The
Facts About Growing Beef Demand
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The following information is not for or against the Beef Checkoff.
It is about beef demand, value added and increased profits.
The beef industry has introduced hundreds of new beef products into
the market in the last six years. This has been possible because of
research, development, and marketing of these products.
What has happened is the industry has taken the same product we’ve
produced for years and added value to it. By doing research, testing,
and marketing, experts discovered the consumer is willing to pay more
for the same product once it was made more convenient. This was the
subject at a meeting presented to the Ag Media Editors at the R&D
Ranch Session in Denver, Colorado, September 13-14, 2004.
According to Wayne D. Purcell, Director of the Research Institute
on Livestock Pricing at Virginia Technology, “There is no doubt
in my mind that the new pre-cooked beef lines that can go through
the microwave are a major reason for the turnaround in beef demand.”
The Atkins’ high protein diet has been given credit by some
for continuing beef demand. If this is true, in turn it has been aided
by the availability of new beef lines, which are quick and easy for
the consumer to prepare.
Muscle profiling research was behind the successful development of
value cuts such as the flat iron steak and the petite (shoulder) tender,
both derived from the chuck. These items have been part of an industry
drive to enhance the value of the chuck and round, thereby increasing
the value of the entire beef carcass and, thus, producers’ opportunity
for profit.
Increased checkoff funding and the beef industry’s focus on
new product development, especially on cuts from the underutilized
chuck and round, began in 1998. According to Cattle-Fax, the value
of the beef carcass from fed animals has increased about $15 per hundredweight
(cwt) since then, with the increased value of the chuck alone worth
about $6/cwt. This means producers receive about $50 to $70 more per
head as a result of the increase in chuck value.
More than 5,500 muscles from the chuck and round were analyzed during
the initial muscle profiling research. Researchers discovered that
several muscles traditionally used for ground beef or roasts had potential
to be used for higher value products. It was the most extensive study
ever of beef muscles.
Findings from the research helped change industry thinking about how
best to cut and use the muscles. Comprehensive information on the
muscles, as well as training to help the industry turn the research
into new products, has been conducted since the research was completed.
The progress that has been made in developing new beef items has been
tremendous. If you have been directly involved in the process of developing
and introducing a new product, then you can realize the challenges.
Development of each new item or product requires a great degree of
time and money. In this case, the time, effort, and expenses were
worth the investment.
At the ag media meeting, experts showed how the chuck was broken down,
and steaks such as the flat iron and petite tender were removed. As
this was taking place, the flat iron, petite tender and other steaks
were professionally cooked and sampled by the attendees. This was
about as close to hands-on experience as you could get. The steaks
were delicious, tender, and flavorful. It was hard to believe they
came right out of the chuck. ©
