Factors that Shaped the Beef Industry.

1800's

1817		Hereford and Shorthorn imported.
1840		First successful Hereford herd established.
1850’s		Illinois assumes leadership of grain-fed cattle.
1854		Guzerat, Gir and Nelore were combined to form Brahman, the first beef breed developed in the U.S.

1860's		Start of trail drives out of Texas.
1873		First imports of Angus.
1873		Barbed wire was invented.
1880’s		Major imports of Hereford and Angus.
1880’s		End of trail drives out of Texas.
1882		American Shorthorn Association is organized.
1883		American Angus Association is organized.
1886		1886-1887 winter was the “worst” and resulted in the death of 25-50% of the cattle in many cowherds.
1887		The American Cattle Trust was the first vertically integration in the beef industry with about 219,000 head of cattle, feeding farms in Nebraska, a Chicago packing plant purchased for $2,000,000 and contracts for canned beef with France and Belgium.
1887		Early reports in the U.S. of Simmental; faded into the population.
1890		American Cattle Trust was liquidated due to lack of financial success.

1900's

1900’s		Cattle feeding moves into eastern Nebraska.
1900		Polled Hereford Association is organized.
1901		Collection of “hornless” Horned Herefords (Polled Herefords).
1906		*Upton Sinclair writes The Jungle, leading to the passage of the Meat Inspection Act in 1906.*
1908		Shorthorn, Hereford and Brahman were combined to form Beefmasters.
1910		Shorthorn and Brahman were combined at the King Ranch to form Santa Gertrudis; Recognized as a purebred in 1940 by USDA.

1915		Safeway opens grocery stores with only $1,400.
1918		N Dama (Bos Taurus) and Red Poll were combined to form Senepols in the Virgin Islands.

1920's		Hybrid seed corn is produced.
1921		Packers and Stockyards Act passed by Congress, providing marketing regulations.
1924		American Brahman Breeders Association is organized.
1926		Federal Meat Grading Service is set up by the USDA on a voluntary basis. Consumers were confused by the various "house" brands and wanted a uniform system to compare beef from different packers.

1930		Warren Monfort started his cattle feeding business north of Greeley, CO.
1932		Angus and Brahman were combined to form Brangus; Breed association formed in 1949.
1933		Start of inbreeding research. At least 48 inbred lines at 10 research stations located in eight western states were studied from 1933-1964. Today, only the Line One Herefords from Miles City, MT are used in commercial production.
1934		Arizona discovers that aging improves beef tenderness.
1936		Small imports of Charolais from Mexico.
1936		AI begins in dairy cattle.
1930's		Researchers laid the groundwork for what became the Beef Improvement Federation. BIF standardized the programs and methodology for objectively evaluating beef cattle.

1942		Angus, Hereford, Shorthorn and Africander combined to form Barazonas in AZ; Africander is the most popular breed (30% of the population) in South Africa.
1942		Large commercial cattle feedlots begin to emerge and by the mid-1940’s, the feedlot business starts on a year-round basis.
1945		Red Angus were collected by performance minded cattlemen; Breed association formed in 1954.
1947		Hereford and Brahman were combined to form Braford at the Adams Ranch in Florida.

1950s	Hereford	The Hereford breed battles dwarfism. L.P. Cann, charged with finding the carriers, eventually writes a book detailing the experience called "The Battle of the Bull Runts".
1950		Beef carcass grades are amended. Old grades of Prime and Choice are now called Prime. Old Good is now called Choice.
1950's		Nutritional consultants were used by feeders.
1952		44% of cattle were rated Choice or Prime.
1952		Americans consumed 62 pounds of beef per person.

1960's		Major imports of Charolais.
1960's		Late 1960’s 72% of cattle graded Choice.
1965		USDA yield grades were implemented.
1966		Development began at the Meat Animal Research Center (MARC).
1967		Major imports of Simmental.
1960's		Simmental and Brahman were combined to form Simbrah.
1968		Monfort forms the first 100,000 head feedlot.
1968		Cattle-Fax is formed.
1968		“Big Mac” hamburger is created.
1969		Major imports of Maine Anjou, South Devon and Limousin and small imports of Braunvieh.

