Time to Crossbreed
It’s becoming more difficult to ignore heterosis for economic efficiency and the need to produce more for less.
by: Wes Ishmael
“Simple crossbreeding systems that combine Continental and English cattle, tempered by genetics that deal with environmental needs are still incredibly important today for the commercial cowman to maintain profitability,” explains Bob Prosser, who, with his wife, Judy, owns and manages the Bar T Bar Ranch headquartered near Winslow, AZ. “Hybrid vigor is the catalyst that provides a cost effective way to blend the needs of the producer and the consumer, while capitalizing on efficiencies that lead to net profit for producers.

“Most important though, hybrid vigor is the most powerful tool a producer has to use in avoiding wrecks,” Prosser says. “In times of climatic, nutritional or immunological stress, crossbred animals have an absolute advantage over their straight-bred counterparts when you consider morbidity, mortality and reproductive performance. That’s why hybrid vigor is a cornerstone of profit-minded programs.”

The U.S. Meat Animal Research Center (USMARC) has documented heterosis advantages for decades. Among them, 25% more lifetime cow productivity and 38% more cow longevity. All told, crossbred females are estimated to be 30% more productive over their lifetimes, due to increased fertility, calf survivability, increased weaning weights and cow longevity.

That’s before you consider breed complimentarity that can meld maternal ability, carcass yield and quality into an animal that is also more feed efficient than straight-bred counterparts.

“Heterosis is the trump card to actually lower costs,” says Barry Dunn, Executive Director of the King Ranch Institute for Ranch Management. “That’s the primary strategy I recommend for coping with these times of increasing input costs and narrowing margins.”

You can cut costs outright, of course, but Dunn points out, “The challenge with just lowering costs is that often times you’re also lowering production along with it. If you’re going to lower production, you’ve got to figure out how to market fewer pounds for more money. I’d rather work on the other side of it with heterosis.”

Slice it how you want, heterosis, especially maternal heterosis means being able to increase production with the same inputs or maintain current production with fewer inputs.
Yet, Dave Daley, a fifth generation California cattle producer who is also a professor of animal science at California State University-Chico believes crossbreeding continues to be vastly underutilized.

In fact, Daley told participants at the recent Beef Improvement Federation (BIF) conference in California, “In the past few years, we seem to have drifted away from crossbreeding to more traditional straight-bred programs that intend to focus on phenotypic consistency and end product, but not necessarily on profitability. Is there a rational explanation for our unwillingness to take advantage of a proven technique to enhance economic return?”


Crossbreeding Challenges
For one, Dunn points out, “Some producers still don’t utilize crossbreeding is that they’ve made the thoughtful decision to exploit the market premiums available for black cattle with the ability to grade Choice. Though a logical decision in the short term, the problem with that is that by not crossbreeding you’re lowering production overall.”

Besides, as consumers opt for lower-priced beef during these tough economic times, the Choice-Select spread narrows; the premium for Choice is diminished.

Another reason some ignore crossbreeding is fear about phenotypic consistency and marketability, a challenge that can be managed conveniently, while still exploiting the benefits.

Consider the storied Spade Ranch headquartered in Lubbock, TX.

When John Welch, Spade CEO arrived here, the previous manager, Dub Waldrip, had developed an aggressive 4-breed Continental X English rotational system that maximized maternal heterosis. Though effective, Welch explains its complexity made it a lot easier to do than to try to explain. Plus, at any one time you had two herds that were 67% English and 33% Continental, and two herds that were just the opposite.

“So, although the herds were stable genetically, you had two distinct types of cattle requiring different management,” says Welch.

Consequently, Welch switched to a simpler system by which Balancer bulls are mated to Simmental X Angus cows, and Simmental X Angus bulls are mated to Balancer females.

“You end up with a cow and a calf that are half English and half Continental. Since Simmental and Gelbvieh are similar phenotypically, the calves look very uniform, and you retain 67 percent heterosis,” explains Welch. “Wherever you begin with this program, within a couple of generations you’re already very close to where you want to go.”

As input costs increase, Welch says the value of heterosis grows. “You can maintain a higher level of fertility with the same inputs, or the same level of fertility with fewer inputs…At our ranches we’re also moving to become less and less labor-intensive, so we’re trying to get cows to do more with less attention.”

The convenience of systems like this one—those that optimize rather than maximize heterosis—is one reason for the growing popularity of hybrid bulls (see Crossbreeding made Easier, page 111).

Of course, original breed experience is also a reason some producers hesitate to crossbreed.

When Continental breeds were introduced to the United States, primarily in the 1950’s and 1960’s, and the application of crossbreeding was new in the business, selection and mating decisions were often haphazard. There were some classic wrecks, remembered and still retold as if they occurred yesterday. Realities then have become the myths of today.

For instance, some commercial producers shy away from crossbreeding because they’re afraid of what heterosis will do to the mature size of their cows.

“We’re thinking back to 35 years ago when we had 935 lbs. cows bred to a Continental bull, kept heifers back and had cows weighing 1,100 lbs. We don’t have nearly that much diversity between breeds today,” says Welch. As far as Welch is concerned, key challenges facing commercial producers now are the same on both sides of the crossbreeding fence.

