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70:70 new grid marketing opportunity with JBS Swift

<b>By SARAH AUBREY<br>
Indiana Correspondent</b></p><p>

BOZEMAN, Mont. — The American Simmental Assoc. (ASA), the breed registry organization representing some 8,000 members raising Simmental and Simmental-influence cattle has announced a new carcass grid marketing program with meat-packing giant, JBS Swift and Co.<br>

In response to the newly coined beef industry ideal standard of 70 percent USDA Choice and above, 70 percent USDA Yield Grade 1 and 2 and above and 0 percent (or as close to as possible) ‘out’ cattle, the new 70:70 program offers producers and feeders the opportunity for ‘historic’ premiums for high quality cattle.
“At Simmental we do a significant amount of end-testing including 10 years of bull testing,” began Marty Ropp, Director of Field Services for the ASA.<br>

“To us, biological type-vise, Simm-Angus cross cattle have the best chance of any British-Continental cross of meeting the 70-70-0 ideal.” Ropp said that it’s not easy for cattle to reach these optimum levels of meat and marbling ratio, but believes the industry needs to work to achieve it.<br>

He cites well-known statistics indicating that beef industry averages for carcass cut outs are more like 57 percent USDA Choice and above, 52 percent USDA Yield Grade 1 or 2 and a whopping 22 percent ‘out’ cattle, or cattle that take big payment discounts for being either USDA Standard, Yield Grade 4 or are dark cutters.
“The zero number will be hard to get to. We’re looking a reducing the number of out cattle. If we can go from 22 percent to 4 percent out cattle, we’re helping the industry,” Ropp said enthusiastically.
“The 70:70 program rewards cattle that are approaching this.”
Ropp said the ASA looked at several companies to partner with, but settled on JBS Swift for several reasons. “They had data on Sim-Angus cattle, too, and just wanted more of that kind of cattle through their plants.”<br>

The program offers what Ropp calls aggressive premiums for cattle that can meet the targets.<br>

He thinks many producers with Simmental-influence cattle are likely to hit these numbers.<br>

“The premiums are $15-30 per hundred-weight on carcass weight,” Ropp said. “That’s $120-250 per head.”<br>

The 70:70 program is in its start up phase, having begun just four months ago, but Ropp envisions sending 3,000 cattle through it this year.
Because the program operates as a standard grid it means anyone can participate in the premium program, not just feed yards or ASA members.<br>

“It doesn’t matter what breed combination the cattle are; if they approach 70:70, they will be rewarded.”<br>

Ropp encourages producers removed from the cattle feeding angle to take the lead, too.<br>

“For cow calf producers, long term its crucial for them to be as proactive as possible. We’re building a supply chain where all producers can be affected by it,” Ropp said.<br>

Cattle do need to be scheduled to arrive at one of two plants either Grand Island, NE or Greeley, CO to get tagged and become eligible.<br>

For producers back east it may seem less feasible unless they have an opportunity to retain ownership of cattle through the feeding process, but Ropp hopes to grow the number of packing locations with the program’s success. On simple way to increase the likelihood that a premium will be earned is keeping good records.
“For this grid, we really need to have age and source verification on the cattle-you just need someone who will run the paperwork on your cattle,” Ropp recommended.<br>

For more information contact Marty Ropp with the ASA at 406-581-7835 or JBS Swift at 515-231-6849. Or visit www.7070beef.com
The ASA maintains field services representatives in the states of Kentucky, South Dakota and Kansas that can be reached by contacting ASA headquarters at 406-587-4531.

3/5/2008