Four New Beef Products Created
Four new hand-held beef snacks for children have been created by The Beef Innovations Group, an affiliate of the National Cattlemen’s Beef Association. The process began with more than 100 concepts resulting in 19 products, four of which made it through testing by more than 200 young consumers, ages 5 to 18. The new products include the following items.
• Beef Snackwich: a self-contained bun stuffed with a beef and sauce filling.
• Steak and Egg Breakfast Bites: steak, egg, and cheese in a potato crumb coating.
• Breakfast Pancake Flip: beef sausage, egg and cheese in a pancake.
• Standing Beef Sandwich: a hollowed-out bun, turned upright, and stuffed with beef and other ingredients.

The Beef Innovations Group said that it plans to launch two new products in 2008, “Cheeseburger on a Stick” and “Mini Burger.”

Farm Income Sets a New Record
U.S. net farm income set a new record in 2007 at $87.1 billion. Profi ts, however, were limited by higher production costs, which were 8.5% higher than those in 2006. Economists attributed much of the increase in farm income to higher grain prices. Nonetheless, livestock cash receipts also increased in 2007 as a result of higher meat and dairy prices (SOURCE: USDA).

Beef Carcass Weights Have Been Steadily Increasing
                                                                    Average beef
Year                                                        carcass wt. (lb)
1983............................................................................. 629
1988............................................................................. 668
1993............................................................................. 688
1998............................................................................. 723
2003............................................................................. 740
2006............................................................................. 774
24-yr. avg., 1983-2006 .............................................702
SOURCE: Cattle-Fax®

As shown in the above table, beef carcass weights have steadily increased over the 24-year period from 1983 to 2006 by a whopping 145 lb (774 vs. 629 lb). The average weight for the 24-year period was 702 lb. During this same period, there has been relatively intense genetic selection for more rapid growth in beef cattle, which could feasibly account for much of this increase.

Hay Prices in U.S. to Hit Record High
For the 2007-08 hay crop marketing year, the national average all hay price is projected to be approximately $130/ ton, moving well past the previous record of $110/ton set in 2006-07. The national alfalfa hay and other hay prices are both forecast to be record high at more than $135/ton and more than $115/ton, respectively.

Since 2004, U.S. hay production has steadily declined, with production in 2006 being the lowest since 1988. In 2007, production increased, but at 140 million tons was still the second lowest since 1993. At the beginning of the 2007-08 hay crop year (May 1), U.S. hay stocks were just 15 million tons, the lowest in relevant history (since 1960). With normal winter weather, U.S. hay stocks as of May 1, 2008, may not increase much. Current projections put May 1, 2008, national hay stocks at 15.4 million tons, just 3% more than in 2007 (SOURCE: Troy Applehans, Cattle-Fax Update®)

Raising Versus Buying Replacement Heifers
Cattle-Fax analysts recently discussed the issue of whether to raise or buy replacement heifers. When calf prices are low, it is often advantageous to buy replacements. Herd size is another factor. Small cow- alf producers may find that purchasing replacements is more cost-effective due to economics of scale. Other factors affecting the decision to raise or buy replacements include opportunity costs, feed costs, interest, labor, and tax considerations. The table below is an estimate of heifer development costs that may serve as a benchmark for commercial cow-calf producers. The authors noted that this analysis is not all-inclusive. It does not include charges for labor, the cost of open heifers, or the opportunity cost of foregoing any interest made from selling the $616 heifer calf.

Item                                                                                   Estimate, $
Value of heifer @ weaning (550 lb x $1.12/lb) .................... $616
Cost of gain:weaning to breeding ($.50/lb x 200 lbs) ....... $100
Bull cost (bull cost-less salvage/25 cows/3 years ............... $20
Interest at 10% ............................................................................ $38
Grazing and feeding cost:breeding to calving ..................... $220
Vet, med, vaccinations ............................................................... $30
Death loss, 1.5% ........................................................................ $15
TOTAL .......................................................................................$1,039