BEHIND THE BRAND

Brand Production Beyond Borders

by John Stika

June 2026

As global demand for Certified Angus Beef^® (CAB^®) has grown, so too has the need to grow supply.

The key to any large-scale, long-term growth in CAB^® supply is continuous improvement in marbling and overall carcass merit in Angus-influenced cattle in the United States.

However, smaller, potentially strategic supply opportunities exist outside the U.S. Scenarios include localized production that can stimulate incremental brand sales within a country, or to create an additive supply channel to meet demand for CAB^® in countries where access to U.S. product is limited or unavailable.

Domestic or international, the objective has remained clear over the years: to access additional CAB^® carcasses to support growing domestic and international demand, without compromising product quality and consistency, brand integrity, and value to Association members.

North of the Border

During the late 1990s, domestic quality grade improvement and CAB^® carcass numbers had begun to flatten at approximately 2 million head. And at the time, most U.S. fed-beef plants that harvested meaningful volumes of high-quality, Angus-influenced cattle were already licensed, challenging the opportunity to add domestic production capacity.

It was evident the brand needed to intensify supply development efforts, and it became a priority to improve carcass quality in Angus-influenced cattle, driving CAB acceptance rates. At the same time, this environment prompted consideration of licensing packing plants outside the U.S. to support sales in key international markets, such as Canada.

In fact, Canadian demand was outpacing the volume of U.S.-produced CAB^® made available to licensed Canadian retailers and foodservice distributors. This imbalance constrained retailers’ and distributors’ ability to fully leverage the brand’s value with customers and consumers, thereby limiting CAB’s ability to grow sales in Canada.  In response, the CAB Board of Directors approved the licensing of Canadian packing plants in 2000.

Licensing Canadian packing plants provided a practical and disciplined solution to supply-and-demand dynamics. The move allowed supply to scale in step with localized demand, while maintaining brand standards and integrity through the Canadian Beef Grading Agency’s third-party certification.

Today, CAB has five licensed packing plants in Canada, representing an estimated 85% of the country’s fed‑cattle harvest capacity. These plants collectively certify nearly 360,000 head annually, accounting for approximately 6% of total CAB supply. For 26 years, Canadian production has proven complementary, as intended, and partly why Canada has grown from a 15-million-pound market in 2000 to a 54-million-pound market in 2025.

Outside North America
For more than a decade, our team has explored opportunities to service known CAB demand in international markets, like the European Union (EU), that are difficult to access through U.S. and Canadian production.

Ultimately, CAB initiated production in Uruguay in spring 2026. There, three quality-focused packing plants, equipped with the same carcass grading technologies used in North American plants, are now licensed to produce grain-fed CAB^®.  This production provides ready access to the EU and the ability to serve markets currently closed to U.S. beef, like China.

Important to note, Uruguayan production volumes will be limited, and the brand did not approve the product for sale into the U.S. or Canada. This approach was pursued to support brand sales and presence in strategic global markets and avoid replacing existing business with production from another country.

Such decisions are not made hastily and are vetted extensively. This is to ensure the brand experiences the expected benefits, including strengthening our ability to protect trademarks, and that Association members do not experience erosion of the brand’s value. As we move forward, assuring this remains imperative. More to come, as I look forward to sharing what is learned along the way.

Submit questions or comments to John online.

Behind the Brand is a monthly column published in the Angus Journal.

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