State of Grass Fed & State of Grass Fed & Role of EpigeneticsRole of Epigenetics

Allen Williams, Ph.D.Allen Williams, Ph.D.Grass Fed Insights, LLC Grass Fed Insights, LLC

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U.S. Beef Industry23-30% decrease in prices for all classes of decrease in prices for all classes of cattle since August 2015.cattle since August 2015.

U.S. Beef exports declined 18% in 2015.U.S. Beef exports declined 18% in 2015.

Beef imports increased 33% in 2015.Beef imports increased 33% in 2015.

Feedlot losses at $4.7 Billion in 2015. Feedlot losses at $4.7 Billion in 2015.

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Grass Fed Sector

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Domestic Grass Feed Beef

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Grass Fed PotentialGrass Fed Potential

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USDA Prime Grass Finished Beef

Value of Grass Fed Beef Market1998– 100+ serious grass fed beef producers– $4-$5 million retail value – Domestic– Industry in infancy

2015:– More than $3.2 billion+ sold in U.S.

$550+ million domestic$2.5+ billion+ imported

– More than 3700 producers involved.– Growing @ 25-30% rate annually.

Has reached 7.2% Market share.

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Domestic Grass Fed ProductionJuly 2014 – July 2015– Total of approximately Total of approximately 225,000 head head

harvested. harvested. Branded and Direct MarketBranded and Direct Market

– 184,000 harvested by branded programs harvested by branded programs ((82% 82% of totalof total))

– Top 15 grass fed branded programs harvested grass fed branded programs harvested 122,000 head head (54% of total; 66% of branded)(54% of total; 66% of branded)

– 41,000 head direct marketed (18% of total)(18% of total)– 97 million lbs Domestic GF Beef producedDomestic GF Beef produced

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Recent DevelopmentsJBS purchased Grass Run Farms JBS purchased Grass Run Farms Grassfed hamburger offered in all Carl’s JR. and Grassfed hamburger offered in all Carl’s JR. and Hardee’s restaurantsHardee’s restaurantsOutback Restaurants now offer 100% Grassfed Outback Restaurants now offer 100% Grassfed hamburger. hamburger. ABP Food Group-Sysco – Further expanded ABP Food Group-Sysco – Further expanded grass fed marketgrass fed marketUSDA AMS revokes “Grass Fed Standard”USDA AMS revokes “Grass Fed Standard”– USDA AMS PVPUSDA AMS PVP– USDA FSISUSDA FSIS

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Current DevelopmentsCargill now integrally involved. Cargill now integrally involved. Bill Helming and RaboBank ProjectionsBill Helming and RaboBank Projections– Grassfed beef will be will be 30%+ of total domestic of total domestic

beef market share within beef market share within 5-8 years– Beef production will segment into:

Commodity, All Natural, Organic, Grass Fed (Lean & High Quality), Non-GMO Grain Fed

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Grass Fed Dairy GrowingOrganic ValleyDreaming Cow DairyMaple Hill CreameryKalonaSnowville CreameryOrganic PasturesTraders Point CreamerySiggi’sKalona SuperNatural Trickling Springs CreameryNatural by Nature

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Economic DataEconomic DataUniversity Studies and Farm/Ranch Case Study University Studies and Farm/Ranch Case Study data show:data show:– Takes average of Takes average of 0.8 – 1.2 acres 0.8 – 1.2 acres per head to finish per head to finish

steers. steers. – More than enough available acres to finish More than enough available acres to finish 30 30

million+million+ head annually in U.S. head annually in U.S.– Skilled grass finishers net Skilled grass finishers net $300 - $500+ $300 - $500+ per acre per acre

annually. annually. – Build soil Build soil rather than deplete.rather than deplete.

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Recent Industry Survey - Beef• AMI Consumer Survey – 2014

– Over 67% have purchased natural, organic, and Grass Fed meats in past year.

– 25-42 age group most likely to purchase.– Key Drivers:

• Human Health• Animal Care and Welfare• Better nutrition & Variety• Better taste• Environmental Concerns

“What’s Hot” Survey

• National Restaurant Association–Survey of 1,000 chefs–Smaller entrée items–More grass fed items–Natural, organic, sustainable,

locally or regionally grown

National Restaurant Association Survey

• Top Menu Trends – 1,500 chefs• Top Three Trends:

– Locally or Regionally Sourced Meats– Healthy Children’s Dishes– Food Trucks

• Other Important trends:– Sustainability– Back to basics Foods– Farm-Branded Foods and ingredients– Organic and artisan food products

Market Research Focus Groups Market Research Focus Groups – 2006 Study– 2006 Study

• Retailers & Restaurants• Wholesale & Distribution• Medical, Health• Consumer Cross Segment

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Identified Consumer Targets•Young/Middle Aged Families•Baby Boomers•Concerned Consumers•Wellness & Fitness

Market Research Results - 2006

• High Acceptance Rate• Potential to capture 20-22% of beef market share• $15-$17 Billion in Sales Potential• Capture Non-Beef Eaters

What Are Current Protocols?