1970		A lawsuit, supported by the U.S. Justice Department, forced open A.I. in the Angus breed.
1970		Guidelines for Uniform Beef Improvement Programs were published (1^st edition).
1971		Major imports of Chianina and Gelbvieh.
1972		Americans consumed 116 pounds of beef per person.
1972		*Dr. Robert C. Atkins’ book Dr. Atkins’ Diet Revolution* was published (sold 15 million copies).**
1972		Major imports of Salers and Tarentaise.
1974		Leachman Cattle Co offers their first hybrid bulls.
1974		AAA publishes their first national sire summary, the second in the beef industry.
1976		U.S. Meat Export Federation was established.
1976		Revision of USDA quality grades. Marbling requirement for Prime, Choice and Standard are reduced by one degree and the range of marbling for Good grade is narrowed.
1977		National Cattlemen’s Association formed through consolidation of the American National Cattlemen’s Association (founded in 1898) and the National Livestock Feeders Association (founded in 1946).
1977		Imports of Senepol.
1978		Concept for Certified Angus Beef was passed by the American Angus Assoc by one vote.
1978		MARC initiates the Germ Plasma Utilization (GPU) project.

1983		Major imports of Braunvieh.
1983		Dr. Stan Parsons recognized a need to put profit back into agriculture and opened Ranch Management Consultants.
1984		Allen Savory opens The Savory Center to teach Holistic Management.
1985	Beef Checkoff	The Beef Checkoff is implemented. The money is used to fund research, education and advertising programs.
1986		“War on fat” is launched.
1986	BSE	BSE was found in Great Britian.
1986		Lowest registrations recorded for Angus at 133,474.
1987		Video auctions emerge.
1987		Red Angus and Gelbvieh were added to the Santa Gertrudis at the King Ranch in TX to form Santa Cruz.
1987		Simbrah and Senegus were combined at the Brown Ranch in TX to form Hotlanders. Commercial Hotlanders were more profitable than Senegus and Simbrah.
1987		EBVs were replaced by EPDs at AAA.

1991		National Beef Quality Audit showed beef lacked marbling and was too fat, too inconsistent and too tough to remain competitive (losing $280/fed animal). Recommended better management of genetics, health, handling and information flow from packers back to the ranch.
1992		Department of Agriculture releases the food pyramid.
1992		Dr. Atkin’s New Diet Revolution was released and sold 10 million copies and was The New York Times bestseller list for five years.
1992		Monfort, IBP and Excel begin trimming fat from beef carcasses to one-quarter inch.
1992		Top food retailers are Kroger, American, Safeway and A&P.
1993		Red Angus and Gelbvieh were added to the Brafords at the Adams Ranch in FL to form the Adams Ranch Composite.
1993		MARC reports Gelbvieh are number one for weaning weight per cow exposed.
1993		Massive flooding throughout the Midwest.
1994		The American Gelbvieh Association forms the first commercial marketing program.
1994	Gelbvieh Alliance	Gelbvieh Alliance created. Eventually was able to show strengths and weaknesses of breeds.
1994		Ultrasound was first used to gather body composition of live animals.
1994		Red Angus forms a commercial marketing program (2^nd in the U.S.).
1995		National Beef Quality Audit recommended continued improvements in red meat yield, enhance taste and tenderness, improving management and controlling weight. The ideal quality grade mix was recommended to be 7% Prime, 21% Upper 2/3 Choice, 34% Low Choice and 38% Select. Actual mix in 1995 was 1% Prime, 11% Upper 2/3 Choice, 36% Low Choice, 47% Select and 5% Standard or lower.
1995	Total Herd Reporting	Red Angus requires Total Herd Reporting.
1995	Tag Program	Red Angus unveils first USDA process verified tag program.
1996	BSE	Howard Lyman, an American vegetarian, went on Oprah to discuss problems in the beef industry and encourage “better choices” about what consumers eat. Prices crash and Oprah is sued.
1996		CAB premiums were included in packers grids.
1997	BSE	The United States banned the feeding of ruminant protein to ruminants.
1997	Multi-Breed Evaluation	American Simmental Association publishes the first Multi-Breed Evaluation.
1998		Lowest demand for beef in last 20 years.
1998	Carcass Merit Project	NCBA initiates the Carcass Merit Project to develop tools to identify superior animals with a major look at tenderness issues.
1998	Balancer	The American Gelbvieh Association launches the Balancer program. This was the first registered trademark for a beef hybrid seedstock product.
1999	Beef Demand	Demand for beef goes up for the first time in 20 years.
1999		First EPDs for ultrasound carcass data were published.
1999	R-Calf	R-Calf is formed.
1999	Crossbreeding	ASA, RAAA and NALF joint-sponsor crossbreeding ads (2+2=5).

