Certified Angus Beef ® brand supply trends will continue to see the push and pull of cattle management responding to tight cattle supplies. Estimates for this year’s corn crop suggest an exceptionally large yield, continuing downward price pressure. This, coupled with freshly printed record replacement feeder cattle prices, will work to entrench the modern feedyard motivation to push days on feed to new heights with carcass weights following along to new records.
CAB carcass certification rates unsurprisingly mirror the contrast seen in the grading data. While carcasses must meet all 10 specifications, the importance of the marbling specification in brand acceptance lends the trend to follow regional grade tendencies.
Beef demand has been exceptional because of dramatic increases in consumer satisfaction for a few decades. Since taste ranks at the top of the list when it comes to what drives consumers to choose beef, we know where our figurative “bread is buttered.”
Summer weather has begun to set in with more regions of the country set to experience hotter temperatures. This means the traditional turning of consumer focus toward hamburgers and hot dogs rather than steaks, the spring favorite.
Wholesale and retail beef buyers have been preparing for weeks ahead of the spike in consumer beef buying associated with warmer weather and holiday grilling demand.
In a twist unthinkable just two decades ago, USDA data reveals that the current percentage of Prime carcasses has averaged 11.9%, surpassing Select carcasses that are averaging 11.1%, in each of the last five weeks.
High quality steak and roast items such as ribeyes, strip loins, tenderloins and sirloins carry an outsized share of the load when it comes to generating pricing separation up and down the carcass quality spectrum.
In the past two years the chuck and round carcass primals have edged their way upward relative to their contribution to total carcass value. One of the primary reasons for this is the decline in domestic supply of lean grinding beef from cull cows.
Evolution of cattle type, management technology and production economics continue to shape the beef business. As a pioneer in the branded beef space, the Certified Angus Beef ® brand has remained relevant throughout the supply chain via continued innovation. Effective the first week of March, the brand will modify its ribeye area (REA) specification from the current 10 to 16 square inch acceptable range to include carcasses wth ribeyes measuring up to 17 square inches.
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