““All Natural”All Natural”– No growth hormones administeredNo growth hormones administered– No antibiotics – therapeutic or sub-therapeuticNo antibiotics – therapeutic or sub-therapeutic– No IonophoresNo Ionophores– No chemical pesticides or herbicides applied No chemical pesticides or herbicides applied

when cattle are present…when cattle are present…

Cattle raised on “open range”Cattle raised on “open range”– No confinement, except for inclement weatherNo confinement, except for inclement weather

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Current Protocols

Grass fed onlyGrass fed only– No grains, mature corn, or animal byproductsNo grains, mature corn, or animal byproducts

Supplements - ???Supplements - ???– Molasses from cane sugar.Molasses from cane sugar.– Other allowed supplements??Other allowed supplements??

Soyhulls, Haylage, Baleage, Non-Grain SilageSoyhulls, Haylage, Baleage, Non-Grain SilageGrain byproducts?Grain byproducts?

– DDGs, Wet Corn Gluten, Wheat Mids, ….DDGs, Wet Corn Gluten, Wheat Mids, ….

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Current Protocols

Handling & CareHandling & Care– Cattle handled in low stress manner??Cattle handled in low stress manner??– Humane practices used for gathering, sorting, Humane practices used for gathering, sorting,

loading, transport, and slaughter.loading, transport, and slaughter.– GAP Program, AWA, Food Alliance, etc….GAP Program, AWA, Food Alliance, etc….

CertificationsCertifications– AGA, USDA Grassfed PVP, AWA, Food AGA, USDA Grassfed PVP, AWA, Food

Alliance, Audubon Bird-Friendly, ……Alliance, Audubon Bird-Friendly, ……

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What Does This Mean for You?

Branded program implicationsBranded program implications

Direct Market implicationsDirect Market implications

Grass Fed beef segregationGrass Fed beef segregation– Imported vs. domesticImported vs. domestic– Lean vs. High QGLean vs. High QG

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What Are Primary Aspects of Beef Quality?

Five Main Areas of Focus:Five Main Areas of Focus:– GeneticsGenetics– FinishingFinishing– Animal Handling - at all stages of lifeAnimal Handling - at all stages of life– Slaughter & Processing (fabrication, further Slaughter & Processing (fabrication, further

processing, packaging, etc…)processing, packaging, etc…)– Costs of ProductionCosts of Production

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Largest Challenges

Feedlot Style “Grass Fed” Beef – TMRFeedlot Style “Grass Fed” Beef – TMRImported Grass Fed and lack of COOL.Imported Grass Fed and lack of COOL.Lack of strong Pastured Protein Trade Lack of strong Pastured Protein Trade Association.Association.Certification that consumer trusts.Certification that consumer trusts.No national brand awarenessNo national brand awareness– Confused consumersConfused consumers– Label deceptionLabel deception

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Role of Epigenetics

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What is Epigentics?

The study of changes in organisms The study of changes in organisms caused by modification of gene expression caused by modification of gene expression rather than alteration of the genetic code rather than alteration of the genetic code itself.itself.– Most genes can have significant variation in Most genes can have significant variation in

the degree to which they express themselves.the degree to which they express themselves.– Environmental factors, including Environmental factors, including

management, diet, climate, etc. --- all management, diet, climate, etc. --- all influence gene expression.influence gene expression.

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Cow Herd AttributesCow Herd AttributesMust have great Must have great longevitylongevity

HighHigh fertilityfertility..SoundSound feet & legsfeet & legs, , eyes, udder & teats, teetheyes, udder & teats, teeth..

Low to moderate Low to moderate milkmilkHighlyHighly adapted adapted to their environmentto their environmentModerate frame Moderate frame (BIF Frame Score 3.5-5.5)(BIF Frame Score 3.5-5.5)– Bulls = 52 – 56 inchesBulls = 52 – 56 inches– Cows = 48 – 52 inchesCows = 48 – 52 inches

AdequateAdequate depth, thickness, and gut capacitydepth, thickness, and gut capacity. .

Can survive and thrive without all the “props”.

Why Cow Size MattersAll lactating/gestating cows need to consume 3.0% of their body weight daily in Dry Matter (DM) for optimum performance. So, a 1100 lb cow requires 33 lbs DM daily = 12,045 lbs annually.A 1500 lb cow requires 45 lbs daily = 16,425 lbs annuallyA 1800 lb cow requires 54 lbs daily = 19,710 lbs annually.

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Why Cow Size Matters

Therefore:Therefore:– The The 1800 lb 1800 lb cow requires cow requires 21 lbs 21 lbs more DM more DM

daily than the daily than the 1100 lb1100 lb cow and cow and 7665 lbs 7665 lbs more more yearlyyearly

– Equals minimum of Equals minimum of $230 $230 difference.difference.– The The 1500 lb 1500 lb cow requires cow requires 12 lbs 12 lbs more DM more DM

daily than the daily than the 1100 lb 1100 lb cow and cow and 4380 lbs 4380 lbs more more yearly.yearly.

