Extension Grant Application

Extension Grant Application

January 12, 2000

Title: Finished Lamb Management and Marketing Skills Enhancement Program

(Producers track their own lambs from the point of sale to the packer rail)

Project Participants:

Extension Personnel: Dr. Jeff Held, Project Coordinator

Tracey Renelt, Grant Co. Educator

Jennie Johnson, Deuel Co. Educator

Dr. Brad Johnson, Ruminant Feedlot Specialist

Non-Extension Personnel: Rob Rule, Iowa Lamb Corp.-Hawarden, IA

Clyde Morrison- SD Livestock Sales- Watertown

SD Sheep Producers- 20 flocks, N.E. South Dakota

Field Education Unit: Northeast 5- Roberts, Grant, Hamlin, Deuel, Codington, Clark

Situation Statement:

Lamb production practices have changed dramatically over the past 20 years. Live market weight demanded by the packer has increased more than a pound per year during this period. In 1998 the average live market weight for U.S. lambs was 132 pounds. Heavier finished lamb weight has resulted in excessively fat carcasses. Recent industry surveys show that lamb carcasses often carry to much fat cover, with USDA Yield Grades in the upper 3’s and higher. Over fattened lambs reduces consumer demand for cuts of lamb and leads to inefficient feedlot growth performance.

Flock owners have made changes in flock genetics and feeding management practices to meet industry trends. Most producers use the industry market weight trend to govern feeding management decisions. However the optimum economic finished market weight for lambs within and between operations are different. Sheep operations differ greatly in genetic bases due to the breeds incorporated. Many different breeds are used in crossbreeding systems to improve reproductive rate, growth performance, carcass merit or wool characteristics. The breeds incorporated into crossbreeding systems lead to significant differences in lamb frame-size.

Lamb finishing trials at several major land-grant institutions have shown a strong relationship between lamb-frame size and carcass composition. Sire and dam mature body weight information can be used as indicators for frame-size to predict a lamb finished weight and corresponding level of finish

(fat cover).

Other research has examined the growth efficiencies associated at different levels of finish. Energetically, it requires more feed calories to deposit a pound of fat than a pound of lean tissue. Thus the pounds of feed required adding 1 pound of body weight gain increases with level of finish. Thus the cost of gain increases, depending on input variable costs and live lamb prices the cost of gain can exceed the value of the gain. Optimum economic lamb market weight is reached when the cost and the value for the last pound gained is equal. Based on research findings the economic optimum for lambs is reached when the level of finish is at the break between a Yield Grade 2 and 3 (.25-.30 fat cover,

12-13^th rib).

Currently finished lambs are offered to packers on a live weight basis, with no incentive or discount for carcass composition. Therefore to optimize return, the producer must depend on feeding and marketing practices. Sorting and marketing finished lambs based on level of finish could improve the profit potential for South Dakota sheep producers. An industry proposal to offer cash incentives on high cutability (Yield Grade 1 and 2’s) lamb carcasses reinforces the need for producers to incorporate level of finish management and marketing skills.

The main objective of this program is to provide producers the educational training to improve feeding management and marketing skills in their operation. Furthermore incorporate level of finish into marketing decisions.

Summary of Planning Process

Twenty sheep producers in Northeastern South Dakota will be invited to participate in a finished lamb evaluation program including live and carcass evaluation. Each producer will consign 10 finished lambs. Two marketing dates will be determined, mid-June and July, to coincide with the normal finishing period for winter born lambs in the area. Lambs will be randomly gate cut following the weigh-up for the group of lambs marketed by the producer. Those lambs sorted off for the program will be individually tagged. This will allow lambs to be traced through the lamb processing plant.

The point of sale for these lambs will occur at the SD Livestock Sale Barn in Watertown. Mr. Clyde Morrison operates a lamb buying station on Monday and Thursdays from this location. He purchases lambs for the Iowa Lamb Corp. located at Hawarden, IA. Our program will not involve any price discovery for these lambs. The purchase agreement is between the seller and the buying agent. We will simply trace identified lambs from point of sale through the packing plant cooler.

Live animal and carcass evaluation training will be provided for each producer. They will be able to compare marketing practices and carcass quality differences among the participants in the program. The live animal evaluation will take place on the point of sale date, carcass evaluation at the lamb packing plant will occur two days later. Carcass data will be collected on all lambs and summarized by producer. At the conclusion of the program all participant will receive a carcass summary. Individual producers will be assigned and identified by a letter rather than their names in the summary results.

Expected Outcomes/Impacts

-To link producers with their product beyond the farm gate.

-To educate producers on the relationship of animal growth and development to production efficiency

-To improve producer’s lamb finishing management and marketing skills to optimize lamb profits

-To develop a finished lamb marketing plan based on flock genetic strengths and limitations.

-To evaluate carcass merits and growth performance offered by the flock genetic base

-To provide livestock educators the training and knowledge to assist lamb producers in their FEU

Assessing Outcomes/Impacts

-Survey the participants involved in this program:

-Changes in lamb finishing management or marketing practices.

-Improved flock genetics added to promote more efficient growth or enhance carcass merit

-Participants requests for more training

-Identify educational activities designed by livestock educators, which enhances finished lamb management and marketing skills for producers in their FEU.

Resource needs

The major resource needs for this program involve personnel and travel dollars. Personnel include the SDSU sheep and feedlot extension specialists, NE-5 livestock educators (2) and several personnel to carcass data. The only hardware purchase will be for 200 numbered plastic eartags. (see budget)

Project Budget:

Dollars

Carcass Data Collection:

200 lambs @ $3 $600

Travel: (specialists and/or educators)

Trips to Watertown, SD

2 trips x 3 individuals x 75 miles roundtrip @ $.22 99

Trips to Hawarden, IA

4 trips x 2 vehicles x 300 miles roundtrip @ $.22 528

Per Diem: (specialists and/or educators)

3 individuals x 6 days (½ and full) @ $12 216

Equipment:

200 tags @ $.75 150

Total Program Cost $ 1,593

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Project Leader/Coordinator Signature Date

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DES/Dept. Head Signature Date