Overview of the Beef Industry

Miss Meyers

Animal Science

Overview of the Beef Industry■ The Bottom Line■ The cattle industry plays an

integral role in the country’s economic growth and well being, and has done so since this country was formed. More than 1 million cattlemen and women do business in a free-market economy, and represent the largest single segment of American Agriculture.

Beef in the U.S. Agricultural Economy■“Beef is King”■The largest single segment of the U.S. agricultural economy is beef production, with cattle representing about 18 percent of total farm sales.■The gross annual income

from the U.S. beef amounts

to $35 billion.

Things to Know:

■ Cattle and calves rank in the top 5 commodities for 32 of the 50 states

■ The USA produces over 20% of the world’s beef.

■ The PURPOSE of the beef cattle industry:

■ 1.Protein supply■ 2.Graze on

grassland■ 3. Vast amounts of

crop wastes and food byproducts utilized.

History of Beef Cattle■ Domestication

occured around 6500 B.C.

■ Columbus brought cattle to the West Indies on his second voyage in 1493.

■ Spanish missionaries distributed cattle across the midwest (19th century)

History cont. ■ After WORLD WAR II specific changes happened:❑ Grain-fed beef❑ Refrigeration❑ Better fencing❑ New industry segment of -

boxed beef which occurred in the 70’s

❑ 1980’s health craze hurt the consumption of red meat, but recovered in the decades that followed.

Beef Industry Highlights

■ Agriculture is responsible for more than 22 million jobs — Beef production itself is a major employer, with the more than 186,000 full-time jobs on farms and ranches creating more than 1 million more jobs throughout the economy.

■ Beef is consumed 77.8 million times each day across America. And, about 9 in 10 households will serve in a two week period. That percentage has remained fairly stable over the past decade.

Cattle and Beef Marketing Channels7 Levels of Production■Purebred/Seedstock ■Commercial

❑ Cow/Calf❑ Stocker

■Feedyard■Packer■Processor■Retailer/Foodservice Operators■Consumer

Purebred Beef Cattle■ The purebred segment, these

producers build the genetics that will be utilized as breeding stock that is marketed to the cow/calf segment- SEEDSTOCK

■ While there are more than 50 different breeds in the U. S., only a handful — 10 or so — contribute a significant volume of genetics to the industry. Genetics are originated based on their ability to serve the beef system through efficient production, as well as the consumer through creation of the highest quality beef possible.

■ Registered Beef Cattle Associations❑ Breed Publications, Advertising

■ EPD’s

Commercial Beef Cattle Operations■ Commecial Cow/Calf

❑ Also known as commercial cattlemen, these producers may cross as many as four different breeds together to produce the bulk of cattle that will ultimately be grain-fed for harvest. Commercial cattlemen sell weaned calves (usually 6-10 months old weighing 300-600 lbs.) to stocker operators or feedlots. Some may retain ownership of their calves through the finishing phase.

■ Most large-scale operations use public lands to keep production costs low.

Stocker■ Cattlemen in this segment

purchase weaned calves, then graze them until they weigh as much as 900 pounds, usually when they are about 12 months of age, or yearlings.

■ They then sell them to feedlots.

■ Adding weight to cattle transforms natural resources from rangeland- which has no other purpose- into an energy source humans can use.

Commercial Feed Yard■ Feedlot

❑ Feedlots may purchase weaned calves from the cow/calf segment or cattle from the stocker segment, finishing them to harvest weights of 1100-1400lbs. Normally, cattle are on feed anywhere from 110 to 250 days, depending on purchase and targeted harvesting weights. These animals are then marketed to packers.

Packers■ Beef packers harvest

finished cattle purchased from feedlots, fabricating the beef carcasses (typically 600-800 lbs.) into boxes of “sub primal” cuts, such as the top round, tenderloin or sirloin. The boxed beef is then marketing to purveyors/processors or retailers, who cut the beef into products and sizes appropriate for consumers today.

■ Yosemite Meats is an example

Processor/Purveyor ■ This segment fabricates boxes of

sub primal cuts into the cuts familiar to consumers. Often this segment will market to the hotel, restaurant and institution (HRI) trade, which has no production capabilities. Many grocery stores, though, which in the past have purchased directly from packers and done their own meat cutting, are now buying further-processed cuts and beef items for direct sale to consumers.

Retailers & Foodservice Operators■ The segment closest to the consumer is

the link in the chain buying from purveyors, processors or packers, then presenting products to consumers for their purchase. Because they directly depend on consumers, these marketers watch for trends and styles that may affect consumer demand for beef.

Consumer■ When domestic and

international consumers purchase American beef, either in the grocery store or as part of a meal away from home (dining out), they influence subsequent decisions made by every other segment in the beef system. THAT’S YOU AND ME!

Specialty Markets■ Show Cattle

❑ Club Calves

■ Roping Steers■ Equestrian Event Cattle■ Organic Grown Beef

Cattle■Grass-fed beef■ Branded Beef

References■ National Beef Cattle Association Web Site ■ Texas Beef Council Web Site■ Day Show Cattle Web Site■ TAMU Animal Science■ Beefmaster Breeders United Web Site■ Jordan Cattle Company Web Site■ The Show Box “TCCA” Web Site■ USTRC Web Site■ Buckaroo Beef Web Site■ Nolan Ryan Tender Aged Beef Web Site