– Equals minimum of Equals minimum of $131 $131 difference. difference.

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Alzheimer’s, Parkinson’s, ALS

Chamorro people of GuamChamorro people of Guam– Suffering ALS aat rate 100 x’s greater than Suffering ALS aat rate 100 x’s greater than

anywhere else in the world.anywhere else in the world.– Considered Flying Foxes (giant fruit bats) a Considered Flying Foxes (giant fruit bats) a

delicacy.delicacy.– Bats eat huge quantities of Cycad seedsBats eat huge quantities of Cycad seeds

Cycad seeds contain high concentrations of BMAA Cycad seeds contain high concentrations of BMAA (an amino acid)(an amino acid)Produced by cyanobacteria in plant roots.Produced by cyanobacteria in plant roots.

– Also known as blue-green algaeAlso known as blue-green algae

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BMAA is a very potent neurotoxin.BMAA is a very potent neurotoxin.In massive amounts it causes paralysis or In massive amounts it causes paralysis or death.death.In smaller amounts, the effects are moe In smaller amounts, the effects are moe insidious and happen slowly.insidious and happen slowly.Cyanobacteria produce BMAA.Cyanobacteria produce BMAA.

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BMAA causes a slow breakdown of BMAA causes a slow breakdown of proteins in the central nervous system. proteins in the central nervous system. Cause “Tangled-up” proteins. Cause “Tangled-up” proteins. BMAA displaces a key amino acid in nerve BMAA displaces a key amino acid in nerve proteins called L-serine. proteins called L-serine. Okinawan’s have highest percentage of Okinawan’s have highest percentage of centenarians in the world. centenarians in the world. – The eat high amounts of L-serine in their diet.The eat high amounts of L-serine in their diet.

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Studies in monkeys showed that high Studies in monkeys showed that high amounts of BMAA cause symptoms amounts of BMAA cause symptoms similar to Alzheimer’s, Parkinson’s, ALS. similar to Alzheimer’s, Parkinson’s, ALS. – Produced brain protein tangles and beta-Produced brain protein tangles and beta-

amyloid plaquesamyloid plaques

BMAA in essence turns a switch on that BMAA in essence turns a switch on that causes a cascading disruption in nerve causes a cascading disruption in nerve proteins (tangling).proteins (tangling).L-serine turns the switch off.L-serine turns the switch off.

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Blue-Green Algae““We are the cause of our own demiseWe are the cause of our own demise””Cyanobacteria popping up in many places.Cyanobacteria popping up in many places.Many cases where higher incidents of Many cases where higher incidents of neurological diseases are occurring near neurological diseases are occurring near lakes and bays with high levels of blue-lakes and bays with high levels of blue-green algae bloomsgreen algae blooms– New Hampshire, Ohio, Minnesota, Iowa, New Hampshire, Ohio, Minnesota, Iowa,

Biscayne Bay, Texas, Louisiana, ………..Biscayne Bay, Texas, Louisiana, ………..– One large contributor - AGRICULTUREOne large contributor - AGRICULTURE

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What Causes Epigenetic Effects in Livestock?

Soil HealthSoil Health– Chemicals applied over time – fertilizers, Chemicals applied over time – fertilizers,

herbicides, fungicides, …..herbicides, fungicides, …..– Microbial populationMicrobial population

Glyphosates significantly lower mycorrhizal fungi Glyphosates significantly lower mycorrhizal fungi populationspopulationsTotal population & balance VERY important!Total population & balance VERY important!

– Water infiltration ratesWater infiltration rates– Soil aggregationSoil aggregation

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Plant species diversity & complexity– Secondary & tertiary chemical (nutrient) Secondary & tertiary chemical (nutrient)

compoundscompounds– Medicinal propertiesMedicinal properties– Anthelmintic propertiesAnthelmintic properties– Stronger microbial populationStronger microbial population– Better mineral and water cycleBetter mineral and water cycle– Build soil, water, and animal healthBuild soil, water, and animal health

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Grazing & Livestock Management– Play huge role in expression of genes.Play huge role in expression of genes.– Many of the issues we experience are our the Many of the issues we experience are our the

fault of our own management.fault of our own management.– Better grazing practices result in better gene Better grazing practices result in better gene

expression and better performance & animal expression and better performance & animal health.health.

– Do we manage for complexity & diversity or Do we manage for complexity & diversity or for near monocultures? for near monocultures?

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Epigenetics Effects

Cattle healthCattle healthCattle fertilityCattle fertilityMilk component production & calf weaning Milk component production & calf weaning weight and lifetime healthweight and lifetime healthCattle longevity & soundnessCattle longevity & soundnessExposure to internal & external parasitesExposure to internal & external parasitesEndocrine system functioning. Endocrine system functioning.

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Compounding & Cascading Effects

How can we influence?How can we influence?Good or Bad – never in between. Good or Bad – never in between.

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Building for Future Building for Future GenerationsGenerations

Thank you!