A
Anonymous
Guest
Then how do you explain the increase in carcass weights? Genetics?
Robert, cheap corn and falling fat cattle prices has always spelled disaster. Watch the "currentness" indicators in the industry.
No Robert, we have to compete for the consumer's dollar on a VALUE BASIS and the large packer is NOT the only way to do that. The large packer kills cattle most efficiently and therefore has the ability to pay more for fat cattle than a less efficient packer. That's just a fact. The current packers replaced the smaller less efficient packers before them. With that said, that doesn't mean that they always do the best job of adding value. If they did, niche market packers would not exist. Any opportunity for a profit within this industry will be seized by an opportunist. Omaha Steaks is a prime example. Harris Ranches is another.
Beef cannot compete from a price standpoint but it can certainly compete from a value standpoint. That is why the beef checkoff places so much emphasis on adding value to the chuck and round.
Obviously consumers are willing to pay more for beef WHEN THEY HAVE THE MONEY. Look at beef jerky sales. There is a point of diminishing returns. Like HGL has pointed out, there is only so much money consumers will pay for middle meats but there is opportunity for the chuck and round. We need a beef item that will compete with chicken strips and chicken nuggets.
Apology accepted. I have been in the cow/calf business my entire life and am still involved DIRECTLY in it. I have AI'd, attended Vocational School for Production Ag and specialized in beef production and have attended the Graham School in Garnett, KS. We have been production testing our herd through the CHAPS program for many years. Our herd is BQA certified. I have attended every seminar on cow/calf production that I can in my spare time. I say this not to boast but rather to let you know that I am absolutely passionate about the cow/calf industry. I just happen to disagree with the blamers in this industry that think we can sue, blame, and regulate our way to prosperity.
That is correct. Some cattle will not grade no matter how long you feed them. This is where you and I agree. This love affair with highly marbled beef brings with it a ton of worthless 50/50 trim. By chasing marbling, which only has a 10% direct correlation to tenderness, we have reduced red meat yield.
Consider this, if the market signals did decrease the amount of backfat and the cull cow market could not cover the CHEAP lean trim needs, we would still be better off importing cheap lean trimmings to blend with our trim while we added value to the rest of the carcass. Grinding domestic chucks and rounds to blend with 50/50 trim is a step backwards for this industry.
~SH~