2000's

2000	Beef Quality Audit	National Beef Quality Audit reported the actual mix from May to November for 30 packing plants was 2% Prime, 49% Choice, 42% Select and 5% Standard. Actual yield grades were 12% YG 1, 37% YG 2, 38% YG 3, 10% YG 4 and 1% YG 5.
2000	SmartCross	The American Gelbvieh Association unveils the SmartCross brochure. This was the first aggressive promotion illustrating where a breed fit within the beef industry.
2001	First Index	The American Gelbvieh Association unveils the Grid Merit EPD, the first index from a breed association.
2001	Future Beef	Future Beef kills the first set of cattle in August.
2001	Terrorism	Terrorist hit the U.S. on September 11. Kill 3,000 people in the World Trade Center.
2002		Farmland Industries, the largest farmer-owned cooperative in North America, filed for bankruptcy protection.
2002		*ConAgra Beef Co in Greeley, Co recalled 18.6 million pounds of beef it suspected was tainted with a deadly strain of E. coli,* the nation’s second largest recall.**
2002	Future Beef	Future Beef closed its doors in August.
2002	Angus Derivative	“Angus-derivative EPDs” are discussed at the annual American Angus Association convention in Louisville. The idea was soundly defeated.
2002	Was-Mart	Wal-Mart is reportedly the largest food retailer in the U.S followed by Kroger, Albertsons and Safeway.
2003	Multi-Breed Evaluation	The American Gelbvieh Association publishes the second Multi-Breed Evaluation.
2003	BSE	A Canadian cow was found positive with BSE. The border between Canada and the U.S. was closed on May 20.
2003	Future Beef	Creekstone Farms buys the Future Beef packing plant.
2003	Beef Packing	The four largest packers harvest just over 80% of the U.S. fed cattle each year.
2003	Gelbvieh Profit Partners LLC	The American Gelbvieh Association forms a for-profit feeding company called Gelbvieh Profit Partners LLC with intentions of adding value to Gelbvieh and Balancer influenced feeder calves.
2005	Wal-Mart	Wal-Mart, with nearly 6,000 stores in 113 countries and $309 in total sales for 2004 is the top in the world.
2004	AAA indexes	The American Angus Association released the Feedlot, Grid and Beef indexes in the Spring. By Fall, they released a Weaning index and an Energy Needs index.
2004		Interactive $Values are made available through AAA login.
2004	AICA index	The American International Charolais Association releases a Terminal Sire Profitability Index.
2005	First profitability index	The American Simmental Association released the first profitability index called the All-Purpose Index as well as a Terminal Index.
2005	Food Pyramid	The new Food Pyramid is released. It encourages variety, moderation, and exercise.
2005	Checkoff	In May, the U.S. Supreme Court, by a vote of 6-3, rules in favor of the beef checkoff.
2005	Durham Natural Gold Beef	The American Shorthorn Association introduces the first-ever breed association-sponsored natural, source-verified, direct marketing branded beef program called Durham Natural Gold Beef.
2005	AHA indexes	The American Hereford Association releases four indexes; 1) Baldy maternal index, 2) Brahman influenced index, 3) Certified Hereford Beef index, and a 4) Calving EZ index.
