Challenges aside, good news plentiful

At a recent meeting of the 21^st Century Beef Club, Mark gave an update on the brand to leaders from all segments of the industry in Dallas. During this informal gathering, he shared lots of good news and spoke to some of the challenges we face as we promote the best beef on the planet.

He talked about how producers are hearing the CAB message loud and clear — and making their purchasing decisions accordingly:

• Commercial cattlemen are more willing than ever to pay for top-end registered Angus bulls
• Even during a time of historically higher feeder calf prices, premiums are still being paid on cattle that perform well and hit a high-quality end target
• More and more cattlemen are striving for the huge premiums that come with Certified Angus Beef ^® brand Prime

He also talked about one of the biggest challenges our folks on the retail and foodservice sides face: Retailers or restaurants making the decision for the consumer.

“As long as our product is winning in the price-value relationship, don’t assume the customer won’t pay X and therefore not even offer it. Let the customer decide what they will — or won’t — pay,” Mark said.

He explained that everyone has ideas of what will work and often hesitates to give anything else a chance. For example: A buyer for retail store might say, “We’ve always done an inside round at $2.99 and they won’t pay $3.49,” or the restaurateur, “But we’ve never had a steak priced higher than $18 on our menu.” With beef prices what they are, though, the price often needs to be raised at the counter or on the menu. Mark suggested: Offer it, put a price on it that reflects your costs and let the consumer decide if it’s worth it.

He added, “The consumer has to have the opportunity to speak, or the market can’t work.”

You may also like