The story in the numbers

But as we’ve looked at overall cattle supply in recent years, I’m not going to lie: we were concerned. Fortunately, as drought and other factors delayed cowherd rebuilding for a while those fewer cattle coming through the plants have been higher quality.

Let me share some stats:

• 2014 fed cattle harvest was down 1.3 million head but it’s interesting to look at pounds of beef production by grade.  USDA Prime production was up 8%, Choice was flat, and Select was down 13%.
• In 2014, just shy of 70% of fed cattle graded Choice and Prime—a dramatic increase from the mid-50% levels of 2000 to 2007. Cattlemen have responded to the economic signals to aim for quality.
• CAB supply has also grown. An increasing percentage of cattle meet the first hurdle (Angus type), so more are eligible for brand consideration. A record 25.8% of them met the brand’s 10 carcass specifications, and nearly 15% of U.S. fed cattle are marketed through the CAB brand.

Build it and they will come? That’s sort of our philosophy. When we grow demand–through education, through marketing initiatives, by working the export scene, engaging the culinary world—economic incentive also grows.

Packers have paid $450 million to producers who reach the CAB brand target. But we’re thinking of the future, and Missouri ag economist Scott Brown may say it best: “All decisions are easy with record prices, but what are you doing today that makes sure you can take advantage of market volatilities five to 10 years down the road?”

The 87.7 million-head U.S. cattle inventory to start 2014 was the smallest since 1951, but as expansion beings, Scott says, “Genetics, production and management decisions made in the near term will determine the future success of the beef industry.”

To say the least: We are counting on you.

–Mark

Mark McCully is our vice president of production. Working from Wooster, Ohio, he enjoys analyzing data and consuming ribeyes.

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