Volume 21, Issue 1  

www.uspremiumbeef.com 

866-877-2525  

March 15, 2017 

Table 1. USPB BENCHMARK PERFORMANCE TABLE–KS Plants 

Fiscal 2017 YTD 
(Jan. 2 - Mar. 4) 

Yield, or dressing percentage, of USPB cattle was higher. However, plant average yields also increased in 2016. This resulted in a Yield benefit per head that was less than previous years.

Yield Grades were generally lower, or leaner, in 2016. Yield grade is an indicator of body composition with lower values for generally leaner and/or heavier muscled carcasses. It is impressive to see “leaner” Yield Grades together with record high quality grading.

Looking at the USPB individual animal instrument grading database, backfat thickness was equal to the previous year which was the highest, or fattest, in the last eleven years. However, ribeye in relation to carcass weight, or “muscling” was the largest, or best, that it has ever been in the last fifteen years since the company has been tracking this data. As a result, on average, carcasses had enough added muscling to compensate for the high level of backfat and still have a lower average Yield Grade than the previous two years. Yield Grade discount was the smallest, or least negative in the last sixteen years.

All 

All 

All 

All 

All 

Natural premiums were significantly lower. This was due primarily to the discontinuing of the Naturewell program. Table 2 shows the total natural premiums divided across all USPB cattle. This explains why the natural premium values are small, even though the premiums are high for lots that qualified for a natural program.

Total premiums paid for all USPB cattle was $38.3 million during fiscal year 2016. This was the fourth highest total premium on record for the company and $1.9 million less than the previous year.

In total, U.S. Premium producers have delivered more than 12.9 million head to National Beef’s Kansas plants since the company began operations in 1997. These high quality cattle provide a solid base supply of carcasses that can be marketed under branded beef labels and add value to the product marketed by National Beef. ♦

Fiscal 
2013 

Significant Improvements in 2016...

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tion for tax year 2016. In total, USPB distributed $62.8 million, or $83.41 per combined Class A and Class B units, to our members in those two distributions.

The 2011 IRS tax audit continues. USPB attempted to resolve the audit through the appeals process, but was not successful. On February 14, 2017, Mark Gardiner, as Tax Matters Partner for USPB and on behalf of all USPB members, filed a petition for judicial review with the United States District Court for the Western District of Missouri.

For fiscal year 2016, USPB producers delivered 852,599 head of cattle through USPB to National Beef, an increase of 39,259 head when compared to the prior fiscal year. Strong grid premiums contributed to the increase in deliveries. For the year, average gross premiums for all of the cattle delivered was $44.94 per head, with the top 25% and 50% receiving premiums of $83.31 and $68.31, respectively.

USPB’s unique advantage continues to be the superior quality cattle delivered by our producers, which enables National Beef to generate more value from the cattle we deliver and provides more opportunities in the consumer marketplace. ♦

Young Producers Council Completes...

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packing and fabrication facility in Dodge City. The talent, skills and leadership displayed by the YPC confirms the future of the beef industry is in very good hands.

Please let us know of sons, daughters and young associates in your operation that should be considered for inclusion in future YPC sessions. ♦

Liver Abscess Data
Added to Settlements

In November 2016, USPB added additional information to its settlement sheet. The number and percentage of total condemned livers and open abscessed livers are now listed. The purpose is simply for information sharing to help producers know more about their cattle.

Liver abscesses are an indication of overall health of the animal, and can occur when cattle are fed high concentrate diets. Open abscesses can also adhere to the inner wall of the carcass and cause trimming, resulting in decreased carcass yield, or dressing percentage. As a point of reference, during the past twelve months, USPB cattle, excluding those on a natural program, have averaged 15.15% total condemned livers and 3.50% open abscesses. Factors related to the level of condemned livers include: ration forage/concentrate levels, forage particle size, bunk management and the usage of feed grade antibiotics. Please share your information with your consulting nutritionist, or call if you have questions. ♦

Qualified Seedstock Suppliers
Spring Sale Dates

The following USPB Qualified Seedstock Suppliers will conduct sales during March through May. See USPB’s web page for links that detail sale times and locations. ♦