DEVELOPMENT OF BEEF DEVELOPMENT OF BEEF INDUSTRY IN U.S.A. and INDUSTRY IN U.S.A. and

IOWA IOWA

HistoricalHistorical

1900-19701900-1970– Cow-calf industry originally Cow-calf industry originally

developed in southeast and moved developed in southeast and moved to southern and western range to southern and western range statesstates

– Feeder cattle moved to corn belt Feeder cattle moved to corn belt states for feeding states for feeding

HistoricalHistorical

1970-19801970-1980– Cattle feeding shifted to south and west Cattle feeding shifted to south and west

of IA – re:of IA – re:

1. 1. Irrigation availableIrrigation available

2.2. N fertilizer cheapN fertilizer cheap

3.3. Processing of grain – milo and Processing of grain – milo and corncorn

4.4. Large lots of cattle and more Large lots of cattle and more business orientedbusiness oriented

5.5. Result packers also movedResult packers also moved

HistoricalHistorical

1980-present1980-present– IA 5th or 6th in feedlot no. – could be IA 5th or 6th in feedlot no. – could be

leader with corn coproducts, reason leader with corn coproducts, reason probably will not occur:probably will not occur:

1.1. Corn producers enjoy less work Corn producers enjoy less work and maybe less riskand maybe less risk

2.2. Attitude of people towards Attitude of people towards cattle feedlotscattle feedlots

3.3. Environmental regulationsEnvironmental regulations

HistoricalHistorical

1980-present1980-present– 10 + packers have left state – 1 10 + packers have left state – 1

remainingremaining– Market cattle wt. are heavier at ~ 1250 Market cattle wt. are heavier at ~ 1250

lb. and probably will remain:lb. and probably will remain:

1.1. Packing plants build to Packing plants build to accommodateaccommodate

2.2. Provide desirable cut sizeProvide desirable cut size

3.3. Young cattle 15-22 mo. of age Young cattle 15-22 mo. of age that will grade and remain leanthat will grade and remain lean

HistoricalHistorical

1980-present1980-present

– Currently IA 2nd to CA in Ag Exporting Currently IA 2nd to CA in Ag Exporting ($)($)

Beef markets Beef markets DomesticDomestic

Per capita consumption (lb.)Per capita consumption (lb.)

19701970 79.679.6 19851985 74.774.7 20002000 64.764.719751975 83.283.2 19901990 64.164.1 2004 2004 65.265.219801980 72.272.2 19951995 63.763.7

50

55

60

65

70

75

80

85

1965 1970 1975 1980 1985 1990 1995 2000 2005

Beef markets Beef markets

DomesticDomestic

– Branded-certified products increasingBranded-certified products increasing

– Niche markets growing: Niche markets growing:

Beef markets Beef markets

Foreign-rankForeign-rank

1.1. 2.2. 3.3. TaiwanTaiwan4.4. Caribbean – Bahamas, Dom. Republic, Caribbean – Bahamas, Dom. Republic,

Trinidad, TobagoTrinidad, Tobago5.5. JapanJapan

One to watch in ChinaOne to watch in China

Impacting beef Impacting beef consumption in U.S.A.consumption in U.S.A. Young and leaner beefYoung and leaner beef

Higher quality – yield and quality Higher quality – yield and quality gradesgrades

Impacting beef Impacting beef consumption in U.S.A.consumption in U.S.A.

Cost relative to other foods Cost relative to other foods (Cost/oz.)(Cost/oz.)

– Salad dressing mixSalad dressing mix 1.871.87– Sugar free jelloSugar free jello 1.361.36– Corn chipsCorn chips .90.90– LobsterLobster .37.37– Breakfast cerealBreakfast cereal .18.18– Peanut butterPeanut butter .13.13– MayonnaiseMayonnaise .09.09– Ground beefGround beef .07.07– Round steakRound steak .08.08– Sirloin steakSirloin steak .14.14– Porterhouse steakPorterhouse steak .20.20

Nutrition Nutrition ProteinProtein::

