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Investing in genetics benefits producers bottom line

Wholesale demand for high quality beef continues to show strength despite an economy that’s been under pressure from COVID-19. 

University of Missouri livestock economist Scott Brown says that’s almost counterintuitive to seeing restaurants close.  “It’s probably even been harder on some of the higher-end restaurants,” he says.  “I don’t think we’re done with putting higher quality beef products in front of consumers, which makes that demand grow.” He tells Brownfield that’s good news for the beef industry. 

Brown says producers who made investments to improve the genetics of their herd added another level of risk management.  “We can talk carcass quality, which is where people sometimes go right away,” he says.  “But, feed efficiency, healthier cattle – all those things ensure higher prices for those calves when they go to the feedyard.”

And, he says, improved genetics help US cattle producers raise Prime quality beef without having to feed cattle longer, which has the potential to significantly improve the bottom line.