2005	Five Rivers Ranch Cattle Feeding	ContiGroup Companies and Smithfield Foods completed a 50/50 joint venture with one time capacity of 811,000 head in 10 feedyards located in Colorado, Idaho, Kansas, Oklahoma and Texas. The new standalone company, called Five Rivers Ranch Cattle Feeding, is located in Boulder, CO.
2005	BSE	A 30 minute live animal test for BSE was announced in June by Vacci-Test Corporation.
2005	BSE	A 12-year-old Brahman cross cow from Texas was identified with BSE and announced on June 24. The USA was testing 1,000 head each day for BSE and had tested about 395,000 head before June 24,2005.
2005	Oil Price	Oil briefly passes $60/barrel on June 27. American use about 144 billion gallons of gasoline each year.
2005	BSE	The first live Canadian cattle cross into the US in over two years on July 19th.
2005	Oil Price	Oil price briefly passed $70/barrel the last week of August.
2005	AAA indexes	The American Angus Association releases two new indexes called $QG with a range of $44.12 and $YG with a range of $33.10.
2005	Performance Registry Services	The Performance Registry Services was created by the Gelbvieh, Brangus, Limousin, Salers and Red Angus breed associations. It will provide commercial producers with National Cattle Evaluations delivering a single suite of EPDs for all the partner breeds on a single base and scale. The idea is to make crossbreeding easier and more objective. This joint venture of breed associations will provide Total Herd Reporting and data processing for their members, while allowing for individual breeds to maintain their own identity. Along with the multi-breed EPDs will be decision-support software and search engines and a centralized data warehouse for commercial producers to use these tools.
2005		AAA introduces Calving Ease and Calving Ease Maternal EPDs.
2005	BSE	Japan opens its borders to American beef in December.
2005		Feed Efficiency is hot topic.
2006	BSE	Japan closes its borders to American beef after discovering part of a vertebrae as part of a shipment to Japan.
2006	Corn Prices	Corn prices increased DURING harvest due to demand from the ethanol industry raising speculation as to the structure of the beef industry based on cheap grain and oil as well as the involvement of oil companies in corn futures.
2006	Marbling	The industry discusses why marbling has actually been decreasing despite a shift to higher marbling breeds, heavier carcass weights and days on feed. Speculation is less feeding of corn and more feeding of by products that do not contain starch. Also aggressive implants are suspected.
2006	Weather	Widespread drought followed by a tough winter results in high grain and hay prices. Texas, Oklahoma, Kansas and Missouri (home to about 1/3 of the beef cows in the US) lost almost 300,000 head of cows due to drought conditions. In addition, blizzards caused many deaths in the feedlots in Western Kansas and surrounding areas.
2006	Feedlot Profitability	Worst year for feedlot profitability in 30 years.
2006		Alternative specifications to CAB qualifications approved. Carcass weights must be under 1000 lbs., backfat must be less than 1.0", and ribeye area must be between 10" and 16 sq".
2006	Genomic-enhanced EPDs	The American Simmental Association releases the first genomic-enhanced EPDs to the beef industry. The EPD was for SHEAR FORCE and the trait was TENDERNESS.

