Our newest additions to the herd:
Showing posts with label beef cattle. Show all posts
Showing posts with label beef cattle. Show all posts
Monday, September 19, 2011
BRIGHTNESS IN A DARK TIME
Well, the drought continues, hardship abounds...out of the darkness comes BRIGHTNESS!!
Our newest additions to the herd:
Our newest additions to the herd:
Friday, July 22, 2011
Friday, July 15, 2011
WHAT'S YOUR BEEF?
AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.
“Don’t Sell the Steak—Sell the Sizzle!" (Elmer Wheeler; "Trusted Sentences that Sell", 1937)
"Oh, the power of marketing". We have all heard that said, but, just what is Marketing? Well, the answer is based on who is being asked.
- Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” (Small Business Branding)
- Marketing is based on thinking about the business in terms of customer needs and their satisfaction. (Business Dictionary)
I see the practice in very simple terms: Marketing is about exchanging value through the use of "half-truths".
EXAMPLE: "The" customer is health conscious and knows "whole grain" bread is better for them, so:
Marketing is a loaf of bread label that says "made with whole grains" and has the American Heart Association seal of approval. Sounds healthy, right(?)...until you read the ingredients and see it is made with high fructose corn syrup, dextrose, and a load of preservatives.
In essence, our food industry markets or advertises what the consumer wants to see or hear. They "market" half of the truth....the whole truth is right there on the label as well...in "itty bitty" small print.
Which, brings me to the selling of beef and the marketing juggernaut known as "Certified Angus Beef" or CAB for short.
Now, traditionally, beef has been sold in steakhouses and supermarkets based on USDA grading (Prime, Choice, Select, etc.); however, many restaurants and retailers have recently begun advertising beef on the strength of brand names and the reputation of a specific breed of cattle.
The American Angus Association set up the "certified Angus Beef" brand in 1978. The goal of this brand is to promote the idea that Angus beef is of higher quality than beef from other breeds of cattle. Cattle that are at least 51% black and exhibit Angus-type characteristics are eligible for "Certified Angus Beef" evaluation.
Before the advent of the Certified Angus Beef brand, beef was just, well, beef. The commodity was bought and sold, based on grade with little, if any, preference to breed. Branding was the sole province of the Swift, Armour, and Stanko meatpacking companies.
The CAB concept was revolutionary and changed everything. The American Angus Association took their message straight to the consumer and then "partnered" with the meatpackers to create the image that angus beef actually tasted better than other breeds. Today, Certiļ¬ed Angus Beef is the world’s largest branded beef program, commanding an eye popping 60% market share.
THE HALF-TRUTH
Wow! When the consumer buys a package of beef with the CAB label, they are getting pure angus meat, right? Originally that was true, but today, certified angus beef comes from an animal that has just 1/8 angus in its bloodline or breeding. It doesnt come from pure bred angus cattle... just an animal that has angus somewhere in its breeding. If certified angus beef came from 100% angus cattle there would not be enough to supply the demand, thats why it comes from an animal that is known to have angus in its breeding. Clever, huh(!)?
THE TRUTH
In the United States, the USDA operates a voluntary beef grading program. The meat processor pays for a trained USDA meat grader to grade whole carcasses at the abattoir. The grades are based on two main criteria: the degree of marbling (intramuscular fat) in the beef rib eye (at the 12th rib cross-section), and the age of the animal prior to slaughter. Most beef offered for sale in supermarkets and most restaurants is graded choice or select. Less than 3% of all beef gets the highest grade of Prime beef and the majority of that is sold to exclusive hotels and upscale restaurants.
The USDA Grade Inspector Does Not take into consideration what breed of cattle they are inspecting. In fact, they rarely know which breed they are grading!
So, kudos to the Angus Beef folks...masterful job of Selling the Sizzle! And, in all fairness, they do provide a quality product...but, so do the producers of non-Angus breeds.
