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. 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. 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. 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. Economic recession
Beef demand falls
Cattle numbers drop to historic levels
Cattle and beef prices reach record high levels
Early 20th Century
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. 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
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. 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. Typically peaks in spring and fall when middle meat
demand is strongest and cattle supplies are lowest
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. Best prices during colder winter months (cooking
methods)
Increase in price due to new steak cuts
(Flat Iron, Petite Tender, etc.)
16. Higher prices in spring result of limited supply, especially
for Choice
17. Similar to Chucks; peak during colder months
Prices decline in summer due to increased supply +
decreased demand
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. 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. 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. 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. Not more than “minimally processed”
Label must explain “natural”
i.e., no added colorings or artificial ingredients
LABELING CLAIMS
Natural Beef
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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