2007		U.S. pork production jumped sharply in the fall of 2007 when pigs that had received circovirus vaccines began hitting the market.
2007	MBE	The American Angus Assoc Board of Directors voted to form a for-profit genetic company that will do multi-breed evaluations called Angus Genetics Inc.
2007	Angus	American Angus Association releases Heifer Pregnancy and Docility EPDs.
2007	Corn	Corn prices rise again for the second year in a row.
2007		Oil stays above $100/barrel for part of the year.

2008		Offered a gene-marker test for dwarfism, developed and licensed through the Iowa State University Research Foundation.
2008		Oil prices continue to flirt around the $100/barrel mark.
2008	Economy	Much of the year is characterized by a weak dollar due to poor economy in the US. Many house mortgages (est.10% of mortgage houses) are in danger of defaulting or are in the process of foreclosure. Strong demand for oil, grain and meat in China, India and others cause huge increases in inputs costs in the US.
2008	Oil	Oil prices exceed $135/barrel and the average gas price is just over $4/gallon by June.
2008	Corn	The price of corn exceeds $7/bushel.
2008	Feeding	By midyear, feeders were losing $150-$200/hd. Many feedyards are for sale. Cost of gains are reported over $1.30 with Fed Cattle prices at $95/cwt.
2008		Beef demand has been good.
2008	Weather	Massive flooding in the Midwest similar to 1993. Much of the corn was planted late or was lost in the flood with over 16% of the crop ground under water. Crop farmers hope to plant soybeans.
2008	Seedstock	Many producers dispersing commercial cows due to high input costs and anticipated poor calf prices. CattleFax estimates 77,000 fewer bulls will be needed next year.
2008		Presidential campaign focused on the US economy, especially energy prices.
2008	Ethanol	Ethanol subsidies which encouraged ethanol plants to be built have been called into question in light of the high corn prices. Although many are calling for the elimination of these subsidies, it is likely to have little effect as the plants are already built.
2008	Feeding and Packing	The packing industry is estimated to have 15% excess capacity while the feeding industry has 20% excess capacity. High feed costs and major losses in the feeding industry encourage more stocker operations which further reduce the days on feed. The result is that the feeding industry actually has more excess capacity than the estimate quoted above.
2008		The number of cattle producers has fallen to about 750,000.
2008		Oil exceeds peaks at $147/barrel in July.
2008	Angus	In September, the American Angus Association announces that G A R Precision 1680 is a carrier for a lethal genetic defect known as Curly Calf Syndrome. The official name is Arthrogryposis Multiplex (AM) and has been traced back to his maternal grandsire, Rito 9J9. Later, another genetic defect known as Neuropathic Hydrocephalus (NH) was found to have originated with G A R Precision 1680 Dr. Jon Beever, University of Illinois, completes the DNA tests.
2008		Oil prices drop to about $70/barrel by October.
2008		Defaults on subprime mortgages lead to bankruptcy and failure of several large financial institutions. A $850 billion bailout for banks is the hope for releasing the freeze on the credit market.
2008		HSUS worked to pass Prop 2 in California which eliminates cages and gestation crates over several years.
2008		Colorado negotiates with HSUS to eliminate gestation crates. In return, HSUS leaves CO to take up the fight in other states.
2008		Barack Obama is elected president of the USA. He runs on a platform of change which includes health care reform, cap and trade (climate change and clean energy), and ending the war in Iraq.


2009	Swine	The H1N1 virus outbreak occurred in Mexico. Originally it was called "Swine Flu" and the hog market immediately dropped just prior to the seasonal upturn in prices for the summer. Demand swiftly drops and several countries close their borders to imports from the US. Egypt even sends all of their swine to slaughter. The swine industry had been losing money for about 18-months when the outbreak was announced, devastating the swine industry. It appears profitability will not return until summer 2010.
2009		Jobless rate in the US hits 9.4%.
2009		After falling into the $30's/barrel, oil rises to over $70 by mid-June. Oil prices remain around $70 for the summer.
2009		Human Society of the United States (HSUS) works in Ohio for animal rights. HSUS has over $113 million and 11 million members. A 13-member board is created in Ohio to oversee animal welfare. A similar board is created in Michigan.
2009	Ch-Se Spread	The Choice-Select spread is very narrow due to poor economy and a higher percent of carcasses grading Choice. The spread was actually negative a couple of times in early spring.
2009	CAB acceptance	CAB acceptance rises above 20% for the first time. Typically about 15%-18% of the black-hided cattle qualify for CAB.
2009	Feedlots	Feedlots continue to lose money. In the past, feedlots could be purchased for about $250/head space. By 2009, that number dropped to about $100/head space.
2009	Genomic-enhanced EPDs	In July, Angus Genetics Inc.® and IGENITY® announced a deal to introduce industry’s first genomic-enhanced EPDs for multiple traits. Genomic-enhanced EPDs will allow young animals to receive higher accuracies. Typically accuracies for EPDs on young animals would be no higher than .30 but can be as high as .70 under the new evaluation. The AAA is the first to apply DNA results to EPDs for multiple traits. However, it should be noted that ASA was the first to publish genomic-enhanced EPDs three years ago for shear force, i.e. tenderness.
2009		Wal-Mart released the first part of a plan to develop a "worldwide sustainable product index". Suppliers will have to answer questions concerning 1) natural resources, 2) energy and climate, 3) people and community, and 4) material efficiency. These questions are for the suppliers and the companies they buy from.
2009		USDA estimates farmers averaged 165.2 bushels (bu.) of corn per acre, up from its previous estimate of 162.9 and shattering the previous record of 160.4 in 2004. Notably, average yields are more than 11 bu. per acre higher (7%) than last year’s average yield. In addition, this record yield helped produce the largest corn crop ever — 13.2 billion bu.


2009

Dennis Fennewald

Fennewald Ag Resources