Retail Beef

Investing in the Future: Cargill Announces $90-Million Investment in Automation and Technology

Mon, 09 Jun 2025 15:33:19 GMT

Cargill plans to invest nearly $90 million in automation and technology at its Fort Morgan, Colo., beef plant over the next several years as part of its broader Factory of the Future initiative aimed at improving operational efficiency, yield and worker safety, the company announced Thursday.

“We’re at an extremely challenging point in the cattle cycle for packers with tight supplies and margins,” says Jarrod Gillig, senior vice president of Cargill’s North American beef business. “But now is the time we need to step up and make investments in our facilities to make sure they are working efficiently.”

The company has already put $24 million into technology upgrades at the plant since 2021. One of the newest tools to be deployed will be CarVe, Cargill’s proprietary, patent-pending computer vision system that measures red meat yield in real time. The technology gives managers instant feedback to help workers refine cutting techniques and reduce waste.

“I grew up on a farm/ranch and am blessed to still be active in our family’s cattle operation today, so I understand the importance of honoring the whole animal and doing right by the hard work of the ranchers and farmers who raise them. With tools like our new CarVe computer vision technology, we’re able to keep more high-quality protein in the food system, cut down on food waste, and make each animal count. That matters more than ever today.”

— Jarrod Gillig, senior vice president of Cargill’s North American beef business

“Before CarVe, yield data was always yesterday’s news,” Gillig says. “Now, we’re making decisions in the moment and saving product that would’ve been lost.”

Even a 1% improvement in yields could save hundreds of millions of pounds of beef annually, a meaningful gain at a time when U.S. cattle supplies are at their lowest levels in years.

“With CarVe, we are not replacing employees, it is empowering them to work more efficiently and effectively and helping us maximize the carcass,” Gillig summarizes.

The company has also invested in the Fort Morgan community, backing a $40 million workforce housing initiative that includes new townhomes and an 81-unit apartment complex scheduled to open this fall. Cargill has provided more than $500,000 in grants to local nonprofits for childcare access and housing-related support.

“Fort Morgan plays an important part in Cargill’s critical role as a food company to the nation and the world,” Gillig adds. “By partnering with local ranchers and farmers in Colorado and the region, we’re working hard to produce more food with less impact there so we can move it to store shelves and ultimately family dinner tables across the country.”

Your Next Read: Four Key Takeaways from the CattleFax Cow-Calf Survey

Trump Plans to Ease Trade Tensions by Reducing Tariffs On Chinese Goods

Wed, 23 Apr 2025 21:38:45 GMT

Comments President Donald Trump made at a White House press briefing on Tuesday have signaled the U.S. trade war with China is about to de-escalate.

The 145% import tax rate imposed on Chinese goods will “come down substantially, but it won’t be a zero,” Trump said.

“I don’t know if we can call what President Trump did on China a U-turn, but some people are calling it that,” AgriTalk Host Chip Flory said on Wednesday. He asked guests what their level of support is for what the Trump administration is doing on trade currently.

“I think he’s doing what needed to be done,” said Scott McGregor a cattleman and grain producer from northeast Iowa, near Nashua.

McGregor said he wants to see a level playing field for the U.S. in its trade efforts and negotiations with China.

“China needs to be a trade partner, not just a trading destination. That’s a lot of it,” McGregor said. Get the complete AgriTalk discussion here .

Financial Losses In The U.S. Beef Industry

Beef producers are reported to be “losing up to $165 per head on cattle currently, due to the absence of Chinese competition for high-value cuts like short rib and chuck. That’s a $4 billion annual blow to the U.S. beef sector…,” reported The Scottish Farmer last week.

McGregor said he would like to see the U.S. open up new markets for its beef and grain products to increase opportunities and minimize potential risks from future tariffs.

“China is not our only destination for our ag products, right? We need to expand our horizons as much as we can,” McGregor said.

When U.S. cattlemen start talking about market opportunities, Flory said they often turn their focus on Australia. The U.S. imports about $3-billion worth of beef from Australia a year.

“Australia doesn’t import any beef from the U.S., and there’s cattlemen here that would like to see that fixed,” Flory said. “But the issue is, there’s only, what, 30 million people in Australia?”

Furthermore, Australia has a lot of beef to export that the U.S. needs for use in hamburger, McGregor said.

“I know people don’t want us to import it, but Nellie bar the door if we couldn’t import beef from Australia for grinding,” he said. “Our demand is so huge here in the United States that we have got to import it. It has to meet all the specs that our beef does for importation, and it isn’t like we’re just willy-nilly importing some beef. We need it bad. And yes, it’d be great if they took some of our beef, but they don’t have the population.”

China has turned its attention and dollars to accessing more Australian beef, as well. According to Meat and Livestock Australia, Australian grain-fed beef exports to China surged almost 40% in February and March year-on-year, according to The Scottish Farmer article.

“Australian beef finds itself in a rare sweet spot – a prime cut of opportunity in a world of lean margins,” the article said.

Your next read: CAB Insider: Market Update April 23

Millennials and Protein Craze Boost Meat Sales to Record High

Thu, 27 Mar 2025 13:42:11 GMT

Despite the extreme inflationary pressure on income now, consumers continue to lean into their love for meat in 2024.

“2024 was the strongest year on record for meat, with growth for beef and chicken, pork, lamb had a really good year, bison, veal, you name it,” says Anne-Marie Roerink, owner of 210 Analytics, who conducted the 2024 Power of Meat study . “It was just an all-around fantastic year, and it really underscored that despite consumers having that pressure on income and being in the non-stop balancing act on what to spend their money on, meat won one big.”

How Did Meat Win?
When times are tough, people start to cook at home more often, Roerink says. A part of the dollar that came out of food service restaurants went into the retail grocery store space. She says part of the dollar might end up back at restaurants. But, that’s not a bad thing for the meat industry. The balance between retail and restaurants tends to be a good thing.

“For years, we worried about whether millennials were going to be meat and poultry consumers like the generations before them. The answer is a resounding yes,” Roerink says.

Millennials, especially the older half of this age group, are starting to come into their income potential.

“Many millennials now have children,” she adds. “And those children are starting to be the age where you think you go to the grocery store for the entire week, and about two days later, your pantry, fridge and freezer are empty.”

The retail meat industry sold 500 million more packages in 2024 than they did in 2023. Roerink says 62% of that 500 million-package growth was driven by millennials.

“That’s been a key finding for all of us,” she says. “Millennials do approach meat and poultry a little bit differently, so that’s going to mean more change in years to come.”

Another reason why the meat industry is doing so well is Americans’ massive focus on protein.

“If you walk around the store, from your mac and cheese to your Skippy peanut butter, protein call-outs are everywhere,” Roerink explains. “But at the same time, this is going hand in hand with some people saying, ‘I want fewer ingredients in the things that I buy. I want a more natural form of food.’ That combined focus on protein with more wholesome foods has really put meat and poultry back into driver’s seats as well.”

What Do Millennials Really Want?
Roerink says millennials are focused on convenience more than ever. This is largely attributed to their life stage – running around and balancing time between family and work like generations before them.

“They have more focus on sustainability and animal welfare,” she adds. “With their approach and values relative to meat and poultry, I think we’re going to see some different needs in terms of transparency. They truly do want to hear from the producers. They want to understand what kind of life the animal had, how you approach water management and everything else.”

She says it may sound crazy, but consumers do want to know how their food is produced. And if they don’t hear it from the producer, they may dream up their own descriptions, she points out.

