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An old quip from advertising, regarding advertising campaigns, is "About the time the agency and the client are tired of seeing the ads, they are starting to be effective with the consumer." One only has to go back to some of the advertising campaigns of the past to agree that repetition of the ads or slogan worked. Take for example, "Don't squeeze the Charmin", "Winston tastes good..." "Like a Rock", "The UN-Cola" and others. The advertising for the Beef Checkoff works. The continuing positive trend in the popularity of beef can't all be attributed to the checkoff, but nothing like it has happened in the past. Demand has been higher for eight of the last nine quarters on a year to year basis. Smithfield and Tyson each want to buy IBP. There are six new packing plants on the drawing boards. Predictions are that the beef industry is headed into the high end of the beef cycle and that the high end will last longer than it usually does. There are a number of reasons that this could be the case or even that the ten-year cycle as it has been known will not follow the same pattern. One doesn't need a crystal ball to see some of these reasons or trends. All one has to do is look around at the situation as it exists right now and where it may be going. First is the beef checkoff, it's in place and it's working. Just keep it operating the way it is with very little adjustment or change. (For more information on checkoff programs, see the related story on page 12).
Alliances from the pasture to the rail. Not all work the same or will be as effective as others, but alliances are being put together so that they fit the existing situation.
Utilization of technology with cattle in a variety of ways and individual animal identification; which help make decisions or determine end points in the finishing of cattle.
Information feedback. Taking the data gleaned from one set of cattle and using it to make genetic decisions for breeding purposes.
Advancements in health care and growth of livestock. Not just the advantage of new drugs or those that are projected to be coming on the market, which will improve health or weight gains, but also the true understanding of how and why they work, to advance their use and the benefits.
The value of Ag-exports increased 2 billion this year. Red meat sales were up $1 billion over the last year, accounting for half of the increase.
Vac-Programs. Regardless of the sponsor; pharmaceutical companies, veterinarians, or marketing associations, they fit the health care needs of handling calves and producing a consistent product.
The Internet and E-commerce. The changes that the Internet is making on the whole industry is yet to be played out, but it, for sure, is creating change. Every thing will move faster and probably more effectively. For sure, communication will improve and more information will be available in a shorter time span. Distances will shrink and direct sales to the consumers and other marketing possibilities will exist.
New heat and serve beef product, which fits today's consumers. Since January 1999, sales have increased more than 131percent.
Formation of cattle marketing organizations. Consolidated Beef Producers have 129 members, who have pledged over 2 million head per year to be sold through the organization.
There are a variety of other situations or circumstances, which have never existed before. Just what the total effect they will have on the future of the beef industry is a question that only time will allow us to find out. One thing for sure it is a different set of circumstances, and it will involve more and more marketing, not just selling a product as in the past. |
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