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More CAB stimulates more demand
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.
850,000 record say: Marbling still matters
For many cattle across the United States that’s the difference in a marbling score of 492 versus 500. Those commodity Choice carcasses are just a few fat flecks away from upper two-thirds Choice and their share of the $50 million that packers pay each year for cattle earning that high-quality designation.
The Angus taste of quality
Extending a 14-year streak of year-over-year growth and the third year for sales above 1 billion pounds, the first and largest branded beef company reported record sales of 1.21 billion pounds in Fiscal Year (FY) 2018, ending Sept. 30. That was an 8.1% increase, or 91 million pounds.
CAB grids pay $75 million per year
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.
Packer talks transparency, trust and demand drivers
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.
Grid marketing, ranch view
Hitting a target takes practice, careful calibrations, attempts and recalibrations over time. Cow-calf producers make decisions every day, but how many of those relate to the calves’ ability to realize their potential and hit a high-quality beef target? At the Certified Angus Beef ® (CAB®) brand’s Feeding Quality Forum this summer in Sioux City, Iowa, the brand’s own beef cattle specialist, Paul Dykstra, summarized the rancher’s dilemma.
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