“Often times when we think about our meat category, we use industry terms. We approach it from a scientific angle,” Roerink says. “This means nothing to consumers. They want to know more, but we need to speak in a language that makes sense to those consumers.”

Your Next Read: Consumer Meat Sales Are Higher Than Ever

Beef Production and Fall Beef Demand

Tue, 22 Oct 2024 14:58:46 GMT

As of Oct. 18, the daily Choice boxed beef price was $320.65/cwt., up from a recent low of $296.37/cwt on September 26 and the highest price since July 15. The weekly Choice boxed beef price is also at the highest level since July and has averaged 2.2 percent higher year over year and a record high for the year-to-date (Figure 1). Numerous wholesale cuts have moved higher recently including chuck arm roast (IMPS 114E), chuck roll (116A), chuck mock tender (116B), and chuck flap (116G). Wholesale round cuts have also moved higher including round knuckle (167A), top inside round (169A), bottom (gooseneck) round (170), outside round (171B), and eye of round (171C). Middle meat prices from the loin and rib have also increased including bottom sirloin flap (185A), sirloin tri-tip (185D), loin strip (180), and tenderloin (189A). Likewise, wholesale ribeye prices (112A) have increased recently and are showing an early seasonal demand for the holidays.

Figure 1. Boxed Beef Cutout Value

(Peel)

Thus far in 2024, steer slaughter is unchanged from one year ago. Heifer slaughter is down 1.6 percent year over year. Total fed slaughter is down 0.7 percent compared to last year, less than earlier expected. For the year-to-date, steer carcasses have averaged 25.5 pounds heavier than last year, and heifer carcasses are averaging 22.6 pounds heavier than one year ago. The result of stronger than expected fed slaughter and heavier carcass weights has been an increase in fed beef production of 1.9 percent year over year thus far in 2024. In fact, for the last 16 weeks, fed beef production has been 3.7 percent larger year over year. The increase in boxed beef prices is perhaps even more surprising in the face of increased fed beef production. Higher prices and increased quantities suggest that beef demand continues to be very robust.

In contrast to fed beef production, nonfed beef production is sharply lower this year, down 12.8 percent year over year. Total cow slaughter is down 15.3 percent, consisting of a 13.8 percent year over year decrease in dairy cow slaughter and a 16.8 percent decrease in beef cow slaughter so far this year. Bull slaughter is also down 8.1 percent compared to last year. Tighter supplies of lean trimmings have kept processing beef prices higher this year and the demand for lean has increased demand for lean carcass cuts. For example, the current wholesale price of 90 percent lean trimmings is higher than wholesale prices for top inside round, bottom (gooseneck) round, and outside round.

In the fall, summer grilling demand gives way to seasonally stronger demand for roasts, crock pot cooking and increased middle meat demand in restaurants. Wholesale ground beef prices have moderated recently as hamburger grilling demand slows but prices remain well above year ago levels. Total beef production is down a scant 0.7 percent so far this year and may end the year equal to year ago levels. Despite this, wholesale and retail beef prices are higher thus far in 2024.

Investments Made to Strengthen Food Supply Chain, Increase Competition, and Lower Food Costs

Thu, 12 Sep 2024 15:42:18 GMT

“The Biden-Harris Administration and USDA are advancing a sustainable vision of agriculture that prioritizes the needs of hardworking producers and small businesses and keeps rural communities strong,” announced Secretary Vilsack in a USDA release. “Thanks to historic resources from President Biden’s American Rescue Plan, USDA is working to give farmers and ranchers a fairer chance to compete in the marketplace, which will increase local food options and lower costs for American families.”

The investments are part of USDA’s efforts to create a more competitive agricultural system, advance President Biden’s Investing in America Agenda, and support the Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, which dedicates resources to expand independent processing capacity. Together these actions help to lower food costs by spurring competition and strengthening supply chains.

Meat and Poultry Processing Expansion Program

USDA is partnering with the New Hampshire Community Loan Fund to provide more than $83 million in grants to 24 independent processors in 15 states under the Meat and Poultry Processing Expansion Program (MPPEP). The funding, made available through President Biden’s American Rescue Plan, will help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs better business opportunities, and give consumers more options at the grocery store. For example:

Simla Frozen Food Locker Co. LLC is receiving a $450,000 grant to build a new facility across the street from their existing facility in rural Colorado to expand their processing capacity. The company processes, beef, hogs, chicken, turkeys, lamb, goats, and wild game. This project will allow the family-run business to receive USDA inspection and sell locally-produced proteins into wholesale markets such as restaurants and grocery stores. The company expects to serve 160 additional producers and create four full-time jobs through this project.

McRez Packing International LLC is receiving a $390,000 grant to refurbish a previously mothballed industrial facility in New York to expand processing capacity. The company is a new small processor of cattle, hogs, chicken, turkey, sheep, and goats. Their target customers are local, underserved farmers and dairy and beef producers. The project is expected to serve up to 2,500 new producers and create 110 full-time jobs.

North State Processing LLC is receiving a $10 million grant to build a new facility in Hamlet, N.C., to process cattle, ostrich, emu, water buffalo and alpaca. A new processing company created by local and experienced North Carolina producers, the company anticipates serving 37 producers and creating 54 full-time jobs through this project.

NF Packing Inc. is receiving a $1.4 million grant to build and equip a new processing facility for its start-up business in Walworth County, Wis. The company anticipates serving 75 producers and creating 20 full-time jobs as a result of this project.

USDA’s Rural Development has provided 59 awards totaling over $291.4 million through MPPEP to expand processing capacity and strengthen the food supply chain. MPPEP is funded by President Biden’s American Rescue Plan.

Local Meat Capacity Grant Program

USDA is awarding $26.9 million to 33 projects in 23 states through the Local Meat Capacity (Local MCap) grant program to expand processing within the meat and poultry industry. This announcement builds on the first round of $9.5 million awarded to 42 projects announced in March 2024.

This second set of awards through Local MCap is for both Equipment Only and Processing Expansion project types. Simplified equipment only projects fund projects from $10,000 to $250,000 to purchase processing equipment such as meat grinders, stuffers, and smokers. Processing expansion projects are eligible to receive between $100,000 and $5 million to increase processing or rendering capacity through activities such as facility upgrades, equipment purchases, and training.

White Oak Pastures in Bluffton, Ga., is a family-owned meat company that will use a Local Meat Capacity grant to support the cost of converting its poultry processing facility into a dual use facility that can also process lambs, goats, and hogs. It is anticipated this will expand their livestock processing capacity by 30%.

Nordik Meats is a small, independently owned meat processing facility in Southwest Wisconsin. The business will use a Local Meat Capacity grant to purchase a grinder, a meatball maker, and packaging equipment to expand processing capacity and serve an additional 50 local producers. The equipment will provide local producers with the ability to create new value-added products for local consumers, maximize the value of their animals, utilize byproducts, and increase animal harvest. Nordik Meats will increase the number of livestock processed annually by 100% over two years, implement new processing technologies, train 12 existing staff, hire four new employees, and benefit 350 local small family farms.

Seven Hills Food Co. in Lynchburg, Va., is a full-service meat packaging company and a wholesaler of premium meat products sourced from small local family farms. The company will use a Local Meat Capacity grant to make plant enhancements to address bottlenecks currently hindering plant capacity while adding rendering capacity, new value-added products, and a farmer liaison for coordinating expanded production. This will support producers and meat companies in achieving the necessary scale, product quality, and efficiencies to access institutional and wholesale accounts.

