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Industry History
 Industry History and Background
 Economic Factors
 U.S. Imports and Exports
 Beef Price Cycles
 Beef Production in t...
Industry History and Background
1400s 1500s 1600s 1700s 1800s Late 1800s
Cattle reach
Texas, California
from Mexico
Cattle...
 Chicago/Kansas City epicenter for sorting, distributing
cattle via rail
 Packers/processors also at rail centers
 Refr...
 Federal Meat Grading System, 1920s
 Federal Interstate Highway System, 1950s
 No longer dependent on railways
 From C...
 Economic recession
 Beef demand falls
 Cattle numbers drop to historic levels
 Cattle and beef prices reach record hi...
 From producer-driven to consumer-driven
 Beef demand in rapid decline
 “War on Fat,” 1990
 “Taste Fat” vs. “Waste Fat...
Variables Impacting Beef’s
Profitability
+750,000
U.S. Farmers and
Ranchers
Average
herd size
44
89.2
million
cattle
(2012...
Economic Factors Affecting
Supply and Demand
Top exporters
of beef
Top U.S. export
market
Top US beef
supplier
 The U.S. has 8% of the world’s cattle and produces 21%
of the world’s beef
 The U.S. remains the largest importer of be...
 The U.S. was the #3 exporter of beef in 2010, behind
Brazil (#1) and Australia (#2)
 2010 exports were 2.3 billion poun...
 Typically peaks in spring and fall when middle meat
demand is strongest and cattle supplies are lowest
 Bulk of cows used for lean trimmings are marketed in the
fall, resulting in lower prices
 Tighter supply + grilling dem...
 Best prices during colder winter months (cooking
methods)
 Increase in price due to new steak cuts
(Flat Iron, Petite T...
 Holiday celebrations and summer grilling increase
demand and price
 Higher prices in spring result of limited supply, especially
for Choice
 Similar to Chucks; peak during colder months
 Prices decline in summer due to increased supply +
decreased demand
 Family owned/operated industry
U.S. Beef Production
80% in same family for 25+ years
10% in same family for 100+ years
...
 Seedstock Producer, grassland based
 “Purebred” segment
 Genetic base for breeding stock
 Cow/Calf Producer, grasslan...
 Harvest finished
cattle
 Fabricate
carcasses into
subprimal cuts
 Sort and “box”
beef
 Market to
purveyors,
processor...
 May be marked by product specifications or production
standards
 May include such factors as:
 Specific breed influenc...
 Not more than “minimally processed”
 Label must explain “natural”
 i.e., no added colorings or artificial ingredients
...
 Cattle MUST:
 Be raised separately
 Have access to pasture, though many are feedlot
finished
 Be fed 100% organically...
 Prohibited:
 Synthetic pesticides on pastures
 Sewage sludge for fertilization of feedstuffs
 Irradiation on beef pro...
 Feeding regimen for livestock raised on
 Grass, green or range pasture, forage
 Shall be 80% or more of the primary en...
 Single most sustainable, renewable form of agriculture
that produces an amazingly nutrient-dense source of
protein
 Ame...
Beef Industry History: QUIZ
1. The American beef industry raises cattle in how many
states?
A. 37
B. 3
C. All 50
D. 15
Beef Industry History: QUIZ
2. What percentage of the American beef industry’s farms
and ranches have been family-owned an...
Beef Industry History: QUIZ
4. Who fabricates carcasses into subprimal cuts?
A. Stocker
B. Seedstock producer
C.Packer
D.P...
Beef Industry History: QUIZ
6. Which is not true of certified-organic beef?
A. Cattle may be given vitamin or mineral supp...
Beef Industry History: QUIZ
7. For beef to be labeled grass-finished, at least what
percentage of the cattle’s primary lif...
Beef Industry History:
QUIZ KEY
1. C. All 50 (See slide 18)
2. A. 90% (See slide 18)
3. True (See slide 19)
4. C. Packer (...
Resources
 FactsAboutBeef.com
http://factsaboutbeef.com/
 Beef industry statistics
http://www.beefusa.org/beefindustryst...
Resources
 USDA Agricultural Marketing Service
 Standardization and Technology Division
http://www.ams.usda.gov/AMSv1.0/...
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Beef U - Industry History

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Learn about the history of beef in the food service industry.

