Beef’s getting better, to judge by the uptrend in quality grades and resurgent consumer demand. However, an increasing share of that demand has been for ground beef – and an average pound of that versatile staple now sells for more than $4. Last year a Rabobank AgriFinance white paper entitled “Ground Beef Nation” (GBN) questioned the industry’s priorities now that Americans consume 11 billion hamburgers each year. It called for greater efficiency and retooling to fit a changed market for one-third to half of young cattle, and warned business as usual could lead to weakened market share for beef over time.
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.
Record-high calf prices last year spelled good news for most U.S. ranchers, but there was an extra bonus for many of them. That came in the form of record-high premiums paid for Angus calves at auction compared to non-Angus contemporaries, as reported to Certified Angus Beef LLC (CAB). The database on more than 300,000 calves sold in 13,794 lots at 10 markets since 1999 is part of the company’s “Here’s the Premium” project.
Today, it’s time to look at one component of most grids that predates those grids and helped launch the whole idea of value-based marketing.
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