In April 2023, USDA announced up to $75 million available for Local MCap to fund innovative projects designed to build resilience in the meat and poultry supply chain by providing producers with more local processing options and strengthening their market potential. This grant program is targeted to support meat and poultry processors with smaller-scale projects, with a goal to increase processing availability and variety for local and regional livestock producers. The program is administered by the Agricultural Marketing Service (AMS) and is authorized by the American Rescue Plan.

To date, the Biden-Harris Administration has invested a total of over $700 million in 48 states and Puerto Rico for projects that help to expand the nation’s independent meat and poultry processing capacity.

McDonald’s Says No More Meatless Burger in U.S. and Hints That McRib Will Return

Wed, 03 Jul 2024 18:47:00 GMT

Looks like McDonald’s has given up trying to sell meatless beef burgers in the U.S. The fast-food giant recently announced it has no plans to continue promoting its plant-based burger option, the McPlant.

McDonald’s president Joe Erlinger spoke at the Wall Street Journal Global Food Forum in Chicago at the end of June, saying the brand would discontinue the McPlant after it performed poorly in U.S. test markets. The chain had tested the McPlant in California and Texas since it had developed the meatless alternative with Beyond Meat in 2021. Peas, rice and potatoes were the ingredients in the patty, which included the standard fixings of a sesame seed bun and toppings of tomato, lettuce, pickes, onions and American cheese.

Initial testing had shown some success in Texas, Iowa, California and Louisiana, but after expanding to 600 locations in San Francisco and Dallas, sales dropped from 500 burgers per week to 20 burgers a day, according to analyst Peter Saleh.

While McDonald’s has seen overseas sales better, the U.S. market doesn’t support meatless options at the popular chain.

“I don’t think the U.S. consumer is coming to McDonald’s or looking for McPlant or other plant-based proteins from McDonald’s now,” Erlinger said at the conference. Furthermore, salads, which were removed from the menu during the pandemic, will not be reintroduced to the menu because customers aren’t showing a demand for them either.

In terms of protein, the company will look at more chicken options as they are popular and cost less for them and the consumer.

According to Business Insider, the company revealed in February its chicken category represents $25 billion in annual systemwide sales, which is on par with its beef business.

Erlinger hinted that another protein option would be back on the menu again in 2024—the boneless pork dipped in tangy barbecue sauce, better known as the McRib.

It first appeared on the menu in 1982, and has been off and on the menu several times.

Additionally, bagels were added back to the breakfast menu in April in about 1,200 stores and may be available nationwide again later this year.

Bagels were first introduced to McDonald’s in late 2019, but were cut when the menu was simplified during the pandemic.

Customers in California, Pennsylvania, Nashville, Louisiana, Pennsylvania, Florida, Tennessee, Iowa, West Virginia, California, North Carolina, Ohio, Alabama and New York have seen them return.

There are four varieties, which all feature egg and cheese. Three of them also include meat—bacon, sausage or steak—and the steak bagel also adds grilled onions.

Carving Out Convenience: Young Cattle Producer Serves Up Success With Vending Machine of Meat

Wed, 10 Jan 2024 20:25:13 GMT

Walk into the Green Grass Cattle Company & Mercantile in Weston, Mo., and you’re immediately greeted with a slice of nostalgia. From a recently acquired feed store, to a storefront featuring beef, home goods and apparel, it’s a family-run business with solid rural roots.

“I’m the fifth generation in my family to take this on,” says Tim Haer, when asked how long his family has been farming.

He may be a fifth-generation farmer, but he’s now part of what’s become first-generation beef business.

“Green Grass Cattle Company started two years ago,” says Haer.

When we caught up with Haer, he took us out to one of his family’s pastures.

(Farm Journal)

After the flood of 1993, the family sold their farm and cattle. Tim’s mom and dad then landed jobs off the farm, but still within agriculture. The family had some cattle, but after his dad retired, he was ready for a new family venture.

“He kind of approached us and said, ‘Hey, you guys want to make a run at this full time?’ And after that, we started adding back to the herd and increasing our numbers,” says Haer.

Intentional Decisions and Growth

It’s growth that hasn’t always happened by chance. While Haer says some of the relationships and business partnerships have been a fortunate find, the Haers are also intentional in everything they do.

“When we first started out, we were just selling sides of beef. We didn’t have a retail store. We had a small online presence. But we didn’t have an e-commerce site or anything,” he says.

But when the Covid-19 pandemic hit, just like many protein producers, the Haer saw demand for freezer beef catch fire, and that’s when the Haers knew it was time to dish out something new.

“We looked at that as an opportunity to start processing cattle at a USDA [inspected] facility, and then selling individual cuts of beef as well,” he says.

Serving Up a Story

And they did, opening up a storefront in Weston in September 2021. The family knew opening a new door would also serve as a way for the family to connect with consumers and share the story behind their beef.

“I think it’s really important to do that,” says Megan Haer-Schmidt, Tim’s younger sister, but also manager of New Deal Ag Solutions, the family’s newest business. “I think consumers care about it, too. The types of questions that we will get are often very detailed, and you can tell that people, you know, want to know that the food that they’re eating was raised by a local family, or that it was cared for.”

High-Quality Beef Starts with High-Quality Bulls

Differentiating their business has become Green Grass Cattle Company’s specialty, and Haer says it all starts with high-quality bulls. The family carefully selected the bulls for certain traits.

“We weren’t concerned about a lot of the other things that traditional producers are looking for. What we were looking for, were bulls that had high EPD (expected progeny differences) scores and ribeye size and marbling,” Haer explains.

The other trait the Haers wanted, were finding bulls that were extremely docile, and they seemed to hit the jackpot when they found black angus bulls from Connealy Angus in Whitman, Neb.

“We found great value in buying those, and it’s turned out to be a pretty successful venture for us,” says Haer.

A Wild Idea That Turned Wildly Successful

The deliberate decisions made at Green Grass Cattle Company are also ones that can be a bit different, especially when it comes to some of Tim’s off-the-wall ideas.

“Last year, I had a buddy of mine that moved to Germany and I was talking to him one evening, and he goes, ‘Man, you’re not going to believe this, but I get my bratwurst out of a vending machine that’s two blocks away from me.’”

With that, he had an idea: create their own vending machine full of meat.

“I researched the different machines that were available to see how I could make it work to sell not just brats, but ground beef and even steaks,” says Haer. “And I finally found a machine that I thought would work and accommodate our needs.”

(Farm Journal)

Haer didn’t just do some heavy research on the right set-up to service customers, but also the right location.

“Keith Bradley, co-owner of Made in KC , really believed in our idea. He’s really supported us through this whole venture,” says Haer. “And they’ve got a lot of runway. I think they have close to 15 stores in Kansas City.”

That idea, is a reality today, located inside Front Range Coffeehouse, which is one of Bradley’s businesses in the middle of Kansas City, and 40 miles from the Haer family’s farm.

“It’s just kind of taken off, and it’s been wildly successful,” says Haer.

Digesting the Data

With the vending machine being located 40 miles from the farm, Haer knew he needed a vending machine that was highly automated. And what the Haers landed on is a machine that allows Tim to constantly collect the data.

“In working with the distributor that sells the machines, we were able to find a card reader that actually provides a lot of telematics in real-time,” says Her.

Out of all the aggregated data, Haer says the most telling point may be how people will buy steak at any hour of the day. When the vending machine first launched, it was located outside the store, and Haer says people would buy steaks all times of the day and night, including 11 p.m.

