Traits to Dollars – What Will the Target Be?


The "What Will the Target Be?" panel — Joe Bill Meng, Creekstone Farms; John Tobe, Laura's Lean Beef; Glen Dolezal, Excel; and Jim Norwood, PM Beef Group — answered questions following their individual presentions.
On what target should beef producers set their sights in order to make more dollars from their beef production systems? The opinions of representatives of four different beef processing and marketing entities indicate that variation in consumer preferences will continue to provide for multiple targets. The trend toward branded beef, with varying emphasis on marbling, leanness, diet/health issues and convenience, is expected to continue. The ongoing battle of the brands provides producers with opportunities, but specification ranges for branded programs are narrowing.

First and foremost, consumers want safe food, says Jim Norwood, of PM Beef Group. PM markets 35,000 head of finished cattle per year through its “Ranch to Retail” program, serving Ukrop’s Supermarkets in the eastern United States. The company also harvests cattle for other programs, with nearly 75% of production being branded.

According to Norwood, quality ranks second on consumers’ list of important beef product attributes. They define quality in terms of appearance, flavor, leanness, tenderness and source verification. PM’s effort to meet consumer expectations for safety and quality will mean increased accountability for producers and careful aim at qualifications for branded programs.

Norwood expects that within two years, boxed beef yield will become the basis for pricing the cattle that his company buys. His suggestions for hitting the PM target include:
• British/Continental crossbred cattle
• 1,200- to 1,300-pound (lb.) finished weight
• Emphasis on heavy muscle, less external and seam fat, less bone
• Carcass weight of 700-900 lb.
• USDA Quality Grade ranging from high-Select to low-Choice
• Less than 0.4 inches (in.) back fat
• Ribeyes ranging from 12 square inches (sq. in.) to 16 sq. in.

Excel Corporation’s Glen Dolezal sees two primary paths for branding beyond the commodity market. The qualitative approach will emphasize marbling to ensure tenderness, juiciness and flavor, with proper aging, to serve upscale, premium markets. The other path takes a more quantitative approach, involving post-harvest enhancement technologies such as marination and processes similar to those used in pork processing to “pump” flavor and tenderness into the product. Dolezal says producers who optimize production efficiency and red meat yield should have the flexibility to participate in either brand strategy.

Owning no processing facilities, Laura’s Lean Beef is a Kentucky-based marketing company whose products are sold through 4,000 retail stores in 39 states. According to the company’s chairman, John Tobe, Laura’s Lean Beef serves a niche market comprised of health-conscious consumers. Their desire for safe, lean and tender product drives the emphasis on all-natural production practices involving no antibiotics or growth hormones. Tobe said the program calls for high-yielding cattle that are at least three-quarter Continental. The company pays bonuses to cow-calf producers whose cattle meet product specifications, and it is promoting development of gene markers as a selection tool for tenderness.

Illustrated by its “Premium Black Angus” label, Creekstone Farms has a specific breed preference and a premium quality focus. Creekstone Farms is the newest player in beef packing, following its acquisition of the former Future Beef Operations (FBO) facility in Arkansas City, Kan. According to Joe Bill Meng, director of genetics and supply development, the company seeks to form alliances with seedstock breeders, commercial cow-calf producers and cattle feeders that are willing to adopt production protocols that emphasize genetics, animal welfare, biosecurity and food safety. Meng says company goals include genetic and source verification of products.

The representatives of the four different beef processing and marketing entities presented their viewpoints to attendees of the 35th Annual Meeting of the Beef Improvement Federation (BIF) May 28-31, 2003, in Lexington, Ky. To listen to the audios of this presentation or to access the proceedings, visit the newsroom.

— by Troy Smith