MARKETING...
Why Millennials Matter
Getting the news out about healthy beef benefits and convenience is critical in fully convincing this generation to feel comfortable and
confident in choosing beef.
Millennials: They’re the consumers of the future, a generation of 80 million that is changing all the rules — perhaps especially the way products are marketed. Recent research helps the beef industry learn what makes them tick.
The millennial generation (those born between 1980 and 2000) is a research priority for the beef industry. Millennials are the consumers of tomorrow. They already account for about one-fourth of the U.S. population and about one-third of all adults, so they represent a big chunk of the current consumer population. The checkoff continues to engage in consumer research studies to identify trends affecting beef acceptance and preference and, ultimately, to identify ways the checkoff can respond to help increase consumer interest in and purchases of beef. Read more.
In the Cattle Markets
Proposed mCOOL rule changes released.
USDA released its response to the final ruling of the World Trade Organization (WTO) findings related to the United States’ mandatory country-of-origin-labeling (mCOOL) law. The proposed rule can be found in the March 12, 2013, release of the Federal Register. Comments on the proposed rule will be accepted until April 11, 2013.
In summary, retail muscle cuts would be required to provide the origin of the product at multiple stages of the production process (specifically birth, raising and slaughter). Each stage can have a different country of origin. For example, an animal born in Mexico, but raised and slaughtered in the United States, would be labeled as “Born in Mexico, raised and slaughtered in the United States,” whereas the current law allows the label to be “Product of the United States and Mexico.” Read more.
USDA Provides Details on Food Safety
Inspector Furloughs
The USDA has provided more details on the possible furlough of Food Safety Inspection Service (FSIS) inspectors, which the agency states will occur due to sequestration cuts. During a House Agriculture Committee hearing, USDA Undersecretary of Food Safety Elisabeth Hagen said that the proposed plan includes 11 furlough days, no more than one day a week and no more than two days per pay period, scheduled from July to September. Furloughs will be required of all 9,212 FSIS employees, including 8,136 meat inspectors and lab technicians.
According to Hagen, FSIS will likely take a total cut of $52.8 million, or 5% of its budget. Read more.
Profiting on the Grid
Carcass-based factors affecting feeding performance and profit.
Increasing numbers of finished cattle are being sold on carcass-value grids. In grid selling, value is based on carcass weight, not live weight. So, factors such as feed efficiency, average daily gain (ADG), etc., should be considered on a carcass basis. An analysis was conducted of 67,570 lots of steers and heifers fed during 2002-2008 in 212 feedyards in six feeding regions of the United States. Read more.
The Source
Changing with the times.
The Japanese export market has agreed to revise import guidelines to include beef from cattle harvested younger than 30 months of age. This expands our market potential worldwide, and is good news for our industry, but it also brings about changes to packer premiums for age-verified calves. Our program must shift to reflect current market demands.
The American Angus Association is transitioning its age- and source-verification programs with a goal to provide in-house verification standards for cattle to qualify, continuing to verify the age, source and genetics with the same confidence the industry has come to trust and value. AngusSource will relinquish its status as a USDA Process Verified Program (PVP) in 2014. Read more.
Challenges Frame 2013’s
Opening Red Meat
Export Report
The first month of 2013 offered a mix of good news and challenges for exports of U.S. beef and pork during January, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports continued the trend shown in 2012 with higher export values on lower volumes, while pork exports improved slightly from December’s levels but remained behind year-ago totals.
Led by sharply higher exports to Hong Kong, Canada and Taiwan, and solid growth to Japan, beef exports for January rose 9.3% in value from year-ago levels on slightly lower (-3.2%) volumes. Read more.
AHA Certifies Three More Beef Cuts
The mark has a record of boosting sales of lean beef at retail.
The National Beef Checkoff Program announced that three additional fresh beef cuts now are certified to display the heart-check mark of the American Heart Association (AHA). With that, retailers have the opportunity to market a total of six different extra-lean beef items to shoppers using one of the most trusted nutrition icons on food packaging today.
The extra-lean beef cuts that meet the AHA’s criteria for heart-healthy foods as part of an overall healthy dietary pattern include the following USDA Select-grade cuts:
- Sirloin Tip Steak
- Bottom Round Steak
- Top Sirloin Stir-Fry
- Boneless Top Sirloin Petite Roast
- Top Sirloin Filet
- Top Sirloin Kabob
Angus Calendar
To view the Angus Calendar, a complete list of Angus sales, click here.