“I didn’t know if the machine was going to be successful to start with. When people were buying, buying steaks that late at night, it just kind of validated all the assumptions that I had,” says Haer.

Loyal Customers, One Steak at a Time

The reviews of Green Grass Cattle Company tell the story best. They’ve carved out convenience, while attracting a loyal customer base across the Kansas City area.

“When we first opened up the doors to the store, we were answering questions we just kind of took for granted as knowledge that we had our whole lives,” he says. “We’re not just trying to provide locally raised beef to consumers, we also have an obligation now to educate them and make more of a connection with where our food comes from.”

Whether it’s buying a steak from this vending machine, or visiting the family’s store and mercantile, the Haers have not only carved out convenience, but also a niche.

Plan Your Budget-Friendly Cookout: AFBF Reveals Insights on 2023 Independence Day Food Prices

Wed, 28 Jun 2023 19:17:27 GMT

Families can expect to pay $67.73 to host an Independence Day cookout for 10, the American Farm Bureau Federation reports , based on the 2023 American Farm Bureau Federation marketbasket survey.

While prices have decreased 3% year over year, the grocery bill is still 14% higher than prices just two years ago, AFBF explains, with 2023 coming in as the second highest on record over the last 10 years. Additionally, higher prices at the store are not only a challenge for consumers, producers know it’s not been great for their operations either.

“The slight downward direction in the cost of a cookout doesn’t counter the dramatic increases we’ve seen over the past few years. Families are still feeling the pinch of high inflation along with other factors keeping prices high,” says Roger Cryan, AFBF chief economist. “Don’t assume farmers come out as winners from higher prices at the grocery store either. They’re price takers, not price makers, whose share of the retail food dollar is just 14%. Farmers have to pay for fuel, fertilizer and other expenses, which have all gone up in cost.”

The AFBF marketbasket survey shows increased costs of hamburger buns (up 17% for a package of eight), beef (up 4% per pound of ground beef) and homemade potato salad (up 5%), while decreased prices have been seen in chicken breasts (down 9%), lemonade (down 16%) and cookies (down 10%).

AFBF reports several factors have contributed to cost increases, including a shrinking cattle herd due to implications of drought and high feed prices that have driven beef prices up, as well as higher potato prices caused by poor weather and a drop in production. Overall, processed food, like bread, has seen price increased due to general inflation.

Here’s a list of common summer cookout favorites, their prices and change year over year, provided by AFBF.

Individual Prices, AFBF 2023 Summer Cookout
- 2 pounds of ground beef, $11.54 (+4%)
- 2 pounds of chicken breasts, $8.14 (-9%)
- 3 pounds of pork chops, $14.37 (-6%)
- 1 pound of cheese, $3.53 (no change)
- 1 package of hamburger buns, $2.26 (+17%)
- 2 ½ pounds of homemade potato salad, $3.44 (+5%)
- 32 ounces of pork and beans, $2.44 (-3%)
- 16-ounce bag of potato chips, $4.53 (-4%)
- 13-ounce package of chocolate chip cookies, $3.90 (-10%)
- ½ gallon of ice cream, $5.29 (+3%)
- 2 pints of strawberries, $4.56 (+3%)
- 2 ½ quarts of lemonade, $3.73 (-16%)

While some prices seem high, when considered in a global context, AFBF says Americans spend a smaller percentage of their income on food than any other country.

“While the increased costs are difficult and have made it more challenging for some families to put food on the table, it’s important to remember that America still has one of the most affordable food supplies in the world, which is due in part to strong farm bill programs,” says Zippy Duvall, AFBF president. “As we all celebrate the holiday, we encourage members of Congress to consider the contributions of the farm bill to our security and independence by ensuring a safe and abundant food supply.”

Read More:

Best Buys for July 4th Cookouts Due to Food Inflation

Give It a Name: Family Ranch Adds Value to Common Practice with New Beef Label

Thu, 18 May 2023 13:46:06 GMT

For fifth-generation rancher, Jaclyn Wilson, raising cattle is nothing new, and her family’s traditions and dedication to the industry run deep. However, what started over 130 years ago as a family homestead in northwestern Nebraska has quite literally stretched far beyond what may have been imagined back in 1888.

(Farm Journal)

While many of the daily ranching tasks for Jaclyn and her father, Blaine, are similar to those of past generations, the family’s operation, Wilson Flying Diamond Ranch near Lakeside, Neb., has continued to keep up with the cattle industry’s best practices, innovation and technology.

A predominantly Red Angus and Red Angus/Simmental composite operation, the Wilsons can be found tending to their spring and fall calving cow-calf herds, their long yearlings and the Flying Diamond Beef program.

Direct-to-Consumer Beef Business

Like many beef producers who initiated a direct-to-consumer component to their cattle operations in recent years, the Wilsons capitalized on the opportunity to share their beef with consumers in 2019.

(Farm Journal)

Over the last few years, the business has grown to ship all across the U.S. using ground and air transportation. However, simply marketing their family’s beef as a ranch-raised product was not where they stopped.

Seeing the push towards environmental stewardship, the Wilsons took their beef business one step further.

“We all know that ranchers are the original conservationists, right?” says Jaclyn. “I think every rancher knows that. Surprisingly, a lot of consumers don’t understand that concept because they’re getting drowned out by the media saying cattle are harming the environment, etc.”

In late April, the Wilsons launched their special Envirosmart Beef Label, which is currently in the trademark process.

“What we’re really trying to do here is we’re trying to use a combination of genomics and technology in order to really focus on some of that environmental impact that we’re having. Because I love our Sandhills operation, and I know it’s better now than it was 135 years ago,” Jaclyn adds.

(Farm Journal)

What is Envirosmart Beef?

The program focuses on three main concepts including:

Human wellbeing – This includes bettering the beef and non-beef community, including educating consumers, working to help with mental health, and utilizing interns and teaching future generations.

Animal wellbeing – This refers to doing the best for the animals by implementing animal health and wellbeing management practices.

Environmental wellbeing – This focuses on taking care of the land, including the use of grazing rotation systems, identifying plant species and plant diversity, as well as looking at wildlife populations.

Jaclyn notes that since the ranch already utilizes these practices, it was time to give it a name.

Along with following the three concepts, cattle gaining the family’s official Envirosmart Beef Label must be tested through the Neogen’s Feeder Identity Program. Using a genomic sample of the animal, along with initial weights from when the animal enters the feeding facility and ration information, an “optimal days on feed” determination is made for each individual animal.

“So, the goal is that we’re able to pinpoint better when those cattle will reach their peak performance,” Jaclyn explains. “Which, surprisingly, for us, we found out that it was significantly fewer days than what we were feeding cattle.”

Jaclyn says before implementing this practice, 1550 lbs. was considered her “ideal out weight.” However, following the feeder identity program, the optimal finishing weights of their cattle were found in the 1400 lbs. range.

“In theory, the thought process is, and they’re working on this research to prove it, but in theory, for every so many days you feed above the [optimal weight], you’re adding to your carbon footprint,” Jaclyn explains. “So, it hopes that if we can make feeding more efficient and utilize genomic [testing] to reach that optimal peak performance for that animal, that animal can go to harvest faster, be more efficient, and at the same time maybe we can reduce some of that carbon footprint.”

(Farm Journal)

Value-Added Beef

As Jaclyn explains, all the cattle on their operation would qualify to be part of their program. However, it’s the genomic testing that sets their two product lines—Classic and Envirosmart—apart.