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Transcript of "Beef U - Industry History"

  1. 1. Industry History
  2. 2.  Industry History and Background  Economic Factors  U.S. Imports and Exports  Beef Price Cycles  Beef Production in the U.S. Intro to the Beef Industry
  3. 3. Industry History and Background 1400s 1500s 1600s 1700s 1800s Late 1800s Cattle reach Texas, California from Mexico Cattle industry emerging in Florida Cattle reach New England/ New York from England, Northern Europe Cattle business thriving; focused west Family owned/managed Produce 4-5 yr. old grass-fed steers; shipped by live train
  4. 4.  Chicago/Kansas City epicenter for sorting, distributing cattle via rail  Packers/processors also at rail centers  Refrigerated rail cars invented by G.F. Swift  Larger packers operated regional shipping/distribution  New York, Boston, Philadelphia 19th Century
  5. 5.  Federal Meat Grading System, 1920s  Federal Interstate Highway System, 1950s  No longer dependent on railways  From Carcass to Primal Cuts  Boxed beef  Led to vacuum packaging  Led to block-ready, boneless, case-ready beef 20th Century
  6. 6.  Economic recession  Beef demand falls  Cattle numbers drop to historic levels  Cattle and beef prices reach record high levels Early 20th Century
  7. 7.  From producer-driven to consumer-driven  Beef demand in rapid decline  “War on Fat,” 1990  “Taste Fat” vs. “Waste Fat”  Revived interest in quality which helped rebuild demand Late 20th Century
  8. 8. Variables Impacting Beef’s Profitability +750,000 U.S. Farmers and Ranchers Average herd size 44 89.2 million cattle (2012) Beef production 43.4 billion lbs. Gross income of cattle $52 billion total inventory value $110 billion $74 billion Total consumer expenditures
  9. 9. Economic Factors Affecting Supply and Demand Top exporters of beef Top U.S. export market Top US beef supplier
  10. 10.  The U.S. has 8% of the world’s cattle and produces 21% of the world’s beef  The U.S. remains the largest importer of beef globally, buying 2.3 billion pounds in 2010 valued at $2.83 billion  80% of the beef imported into the U.S. comes from Canada, Australia and New Zealand; mainly lean grinding beef for fast food hamburgers Imports
  11. 11.  The U.S. was the #3 exporter of beef in 2010, behind Brazil (#1) and Australia (#2)  2010 exports were 2.3 billion pounds valued at $3.53 billion  The U.S. currently exports 10-11% of production  Top export markets include: Mexico, South Korea, Japan and Canada (~70% of total beef exports)  The U.S. exported beef to 146 countries in 2010 Exports
  12. 12.  Typically peaks in spring and fall when middle meat demand is strongest and cattle supplies are lowest
  13. 13.  Bulk of cows used for lean trimmings are marketed in the fall, resulting in lower prices  Tighter supply + grilling demand support prices in spring/summer
  14. 14.  Best prices during colder winter months (cooking methods)  Increase in price due to new steak cuts (Flat Iron, Petite Tender, etc.)
  15. 15.  Holiday celebrations and summer grilling increase demand and price
  16. 16.  Higher prices in spring result of limited supply, especially for Choice
  17. 17.  Similar to Chucks; peak during colder months  Prices decline in summer due to increased supply + decreased demand
  18. 18.  Family owned/operated industry U.S. Beef Production 80% in same family for 25+ years 10% in same family for 100+ years  Cattle raised in all 50 states  Various cattle breed types and crossbred cattle  Adapt to various conditions
  19. 19.  Seedstock Producer, grassland based  “Purebred” segment  Genetic base for breeding stock  Cow/Calf Producer, grassland based  Combine genetic lines to best meet market demand (crossbreeding)  Sells to stocker or feedlots  Stocker  Specialized segment  Use grasslands as natural resource  Sells to feedlots for grain-based finishing  Feedlot  Use higher energy diets to achieve rapid gains to create the world's highest-quality beef products U.S. BEEF PRODUCTION At the Ranch
  20. 20.  Harvest finished cattle  Fabricate carcasses into subprimal cuts  Sort and “box” beef  Market to purveyors, processors U.S. BEEF PRODUCTION From Packer to Market to Table  Fabricate boxes of subprimal cuts  Sell to foodservice operators, retailers  Present product to consumer Packers Purveyors/ Processors Foodservice Operators/Retailers
