MARKETING...
The Lobster Tail of Meats
Consumers have options, so put the best beef forward.
The growing beef supply won’t automatically find more room in the meatcase, but it can earn its way with differentiated quality.
“We can’t be as efficient in production as pork and poultry, so therefore we’re not going to be as cheap,” said Sam Hands, managing partner of Triangle H, Garden City, Kan. “We know that.”
Addressing producers at Cattlemen’s College® last February in Nashville, Tenn., he said, “If we were gearing up for a party and wanted fish, we’d be thinking about lobster tail, because that’s the ultimate goal. At the meat counter, we are the lobster tail, so we have to make sure we’re the best.”
That’s within reach for beef, thanks to genetics that lifted cattle above load-lot anonymity, back when “there was no discrimination, no difference between good and bad.” Read more.
In the Cattle Markets
The Choice-Select spread widens earlier than normal.
The Choice-Select spread has widened in the last few weeks. Although it is occurring slightly early, this widening of the spread is a seasonally expected occurrence. This widening of the Choice-Select spread provides incentives for increased production of Choice beef as compared to Select beef.
During a 12-month period of time, the Choice-Select spread is typically narrowest January-March as the demand for Choice-graded middle meats is at its lowest and the supply of Choice-graded cattle is typically at its highest. In contrast, as we go into summer, the demand for Choice-graded middle meats is higher as retailers fill shelves in anticipation of the grilling season, but the supply of Choice-graded cattle is lower as we see more calf-fed cattle being harvested. Read more.
Up and To the Right
Elasticity may be elusive, but CAB demand soars by any measure.
More beef on the market meant lower prices in 2016, fueling greater demand from consumers largely recovered from the 2008 recession. That buying response was strongest for premium beef, which also saw the most supply increase.
Demand studies from Kansas State University (K-State) and the University of Missouri (MU) during the last several years have quantified the premium beef advantage. In 2014, Jillian Steiner and Scott Brown at MU projected less and less Select beef demanded each year to 2020, while more Prime, Certified Angus Beef® (CAB®) brand and Choice would find steady to growing demand. Read more.
Ibotta Mobile App Campaign
a Success for Beef Industry
Federation of State Beef Council Reserve Fund investment generates multiple benefits.
Nationwide sales of fresh beef at retail got a boost earlier this year as the result of a beef industry partnership with the mobile rebates app Ibotta. The partnership also significantly increased consumer engagements with beef through videos, recipes and messages on the app. Overall, the Federation of State Beef Councils of the National Cattlemen’s Beef Association (NCBA) invested $600,000 in reserve funds in the partnership, which ran through early February. Local state beef councils also added $90,000 to help boost the campaign in specific states.
Ibotta is a consumer mobile app that has a subscriber rate of 22 million mostly millennial consumers and growing. In the campaign, consumers who downloaded the app could browse the grocery category for small rebates on fresh ground-beef products, unlock the rebates and after reviewing educational information about beef through a short recipe, message or video, get cash back on the beef items they bought at any grocery store nationwide. Beef only paid for verified sales. Read more.
Ginette Gottswiller
The Source
Get in the driver’s seat by enrolling in AngusSource.
What do you see behind you? Pretty difficult to see, isn’t it? Do you ever get frustrated when you are driving down the road with large equipment? Do you wish the other drivers could get in the cab and sit in your seat for just a few minutes?
Do you ever sit in any other seats? Buyers who purchase your feeder calves may feel the same way you do in the tractor. Many times we’re looking at a pretty restricted view. I visit with seedstock and commercial producers who feel they should receive carcass data back from the feedlot on their cattle. Let’s think about that a minute. Read more.
Angus Value Discovery
While cattle genetics keep improving, no national carcass challenge has tracked that since 2012 — until now. The Angus Value Discovery Contest began this spring as a means of carcass data collection and friendly competition for commercial Angus producers, nominated by their seedstock or genetics providers. Artificial insemination (AI) companies and registered Angus breeders are nominating customers to enroll groups of at least 30 calves.
Commercial cow-calf operators who use registered Angus bulls and those who feed the high-quality progeny are discussing enrollment with seedstock suppliers or AI company reps. That’s according to Kara Lee, production brand manager for the co-sponsoring Certified Angus Beef® (CAB®) brand.
Customers who buy and use the best bulls, feed the progeny and report results could win a share of nearly $5,000 in a contest that builds relationships along with better herds, she says. Genetics providers contribute 25% of prize value in credit if their nominee wins grand or reserve champion pen, and CAB pays the rest.
Learn more on CAB’s website www.cabpartners.com.
Foreign Demand Rising for Premium Beef
Kent Bacus, director for international trade and access at the National Cattlemen’s Beef Association, discusses what the current policies mean for beef exports and for producers with a rising, foreign demand for quality beef. Here’s the clip:
Angus Calendar
To view the Angus Calendar, a comprehensive list of Angus sales, click here.