Since launching the brand on Earth Day, Jaclyn says the Envirosmart option has predominately traveled to the east and west coasts.

The Wilsons have been able to capitalize on the specific consumer preference and add a premium to their “green label” boxes—that more than pays for the animal’s genomic test to be part of the program.

(Farm Journal)

Jaclyn says that the niche program has been a way to expose more consumers to how beef is raised.

“I think it’s a win-win for the industry in general, because it’s able to get a story across that ranchers out there are doing the right thing in terms of land and livestock management. It gives us more exposure to some of those people that might not have a clue as they’ve never bought beef outside of a grocery store,” Jaclyn explains.

More information about the Wilson family’s Flying Diamond Beef Envirosmart Beef Label and their family’s ranch can be found on their website— www.flyingdiamondbeef.com . Jaclyn can also be found @FDGenetics on Twitter.

(Farm Journal)

What Meat Product is Your State Most Hungry For? Data Shows Top Meat Volume Growth

Wed, 03 May 2023 16:44:19 GMT

When it comes to meat, what is your state most hungry for?

In a recent CoBank webinar featuring experts from Circana, Inc., data shows meat eaters across the nation are looking for variety and are open to trying new things, whether that’s experimenting with different cuts on the grill or air frying something typically cooked in other ways.

From chicken wings and thighs to pork shoulder to beef chuck and brisket, Melissa Rodriguez, principal in client insights at Circana, Inc., notes that the trends have a geographic component, creating “pockets” of consumer preferences.

According to data ending in March of this year, Rodriguez shares the following map, highlighting the top meat volume growth across the U.S. by state.

(Farm Journal)

Rodriguez notes that consumers are looking for variety, including different meat sources and cuts of meat. Unfortunately, when looking at the meat department as a whole in the start of 2023, consumers have been found to buy less fresh meat by volume.

Specifically, 91% of shoppers said the cost of groceries is much higher than one year ago, with 24% also claiming to buy less meat and poultry.

(Farm Journal)

While all meat options show a decrease in volume to start 2023, chicken has declined the least and has actually increased in total dollars of growth.

In the first quarter of 2023, Rodriguez suggests chicken reaped the benefits of retailers showcasing chicken breast as the “go-to” meat.

Circana estimates the net volume change, as a result of consumers switching protein choices, led to an increase in chicken purchases, pulling some market share from beef, pork and turkey. However, Rodriguez explains the volume increase in chicken is minimal.

Overall, shoppers continue to purchase across all proteins, she notes, but it’s more concerning that consumers are purchasing less.

So, how will the meat case re-attract consumers?

Along with decreased prices and inflationary pressures, Rodriguez says there are many opportunities in protein for the remainder of the year.

She believes relating to the consumer and connecting the various generations, including Boomers, Millennials and Generation Z, back to the meat case will be key. This includes education on how to prepare the different meats available, whether it be on the grill, the smoker or other cooking appliance, Rodriguez suggests.

Social media, especially through video content, may be a great driver to get consumers back to the meat case, she says, and the industry needs to be part of the conversation.

Convenience will also be a driver in 2023, helping consumers make mealtime easier and quicker in their homes.

As a whole, Rodriguez explains that there will likely be shifts and changes within the grocery stores in the coming months, where some aisles and departments “win” and others “lose.”

As a producer, what can you do to help be part of the conversation and encourage consumers to favor the meat case?

mRNA Conspiracy Theories: Ranch Group Offers ‘Fearmongering’ and ‘Misinformation’

Mon, 24 Apr 2023 20:23:57 GMT

Misinformation and conspiracy theories regarding the use of mRNA vaccines in livestock continue, despite efforts of the scientific community, the Animal Health Institute and government agencies.

Last week Drovers and AgWeb reported about a bogus claim on social media that producers are required to inject livestock with mRNA vaccines. USDA spokesperson Marissa Perry said, “There is no requirement or mandate that producers vaccinate their livestock for any disease.”

Further, the mRNA vaccines are not even available for cattle in the United States, and the National Cattlemen’s Beef Association issued a statement indicating such in an effort to tamp down the internet falsehoods.

University of Florida professor Kevin Folta appeared on AgriTalk confirming to host Chip Flory that no mRNA cattle vaccine is approved in the U.S., but researchers are working on an mRNA vaccine for swine to battle porcine reproductive and respiratory syndrome (PRRS).

“It’s (mRNA) a vaccine for the animal that, just like any other vaccine, protects the animal from disease,” Folta said. And, “It’s not in your food.”

Despite Folta’s and assurances from many others in the scientific community, false accusations about the safety of meat and milk continue. Late last week one ranch group issued a press statement followed by a commentary, both filled with inaccuracies about mRNA and frosted with a coating of fear for consumers.

In the press release, R-CALF USA said after a briefing from its Animal Health Committee Chair, who “spoke with medical doctors and a microbiologist” who were unnamed, the group’s board passed a motion to bring the issue before the full membership at its next annual meeting to determine policy direction. Until then, R-CALF says mandatory country-of-origin labeling (COOL) must be adopted, because without COOL, “The American consumer has no way of knowing if the beef they are buying is coming from a country using this debatable mRNA technology in their cattle health management.”

R-CALF CEO Bill Bullard went even further in his commentary , calling the mRNA vaccine “an injection.” Additionally, he claimed that mRNA “hijacks living cells, tricking them into producing some level of immunity against human viruses.”

But the most egregious statement from Bullard seems to cavalierly tarnish beef’s safety image.

“There is great concern that living cells excrete the mRNA over time and the mRNA can then be transferred to animals and humans that have never received the mRNA injection,” Bullard wrote. “It is believed, for example, that humans can contact (sic) mRNA by eating meat from livestock that have received the injection.”

All of that is false, of course. To obtain confirmation we reached out to Dr. Jeff Savell, Vice Chancellor and Dean, Agriculture and Life Sciences at Texas A&M University, who is also a Distinguished Professor, Meat Science. He promptly put us in contact with a faculty expert.

That would be Dr. Penny Riggs, associate professor of animal science at Texas A&M. More of her credentials later. But first, after reviewing the R-CALF releases she called them “fearmongering and misinformation.”

Quoting directly from the email Drovers received from Dr. Riggs:

“First. No mRNA vaccines are currently available for beef cattle. I understand that there are a couple of vaccines against respiratory disease and rotavirus for swine.”

“Second. No food safety risk exists for meat from animals that have received any vaccination.” [Regardless of vaccination type, proper withdrawal times should be ensured. Specified withdrawal times are based on the specific vaccine and its formulation components.]

“Third. mRNA from a vaccine will NOT be passed along in meat.”

So what about Dr. Riggs’ credentials? Start with a BS in Biology, and then a Masters in Cytogenetics from Purdue University. Then a PhD in molecular genetics from Texas A&M.

(Here’s a crash course in just what mRNA is and the important job it does, authored by Dr. Riggs for The Conversation.)

“Riggs’ research focuses on analyses of gene, RNA and protein expression, function, and signaling that regulate or influence aspects of beef quality, skeletal muscle traits, and developmental processes in beef cattle, as well as whole genome sequencing of bacterial pathogens. She has additional interests in genome technologies and genetic modifiers of disease susceptibility and in the role of animal agriculture and biotechnology in ensuring food and nutritional security,” according to her A&M profile.

And for good measure, Riggs “conducted postdoctoral work in the radiation biophysics lab as a Texas Aerospace Fellow at the University of Houston and the NASA Lyndon B. Johnson Space Center.”