  21. 21.  May be marked by product specifications or production standards  May include such factors as:  Specific breed influence  Quality standards based on USDA grading  Specific product characteristics LABELING CLAIMS Branded Beef Products
  22. 22.  Not more than “minimally processed”  Label must explain “natural”  i.e., no added colorings or artificial ingredients LABELING CLAIMS Natural Beef
  23. 23.  Cattle MUST:  Be raised separately  Have access to pasture, though many are feedlot finished  Be fed 100% organically grown feed (grains and forage)  Be treated when sick  When treated with antibiotics, must be removed from program  Cattle MAY:  Be provided certain vitamin and mineral supplements  Cattle MAY NOT:  Be given antibiotics or enhancers for any reason (or must be removed from program) LABELING CLAIMS Certified Organic
  24. 24.  Prohibited:  Synthetic pesticides on pastures  Sewage sludge for fertilization of feedstuffs  Irradiation on beef products  Producers must be certified through USDA’s Agricultural Marketing Service (AMS) LABELING CLAIMS Certified Organic
  25. 25.  Feeding regimen for livestock raised on  Grass, green or range pasture, forage  Shall be 80% or more of the primary energy source throughout animal’s life LABELING CLAIMS Grass-Finished Beef
  26. 26.  Single most sustainable, renewable form of agriculture that produces an amazingly nutrient-dense source of protein  American beef industry dates back to 1500s  Railroads, federal highways revolutionized industry  Federal regulation began in 1920s  Focus moved from producers to consumers in late 20th century  Tough to manage supply and demand for beef  Industry is major contributor to U.S. economy  U.S. a top importer and exporter of beef  Beef cuts experience seasonal shifts in price/demand  Specialty beef requires special labeling Summary
  27. 27. Beef Industry History: QUIZ 1. The American beef industry raises cattle in how many states? A. 37 B. 3 C. All 50 D. 15
  28. 28. Beef Industry History: QUIZ 2. What percentage of the American beef industry’s farms and ranches have been family-owned and/or – operated for at least 25 years? A. 90% B. 10% C.80% D.None 3. True or false: U.S. feedlots use higher-energy diets to achieve the rapid gains that create the world’s highest- quality beef products.
  29. 29. Beef Industry History: QUIZ 4. Who fabricates carcasses into subprimal cuts? A. Stocker B. Seedstock producer C.Packer D.Purveyor/processor 5. True or false: “Natural” beef can be processed to a considerable extent.
  30. 30. Beef Industry History: QUIZ 6. Which is not true of certified-organic beef? A. Cattle may be given vitamin or mineral supplements B. Cattle may receive antibiotics to treat illness C.Cattle may be feedlot-finished D.Cattle must be fed 100% organically grown feed
  31. 31. Beef Industry History: QUIZ 7. For beef to be labeled grass-finished, at least what percentage of the cattle’s primary lifetime energy source must be grass, green or range pasture or forage? A. 100% B. 50% C.60% D.80%
  32. 32. Beef Industry History: QUIZ KEY 1. C. All 50 (See slide 18) 2. A. 90% (See slide 18) 3. True (See slide 19) 4. C. Packer (See slide 20) 5. False (See slide 22) 6. B. Cattle may receive antibiotics to treat illness (See slide 23) 7. D. 80% (See slide 25)
  33. 33. Resources  FactsAboutBeef.com http://factsaboutbeef.com/  Beef industry statistics http://www.beefusa.org/beefindustrystatistics.aspx  Beef Industry Social Responsibility Report http://www.beeffoodservice.com/beefindustrywhoweare.as px  About Beef Production http://beefretail.org/beefproduction.aspx  Choices of Beef fact sheet http://www.beefnutrition.org/CMDocs/BeefNutrition/Choice sofBeef_Final_web.pdf
  34. 34. Resources  USDA Agricultural Marketing Service  Standardization and Technology Division http://www.ams.usda.gov/AMSv1.0/LSSTDZ  Meat Certification Services http://www.ams.usda.gov/AMSv1.0/LSMeatGradingCe rtificationServices • USDA Claims Guidance http://www.fsis.usda.gov/wps/portal/fsis/topics/regulatory- compliance/labeling/Claims-Guidance  USDA Labeling Procedures http://www.fsis.usda.gov/wps/portal/fsis/topics/regulatory- compliance/labeling/labeling-procedures
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