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Tag: Mythbusters

angus cows in pasture

Pounds pay, but…

August 22, 2011

I’m pregnant so I’m used to getting weighed. Often. Like every single month and pretty soon, every other week. But honestly outside of those appointments I don’t think about pounds too much right now.

That’s in stark contrast to the beef industry. Sometimes I feel like all we think about is pounds. And why not? Calves and fed cattle are always marketed with some element of weight and of course, hamburger and steaks go by what? Ah, yes, price-per-pound.

So that’s why everybody from local vets to university researchers seem dead set on this one:

Myth—Pounds is the only thing that matters in the beef business.

Fact–You know I’m going to say that marbling is important. (I do work for CAB afterall.) But it’s not just because you gotta have it to qualify for our brand.

I’m not saying ignore pounds, but pounds in tandem with quality is ideal. Why? Because it brings more profit in for you and the greater beef business.

Highly respected ag economist John Lawrence did a research paper on this in 2002 and updated it in 2009. When the Choice/Select spread was $6/cwt. or more, no other driver of feedlot profitability was more important than marbling. None. Not even those beloved pounds.

“Sure, a $6 spread?!” you might say sarcastically, but the average was $8 from 1996-1999. So it can happen. But in his analysis he checked out results as it moved higher and lower. Even at a $4 spread, marbling was the second most important variable, behind placement weight.

And regardless of where it ranks, those flecks of flavor have monetary value. More pounds that are also worth more is like the American Dream of the cattle business.

Five years ago I covered a Cattle-Fax research paper about the value that premium brands (like CAB) add to the industry. It’s still a pretty interesting read and I’m no economist but I’d have to guess has continued to grow. Here are a couple of the highlights:

  • “If we went back to a Choice/Select basis on everything we produce today,it would cost us,on average, $2.59 per hundredweight (cwt.) of carcass,” says Brett Stuart, the analyst who authored the paper.

  • “The fact that we differentiate higher grading beef, including CAB (Certified Angus Beef®), is worth roughly $20 per head,” he says.

  • “Even the guys selling calves at weaning benefit. That $20 a head filters through the live side of our industry,” he says. “If you look at long-term profitability in the feedyard and packing plant, it’s less than $13 a head. Something that adds upwards of $20 per head in total value is highly significant.”

I’m sure I could dust off some other data if you don’t believe I’ve made my case. But if you’re into arguing this one, I must ask: why wouldn’t you want both? You don’t have to choose pounds over quality, so why not chose pounds and quality?

May your bottom line be filled with black ink,

Miranda

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Mythbuster Monday talks generics

Earlier I revealed that I’m not that trendy (I know, not a shock to anyone who’s seen me out and about), so “knockoff” designer sunglasses, clothes or purses don’t bother me in the least.

When it comes to other areas of my life I’m not that lenient—we’re pretty strong Ford supporters in this family, I can’t seem to find a detergent that does the job as well as Tide and don’t even get me started on the shortcomings of many generic brands in the grocery story aisle.

I think there’s a big parallel between how we feel about brands and how we feel about breeds. Think about those staunch supporters you know. No matter what, they’re going to run Angus, Hereford, Charolais, Simmental, etc.

We think your breed choice should be more about data and solid facts than tradition.

But relating to that “breeds vs. brands” comment, the real kicker is when people think “generic black” is as good as Angus. I could go into a whole series of myths related to that statement, but I’ve picked out the one we probably hear the most:

Myth—As long as they’re black,it doesn’t matter how much Angus-influence they have. They’ll grade just the same.

Fact—Study after study shows the more Angus influence,the better the quality.

And I’m not just talking about research we’ve done. Continue reading “Mythbuster Monday talks generics”

angus cows in pasture

Myths of the consumer variety, courtesy of one bad article

This blog doesn’t get into the latest antics of the vegan-pushing animal rights groups. Most of our myths focus on something related to CAB or high-quality beef production, but I was so rattled by an article I recently read in Parents magazine that I felt compelled to deviate from the norm.

You see, my oldest is only 3 1/2, so I in no way consider myself an expert in the field of parenthood. I enjoy catching up on the latest research trends and tips on how others manage things like potty training, temper tantrums and traveling with toddlers.

