested for feedlot performance. Classified advertising in regional magazines is also used to find bull buyers. “We sell bulls by word of mouth, too, when satisfied buyers tell their neighbors they bought a bull from us,” Phillip said. “We also have a lot of repeat customers.” The Burgetts host an open house on the farm each year, when they serve ... roast Angus-beef sandwiches, of course.

Long Grazing Season

Feeding efficiency adds to the seller premiums earned from high-quality carcasses. Good grass that shortens the winter feeding season helps profits. “The longer our cattle can graze into the fall, the cheaper our feed costs will be,” said Phillip.

The Burgetts grow and bale their own hay but buy corn to feed young cattle. “We don’t plant any crops because our fields are hilly,” Phillip said. Those rolling hills are old open-pit coal mines that have been covered with the original top soil and restored. The only evidence remaining of the mining are a few giant pieces of equipment that rise like mighty steel skeletons above seemingly endless fields of tall grass.

Good work facilities that enable just one or two people to process cattle through a chute for weighing or ultrasounding also contribute to profitability by cutting down on additional labor.

“We enjoy the cattle business,” said Phillip. “It’s hard work, but we can set our own schedule. We’re able to be outside, and we’re always doing something different. We’re learning as we go, but we’re getting more efficient all the time.”

On the Burgett Angus Farm near Carrolton, Ohio. Much of the farm is land reclaimed from open-pit coal mining.


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