Industry History.  Industry History and Background  Economic Factors  U.S. Imports and Exports  Beef Price Cycles  Beef Production in the U.S. Intro

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  • Slide 1
  • Industry History
  • Slide 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
  • Slide 3
  • Industry History and Background 1400s1500s1600s1700s1800sLate 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
  • Slide 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 INDUSTRY HISTORY AND BACKGROUND 1800s
  • Slide 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 INDUSTRY HISTORY AND BACKGROUND 20 th Century
  • Slide 6
  • Economic recession Beef demand falls Cattle numbers drop to historic levels Cattle and beef prices reach record high levels INDUSTRY HISTORY AND BACKGROUND Early 20 th Century
  • Slide 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 INDUSTRY HISTORY AND BACKGROUND Late 20 th Century
  • Slide 8
  • ECONOMIC FACTORS Variables Impacting Beefs Profitability 140,000+ U.S. Farmers and Ranchers Average herd size 42 92.6 million cattle (Jan 11) Beef production 26.3 billion lbs. Gross income of cattle $45.3 billion total inventory value $100 billion $74 billion Total consumer expenditures
  • Slide 9
  • Economic Factors Affecting Supply and Demand Top exporters of beef Top US export market Top US beef supplier
  • Slide 10
  • The U.S. has 8% of the worlds cattle and produces 21% of the worlds 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
  • Slide 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
  • Slide 12
  • Typically peaks in spring and fall when middle meat demand is strongest and cattle supplies are lowest
  • Slide 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
  • Slide 14
  • Best prices during colder winter months (cooking methods) Increase in price due to new steak cuts (Flat Iron, Petite Tender, etc.)
  • Slide 15
  • Holiday celebrations and summer grilling increase demand and price
  • Slide 16
  • Higher prices in spring result of limited supply, especially for Choice
  • Slide 17
  • Similar to Chucks; peak during colder months Prices decline in summer due to increased supply + decreased demand
  • Slide 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
  • Slide 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
  • Slide 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 PackersPurveyors/ Processors Foodservice Operators/Retailers
  • Slide 21
  • Not more than minimally processed Label must explain natural i.e., no added colorings or artificial ingredients LABELING CLAIMS Natural Beef
  • Slide 22
  • 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
  • Slide 23
  • Prohibited: Synthetic pesticides on pastures Sewage sludge for fertilization of feedstuffs Irradiation on beef products Producers must be certified through USDAs Agricultural Marketing Service (AMS) LABELING CLAIMS Certified Organic
  • Slide 24
  • Feeding regimen for livestock raised on Grass, green or range pasture, forage Shall be 80% or more of the primary energy source throughout animals life LABELING CLAIMS Grass-Finished Beef
  • Slide 25
  • 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 20 th 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 Beef Industry Summary