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Let the CAB Cattle Crew keep you up to date on what’s happening in the beef community. We’ll share industry insights to help you maximize your profit potential.
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Increasing the odds for beef
You have to eat it. That’s really the only way to know if a steak is going to be good or not. So it is with all “experience goods.” Wine and beauty products are other examples.
Beef: the main feature
Not long ago, the news was sharply higher beef prices in a still-recovering economy. Industry insiders wondered how consumers would respond. Amid the talk of fewer retail features and penny-conscious shoppers, people still turned to beef. “Sometimes we all get more worried about those price points than maybe the consumer does,” said Randy Blach, CattleFax senior market analyst.
Opening eyes to the brand
Asking for a beverage at a restaurant, you might be shocked if the server replied, “What kind? Flavor A, Flavor B or Flavor C?”
Relevant and getting better
When the original Angus beef brand stands above 138 USDA-certified others and charts a ninth successive record year, people wonder how that can be. The recipe includes a dash of nostalgia, a large helping of credibility and a whole lot of relevance. Throw in its niche at the very top of quality and that certain “it factor,” and you have an all-but-guaranteed formula for longevity.
World economic woes hit home
If you don’t believe the global factors affecting the U.S. cattle market are numerous and complicated, you probably haven’t heard Dan Basse, president of Ag Resource Company, give an economic outlook. By 2040, Japan’s population will drop by 25.3 million people. Today, the Black Sea region exports 34% of the world’s wheat. Brazil’s currency, the real, has been weak for several years versus the U.S. dollar.
Proceed with caution
In a cyclical business, when you’re riding the good times, it probably means you’re not far from the bad ones. So it is with the cattle business, said Dan Basse, president of Ag Resource Company, as he kicked off the Feeding Quality Forum in La Vista, Neb., and Garden City, Kan., this week. “It’s not like the mid-1980s, with land values collapsing. It’s more like a slow bleed,” Basse said of the general “downturn” in agricultural commodities. Ag equipment sales have slowed, land prices are going down and grain trade has softened as the dollar strengthened.
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