I consider that mainstream publication to be a pretty good source of information.

But one area that I’ve learned quite a bit about in my lifetime is the beef business and when I read, “The Ultimate Guide to the Grocery Store” I knew they’d missed the mark. (They’ve also left me wondering what other topics, that I’m not so familiar with, have they fed me a line of bull on…)

In the meat case it suggested we all buy organic. One reason? “The animals were treated more humanely.” (Are all of you “conventional” producers a little dumbfounded or downright disappointed?) Other tips included eating grassfed beef because it’s healthier and beef without anitibiotics so you don’t get “drug-resistant superbugs.”

I’m all for choice in the meat case, but spreading misinformation and half-truths doesn’t do consumers any favors.

I’m sure you’ve all had neighbors, relatives or even airplane seatmates bring up similar far-flung tales about beef production in general conversation. This happens to me all the time. Sometimes I correct them and sometimes I think, “Do even I know the best way to combat this one?” Continue reading “Myths of the consumer variety, courtesy of one bad article”

Angus bull

Equal opportunity

This industry isn’t just David & Goliath. We have farms and ranches of all shapes and sizes, and we celebrate that diversity.

A few weeks ago I said that when it came to feedlots that it’s not about the size. I’d echo that statement today.

Yet some people still think we’re just for the “big guy” or the “corporate farms.” But at CAB we’re an equal opportunity market signal. Find out what I mean by that as I bust this one:

Myth—I have to be a big producer to participate in CAB premiums.

Fact—Any producer of any size can aim for quality and reap rewards.

You’ve probably heard me say this before: CAB was founded in 1978 to increase demand for Angus cattle by creating pull-through demand for consistently high-quality branded beef. Through market price signals, CAB creates premiums for fed cattle, feeder cattle and all Angus cattle with predictable and documented genetics.

(Look back to this past Mythbuster post if you want a refresher on how cattle earn CAB premiums.)

That’s not to say that being smaller doesn’t present challenges. The good news is that many folks have gone before you and have drafted several “how-to” plans.

Take the NEMO (Northeast Missouri) group, which was spearheaded by veterinarian Imogene Latimer. Here’s an excerpt from the story that then-intern Chelsea Good wrote a few years back: The group commingles its calves for backgrounding, then sells to feedlots in uniform lots while negotiating to get information feedback. It also sends some calves to Iowa’s Tri-County Steer Carcass Futurity.

“We wanted to see the data and look at how we could improve,” she says.  “Really, we just wanted to learn, and if we make some money in the process, that’s great.”

A more recent example is The Beef Connection, a company started by Bob Sand where all stakeholders pay a membership fee. Then they have access to information, networks and marketing outlets. Just a sample form that story:

“This system is built for these smaller guys,” he explains. “When we pool together, it gives them just as much power as the big guy. When I have all the data on their cattle, I can help them pool like cattle to fill a truck, then organize them to send to the right feedlot.”

That opens doors for the Kentuckians and makes it easier for a feeder like [Jerry] Bohn to manage the cattle.

“One of their members recently fed 18 head here. Those cattle brought back $129 per head grid premium. They fed awfully well, too. So I’m sure his return, above what he could have sold them for last fall, was approaching $200 per head or more,” Bohn says.

Others we have written about, like a handful of friends co-mingling cattle in West Virginia, are less formal. Some feedlots have special programs for smaller producers or offer a variety of pen sizes.

And if that’s not your style, many state universities have small-scale value-discovery programs that accept as few as five head, so anyone can learn how their cattle will feed and perform on a grid.

This video explains how that not only gives producers access to premiums, but—perhaps more importantly—information:[youtube=http://www.youtube.com/watch?v=PIo1ZoeerAY]

Oh, that “big guy”? I didn’t mention him because it seems I only ever hear this myth from those who classify themselves as “small producers.” If you disagree, let me know and I’ll do a post on all the ways CAB works for those larger farms and ranches, too.

