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Certified Angus Beef (CAB), a subsidiary of the American Angus Association, recently licensed plants for both beef harvest and fabrication to produce Certified Angus Beef product in Canada, according to company president Jim Riemann. He cited growing demand and licensee interest on both sides of the border. Canadian demand has long been a key to the success of CABOs international division, and licensees in Canada last year sold 15 million pounds of Certified Angus Beef product, ranking second only to Japan in overall sales. Moreover, many Canadian foodservice and retail licensees say they could double sales if this world-leading beef brand were processed in Canada. ItOs already produced there but traditionally Canadian Angus-type carcasses were shipped to U.S. locations for USDA grading and certification as CAB product. Then, some of those millions of pounds of branded CAB product have been exported and trucked back to Canada along with mostly U.S.-produced product. Not only has this been inefficient for packers, it has also increased the number of trucks bringing Canadian beef into the U.S. -- often a point of contention with Northern U.S. producers. The move to expand in Canada should help ensure a continued robust growth in demand for the jump-started supply, and that is a key to garnering producer premiums as a reward for hitting the CAB target. This new opportunity is expected to increase demand on both sides of the border for Angus cattle with genetics to hit that target. |
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