GeneMax™

Mark McCullyCertified Angus Beef LLC

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Average Grid Premiums, Oct 22, 2012

Prime CAB Select Standard

Average Premium, $/cwt

+ $23.14 + $4.84 - $16.94 - $30.18

Premium/hd (850 lb HCW, Choice base)

+ $196.69 + $41.14 - $143.99 - $256.53

Source: USDA Weekly Reported Grid Premiums (USDA LM_CT 169)

The market is paying for quality

Making Progress for Marbling and Gain

Health

Implants

Nutrition

Etc.

GeneMax™• DNA test for Marbling and Post-weaning Gain• Intended Use:– By commercial cattlemen– On Angus-sired cattle

• Selection, Marketing & Decision tool– Commercial replacement heifers– Feeder cattle

What do you get?

GMX Score

GMX Marbling

GMX Gain

Optional Sire Match

GMX™ Score Description99 Top 1%75 Top 25%50 Average25 Top 75%1 Top 99%

GMX™ Score

GMX™ SCORE = Economically weighted value for marbling and

post-weaning gain combined

GMX™ Marbling and Gain

Description

5 Top 20%4 61-80%3 Middle 20%2 21-40%1 Bottom 20%

GMX™ Trait = Individual value for marbling or post-weaning gain

GMX™ Component Traits

GMX™ Sire Match

Sire Match Features• Potential sires must be 50K tested• Included in the cost of the GMX test• Request at the same time as GMX™

or anytime later• NOT AAA Parentage Verification

GeneMax™ Field Study and Economic Analysis

Field Study• Validation study conducted by CAB, AGI and Pfizer Animal

Genetics– 1,975 hd of high percentage Angus feeder cattle with performance and

carcass data1

• Study findings– GMX Score was associated with increased likelihood of achieving

higher Quality Grade (P < 0.0001) and increased carcass value (P < 0.0001)

– GMX Score was associated with increased ADG (P = 0.03)

– GMX Score was associated with greater carcass value per day on feed (P < 0.0001)

1Certified Angus Beef and Angus Genetics Inc., Data on file

GMX™ 25 GMX™ 75

Starting Weight: 600 lbs, DOF: 200, End Weight: 1300 lbs

GMX™ Score – Economics• Conclusion:

– For every 10 unit increase in GMX™ Score, animal value increases by $3.30/head for every 100 days on feed

– Assuming an $8 Choice/Select spread and $325/ton DM ration cost

+$33/head

GMX™ Field StudyPratt Feeders

• 205 head of AngusSourceTM steers sorted into 2 pens based on GMX™ Score*

GMX™ Score

GMX™ Score Range

GMX™ Marbling

GMX™ Gain

High Group 89.4 78-99 4.5 4.6Low Group 51.1 4-77 2.6 3.6

GMX™ Field StudyPratt Feeders – Preliminary Results

Pen Feedlot ADG

Avg Marbling Score

Percent CAB

High GMX™

4.30 541 71.1%

Low GMX™

4.29 490 44.7%

GMX™ Field StudyPratt Feeders – Preliminary Results

Applications for the Cow-calf Producer

• Heifer selection and breeding tool– Select the best growth and marbling genetics– Make more strategic breeding decisions– With Sire Match, improve selection and mating

decisions• Culling tool• Marketing tool– Feeder cattle– Heifers

Avg of 9/21 Superior Sale*

GMX™ <60 GMX™ 60-80 GMX™ > 801,000

1,200

1,400

1,600

1,800

2,000

2,200

$1,362

$1,712

$1,987$2,100

Average Selling Price of GMX™ Tested Commercial HeifersGardiner Angus Ranch, Sept 2012

Sale

Pri

ce, $

*Superior Livestock Cattlemen’s Fall Classic, 9/21/12All Bred Heifers, Regions 3 and 4; Range: $1085-$1500

Applications for the Feedlot

• Procurement tool to more accurately assign value to feeder cattle

• Management tool for sorting, technology use, and marketing

• “Genetic risk management”

How it works• Available through Certified Angus Beef– www.CABPartners.com

• Order test kits– Card and lancet = $0.50 each– Test = $17 each

• Collect blood (preferred) samples and mail to AGI for processing

• Test results returned in less than 4 weeks

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Thank youMark McCully mmccully@certifiedangusbeef.com