May your bottom line be filled with black ink,

Miranda

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angus cows in pasture

Think about it: Why feeders want info from ranchers

by Miranda Reiman

July 11, 2011

Sometimes people just go on believing things are fact without really thinking them through. Today’s myth is kind of counterintuitive, but we still hear it:

Myth—Feeders have standard processing programs so it doesn’t matter how much information I share with them about ranch care.

Fact—Every feedlot is different, but many work with ranchers to build customized programs.

Stop and think about it. It’s in their best interest (and probably your animals’, too).

In fact, I think every time I’ve ever asked a feedyard manager to tell me about their health program, they say, “It depends on what’s been done on the ranch.”

As a matter of fact, I heard that on one of the very first CAB story stops I ever made to Darnall Feedlot at Harrisburg, Neb.

Gary Darnall said, “In a routine deal we want to visit with the owner. We want to know the health program on those cattle, we want to know the age of those calves. We want to know some history on the herd.”

And his son Lane added, “Management actually starts before the calves ever come in. We work with him and his veterinarian,too,in trying to create a health program to try to facilitate those calves once they get here. And then once we get them here, then it’s hands-on management.”

And that’s a familiar tale I’ve heard over and over again.

In fact, on my most recent story trip I stopped at Gregory Feedlot, near Tabor, Iowa, and I got it again. Manager David Trowbridge added a pretty simple explanation of why they want to know as much as possible about the cattle’s health history.

“We will custom process the cattle based on what the cattle are that we received. We are able to save some money and time and stress

on the cattle by customizing what’s done,” he said. “If they don’t need to go through the chute, they don’t.  We have several customers that the cattle come in and they go directly to the pen because they’re vaccinated and they’re implanted, so we don’t do it. We make a special case for every producer to make sure we don’t duplicate and spend money they don’t need to spend.”

So think about that the next time that you sell cattle. It makes more sense for the feeder. Plus the more information, the better chance for your cattle to succeed.

That could mean a higher quality end result and that’s good news for everybody.

May your bottom line be filled with black ink,

Miranda

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cutting a steak

Bridges we can’t build

by Miranda Reiman

July 11, 2011

We believe that everybody benefits when people know where their food comes from.

And to use an old adage, we put our money where our mouths are. We participate in, host and fund numerous events that aim to forge a closer relationship between producer and consumer. (Remember these posts? Not in Kansas anymore, What quality means to you, and The farm to food connection)

Since we’re involved in every segment of the industry, that’s kind of our niche.

But, that unique industry position often leads to some myths in the country. Like this one that we hear an awful lot:

Myth—I have registered Angus cattle and I sell meat at our local farmers market. Since they’re all Angus anyway, I can use the Certified Angus Beef ® (CAB) brand to market it.

Fact—Not all Angus cattle—no matter how pure the lineage—meet our brand specifications. The carcass parameters are applied at the packing plant. All the major packers, and many regional plants, are licensed to produce for the brand. 

Cattle have to go through one of these channels to quality for CAB, because it’s then that they receive third-party USDA verification that all stamped carcasses do indeed live up to our high standards.

A local freezer beef program, where you sell direct to the consumer, doesn’t go through those same channels and thus can’t be marketed as CAB.

Take a look at it from our point of view. On average, only 1 in 4 Angus-influenced cattle make CAB. That is also true in some registered purebred herds. Even in herds where marbling has been a key breeding focus that number still might only be 3 of 4. We can’t take for granted that even one piece of meat that is low Choice or Select, for example, is sold as CAB. That hurts our reputation.

Plus, we track every pound of product from the packer through the retailers and restaurants to make sure it’s the real deal. In order to sell a product using our logo you must first be licensed. The only thing we own is our brand. You can’t blame us for protecting it ferociously, can you? It”s the only way we can add value for all quality-focused Angus cattlemen.

If you’re a producer who’d like more information on how to get involved with CAB, we’d encourage you to post any questions below or send me an e-mail. If you’re a meat marketer and would like to sell the brand, feel free to call up us at 330-345-2333.

After all, we love the opportunity to build bridges!

May your bottom line be filled with black ink,

Miranda

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feedyard cattle

It’s not about size

June 27, 2011

I grew up near a small town. (There are about 300 folks in the unincorporated village of East Chain, MN.)