Regarding the misinformation about the safety of meat contained in the R-CALF releases, Riggs called it “unfortunate.” As agriculturalists, “we should be celebrating the advances in technology that enable more precise and effective strategies for ensuring animal health and well-being in order to continue producing the nutritious and safe meat, milk, and other animal source products that sustain life and good health.”

Riggs went on to address the commentary and press release specifically, noting they both contain numerous factual errors. The following are Riggs’ verbatim comments to Drovers:

1. mRNA itself is neither a vaccine, nor an injection. Specific mRNAs are produced in every cell of every living organism as the first step for every biological function. The mRNA is a specific and relatively short-lived nucleotide message that is translated into the proteins in our cells. The messages are destroyed in the cell after sufficient protein is made for each biological task (minutes to hours).

2. A vaccine is a derivative of a pathogen—such as a modified virus, a killed virus, part of a virus, or a specific mRNA copy of a small part of a virus—that can function as an antigen. That means that when the vaccine is delivered, often by injection, our bodies recognize that antigen and respond to it by making antibodies, enabling development of immunity to that original pathogen. What makes an mRNA vaccine different is that it is the minimal amount of sequence needed for eliciting an immune response. Viruses tend to mutate rapidly, so mRNA is an advantage for speedy vaccine production because the sequence can be revised as needed. Also, this type of vaccine doesn’t have to be grown – so there are fewer ingredients in the formulation that could have potential to elicit an allergic reaction. In short, the mRNA vaccine is a new tool that is very precise and can be formulated rapidly as threats emerge.

3. What does the mRNA in a vaccine do? THE mRNA from a vaccine DOES NOT rewrite instructions from the body’s DNA. The mRNA does not hijack the cell.

When the mRNA enters the cytoplasm of the immune system’s sentinel cells, the normal protein-making “machinery” present in the cytoplasm reads the message and generates a protein product that is then recognized as the foreign antigen. Then, our immune system is stimulated to produce antibodies, just like any other vaccine does.

4. Potential risks are very low for humans and livestock. Although vaccines are very safe and help protect people and animals from harmful viruses and other pathogens, they function by eliciting an immune response. Rarely, that triggering of the immune response may be harmful, or a person may have an allergic reaction to the materials used to formulate the vaccine – for example, people allergic to eggs should not receive a vaccine developed in eggs. So far, data only exists for the mRNA vaccines developed to protect again COVID-19 and the limited swine vaccinations. From data collected to date, the risk of adverse events compared to other types of vaccines is very low, achieving zero risk for anything is almost impossible.

5. NO, there is NOT “great concern that living cells excrete the mRNA over time and the mRNA can then be transferred to animals and humans that have never received the mRNA injection.”

6. NO it is NOT TRUE that “for example, that humans can contact [sic] mRNA by eating meat from livestock that have received the injection.”

This is false. These statements are unfounded fearmongering. Every morsel of food we eat that comes from plants or animals is loaded with the DNA, RNA (mRNA, rRNA, miRNA, etc), along with proteins and other contents of the cells from source organisms – no matter if it is spinach or steak. People can enjoy a great meal, digest the meat, and none of its DNA or RNA will be transferred to them. It’s just not physically possible for that to occur.

7. mRNA vaccines have been “in development” for a couple of decades, but mRNA is unstable and difficult to deliver as a vaccine. As a result of U.S. investments during COVID, the last hurdle was overcome – how to deliver the specific mRNA and keep it from being destroyed long enough for an immune response to occur. This is still expensive technology, but the big breakthrough enables highly specific vaccines to be formulated rapidly and deliver only what is required. However, tests have shown that even these types of mRNA molecules can’t survive very long in the cell – an estimate is that 50% of the mRNA from a vaccine is gone in about 20 hours, and completely destroyed within a few days.

8. NO, the COVID-19 mRNA vaccines that contain a portion of the Sars-CoV2 spike protein will not deliver mRNA to consumers who drink milk if it is injected into dairy cows. Yes, there are ways to genetically engineer animals to deliver protein products in milk – this was done in dairy goats many years ago, but it CANNOT be accomplished by an mRNA vaccine.

9. NO, people who eat meat from an animal treated with an mRNA vaccine, CANNOT absorb the mRNA from the vaccine in the intestinal tract.

In conclusion, Riggs wrote, “These outlandish claims are nothing more than fearmongering to push other agendas. The various state and federal proposed bills are not based on any kind of rational scientific evidence.”

Groups Seek Reintroduction of American Beef Labeling Act

Thu, 12 Jan 2023 21:11:47 GMT

The United States Cattlemen’s Association, R-CALF USA, among 48 other groups and organizations recently sent a letter to U.S. Senate and House members asking them to reintroduce the American Beef Labeling Act in 2023, which would reinstate country-of-origin-labeling (COOL) for beef in the U.S.

As the letter states, “We the undersigned organizations would like to express our gratitude for your leadership and support of the American Beef Labeling Act ( S.2716, H.R. 7291 ). This commonsense policy has remained popular with the American people since Congress rescinded country of origin labeling for beef in 2015.”

This bill would re-insert the words “beef” and “ground beef” to the existing 2002 MCOOL law, which requires country of origin labels on other foods, such as lamb, chicken, fish, nuts, fruits and vegetables. The bill would further require all beef, including imported beef, to be labeled as to where it was born, raised and harvested.

The joint letter also notes a recent poll conducted by Morning Consult on behalf of the Coalition for Prosperous America (CPA), in which 86% of votes support the American Beef Labeling Act, with 64% of voters who strongly support and 22% of voters who somewhat support the legislation.

Originally introduced in the Senate by Sen. John Thune (R-S.D.) in September 2021, the bill was last referred to the Committee on Agriculture, Nutrition and Forestry.

The letter addressed Sen. Thune and co-sponsors Sen. Jon Tester (D-Mont.), Sen. Mike Rounds (R-S.D.), Sen. Cory Booker (D-N.J.), Sen. John Hoeven (R-N.D.), Sen. Ben Ray Lujan (D-N.M.), Sen. Cynthia Lummis (R-Wy.), Sen. Martin Heinrich (D-N.M.), Sen. John Barrasso (R-Wy.) and Sen. Kirsten Gillibrand (D-N.Y.), as well as U.S. House of Representatives supporters, including Rep. Lance Gooden (R-Texas), Rep. Ro Khanna (D-Calif.) and Rep. Morgan Griffith (R-Virg.).

“Although we did not cross the finish line in the 117th Congress we are confident that with your continued leadership and our support we can ensure that beef produced from U.S. born and raised cattle is distinguished in the marketplace and consumers will have accurate information as to the origins of the beef they purchase for their families in the 118th Congress,” the letter states.

The 118th United States Congress session began on Jan. 3, 2023.

The full list of groups signing in support of the American Beef Labeling Act can be found in the letter .

Munching on Mealworms: The Next Meat-Alternative Snack?

Wed, 05 Oct 2022 18:44:12 GMT

While plant-based meat alternatives seem to have lost their hype, scientists are working to develop another protein alternative—mealworms.

Over 2 billion people across the globe consume insects as part of their diet, according to the Food and Agriculture Organization of the United Nations, while the thought of eating mealworms, grasshoppers and beetles sounds rather unappealing to most people in the U.S.

A recent Science Daily article claims, “insects are edible and could be a healthful alternative to traditional meat protein sources.”