“The industry has gotten the performance so high in Angus, for example, that the average Angus cow is bigger than the average Gelbvieh; the average Angus cows milks more than the average Simmental cow,” says Welch. “So, the challenge of not getting your cows too big through crossbreeding are the same challenge you face if you’re straight-breeding today.

You can find moderate-framed composite bulls as easily as you can moderate-framed purebred bulls.”

Besides practical experience, US MARC data also underscores the fact that breeds are becoming more alike rather than maintaining or growing the performance diversity that existed between them previously.

Daley has summarized 10 key reasons why too many breeders leave heterosis on the shelf (see www.beefimprovement.org--2009 Proceedings). More than anything, he says, “I am convinced that the primary drawback is the focus (industry) on measuring outputs rather than inputs. With a few notable exceptions, all of the individual animal traits we measure reflect bigger, faster, more.”

Spun differently, the benefits of heterosis, especially maternal heterosis, aren’t easy to see or quantify.

“The value in crossbreeding is often underestimated because it has a small positive effect on many different traits that are lowly heritable and difficult to measure. Frequently, maternal heterosis (the value of the crossbred cow) is about decreasing inputs as much as it is about increasing output,” Daley says. “Let’s not get sidetracked on what determines maximum sustained profit for all segments of the industry. It is not the amount of pounds of product per head. It is the amount of product per unit of input cost.”


Heterosis in the Real World

California State University-Chico is in the third year of a research trial comparing Angus cows bred to Angus bulls with Angus cows bred to Hereford bulls in extensive range conditions.

Collaborators included Harris Ranch Beef Company (Coalinga, CA); Lacey Livestock of Independence, CA and the American Hereford Association. DNA was used to determine parentage at weaning, and only those calves that could be definitively matched to a single sire were used in the data analysis.

“Preliminary results are not surprising,” Daley says. “As we measured direct heterosis (heterosis of the calf), there was a small positive advantage in most traits. In particular, crossbred (F1) calves were slightly heavier at weaning, had a slight advantage in feedlot gain and feed efficiency and a lower cost of gain. The crossbred calves had lower quality grades, partially offsetting the economic advantage in the other segments. However, in the first two years of the study, there was a consistent economic advantage to crossbreeding, even factoring in the quality grade advantage of the Angus-sired calves.”


All of that is icing on the proverbial cake.

“Although direct heterosis is important, we must remember that the true value is maternal hybrid vigor—the incredible value of the crossbred cow,” Daley explains. “The most important economic return will be when the crossbred cow enters the production system. In particular, the potential increase in lifetime productivity and longevity is key to maximum sustained profit per unit of input.”

Heterosis adds to Industry Sustainability, Too

Exploiting the power of heterosis is about more than the efficiency of individual operations. It’s about industry sustainability and the ability to continue feeding the world, too (see Running on Empty, page 20).

“We need the economic viability of our suppliers. Heterosis is one of the tools, a powerful one, that our cow-calf supplies can use to remain viable while still producing a product that can be managed for value-added markets,” says Ben Brophy director of genomics commercialization for Cargill, which includes Cargill Cattle Feeders and Cargill Meat Solutions (formerly known as Excel). “We have a good spectrum of demand for High Select and Low Choice grade beef, guaranteed tender, that we market as our Rancher’s Registry brand. We also have good demand for High Choice and premium beef programs like Certified Angus Beef and our Cargill Meat Solutions Sterling Silver.”

In fact, Cargill is focusing on cattle and carcasses that fill these two categories, staying away from cattle that won’t work within them.

“Within both categories, there is a reasonable fit for cattle coming out of crossbred programs,” says Brophy.

A set of steers from Spade Ranch serves as an example. These were 288 steers out of Balancer cows, sired by Simmental X Angus bulls. They gained 3.5 lbs. in the feedlot with a dry matter feed conversion of 6:1. They graded 74% Choice, 64% Yield Grade 1-2. “Those calves returned us $30 per head premium through Cargill’s Sharing Total Added Value Alliance (STAV) program,” says Welch.

If you’re not familiar with it, Cargill Cattle Feeders buys and owns all of the cattle it feeds. Through STAV the feeding company pays premiums to producers of the calves it has already purchased if the calves are among the top feeding and carcass cattle.

“The Southern half of the United States doesn’t need to be very concerned with premium Choice programs because that target is not typically sustainable from a production standpoint,” says Brophy. Understand, he is also general manager of his family’s Babocomari Ranch at Elgin, AZ.

“It is time for many producers to design long-term, simplistic plans that capture maternal heterosis,” says Daley. “I would not want to manage cattle in any environment without that incredible value. And the tougher the environment the more critical hybrid vigor becomes.”

“Our environment is tough enough through weaning that we can’t chase 80% Choice grade, never mind the maternal side of it. It’s a lot easier and more profitable to make a profit with heterosis than carcass premiums,” says Prosser. “Our job is to put as much carcass premium in the cattle as the maternal efficiency demanded by our environment will support.

“You make money in this business with maternal performance, calf performance and the carcass,” says Prosser. “Without the added efficiency provided by managing heterosis there isn’t enough money left in the business to survive.”
 

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