Unlocking The Potential of Wagyu Programs

Unlocking The Potential of An Authentic Wagyu Program

One of the best things about the American Cattlemen Podcast is our ability to bring you the latest information in the cattle industry. We are constantly bringing you ways to grow, diversify, and specialize your farms and ranches. We know this economy is tough on everyone and that is why we have a special series being released right now you will particularly enjoy. In our wagyu-focused mini-series, we cover information about a quickly growing breed, and we pair it with advice on how you can incorporate wagyu in your operation.

In the episode titled: “American Cattlemen’s Podcast with Ginette Gottswiller & Dr. Keith Belk as we Kick Off Our American Wagyu Conference Series”, we kick off our deep dive into the wagyu breed”, we kick off our coverage of the wagyu breed. Is this a good option for your operation? Give the series a listen and ponder if you should have high-end wagyu genetics.

This flagship episode takes place at the American Wagyu Conference in Williamsburg, Virginia. We had the pleasure to connect with special guests Ginette Gottswiller and Dr. Keith Belk. Jeanette lives in northwest Missouri and operates an agricultural consulting and marketing company and assists her family on their diversified cattle and crop operation. Dr Keith Belk serves as professor at Colorado State University, and is an adjunct professor in the Colorado School of Public Health.

What is An Authentic Wagyu Program?

Both Gottswiller and Belk have previous work experience in the cattle industry that they outline. That experience has honed their skills and driven them to be instrumental in developing An Authentic Wagyu Program.

Gottswiller goes on to outline what the program entails, “The authentic wagyu program will be written to have a source and age verification component along with parent verification, and that will be through the AWA [American Wagyu Association] heard book as well as DNA parent verification. Additionally, there will be remote grading a USDA. And it does not have to be remote grading, I’ll say a USDA grader. We realize that many of the producers are going through a local processing plant. So remote grading is what is very key to this, to make this accessible to all the farmers and ranchers that want to participate. And then that final piece is a trace back program.”

Gottswiller explains the importance of the program and why tracking is important, “Consumers could, if they’re in The Authentic Wagyu Program, trace back by DNA technology to that original animal that was brought in for harvest. So those are, are the components of what The Authentic Wagyu Program will be in the beginning. There are many points that you can add to a process verified program, and so these are those beginning points that that we felt were the most important to verify in the beginning”.

The Growing Demand for Wagyu

Dr. Belk echoes the vision outlined by Gottswiller. He goes on to speak about the benefits and the demands from the consumers, “[The program] ties together the production of true wagyu genetics and beef products with the quality attributes that wagyu are known for and that consumers demand when they when they pay for wagyu products. That’s something that is going to benefit the entire industry.”

Dr. Belk goes on to outline the importance of The American Wagyu Association’s Authentic Wagyu Program. He states, “This program is based on third party evaluation of whether the programs in place are meeting the standards that the organization has put together.” So, a third party audits the program to ensure consumer confidence. This way consumers know the labeling is correct, and they are buying wagyu beef. He goes on to elaborate, “This adds credibility to a system into a label that helps consumers be make purchasing decisions in a more informed way. I’m really excited about [The American Wagyu Association] rolling out this program and protecting the breed integrity by doing it.”

As always, we’re excited to be able to deliver the latest information on a growing breed right to your home. You can listen to this podcast, as well as past podcasts at: www.americancattlemen.com/podcasts.

By Jessica Graham

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Maximize Profitability with Wagyu

Maximize Profitability with Wagyu

Beef Cattle producers are feeling more optimistic. With an El Nino winter forecasted, cattle producers are anticipating a reprieve from multi-year drought conditions. For consecutive years the beef cattle herd has been in decline due to environmental conditions. A March 2023 USDA report shows that since 2022, there has been a 4% decrease in beef cows, 6% decrease in replacement heifers, and 5% decrease in heifers expected to calve this year.

According to another published USDA article, the latest cattle inventory peaked in 2019 at 94.8 million and has since plummeted 6% to 89.3 million this year. The rapid decline in beef cattle inventory over the past four years was driven by drought conditions; however Northern states experienced above average rainfall during the 2023 spring and summer months and in the coming months NOAA predicts a wetter-than-average winter in the southeastern United States, allowing calf producers in recovering areas to consider opportunities to rebuild their herd.

Choosing Characteristics

When rebuilding, heifer selection carries significant economic importance. Phenotypic characteristics such as udder quality, temperament, and body conformation are initially considered in replacement heifer selection. Yet with fertility and longevity being highly heritable, it is critical to evaluate the stayability of heifer’s dam. The University of Florida recommends ranchers introduce 17% first calf heifers annually into the herd; however, when emerging from a sustained drought, the ranchers may consider increasing this percentage.