With the rising cost of animal proteins such as beef , pork and lamb, as well as environmental concerns, the project’s principle investigator, In Hee Cho, Ph.D., explains there has been an increased interest in eating insects.

Containing high amounts of fatty acids, vitamins, minerals, fiber and high-quality protein, insects can be considered both a nutritious and healthy food source, the article claims.

Yet, the idea of munching on a mealworm remains unappetizing for a majority of meat-eaters.

Meat-like Mealworms

Scientists have set out to understand the insect’s flavor profile, comparing aromas of its lifecycle in egg, larva, pupa and adult stages.

Through a variety of cooking techniques, the mealworms gave off a diverse range of aromas. For instance, raw larvae had wet soil-like, shrimp-like and sweet corn-like aromas, while roasted or fried larvae had shrimp-like and fried oil-like attributes and created flavor compounds similar to those formed when meat and seafood are cooked.

Additionally, the mealworms were cooked with sugar to create caramelization reactions, producing meat-like and savory flavors.

Though mealworms will not likely take down the livestock industry any time soon, Cho is hopeful that the study’s results “will contribute to the commercial development of meat-like and savory flavorings and seasonings, and will encourage the convenience food industry to include edible insects in their products.”

Beef jerky, pork rinds or mealworm mix? Someday that could be up to you to decide.

Speer: Turns Out Alternative (Meat) Isn’t Really An Alternative

Tue, 09 Aug 2022 15:14:27 GMT

Alternative: existing or functioning outside the established cultural, social, or economic system. And generally, the associated connotation being that it’s somehow edgier, sexier, better, smarter (while the established system is often archaic, slow, stodgy, and ignorant). At least, that’s how it goes in the protein world.

About a year ago, based on repeated questions from producers, I wrote a column on the current status of alternative meats. I noted the space is, “…being challenged by declining pricing power.” Last year, the sector was forced to increasingly rely on promotion to keep product moving.

Fast forward to the first half of 2022 and address market position amidst surging inflation. Maybe rising prices provides alternative meats some traction with consumers? That’s best answered by analysis from the 210Analytics monthly retail report (Anne-Marie Roerink, Principal).

(Farm Journal)

Through June, most meat products have seen sharp price increases year-over-year (see chart). Ground beef is up nearly 16% versus year-ago prices and fresh beef up roughly 9.5% compared to last year. However, the alternative meat sector is at the bottom of the pack when it comes to pricing power; the sector has been unable to raise prices and pass on higher costs to consumers.

This has even more meaning given some of the further commentary by 210Analytics about consumer behavior within the inflationary environment: “…81% of grocery shoppers made changes to what and where they purchased in June. This is up from 50% in the fall of 2021. The dominant changes are looking for sales specials (54%), skipping non-essentials (45%), finding coupons (33%) and buying more private or other low-cost brands (29%).” In other words, shoppers are looking for bargains.

However, despite that reality, promotions aren’t working for alternative protein. The report noted, “Meat alternatives remained 15% below year ago, in dollars, volume and units, despite mild deflation and heavy promotions. Retailers are actually pulling back on items in the case to rightsize the category.” Yes, you read that correctly! Retailers are shrinking the space – shoppers simply aren’t interested (no matter the price reduction).

The best window into the health of the sector is through publicly traded Beyond Meat (ticker: BYND). The Wall Street Journal recently reported that Beyond’s CEO, Ethan Brown, is looking long-term: “I don’t think in quarterly terms, I don’t think in annual terms, I think in a longer-term perspective and we will deliver on this, I am absolutely certain.” That all sounds good. But the company’s trailing twelve month returns represent a loss of $255 M. Moreover, the quarterly losses are accelerating: $20M, $55M, $80M and $101M for quarters ending 30-Jun, 30-Sep, 31-Dec and 31-Mar, respectively.

(Farm Journal)

Most significant, investors are also running out of steam. The stock peaked in July, ’19 at roughly $240/share; since that time valuation has steadily eroded and bottomed recently at $20/share in May. Based on 63.5M shares outstanding, that’s a market cap swing from $15.2B all the way down to $1.3B – an erosion of nearly 90%!

Let’s circle back what alternative means. It’s also defined as one of two or more available possibilities. On one hand there’s option A; and on the other hand, there’s option B. But when it comes to protein, turns out consumers are telling us that alternative (functioning outside the established norm) isn’t really an alternative (option) after all.

Nevil Speer is an independent consultant based in Bowling Green, KY. The views and opinions expressed herein do not reflect, nor are associated with in any manner, any client or business relationship. He can be reached at Nevil.Speer@turkeytrack.biz

Fake Meat Is Bleeding Money

Thu, 24 Feb 2022 00:35:07 GMT

There’s no animal blood on the floor in plant-based protein maker Beyond Meat’s processing facilities, but for three years the company has been bleeding cash. In fact, investors in the once trendy fake meat company have seen losses mounting.

Beyond Meat will release its fourth-quarter earnings on Thursday (Feb. 24), but caution flags were out to investors ahead of the report. Analysts project the quarter’s loss per share will more than double. In the third quarter, Beyond Meat’s revenue rose 13% year over year to $106.4 million, but net loss was $54.8 million. Shares that traded over $234 in July of 2019 were trading under $48 on Wednesday.

J.P. Morgan stock analyst Ken Goldman called Beyond Meat “the worst performer in our universe in the last year.” That’s because Beyond’s stock price fell 67% in a market that saw a median gain of 13%. Additionally, Goldman said, Beyond fell 15% over the past month, and 10% over the past week.

Garrett Duyck, an analyst for Seeking Alpha, said: “For the past three years (Beyond Meat) has been bleeding cash. The free cash flow per share has yet to be positive and declining margins is taking it lower. R&D expenses are up 78% YoY which is responsible for 50% of the operating loss.”

Beyond Meat has been lauded as a disruptor that was going to change the meat market entirely, putting animal protein out of business, Duyck notes. But he says the company continues to face obstacles even as over $465 million worth of its plant-based protein has been sold the past three years.

One obstacle is that it remains higher priced than beef, as much as two times higher. And, Beyond Meat is still not meat. There are many consumers who prefer meat and are willing to pay more for it.

“It seems the more faux meat they sell the more faux money they make,” Duyck said.

Retail Beef Market Embraces Changes, New Cuts

Fri, 13 Nov 2020 02:31:30 GMT

Chuck flap, rib-eye filet, tomahawk steak, Denver or Sierra cuts, flat irons and tri tips – the landscape of the local grocery meat case is changing when it comes to beef cuts, according to a Texas A&M AgriLife Extension Service expert.

A traditional top sirloin steak. (Texas A&M AgriLife photo)

As the COVID-19 pandemic brought beef shortages, consumers may have noticed some different cuts of beef when their traditional selections were sold out, said Davey Griffin, Ph.D., AgriLife Extension meat specialist in the Department of Animal Science of Texas A&M University. Perhaps they were even hesitant to purchase because they were unfamiliar with how to prepare these cuts .

Griffin said the recent crisis might have spotlighted the changing supermarket offerings, but these newer beef cuts have been available for some time and are starting to gain popularity with chefs and others across the nation due to their reasonable cost and flavorful eating experience provided.

The North American Meat Institute’s Meat Buyer’s Guide outlines all the beef cuts. The chuck, rib, loin and round are some of the major primal cuts familiar to consumers, with the brisket, plate, flank and foreshank being the traditional minor cuts.