POP QUIZ:
These two Ribeye Steaks are of equal grade...Can you tell which one is Certified Angus Beef? (Look closely for a clue in one of the pics)
USDA Prime — highest in intramuscular fat. (Currently, only three percent of the steaks sold are USDA certified Prime.)
Choice
Select — the leanest grade commonly sold
Standard
Commercial
Utility
Cutter
Canner
**Ground Beef is not Graded**
Sign That the Apocalypse is Upon Us:
The "Big Three" national hamburger chains, notorious buyers of the lowest quality beef, are now promoting (marketing) the addition of Angus Beef Hamburgers to their menus.
“Don’t Sell the Steak—Sell the Sizzle!" (Elmer Wheeler; "Trusted Sentences that Sell", 1937)
"Oh, the power of marketing". We have all heard that said, but, just what is Marketing? Well, the answer is based on who is being asked.
- Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” (Small Business Branding)
- Marketing is based on thinking about the business in terms of customer needs and their satisfaction. (Business Dictionary)
I see the practice in very simple terms: Marketing is about exchanging value through the use of "half-truths".
EXAMPLE: "The" customer is health conscious and knows "whole grain" bread is better for them, so:
Marketing is a loaf of bread label that says "made with whole grains" and has the American Heart Association seal of approval. Sounds healthy, right(?)...until you read the ingredients and see it is made with high fructose corn syrup, dextrose, and a load of preservatives.
In essence, our food industry markets or advertises what the consumer wants to see or hear. They "market" half of the truth....the whole truth is right there on the label as well...in "itty bitty" small print.
 |
| http://www.angus.org/ |
Which, brings me to the selling of beef and the marketing juggernaut known as "Certified Angus Beef" or CAB for short.
Now, traditionally, beef has been sold in steakhouses and supermarkets based on USDA grading (Prime, Choice, Select, etc.); however, many restaurants and retailers have recently begun advertising beef on the strength of brand names and the reputation of a specific breed of cattle.
The American Angus Association set up the "certified Angus Beef" brand in 1978. The goal of this brand is to promote the idea that Angus beef is of higher quality than beef from other breeds of cattle. Cattle that are at least 51% black and exhibit Angus-type characteristics are eligible for "Certified Angus Beef" evaluation.
Before the advent of the Certified Angus Beef brand, beef was just, well, beef. The commodity was bought and sold, based on grade with little, if any, preference to breed. Branding was the sole province of the Swift, Armour, and Stanko meatpacking companies.
The CAB concept was revolutionary and changed everything. The American Angus Association took their message straight to the consumer and then "partnered" with the meatpackers to create the image that angus beef actually tasted better than other breeds. Today, Certiļ¬ed Angus Beef is the world’s largest branded beef program, commanding an eye popping 60% market share.
THE HALF-TRUTH
Wow! When the consumer buys a package of beef with the CAB label, they are getting pure angus meat, right? Originally that was true, but today, certified angus beef comes from an animal that has just 1/8 angus in its bloodline or breeding. It doesnt come from pure bred angus cattle... just an animal that has angus somewhere in its breeding. If certified angus beef came from 100% angus cattle there would not be enough to supply the demand, thats why it comes from an animal that is known to have angus in its breeding. Clever, huh(!)?
THE TRUTH
In the United States, the USDA operates a voluntary beef grading program. The meat processor pays for a trained USDA meat grader to grade whole carcasses at the abattoir. The grades are based on two main criteria: the degree of marbling (intramuscular fat) in the beef rib eye (at the 12th rib cross-section), and the age of the animal prior to slaughter. Most beef offered for sale in supermarkets and most restaurants is graded choice or select. Less than 3% of all beef gets the highest grade of Prime beef and the majority of that is sold to exclusive hotels and upscale restaurants.
The USDA Grade Inspector Does Not take into consideration what breed of cattle they are inspecting. In fact, they rarely know which breed they are grading!
So, kudos to the Angus Beef folks...masterful job of Selling the Sizzle! And, in all fairness, they do provide a quality product...but, so do the producers of non-Angus breeds.