I went to a small country church. (I got to play Mary several years in a row for our Christmas program, since I was the only girl in the right age range.) And I went to a small, consolidated school district where I graduated with 22 people.

In some sense, I guess this philosophy that smaller is better was sort of ingrained in me from an early age and I think many of our rural readers could identify with that.

So sometimes it’s hard to keep it in perspective. Much of the time it’s not about size, but quality. Sometimes it’s about the experience. It’s about the people involved. It’s about opportunities.

All of those things have little to do with size or shape, and that’s why I feel compelled to set the record straight on this little rumor that floats around our industry:

Myth—Large feedlots are just commodity focused. They are too big to care about quality. Continue reading “It’s not about size”

angus cows in pasture

Mythbuster Monday: More than an ad agency

June 20, 2011

Sometimes I have a hard time explaining my job.

First off, I’m an agriculture journalist by training, which is a foreign term to many. (My husband is an agronomist, which generates many more blank stares. People usually have heard of a journalist, just not the ag variety.) But then I tell them that I write about everything to do with cows: the cattle industry and topics like weaning, carcass grading and feedlot performance.

So that leaves many dazed and confused but, even among the cattle community, I often have one more hurdle. It can be really hard to explain that I work for a non-profit branded beef company.

These discussions happen almost any time I meet somebody new and for those who are really trying to understand what CAB is and does (rather than nodding politely) it usually leads to this little misunderstanding:

Myth—If you don’t sell product, then you’re just an advertising agency.

Fact—We don’t shy away from the fact that in essence we are a marketing company, but we do a whole lot more than just advertise.

Just ask my colleagues who work with foodservice and retail partners, those in customer service or brand assurance. Or how about all of us on this team you’ve gotten to know as “Supply Development”? Continue reading “Mythbuster Monday: More than an ad agency”

Why weaning matters

June 13, 2011

A couple weeks ago, I shared a parenting challenge hoping it would spur you to think about weaning plans. You might think, “Why does CAB care about weaning?”

Well, the animal scientists on our team say weaning is a pivotal point. They pore over tons of research each year (as a matter fact, I think they like abstracts as much as I like Diet Coke and chocolate, which is A LOT, but I digress…). They have found some distinct evidence that blows this myth right out of the water:

Myth— Weaning is weaning. It doesn’t really matter how it’s done or when.

Fact—It seems just about everything about weaning matters to everything from health to final performance and grade. I really learned that two years ago when I did a series on early weaning.

The general consensus is that practice will improve marbling and cow condition, and then there are the benefits like added forage. Of course there are logistics and costs associated with feeding a calf, too. But experts say if you retain ownership you should at least consider the economics of it.

I chatted with Dan Faulkner from the University of Illinois for that story and he said, “We need to get less locked into 205 days and look at low-cost systems to produce quality beef. Every set of resources is unique; there is no one size fits all.”   Continue reading “Why weaning matters”

Mistakes, cheats — we catch ’em all

June 6, 2011

I’m one of those people who believe in the intrinsic good of mankind. I’d like to think that everybody embodies the characteristics of honesty and trustworthiness. I think many folks on our staff tend to lean in that direction, too. In fact, our entire program is built on integrity.

But luckily we’ve got more than a few realists on our payroll who know sometimes people—even the good-intentioned, who want to be 100% true and honest—make mistakes. They also know that there are some people in this world who will cheat if they think it will get them ahead. *Gasp*

So today’s myth is devoted to those colleagues of mine who protect this brand, maintaining its value, all the way back to you cattlemen and women.

Myth—CAB can’t know if a licensee is selling the real thing—nobody could track 800 million pounds from plant to plate.

Fact—You can and we do. In fact, we have a whole division devoted to just that. They’re the fine folks who work in brand assurance and they’re tough, they’re diligent, they’re relentless. (They’re also really nice people, but they aren’t going to take any guff from people who use our logo, trying to pass off an imposter as the real,USDA-stamped , consistent Certified Angus Beef ® .) Continue reading “Mistakes, cheats–we catch ’em all”