Packers pay nearly $8 million per month in Certified Angus Beef® brand premiums, according to a recent survey. Those record high dollars come at a time when there’s been record quality through the system, too.
Maternal function vs. marbling. Is it an either/or? This report by Steve Suther discusses an Iowa State University research paper, and quotes long-time ISU animal scientist Dan Loy.
Imagine an alternate American history line over the past 16 years, with just an incidental supply of “Angus” beef. There’s a Certified Angus Beef ® (CAB®) brand but it began to coast in 2002 and scaled back to maintain flat demand. The 30 other Angus programs at that time struggled to compete with commodity beef; most folded.
Is this a good time to expand your cow herd, now that the U.S. beef cattle industry is deep into a fourth year of its rebuilding phase? The consensus has a short answer: no.
They say we’ve already added more than enough cows to produce the volume of beef consumers can afford to buy. Adding to your herd now only aggravates the pending oversupply and sets you up to endure several years of unprofitable calf prices.
Economic theory suggests more supply will lower the price, and higher prices tend to lower sales for a commodity. “A commodity like beef,” older textbooks might say. Premium beef has not always borne that out, particularly in the decade since the Great Recession of 2008, says CattleFax analyst Lance Zimmerman.
Certified Angus Beef ® is the Brand that Pays®. At a rate of $8,500 per hour, 24-7, that was $75 million for 2017, up from the $52 million paid in 2015; the linking year came in at $63 million. That brings the 20-year total for CAB premiums to $688 million, more than half of it paid in the last seven years.
Beef packers bridge the gap between producers and consumers, but even “the largest packer in the world” is nothing without its suppliers, John Gerber said. The longtime procurement head for Tyson Fresh Meats set the tone. Every link in the supply chain from ranch to consumer has a role to play.
My commercial Angus cows are every bit as important to me as the registered Angus bulls I use, and that is why I stay with the most predictable sires in the world.
Lee Borck, Manhattan, Kan., has known hard times and boom, seen the impact on others as well as his own enterprises.
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