POP QUIZ:
These two Ribeye Steaks are of equal grade...Can you tell which one is Certified Angus Beef? (Look closely for a clue in one of the pics)
FYI: USDA BEEF GRADES
Choice
Select — the leanest grade commonly sold
Standard
Commercial
Utility
Cutter
Canner
**Ground Beef is not Graded**
Sign That the Apocalypse is Upon Us:
The "Big Three" national hamburger chains, notorious buyers of the lowest quality beef, are now promoting (marketing) the addition of Angus Beef Hamburgers to their menus.
Wednesday, July 6, 2011
TEXAS DROUGHT THREATENS NATIONAL BEEF SUPPLY
AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.
Beef is the No.1 selling protein in the United States. Last year, consumer spending on beef totaled $74.3 billion. Per capita consumption of beef in 2010 was 59.6 pounds while per capita spending for beef was $240, according to industry research firm CattleFax.
In the state that gave birth to the cowboy and spawned the culture of cattle drives, modern-day ranchers are fighting for survival. Severe drought (the worst in 44 years) and several million charred acres from wildfires have delivered a devastating "gut" punch, forcing ranchers to take drastic measures to save ranches across Texas. The state's livestock industry has lost $1.2 billion under withering conditions, according to the Texas Agrilife Extension Service, a service branch of Texas A&M University.
Beef is the No.1 selling protein in the United States. Last year, consumer spending on beef totaled $74.3 billion. Per capita consumption of beef in 2010 was 59.6 pounds while per capita spending for beef was $240, according to industry research firm CattleFax.
In the state that gave birth to the cowboy and spawned the culture of cattle drives, modern-day ranchers are fighting for survival. Severe drought (the worst in 44 years) and several million charred acres from wildfires have delivered a devastating "gut" punch, forcing ranchers to take drastic measures to save ranches across Texas. The state's livestock industry has lost $1.2 billion under withering conditions, according to the Texas Agrilife Extension Service, a service branch of Texas A&M University.In Texas and other states with large cattle herds, the beef supply chain starts at the ranch. Ranchers own a herd of beef cows, each of which gives birth to a calf once a year. The mother nurses the calf and the pair graze on grass through the summer and into the fall, whereupon the fattened calf is sent to market.
This year, ranchers should be reaping the benefits of high prices, low supplies and high demand for their beef. The demand for calves from feedlots, where cattle add hundreds of pounds before slaughter, seems insatiable. Without rangelands full of nutritional forage, cows will struggle for nutrients. The herd will lose interest in breeding and cows may not provide enough milk for their calves, bringing the critical first step of America's beef cycle to a halt.
Among all meat production, beef producers typically incur some of the highest production costs. For example, costs for raising cattle are much higher than for poultry farming. Cattle producers pay more for each animal, grazing lands, fertilizers, feed and processing systems versus poultry farmers. Also the time it takes to prepare cattle for sale is much longer compared to other meats. It takes just 46 days for chicken to be market ready, but can take up to two years for beef.
Exacerbating the situation further is the shrinking number of cattle available for consumption. As beef producers struggle with the escalating drought, rising business costs, and mounting debt, more of them are selling their heifers for meat production, instead of breeding them to expand the herd. In Texas, the largest producer of cattle in the U.S., the "state herd" is down nearly 18% since 2008. In fact, ranchers and farmers across the country are shrinking their herd sizes bringing the nation's cattle herd count to it's lowest since 1958.
ADDING SALT TO THE WOUND:
The outlook for more rain looks grim. The National Weather Service's Climate Prediction Center forecast below-normal rainfall for Texas over the next month at least.
Among all meat production, beef producers typically incur some of the highest production costs. For example, costs for raising cattle are much higher than for poultry farming. Cattle producers pay more for each animal, grazing lands, fertilizers, feed and processing systems versus poultry farmers. Also the time it takes to prepare cattle for sale is much longer compared to other meats. It takes just 46 days for chicken to be market ready, but can take up to two years for beef.