Percentage Amino Acid MakeupPercentage Amino Acid MakeupAmino acidAmino acid BeefBeef Zoin (Corn) Zoin (Corn) ArginineArginine 6.46.4 1.81.8CystineCystine 1.31.3 .8.8HistidineHistidine 3.33.3 1.21.2Isoleucine*Isoleucine* 5.25.2 4.34.3Leucine*Leucine* 7.87.8 23.723.7Lysine*Lysine* 8.68.6 0.00.0Methionine*Methionine* 2.72.7 2.32.3Phenylalamine*Phenylalamine* 3.93.9 6.46.4Theonine*Theonine* 4.54.5 2.22.2Tryptophan*Tryptophan* 1.01.0 0.20.2TyrosineTyrosine 3.03.0 5.95.9Valine*Valine* 5.15.1 1.91.9TotalTotal 52.852.8 50.750.7

• Essential to mEssential to m

NutritionNutrition

Lipid (fat):Lipid (fat):

NutritionNutrition

Minerals:Minerals:Select grade beefSelect grade beef

Recommended dailyRecommended daily mg./100 g., mg./100 g.,MineralMineral allowance for man (mg.)allowance for man (mg.) edible portionedible portionCalciumCalcium 800800 1010PhosphorousPhosphorous 800800 152152IronIron 1010

18 (women)18 (women) 2.52.5SodiumSodium ------ 6565PotassiumPotassium 12501250 355355MagnesiumMagnesium 350350 1818

NutritionNutrition

Vitamins:Vitamins:Select grade Select grade

beefbeef

Recommended dailyRecommended daily mg. or I.U./100 mg. or I.U./100 g.,g.,

VitaminVitamin allowance for manallowance for man edible portionedible portion

Vitamin A, I.U.Vitamin A, I.U. 5000.05000.0 60.0060.00

Vitamin D, I.U.Vitamin D, I.U. 400.0400.0 --------

Thiamin, mg.Thiamin, mg. 1.51.5 .07.07

Riboflavin, mg.Riboflavin, mg. 1.61.6 .15.15

Niacin,mg.Niacin,mg. 18.018.0 4.004.00

Vitamin C, mg.Vitamin C, mg. 45.045.0 --------

Healthy Healthy

Animal fats contain cholesterol:Animal fats contain cholesterol:– Saturated fats tend to raise cholesterol Saturated fats tend to raise cholesterol

and polyunsaturated fats tend to lower and polyunsaturated fats tend to lower cholesterol.cholesterol.

– Cholesterol, fats, etc. are deposited on Cholesterol, fats, etc. are deposited on inner lining of blood vessels forming a inner lining of blood vessels forming a mass called atheroma; calcium mass called atheroma; calcium deposited in atheroma causes hardening deposited in atheroma causes hardening of arteries, known as Atherosclerosisof arteries, known as Atherosclerosis

Healthy Healthy

Animal fats contain cholesterol:Animal fats contain cholesterol:– 3 oz. of beef contains approximately 75 3 oz. of beef contains approximately 75

mg. of cholesterolmg. of cholesterol Average daily diet of meat, milk and eggs Average daily diet of meat, milk and eggs

contains about 300-550 mg. of contains about 300-550 mg. of cholesterolcholesterol

Normal human body requires about 1000 Normal human body requires about 1000 mg. of cholesterol per day – difference is mg. of cholesterol per day – difference is synthesized in liversynthesized in liver

Cholesterol: essential part of the Cholesterol: essential part of the structure of cell membranes: starting structure of cell membranes: starting material for production of sex and adrenal material for production of sex and adrenal hormones: also converted to vitamin Dhormones: also converted to vitamin D

Healthy Healthy

Animal fats contain cholesterol:Animal fats contain cholesterol:

– Research does not show solid evidence Research does not show solid evidence of relationship between heart disease of relationship between heart disease and consumption of animal productsand consumption of animal products

– Note: recent years heart disease Note: recent years heart disease increasing and beef products are leanerincreasing and beef products are leaner

Healthy Healthy

Residues:Residues:

– Feed additives and implants – FDA does Feed additives and implants – FDA does not permit:not permit:

1.1. Sale of any drug that leaves a Sale of any drug that leaves a residue – all products have withdrawal timeresidue – all products have withdrawal time

2.2. Use of any drug proved to be Use of any drug proved to be harmful, regardless of whether or not harmful, regardless of whether or not residues occurresidues occur

Future for beef Future for beef productionproduction Fits concept of sustainable Fits concept of sustainable

agricultureagriculture

Use of co-productsUse of co-products

Provide leaner and thus more Provide leaner and thus more nutritional foodnutritional food

Value addedValue added