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Estados Unidos: "Nine beef industry priorities"


Thursday, October 30, 2008

Nine beef industry priorities

Thursday, October 30, 2008


In September a group of beef industry professionals joined together in Denver to discuss beef quality issues.

All segments of the beef industry were represented and the outcome of the "think tank" was a close examination and outline of how cattle producers and beef marketers should be operating.

Noting that quality can only be assessed by consumer-paid premiums, the group outlined several areas that need attention. Post-harvest practices from electrical carcass stimulation to aging further enhance tenderness, but cattle producers can affect other aspects of beef quality.

"It takes only a slight check on marbling to result in a loss of value to consumers," said Daryl Tatum, Colorado State University (CSU) meat scientist. For example, at one plant, a one-week setback of just 30 marbling points (1,000-point scale) reduced the USDA Choice and Prime share of harvested cattle from 64% to 49%.

Randy Blach, CattleFax CEO noted great volatility in the market, increasing costs economic uncertainty. In 2008, U.S. consumers purchased 609 million pounds less than last year, but per-capita spending for beef is up. Retail prices next year could average more than $4/lb. Much depends on the global market, where U.S. beef production can grow to as much as a 20% export market share if producers hit the quality target most in demand.

Putting Consumers First

The group laid out priorities for a consumer-focused beef industry:

• Enhance carcass utilization and product diversification by adding more value to currently underutilized cuts.

• Foster supply chain alignment, from the seedstock and cow-calf through stocker and feedlot operators, packers, purveyors, retail and foodservice segments.

• Identify ways to clarify value communication and other market signals through the better-aligned supply chains.

• Deliver on beef's promise of taste and value, thus earning consumer trust.

• Position and market beef to take advantage of U.S. and global consumer demographic opportunities.

• Identify and promote technologies and processes that add value to consumers while rewarding the supply chains.

• Limit to strategic use those technologies and practices for short-term gain that detract from consumer demand for beef.

• In the face of rising capital requirements, explore cattle financing innovations in aligned supply chains.

• Maintain focus on production and marketing efficiency in all segments of the supply chains.

In summary remarks, Tatum said each participant in the beef supply chain must "keep your eye on the goal" that is consumer demand. To better focus on that target, he said the industry needs more consumer research based on behavior rather than simply opinions.

Consumer First Beef Partners, made up of Certified Angus Beef LLC (CAB), Pfizer Animal Health, Land O' Lakes Purina Feed LLC and Drovers/food360,were the coordinating arm of the Think Tank.

For an executive summary of the September meeting, and research papers related to beef quality, visit http://www.cabpartners.com/news/research/



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