MARKETING...
Consumers Want
High-Quality, Branded Beef
University survey reveals perceptions of meat and entire industry.
Beef reigns supreme in consumers' protein choices, according to research released earlier this year from West Texas A&M University. Nearly half of consumers surveyed put beef as their No. 1 protein choice, and 97% indicated they ate beef between one and 12 times each week.
The study, "Consumers' Perceptions and Preferences of Meat and the Meat Industry," was the result of doctoral research conducted by Lindsay Chichester, Canyon, Texas. She looked at the whole range of popular opinion on meat.
Digging into details, 65% of consumers preferred some type of branded beef. Among them, the largest breakout group, 28%, preferred their steaks branded as Angus beef. Chichester's academic advisor, animal scientist Ty Lawrence, says that proves the power of marketing. Read more.
Market Comments
CME Live Cattle Futures - December 2009
Livestock futures closed the week ending Nov. 13 on a somewhat upbeat note as cattle and hog futures were generally higher on the day. As the chart shows, however, nearby live cattle futures remain mired in a bearish trend. Cattle harvest for the week drifted lower compared to the week before, largely due to a light kill on Wednesday, Nov. 11. Total cattle harvest was reported to be 625,000 head, 0.64% lower than the week before, but 0.53% higher than year ago levels. Fed-cattle harvest for the week was estimated to be 481,000 head, 1.69% higher than the comparable period a year ago. Cow and bull harvest, on the other hand, was estimated to be 144,000 head, 1.4% lower than year ago levels. Dressed weights were reported to be sharply lower at 791 pounds (lb.), compared to 797 lb. the week before. The number is preliminary, so it may be revised in the coming weeks. Seasonally, however, weights tend to drift lower into December, so the decline is not all that unusual.
Dillon Feuz
In the Cattle Markets
Once again, price volatility in the corn market makes it very difficult for cattle feeders and other livestock enterprises dependent upon corn. Cattle feeders seem to be buying feeder cattle at a discount to what future fed-cattle prices are and what current corn prices are. But, who can blame them? They have certainly been burned by increasing corn costs in the recent past and are not willing to suffer those kinds of losses again. I have not done the scientific analysis on this, but it would seem that volatility in corn prices are likely costing feeder cattle producers about $5 per hundredweight (cwt). Read more.
How Traits Correlate to Grid Premiums
Getting the most out of value-based marketing by region and quality grade.
When you get a bonus on grid cattle, sometimes it's easier to count your blessings than to ask why. But Tom Brink, senior vice president for Five Rivers Cattle Feeding, says taking a look at discounts and premiums can help you get more of the latter. Tapping into their database, Brink analyzed more than 300,000 cattle records for correlations with grid components. The results are based on a handful of value-based marketing options that mirror those popular in the industry. Read more.
Sara Snider
The Source
A lot to be thankful for, including a new tag option.
In spite of the sagging economy and other daily challenges, there are still plenty of things for which to be thankful. God, family and friends are always at the top of my list each Thanksgiving when we go around the table. This year, probably more than ever, I am extremely thankful for my job. Not only do I have a steady income, which helps support my family, but I also get to do something I love every day.
AngusSource grew by 8.5% in fiscal year 2009, and we're off to a good start for FY 2010. We're excited to announce some new tag options, including a program-compliant RFID tag, faster shipping, customization and a reduced price for Gateway participants. Read more.
Word-of-mouth Marketing is Effective
Marketing a business is one of the most important tasks for the business owner.
The best person to market the business is the owner.
Glenn Muske, Oklahoma State University (OSU) Cooperative Extension interim associate dean, assistant director, family and consumer sciences, said part of that marketing should use a very effective marketing method: word-of-mouth. Read more.
The Impact of Dressing Percent
on Cull Cow Marketing
Cull cows that are destined to go to the packinghouse are graded by their fleshiness. The fattest cows are called "Breakers." Moderately fleshed cows are "Boners." Thin cows are called "Leans" or "Lights," depending upon the weight of the cow.
There will be price differences among these four grades. However, within each grade, large variations in price per hundredweight (cwt.) will exist because of differences in dressing percentage. Read more.
Cattle Producers Predicted
to See Profitable Outlook
in 2010
A weak U.S. dollar has encouraged investment in commodities, resulting in positive activity for agriculture, according to a Texas AgriLife Extension Service economist.
"With regards to index investments, they (investors) buy these as a hedge against inflation, and when you have investment dollars coming out of the closet, many are putting money into commodities, and that's good for agriculture," said Mark Welch, AgriLife Extension grain marketing economist. Read more.
Every Step Matters
South Dakota feeder guided by producers, end product.
John Haverhals hasn't gone very far in life
— literally.
He grew up in Sioux Center, Iowa, 6 miles east of Hudson, S.D. Now 6 miles west of Hudson at Haverhals Feedlot, the owner-manager jokes about the meager 12-mile journey he's made in life.
Figuratively speaking, however, he's often leagues ahead of feeding industry peers.
Clients of his custom-feeding business are the first to reap the benefits of Haverhals' penchant for looking ahead. He started encouraging producers to use electronic identification (eID) several years before source- and age-verified premiums made them a staple of value-added marketing. Read more.
USDA Market News
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Resources for Niche Markets
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Angus Almanac
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Angus sales, click here.