The insurance premium in the beef business has recently gotten cheaper.
Insurance? Sure, that’s one way restaurateurs think of the premium paid for high-quality beef, because it helps ensure their customers will leave happy about their center-of-the-plate selections.
When corn prices moved up a few years ago, many predicted cattle finishers would reduce days on feed and quality grades would suffer. Neither happened.
Prosperity for any industry depends on consumer demand, a Western Kentucky University animal scientist points out. Of course, that includes the beef industry or cattle community. Nevil Speer, in a new white paper, “Consumers, Business and Breeding Systems: Charting the Beef Industry’s Path,” says the implications are clear. “All business decisions on the ranch, as everywhere along the beef supply chain, should be made with an eye on consumer demand for beef,” he says.
Everyone in the beef chain seems to agree we need more of it. That’s the simple explanation for a trend that shows hot carcass weights (HCW) have increased 200 pounds (lb.) in four decades. But for all the opportunities that presents, there are many challenges. John Stika, president of Certified Angus Beef LLC (CAB), talked about both at last month’s Harlan Ritchie Beef Symposium during Midwest American Society of Animal Science meetings in Des Moines, Iowa. “The production side is looking for something bigger to cover their increased costs,” he said, “but the retail and foodservice sides are looking for [more units of] something much smaller that’s easier to manage from a portion-control standpoint and a unit-cost standpoint.”
Being good at what you do every time is no accident. “My dad said anyone can sell something once,” Prof. John Siebert told his ag business class. “It’s selling something multiple times to the same person that takes a lot of work and expertise.” On March 19, the Texas A&M agricultural economist asked four links in the Certified Angus Beef ® (CAB®) brand supply chain to share their experiences: CAB president John Stika; rancher James Henderson of Bradley 3 Ranch; Joe Boutte, director of business development for Houston-based Freedman Meats Inc.; and Ric Rosser, concept/executive chef for Saltgrass Steakhouse and West Coast Claim Jumper.
John Simons ranches with his family near Enning, S.D., where they’ve focused on reducing variability in their Angus-based cowherd for the last 20 years.“If your calves all look the same, they’re just a pretty package,” he says. “And pretty sells.” Sticking with one breed and bloodline for several years lets Simons produce calves that not only have the same phenotype but also perform similarly in the feedlot and on the rail.
You decide. Each time you buy a bull, keep a heifer or cull a cow, you choose a future for your herd and, collectively, for a beef industry that is either blessed or burdened with high prices. “I don’t want record prices because of the lowest beef supplies in 50-some-odd years, said a University of Missouri livestock economist. “I want the highest price because demand is pulling us along.” Most everybody in the cattle business would want what Scott Brown wants. There were certainly nods of agreement at the March 12 Midwest Section, American Society of Animal Scientists meetings in Des Moines, Iowa.
T-bones, sirloins, filets and strips—these are the beef cuts referred to as “middle meats.” Such steaks make up 12% of the carcass, but represent just under half of its total value. That and the difference in cooking method lead many to believe it’s the only place where beef grades matter. Not according to experts like longtime market reporter Bruce Longo, of Urner Barry, and the data he tracks.
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