Exacerbating the situation further is the shrinking number of cattle available for consumption. As beef producers struggle with the escalating drought, rising business costs, and mounting debt, more of them are selling their heifers for meat production, instead of breeding them to expand the herd. In Texas, the largest producer of cattle in the U.S., the "state herd" is down nearly 18% since 2008. In fact, ranchers and farmers across the country are shrinking their herd sizes bringing the nation's cattle herd count to it's lowest since 1958.
ADDING SALT TO THE WOUND:
The outlook for more rain looks grim. The National Weather Service's Climate Prediction Center forecast below-normal rainfall for Texas over the next month at least.
Tuesday, February 22, 2011
ICE and HARD FREEZES in CENTRAL TEXAS...
We are still making repairs and catching up from the January and February ice and sub-freezing days. I hope to start posting very soon...
In the meantime, here is another post card from the ranch :)
HAPPY HOUR!
This is "Blue" a pure bred Brahma Bull who is spending the winter with us. He does enjoy a beer now and then. Just to give you some perspective...I am 6ft 6in tall, Blue is 6ft 1in!
Thursday, December 23, 2010
Tuesday, December 21, 2010
CATTLE BARONS - TODAY
PART 2.2 of The Series: A LIVING WAGE FROM COMMERCIAL CATTLE
AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.
A cattle baron is a man who possesses great power or influence in the activity of herding/caring/selling of cattle. - Unknown
The Civil War devastated economies in the South and in particular Texas. However, Texas had a distinctly singular and bountiful resource. Millions of longhorn cattle roamed wild across the state. Due to the ravages of the war and the steady stream of immigrants, beef was in heavy but short supply across the nation. To complicate matters further, Texas had plentiful supplies of beef but, no distribution system (railroads)...Kansas (three states and hundreds of miles away) had the rail heads to get the beef to market.
In the late 1800's, some daring and intrepid cattlemen rounded up longhorns by the millions and herded them north across Texas, Oklahoma, and into Kansas. In doing so they gave rise to two, distinctly American, icons: the Cowboy and the Cattle Drive.
 |
| "Driving Cattle circa 1887 (John Grabill) |
 |
| Ranch Brands on Marker Doan's Crossing, Texas Learn More |
Legendary ranches were born as well.
The Y.O., XIT, JA, King Ranch, 6666, Waggoner, and Matador Land and Cattle were among the largest providers of cattle at that time (Side Note: With the exception of the Matador, all of the above named are still active cattle ranches today). These men were literally "Barons of the U.S. Cattle Market" and wielded considerable influence in the pricing of beef.
That was then...This is now.
The open range became fenced pasture land. Cattle are now "driven" to market in eighteen wheelers via a modern highway system. Charles Goodnight, Oliver Loving, the XIT, and 6666 no longer influence the pricing of beef. In fact they are now merely characters and entities of a romantic and colorful past...just "history"as they say.
 |
| "Driving Cattle" - Modern Day |
"The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways." - President John F. Kennedy
LITTLE KNOWN FACT:
Many of the cattle drives were "staffed" by cowboys between the ages of 15 to 20. There was such a shortage of labor that many of the "cowboys" were actually...cowGIRLS. Many of whom cut their hair and made themselves appear as boys to get a job that was dirty, physically exhausting, and paid about a $1.00 per day.
To learn more about the considerable influence and heroism of women in the American West visit the National Cowgirl Museum and Hall of Fame in Fort Worth. Learn More Here
PART 3: A Living Wage From Commercial Cattle: What Goes Up...
Thursday, December 9, 2010
LIFE AT THE "CRAPS TABLE"
PART 2.1 - of The Series: A LIVING WAGE FROM COMMERCIAL CATTLE
AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.
"When you are ranching and farming, you have to take what the buyer offers." (John Hodges)
Few people are formally trained in the study of economics, but everyone makes economic decisions.
