Segments of the Beef Cattle Industry
The United States is the largest beef producer in the world, producing over 27 billion pounds per year, which accounts for around 20.44% of the world’s beef production. In 2022, the U.S. produced 28.43 billion pounds of beef, which has been the most beef ever produced in the U.S. on record. And, we do this with only around 14.89% of the world’s beef population. The U.S. is the most efficient and productive when it comes to beef production. But, that’s not to say it’s an easy process.
Beef cattle have the “most unique and complex life cycle of any food”. There are a variety of segments, which include several changes in ownership between the time cattle are weaned and slaughtered. The four major segments of the beef cattle industry today are:
Seedstock production
Cow-calf production
Stocker & backgrounding
Feedlot operations
Seedstock production is a vital aspect of the cattle industry, responsible for providing high-quality genetics and improving the overall performance and productivity of herds. Seedstock producers play a crucial role in selecting and breeding superior animals with desirable traits such as growth rate, carcass quality, and disease resistance. Through meticulous record-keeping and careful selection of sires and dams, seedstock producers aim to create a genetically superior and consistent line of cattle that will transfer these traits to the commercial herds. By focusing on the long-term goals of sustainability, profitability, and genetic advancement, seedstock producers contribute to the continued success and prosperity of the cattle industry as a whole.
Montana is known as the seedstock capital of the world and boasts a thriving seedstock production industry. With a favorable climate and a longstanding tradition of ranching, Montana plays a pivotal role in the seedstock production sector, contributing to the growth and success of the cattle industry as a whole.
Cow-calf production is a fundamental component of the beef industry, serving as the initial stage in the production chain. It involves the management of mother cows and their calves from birth until weaning. The goal of cow-calf producers is to produce strong, healthy calves that will eventually become market-ready cattle. This encompasses a range of responsibilities, including selecting and breeding quality bulls for mating, providing proper nutrition and healthcare to the herd, and ensuring optimal reproductive performance. Cow-calf producers play a vital role in maintaining the sustainability of the beef industry by actively managing genetics, improving herd health, and implementing effective grazing practices. Their dedication and expertise are key in producing high-quality calves that go on to meet the demands of consumers around the globe.
Calves from cow-calf operations destined for the beef market often follow one of two paths. The first is being transferred directly to feedlots at or being transferred around the time of weaning. These calves are typically called “calf-feds”. They stay in the feedlot for approximately 240 days or more before being harvested. Calf-feds make up approximately 40% of the fed cattle population in the U.S. The second path calves can take is heading to a backgrounding or stocker operation to be grown on a forage-based diet before the calves are then fattened on a high-concentrate diet.
Stocker/backgrounding beef cattle plays a crucial role in the beef industry. This stage in the production process involves rearing young cattle, typically weaned calves, and preparing them for the feedlot. Stocker operations provide a transitional period for these animals, allowing them to grow, gain weight, and develop their rumen capacity before entering the feedyard. Through grazing on high-quality forages and receiving supplemental feed, stocker cattle not only build muscle and frame but also enhance their overall health and immune system. It’s also important to note that male calves from dairies constitute a significant component of the beef cattle market. This intermediate phase serves as an opportunity to optimize animal performance, enhance carcass quality, and ultimately contribute to a sustainable and efficient beef production system.
Feedlot operations play a crucial role in the beef cattle industry, efficiently and effectively raising cattle for meat production. These operations provide a controlled environment that allows for optimal growth and weight gain of the animals. In feedlots, cattle are fed a carefully balanced diet consisting of grains, forages, and supplements to ensure their nutritional needs are met. The feeding process is closely monitored, ensuring that the animals receive a well-rounded diet that promotes muscle development and marbling. Additionally, feedlots provide a comfortable and safe environment for the cattle, with ample space, clean water, and protection from extreme weather conditions. Through proper management and care, feedlot operations contribute to the production of high-quality beef, meeting the demands of consumers while prioritizing animal welfare.
Cull beef and dairy animals contribute to the beef market as well. They are typically shipped from seedstock operations, cow-calf operations, or dairy operations directly for harvest. A small proportion are sent to feedlots to be fed high-energy diets before being slaughtered.
While the beef cattle production industry involves a wide variety of individuals and businesses, the beef slaughter industry in the U.S. is heavily concentrated. Did you know that only four companies account for more than 80% of the beef slaughter capacity? Four companies with a mass of control drives up prices for consumers and lowers earnings for small farmers and ranchers.
All the more reason to BUY LOCAL and support your local ranchers.