Sept. 24, 2010
FOR IMMEDIATE
RELEASE
For more
information contact:
Miranda Reiman,
Certified Angus Beef Industry Information assistant director, at 308-784-2294
or mreiman@certifiedangusbeef.com
Photo of Larry Corah (CREDIT: Duane
Dailey) available at: http://www.cabpartners.com/news/photos/Corah_Larry.jpg
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Producers Have a Field Day with Premiums
Consumers say
they want high-quality beef, and the industry is responding.
ThatÕs good news,
according to Larry Corah, Certified Angus Beef LLC (CAB) vice president.
Presenting at the
University of Missouri Thompson Farm Field Day on Sept. 21, he said, ÒAs
cattlemen, you can never lose sight of why people love beef. Marbling governs
flavor, so as it increases, the chance of having a bad eating experience
decreases.Ó
After nearly a
30-year decline in the Choice grading percentage, the trend turned around a
couple of years ago and weekly averages are above 60% Choice now. ThatÕs given
the retail industry a chance to promote beef at a higher level, Corah said.
ÒKroger and
SuperValu both carry premium Choice brands and Wal-Mart has carried Choice for
a little while now,Ó he said. ÒThat shows you what theyÕre willing and able to
sell, but itÕs contingent on there being a constant supply of this high-quality
product.Ó
The increase in
grading also benefits the Certified Angus Beef ¨ (CAB¨) brand,
which is projecting a record 770 million pounds in sales for the fiscal year
ending Sept. 30. An estimated 10% of that is of Missouri origin, Corah said.
ÒSince our
program started more than 30 years ago, there has been a rise in branded
programs,Ó he noted. ÒThis has added a lot of value to the beef chain, but it
also has devalued the Choice product thatÕs left in the box.Ó
The average ratio
of premium Choice to low Choice is usually 35% to 65%. Once premium Choice
product is taken out to fulfill all the brands, it leaves only 15% of the
higher quality Choice.
That may sound
negative, but Corah said itÕs not.
ÒFor producers
aiming at a specific target, like CAB, that just means thereÕs even more
incentive to hit that higher grading level,Ó he said.
CAB premiums
average $3 to $5 per hundredweight (cwt.) or $25 to $40 per head more than
Choice. CAB Prime is double or triple that.
ÒPeople will say,
ÔThatÕs great, but itÕs so hard to actually reach CAB or Prime,Ó Corah said.
Òyet it is possible. The herd right here provides the proof.Ó
A recent harvest
group from Thompson Farm reached 86.6% CAB and Prime.
TheyÕre the case
study for how to do it. Stacking marbling genetics, especially through the use
of artificial insemination using proven sires, is a start.
ÒWe know that
health problems hurt both performance and end-product quality,Ó he said. So
health management is another piece of the puzzle.
Solid nutrition programs throughout an
animalÕs life will improve grade.
ÒOf course itÕs
important to achieve these goals in tandem with a focus on growth,Ó Corah said.
He closed by
looking to the future.
ÒIt doesnÕt seem
that weÕve maxed out our domestic need for highly marbled beef, but donÕt
forget thatÕs what this country is known for in the world market,Ó he said.
The U.S. owns
about 82% to 84% market share in high-quality global beef trade.
With the proven
tools available through the University of Missouri demonstration and the
American Angus AssociationÕs database of proven sires, Corah concluded,
ÒThereÕs no better time to capitalize on this high-quality beef market.Ó
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