Any attempt by an individual to earn or spend money involves economic decision making. Earning and
spending or buying and selling influence the way our economy functions. It is this economic influence that also makes the cattle market move each day by establishing prices for cattle and putting beef on the consumers’ table.
Economics is also thought to be a mathematical science by many people since economists are
constantly working with numbers trying to predict the outcome of some economic event. Actually, economics is the study of human behavior. Economists try to relate how people will react to changes in supply and demand, to higher or lower interest rates or to increases in the cost of production.
Beef cattle marketing is also a study of human behavior. Cattle prices are determined by how much beef people choose to buy and sell in the market place. If people want to buy more beef than is available in the marketing channel, then the price of beef is bid up rationing the beef among buyers. If producers need to sell more beef than people are willing to buy, then the price of beef will be forced downward to move the excess supply.
Cattle producers often say that to make money in this industry you must buy low and sell high, but that only works when the individual who is selling has some way of influencing the price. Since the overwhelming majority of beef is sold via auction, the price the individual producer receives is thus dictated by commission agents (Buyers) representing the interests of large feedlots and/or beef processors. Which means they will try to buy at the lowest price possible....
We learned (above) that economics is based on human behavior and the supply/demand function of pricing. So, a producer could just hold his/her cattle until demand is high and thus improve the price...simple, right? Uh...no. The cattle being sold today will not be available to the consumer for 6-12 months. The price received today is based on a "best guess" of what consumer demand will be at a future date...which means the "buyer" will hedge the price against unknown factors...thus, no matter what the individual producer does, the selling of cattle in the auction process is nothing more than a "roll of the dice".
PART 2.2: A Living Wage From Commercial Cattle: Cattle Barons - Today
AUTHOR'S NOTE - All of the premises presented in this series of posts are solely based on personal experience as a livestock producer and strictly as a cattleman (I have a basic understanding of farm commodities markets, but no real experience with such, and cannot speak with much authority from the farm side of things; Though I would think there are going to be some similarities). The information represents my opinion and is based on personal experiences. Any factual information may or may not be referenced, but be aware, the majority of the content is personal conjecture. Dialogue and comment are welcome.
"When you are ranching and farming, you have to take what the buyer offers." (John Hodges)
Few people are formally trained in the study of economics, but everyone makes economic decisions.
Any attempt by an individual to earn or spend money involves economic decision making. Earning and
spending or buying and selling influence the way our economy functions. It is this economic influence that also makes the cattle market move each day by establishing prices for cattle and putting beef on the consumers’ table.Economics is also thought to be a mathematical science by many people since economists are
constantly working with numbers trying to predict the outcome of some economic event. Actually, economics is the study of human behavior. Economists try to relate how people will react to changes in supply and demand, to higher or lower interest rates or to increases in the cost of production.
Beef cattle marketing is also a study of human behavior. Cattle prices are determined by how much beef people choose to buy and sell in the market place. If people want to buy more beef than is available in the marketing channel, then the price of beef is bid up rationing the beef among buyers. If producers need to sell more beef than people are willing to buy, then the price of beef will be forced downward to move the excess supply.
Cattle producers often say that to make money in this industry you must buy low and sell high, but that only works when the individual who is selling has some way of influencing the price. Since the overwhelming majority of beef is sold via auction, the price the individual producer receives is thus dictated by commission agents (Buyers) representing the interests of large feedlots and/or beef processors. Which means they will try to buy at the lowest price possible....We learned (above) that economics is based on human behavior and the supply/demand function of pricing. So, a producer could just hold his/her cattle until demand is high and thus improve the price...simple, right? Uh...no. The cattle being sold today will not be available to the consumer for 6-12 months. The price received today is based on a "best guess" of what consumer demand will be at a future date...which means the "buyer" will hedge the price against unknown factors...thus, no matter what the individual producer does, the selling of cattle in the auction process is nothing more than a "roll of the dice".
PART 2.2: A Living Wage From Commercial Cattle: Cattle Barons - Today
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