MARKETING...
Tim Petry
In the Cattle Markets
Backgrounding prospects in the Northern Plains.
Last week, three of my animal science colleagues at North Dakota State University (NDSU) and I presented an educational program by videoconference to several sites in North Dakota titled "Backgrounding Cattle 2011: Costs, Prices and Possibilities." Each talk was approximately 30 minutes and is available along with accompanying slides at: www.ag.ndsu.edu/cattledocs.
The prospects for backgrounding fall calves certainly improved from the end of August into October. In late August, December corn futures prices had advanced to $7.80 per bushel and January feeder cattle prices had declined to about $134 per hundredweight (cwt.). At those prices, the futures market was offering very little incentive to feed corn to background calves. Read more.
Choice-Select Spread Widens
U.S. beef markets are undergoing dramatic changes.
The change of seasons this fall has heralded a change in U.S. beef markets as well, particularly with the dramatic increase in the Choice-Select spread over the past two months. Since a summer low of $3.30 per hundredweight (cwt.), the Choice-Select spread swelled to a weekly average of $16.68 per cwt. recently. This spread is the largest since the highs in December of 2006 and 2007.
"The Choice-Select spread typically widens at the end of the year, but the increase has been larger and earlier than usual this fall," says Derrell Peel, Oklahoma State University (OSU) Cooperative Extension livestock marketing specialist. Read more.
The Yum Factor
That buttery flavor of marbling goes far in guaranteeing a satisfying dinner experience.
If meat scientist Daryl Tatum goes out for a "knock-your-socks-off" beef dinner, it's going to include high levels of marbling. Given the Colorado State University professor's expertise, he'd probably have done that anyway, but new research by his team points out the links between key sensory attributes and quality grades.
"Marbling has kind of gotten a bum rap from a lot of people saying it really doesn't predict much," Tatum says. "But across the full range, it has predicative capabilities. When you can measure it precisely, it does a really good job."
The recent work, funded by the beef checkoff and commissioned by the industry's Joint Product Enhancement Committee, looked at camera-based quality grade calls and their correlation to eating experience. Read more.
CAB® Brand Records High Marks
Sales up nearly 4% in fifth straight year of gains.
Certified Angus Beef LLC (CAB) reported record sales for its signature brand of beef for the fifth consecutive year, with nine out of 12 months in fiscal 2011 hitting new heights. Efforts by the brand's licensed partners led to sales totaling 807 million pounds (lb.), an increase of almost 4% compared to 2010's previous record 777 million lb.
The Certified Angus Beef® (CAB®) brand's sustained growth, particularly during a period of significant economic downturns and rising costs across all segments of the industry, shows its value to consumers and producers, said company president John Stika.
"The brand's growth represents a wave of momentum that took more than 30 years to build," said Stika. The success, he added, is a function of both demand and supply of the high-quality Angus beef. Read more.
Gearing Up to Get the Most Out of Beef's Best
CAB buys facility to house education, culinary center.
Certified Angus Beef LLC (CAB) recently purchased a 7,000-square-foot facility adjacent to its Wooster, Ohio, headquarters. Renovation is under way to transform it into the CAB Education and Culinary Center. Brent Eichar, senior vice president of operations, says he anticipates opening the facility by January 2012, allowing the brand to provide its 12,300 retail and foodservice partners better hands-on training.
The center will include a large, state-of-the-art kitchen and meat-processing area, where CAB chefs and beef experts can work side-by-side with licensed partners.
That will help them to "continue growing their success with our brand," says Eichar. "We'll be able to break down a side of beef to better understand where cuts come from and then throw them on the grill to experience their eating quality."
The facilities will be designed to support programs like retail case merchandising, subprimal fabrication, creative menu planning and signature grind development, says Eichar. "It will ultimately allow us to provide interactive and innovative programs for the advancement of our partners, who continue to set the bar for premium beef."
To follow the center's construction, visit the CAB blog at www.GoRare.com, and see the updates on Facebook and Twitter. Interactive features on those pages let visitors share opinions on remodeling decisions as they come up. The brand's main consumer site is at www.certifiedangusbeef.com.
Value-added Calves Made Easy
AngusSource® continues to advance with improvements to the program.
For the past six years, nearly 2,000 producers enrolled in AngusSource® have had the opportunity to capture premiums — as high as $35 — with value-added calves through age and source verification. Confidence in the program has grown, with the addition of Gateway, increasing enrollments 97.7% in June 2011.AngusSource functions through the American Angus Association as a USDA process-verified program (PVP) that documents source, group age and a minimum of 50% Angus genetics.
A second-tier program of AngusSource, Gateway offers a cost-effective option for producers wishing to verify the source and age of their calves — without the Angus-sired requirement. The AngusSource Feedyard Umbrella offers additional PVP coverage to feedyards and farmer-feeders. Read more.
CAB Mythbusters
What they thought they knew that just ain't true.
"They're only trying to flatter us," I remind myself as I bust this myth yet again. It's one I tackle at every industry event and during lots of ranch visits and at every church potluck, on every airplane ride and at nearly every community gathering. In short, it's probably the most common one we get.
It usually begins something like this: "I've got to give you Certified Angus Beef® folks credit," an industry professional says. "Your beef is everywhere, from the high-end steakhouses to Burger King and now McDonald's."
Oh, noooooo. Must think fast. He believes all Angus programs = CAB®. (Anybody else having an "aha" moment right now? Don't feel bad. As I said, it happens all the time, and just five short years ago I was in your shoes.) But now I'm here to set the story straight. Read more.
Angus Calendar
To view the Angus Calendar, a complete list of
Angus sales, click here.