NALF-Tyson Fresh Meats Announce New Limousin Grid
The North American Limousin Foundation has partnered with Tyson Fresh Meats to provide a Limousin Grid to market commodity cattle.
The North American Limousin Foundation (NALF), in an effort to further promote Limousin genetics, has teamed up with Tyson Fresh Meats to create a value-added cattle feeding pricing program. Beginning in May of 2016, Tyson is offering feeders the opportunity to market cattle on a Limousin Grid, which is designed to pay substantial premiums for conventionally fed cattle. This grid rewards cattle that excel in quality and yield grade.
The grid uses average harvest results from all Tyson plants for each week’s deliveries. The premiums are tremendous for cattle that exceed the week’s averages for Prime, CAB, and Yield Grade 1s and 2s. (Click here for example of NALF-Tyson Limousin Grid)
In the example grid, the USDA 5 Area Weekly Weighted Average Price is used as the initial starting price. Since the cattle are being compared to the weekly average results for all Tyson plants, the actual harvest averages are figured for the week with resulting premiums and discounts for the clean-up cost. The average discount total of $5.56/cwt was used to subtract the $3.88/cwt of premiums for a difference of $1.68/cwt, which is then added to the base price of $222.89/cwt for a new starting price of $224.57/cwt. The producer’s cattle are then figured against the results of the plant averages for each category and the variances are calculated for the final price.
As a result, the starting base price is adjusted upwards since the cattle are competing against all cattle harvested for the week at Tyson plants. If a set of cattle exceeds the averages for quality and yield grade while keeping discounts at a minimum, the ability to achieve an additional bonus is very apparent.
Limousin cross cattle have the ability to do well on this grid given their natural ability for yield and grade. The advantages of Limousin cattle to put a high percentage of cattle into the Yield Grade 1 and 2 categories while achieving quality grade standards when fed correctly with a moderate implant program equals premiums for the feeder.
To be eligible to be marketed on the NALF-Tyson Fresh Meats Limousin Grid, cattle must carry a Lim-Choice panel ear tag and be reported to the NALF office. For more information on this grid or other marketing opportunities through natural and NHTC programs, contact Mark Anderson, NALF executive director, at 303-220-1693 or Mark@NALF.org.