Investing in replacement heifers – purchased or ranch raised – will have long term implications on the operation’s profitability. With the multi-year decline of cow numbers, cattle are being traded at historically high prices causing additional pressure around the economic investment.

Breaking Even

Journal of Applied Farm Economics Article Profitability of Developing Beef Heifers on Stockpiled Winter Forages calculates the breakeven cost of heifer development in years of calf production. Heifers on forage-based systems would breakeven after 3-4 years of calf production, while dry lot heifers would breakeven after 9-10 years in calf production. All management decisions should be a consideration for increasing longevity and profitability in the young female’s production lifetime.

When breeding heifers, producers should be seeking bulls with high fertility and increased opportunity for a low-birth-weight calf to ensure a successful first calving season. For this very reason many producers select Wagyu bulls for increased profitability when developing heifers.

Why Wagyu Bulls

Wagyu bulls are known for their high libido and consistency in producing low birthweight calves, reducing the risk of dystocia and increasing the opportunity for profitability. Using Wagyu bulls provides many quantifiable benefits: increased opportunity for pregnancy, low birth weight calves, increased breed back, and a calf that yields a premium over market.

The crossbred calf produced from Wagyu bulls warrants a premium due to Wagyu cattle’s genetic ability for increased deposition of intramuscular fat (IMF). Unlike other beef breeds, the intramuscular fat is abundant and possesses a unique fatty acid composition. The IMF in Wagyu and Wagyu cross cattle is higher in oleic and linoleic acids, with a higher concentration of unsaturated fat providing an elevated eating experience.

Where they Originated

The recognition of these unique breed attributes had contributed to the increased growth of Wagyu cattle in the United States. All domestic Wagyu cattle are DNA traceable back to the original imports from Japan during the 1990’s. Importing less than 200 black wagyu, The American Wagyu Association currently estimates that over 40,000 head of Full Blood Wagyu and Wagyu cross feeder cattle. The growth of the breed steams from the commercial application of feeder cattle production as well as the increased demand for quality beef from the consumer.

For calf producers working with a branded beef company provides ranches the ability to forward contract each calf crop of F1 Wagyu cross calves. Mishima Reserve American Wagyu Beef – a branded beef company – provides a calf buy back program after supplying producers with high quality Wagyu bulls or semen. Mishima raises and sells hundreds of fullblood Wagyu bulls across the Western United States annually, offering quality genetics to their producers – focusing on low birthweight and carcass merit EPDs.

By buying back calves out of these Wagyu bulls, Mishima can monitor feed conversions in the yard and produce calves with elevated carcass quality. Mishima Reserve strives to improve feed efficiency and feedlot performance while producing a consistent quality beef product.

Hesistation

An initial hesitation of cow calf producers when committing to a Wagyu crossbreeding program is due to the belief that a low-birthweight F1 Wagyu calf will not wean enough pounds for the premium to warrant a change in their production system. Yet, many producers that have committed to the F1 production program report that their Wagyu cross calves wean on average 50 less pounds in comparison to their straight Angus animals, but still profit more dollars per head than calves produced out of their cows.

Montana producers who have been partnering with Mishima Reserve Wagyu Beef to produce F1 Wagyu Angus calves for the luxury beef brand were interviewed about their initial decision to breed their heifers to Wagyu. Producers interviewed reported the average birth weight is 65 pounds and attested to the additional attributes in participating in Mishima Reserve’s calf buyback program.

Mishima Reserve is a proven partner when considering breeding heifers and marketing into a premium market. Turk Stovall of Billings, MT, owner of Stovall Ranches and partner in Yellowstone Cattle Feeders stated “We really put a lot of effort into research and data and working with Mishima Reserve and their team has been awesome. We couldn’t find a better partner.” Producers like Turk Stovall have been using wagyu bulls on their heifers for years and marketing their calves to Mishima Reserve.

As Demand Increases

With beef demand sustaining amongst the end consumer, a tightened feeder cattle inventory warranting increased prices, and starting to see reprieve from the drought, there is opportunity for rebuild of the beef cattle inventory in the United States.

To capitalize on your calf crop from your first calf heifers – consider participating in a buyback opportunity with a branded beef company such as Mishima Reserve. Mishima Reserve bulls are in Montana and Texas but can ship nationwide. For more information on the program visit Mishimareserve.com or come by booth 2484 during NCBA’s Annual Convention in Orlando, Florida January 31 – February 2,2024.

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