Iowa State AN S 226 Exam 1 questions
and answers graded A+
Why is the beef industry is described as "segmented"? - correct answer ✔✔Our industry is not
vertically integrated. The stages of the value added process are owned by different entities. So
the industry struggles to be coordinated and responsive to changes in consumer demand
because of lack of effective communication between segments. The key here is vertical
integration. Make sure you know what that means ( who owns the stages - - - not an issue of
where they are located).
Dr. Purcell referenced the "failed price system" in your readings. What does he mean by failed?
What has it failed to do? What exactly failed and why? - correct answer ✔✔he grading system
failed to coordinate pricing to reflect changes in consumer demand.It is important to know that
the author specifically blames an inept grading system for the lack to coordinate pricing
structures. The USDA itself is not to blame, but the USDA grading system for beef.
Where is the epicenter of the feedlot industry in the US? Why there? - correct answer ✔✔Texas
Nebraska Kansas, availability of corn feed products
Why is the industry seasonal? - correct answer ✔✔the pastures become available in May and
wean in Aug and arrive in the feedlots in the fall
Why is the industry less vertically integrated than say the swine or poultry industries? - correct
answer ✔✔primarily because of the vast land resources that beef production requires and the
very relatively slow cash flow.
What has happened to cattle numbers over the years and why the changes both in trend and
cycles? - correct answer ✔✔It is an industry economic characteristic of the beef industry where
numbers of beef cattle are at a relative peak about every 10 years.
, What characteristics of raising beef support the viability of the industry? - correct answer
✔✔utilize non-suitable land
use low quality roughages
minimal labor needs
low facility investment needed
environmentally friendly, nutrient recyclers
suited to part time farming
meat of choice (cost dependent)
favored life style for many producers
Name the elements of an effective mission statement that we described in class ( note - not a
goal, but a mission Statement) - correct answer ✔✔Who are we?
What do we do?
For whom do we do it?
Why do we do it?
"The Lazy Y Ranch will use its available resources to maximize continuing net profit, while
conserving and improving those resources by producing feeder calves that meet feedlot
demand (Taylor, 94)."
Why should a beef enterprise have a mission statement and use it? - correct answer ✔✔it is a
shared vision for the program and works toward a goal to improve the operation
What is the benefit of SPA programming efforts to a producer? - correct answer ✔✔(specialized
performance analysis) help cow-calf producers reduce their cost of production and improve
their production and marketing efficiency.
tally of production, reproduction per cow
costs per resource unit used
Investment per cow, per acre, per cwt. sold
and answers graded A+
Why is the beef industry is described as "segmented"? - correct answer ✔✔Our industry is not
vertically integrated. The stages of the value added process are owned by different entities. So
the industry struggles to be coordinated and responsive to changes in consumer demand
because of lack of effective communication between segments. The key here is vertical
integration. Make sure you know what that means ( who owns the stages - - - not an issue of
where they are located).
Dr. Purcell referenced the "failed price system" in your readings. What does he mean by failed?
What has it failed to do? What exactly failed and why? - correct answer ✔✔he grading system
failed to coordinate pricing to reflect changes in consumer demand.It is important to know that
the author specifically blames an inept grading system for the lack to coordinate pricing
structures. The USDA itself is not to blame, but the USDA grading system for beef.
Where is the epicenter of the feedlot industry in the US? Why there? - correct answer ✔✔Texas
Nebraska Kansas, availability of corn feed products
Why is the industry seasonal? - correct answer ✔✔the pastures become available in May and
wean in Aug and arrive in the feedlots in the fall
Why is the industry less vertically integrated than say the swine or poultry industries? - correct
answer ✔✔primarily because of the vast land resources that beef production requires and the
very relatively slow cash flow.
What has happened to cattle numbers over the years and why the changes both in trend and
cycles? - correct answer ✔✔It is an industry economic characteristic of the beef industry where
numbers of beef cattle are at a relative peak about every 10 years.
, What characteristics of raising beef support the viability of the industry? - correct answer
✔✔utilize non-suitable land
use low quality roughages
minimal labor needs
low facility investment needed
environmentally friendly, nutrient recyclers
suited to part time farming
meat of choice (cost dependent)
favored life style for many producers
Name the elements of an effective mission statement that we described in class ( note - not a
goal, but a mission Statement) - correct answer ✔✔Who are we?
What do we do?
For whom do we do it?
Why do we do it?
"The Lazy Y Ranch will use its available resources to maximize continuing net profit, while
conserving and improving those resources by producing feeder calves that meet feedlot
demand (Taylor, 94)."
Why should a beef enterprise have a mission statement and use it? - correct answer ✔✔it is a
shared vision for the program and works toward a goal to improve the operation
What is the benefit of SPA programming efforts to a producer? - correct answer ✔✔(specialized
performance analysis) help cow-calf producers reduce their cost of production and improve
their production and marketing efficiency.
tally of production, reproduction per cow
costs per resource unit used
Investment per cow, per acre, per cwt. sold