Breaking down a beef carcass, Griffin said, results in one-third trimmable fat and bone and another 20%-25% in trimmings for ground beef and pizza toppings. The middle meats, where the higher-value steaks come from, account for 10%-12% of the carcass but one-third of the value of the whole carcass.

“The rest of it is the other muscles, and those are the ones we are trying to utilize more – enhance the value because they are the lower-cost muscles that still provide an excellent quality beef cut for consumers,” Griffin said.

Over the past 10-15 years, the industry and Texas A&M started identifying those muscles that could be used to produce other affordable cuts.

“Enhancing the value of cuts from the chuck and round not only helps consumers have a great moderately priced eating experience, it also increases the overall value of the carcass,” Griffin said. “That also has potential to add to the value of live cattle.”

New cuts for new consumer preferences

“We know these cuts are changing to meet the changes of consumers,” Griffin said. “Over the years the size of families have grown smaller. They aren’t cooking a great big roast or porterhouse steak anymore.”

The chuck is being broken down very differently, providing new cuts more targeted for different cooking and eating experiences, he said.

“The second most tender muscle in the beef carcass comes from the chuck and is now being merchandised as a mid-priced flat iron steak,” Griffin said. “It was just in a chuck roast. Now we’ve pulled it out, and it is a menu item at restaurants. It has enhanced the whole value of the carcass and provided the consumer an affordable eating experience.”

Sirloin cap steaks and center cut sirloin steaks. (Texas A&M AgriLife photo)

The petite shoulder tender also has become overwhelmingly popular with chefs, and ranch steaks have a nutritional value close to a boneless, skinless chicken breast, he said.

Other new cuts – ribeye filets, ribeye caps and sirloin caps – also provide some new opportunities for retailers and consumers.

“There was a while in there that some of this was attempted and retailers couldn’t get much movement on some of the newer cuts,” Griffin said. “Now, with newer customers and those willing to try new things, they are starting to get movement, and customers are having good experiences and are willing to try them again.”

He offered a breakdown of new offerings from the four primal cuts:

The traditional chuck rolls are now cut into chuck-eye steaks, chuck-roll roasts, Denver and Sierra steaks, and the chuck flap.
From the rib section, there can be a rib roast, tomahawk steak, rib steak, rib-eye cap steak, rib-eye filet, rib-eye steak and prime rib.
The loin section now yields the short loin or tenderloin, and “we don’t see as many T-bones and porterhouse cuts anymore.” Strip or top loin steaks and tenderloin steaks are more common now.
The round traditionally would have been round steak. Now it is broken down into sirloin tip steak, top-round steak, eye-round steak and bottom-round steak. Other cuts are flank steak, skirt steak and inside skirt – all used in fajitas. The bottom sirloin flap is also used for fajitas.

“The traditional way of cutting the sirloin is to make whole sirloin steaks,” Griffin said. “But we don’t really see those at all anymore. The muscle fibers in the center of a sirloin steak run a little different than the cap. So, they have been taken apart and sold as top sirloin steaks, cap steaks and center cut sirloin steaks.”

The smaller size, he said, means it can be cut pretty thick, making it easier to cook to the right degree of doneness. The bottom part of the sirloin is the sirloin ball tip, tri-tip and flap.

“Tri-tip is used a lot in other regions of the U.S., and we are starting to use it more in Texas, because you can cut across the grain and make those cuts more tender,” Griffin said.

Ordering up your own beef cuts

Griffin said because of these new cuts, sometimes individuals who raise their own beef and take it to small processors don’t always get back what they were expecting.

“I’d get calls from guys who said the meat cutter stole all of my T-bones,” he said. “But when I’d ask if they got certain other cuts, they’d say ‘Yes’. You can’t have both out of one side of beef. You have to understand how the cuts are made.”

Knowing the newer cuts and where they come from helps to understand why the expected porterhouse steaks or racks of ribs are not in the beef packages when they are picked up after processing, he said.

Cattle have only 13 ribs, and they can be cut into several different retail/foodservice cuts, Griffin explained. For instance, chuck short ribs are cheaper than the counterpart ribs from the plate but contain the same flavorful muscle. Back ribs are less meaty, come from underneath the rib-eye roll and are less expensive.

“The chuck short ribs are used a lot for export, but they are otherwise cheap on the market because of the barbecue influence,” he said. “If you want to receive the plate short ribs, you can’t do a tomahawk steak, so you have to pick one or the other out of a side of beef.”

Other producers going to smaller processors who are still making the bone-in cuts using band saws and not really trimming out the muscle – cuts like we had in the 1960s – wonder “how can I get my guy to cut these new cuts,” Griffin said. All processors know where those muscles are, it just costs more and takes longer to do, so it is a matter of asking and paying for it.

Griffin’s advice for consumers with beef to process in the future is to discuss with the butcher/processor what you would like to have. His advice to processors is “be prepared because that’s how the consumer is eating today. The muscles haven’t changed, but we are using them in smaller, more utilizable pieces for the consumer.”

Good News: Consumers Continue To Choose Beef

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

The dominating theme in 2023’s State of the Beef Industry report was weather. While parts of the U.S. still grapple with dry conditions, the overall situation has dramatically improved versus this time last year, especially in the middle part of the country.

The reprieve has provided producers some opportunity to focus on other parts of the business. The topic that’s foremost of significance is the market — record prices have a way of doing that. Supplies are increasingly tight, but much of the market’s strength is attributed to resilient beef demand. Last year’s per capita beef spending totaled $461 — a new record by $14.

All-Fresh Beef Retail Price

(Farm Journal)

That’s especially encouraging given consumers’ No. 1 complaint about inflation involves food prices. The business is such that consumers have had every opportunity to trade down when it comes to their protein options, but they continue to choose beef, even at higher prices.

Those consumer dollars are flowing back into the production sector. As a result, fed cattle prices have established another set of new highs in 2024. While overall beef production has waned (due to lower cow slaughter), fed beef production has been running ahead of year-ago levels. That is, higher prices on bigger volume.

All of that is a testament to the importance of building, and maintaining, efforts to boost beef demand. The industry’s success toward improved quality and consistency, coupled with meaningful promotion, is paying dividends for U.S. producers.

Battle for Margin

Nevertheless, while fed beef supply has held steady, it’s likely that trend will be pressured in coming years. Beef cow inventory started the year at 28.2 million head. The Jan. 1 feeder cattle supply outside of feedyards was just 24.2 million head, down 5% from 2023 and off 10% from the recent peak of 26.6 million head in 2017.

Beef Cow Inventory

(Farm Journal)

Feeder Cattle Supply Outside Feedlots

(Farm Journal)

Therefore, numbers will remain tight in the coming years, and they will be further exacerbated if/when producers decide to hold back heifers to rebuild the cowherd. At that point, the industry is likely to see the peak in prices.

Just how high can prices go? That remains to be seen, but the battle for margin between the feedyard and the packer, and ultimately the retail and food service sectors, will be especially important to watch. In the interim, the cow-calf producer holds the cards and will continue to benefit from solid prices allowing the sector to string together multiple years of unprecedented profits.

Beef On Dairy

Last, but not least, the beef-on-dairy trend continues to influence the industry, proving to be an important contributor to the beef sector. In light of waning beef numbers, these calves will make up a larger share of fed beef in the next several years (as dairy cow numbers remain relatively steady). As a result, many feedyards are working to improve the quality and consistency of their beef-on-dairy supply chains. All of that means increased feedback to suppliers as the calves are easily traceable. Much of that influence will likely creep into the native supply chains.

Dairy Cow Inventory

(Farm Journal)