The economy and the beef industry.

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NC Liz 2

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WASHINGTON, D.C., FEB. 2, 2014 - The U.S. cattle industry needs to change the way it produces beef if it is to stay competitive in what has become a "ground beef nation,'' according to Don Close, an economist for the Rabobank Food and Agribusiness Research and Advisory Group.
In a report, Close says producers continue to over-focus on producing quality steak while cost-conscious Americans are switching to other proteins and eating more ground beef in the form of burgers, sauces and tacos at home and in fast-food restaurants. The report was released on the eve of the opening of the National Cattlemen's Beef Association's annual convention, in Nashville.
http://www.agri-pulse.com/cattle-indust ... 042014.asp

Have you or are any of you CAB producers considering changing breeds from a quality breed to quantity breed?
I have noticed several "heards" in my area going from black to white.
Liz
 
Black to white? Oh do you meant THAT farm that you "work" at that have black angus and Charolais, SirLion? Why we should switch black cattle to purebred Charolais? Also I thought ground beef comes from the Holstein steers and the culls?
 
I would guess they could grind the loin if that is where the best market is. On the other hand it is not easy to make a good steak out of grinding beef and 60/40 trim.
 
by Sir Loin » Wed Feb 13, 2013 6:55 am
Reprint:

Re: The beef cattle market over the next 10 years
by Sir Loin » Tue Jan 15, 2013 9:35 am
Thanks guys, that is pretty much the same as I saw it, up until about November when I starting asking myself " why am I seeing white cows in pastures that have been all black for the past 20 years".
In my area it was rare to see anything other then black Angus.

Then I ran across a post over on the "think tank" titled " The bloom is off the rose".
In short the concusses of opinion was/is that demand has shifted from quality to quantity and CAB is on its way out.
It was/is further agreed:
US inventory of beef cattle will continue to decline as will the demand for prime beef, while demand for choice beef cattle will remain constant or go up.

Beef cattle prices, for prime beef cattle will go down, while choice cattle prices will remain the same or go up.
Consumer prices for beef will go up slightly but be packaged in smaller quantities and/or new cuts will keep consumer prices constant per meal.

Dairy industry beef prices will go down.

With that in mind I now know why staunch black Angus breeders are now crossing their Angus with Chars.
Simply put: They are now willing to give up quality for quantity to increase profit by producing a larger animal of lesser quality.
Makes perfect sense to me. How about you?
SL
viewtopic.php?f=8&t=82117&p=991913&hilit=black+Angus+to+Charolais#p991913

Took a while but I found it! Thanks for reminding me of that Taurus.
Looks like the " Think Tank" scored a bulls-eye on this one over a year ago.

FYI:
Just spoke to SL and he said they just sold some 800 lb open Char heifers for $1,600 and change each.
And he said they expect them to reach $1,800 in the spring.
Liz
 
Fajitas originated from the cheapest cut available. Americans have always used inginuity. Got to a restaurant now and people are ordering fajitas. Chicken ones too. They no longer come from the worst cut of meat.

CAB may be in trouble if people can't pay for the "premium". Producers are going to produce what earns the most profit. I have my climate and I have my grass to consider, just as always.

Breed crazes have come and gone. Remember the Gert craze of the 60's? Chars in the 70's.

People gotta eat. I gotta make a profit or else I quit. Don't really see things much different than they have always been.

What brings the most nickels at the sale barn? What does it take to produce the most profit from my resources? Some people have gone to goats. That is a long way from where they were.
 
Um... The price on good lean ground is getting high...
Our sale barn has been getting higher and higher on a good slaughter cow, going over a dollar a pound on the hoof.
It's really not much more to buy a quality quarter direct from the farm vs. ground.
Even privately sold ground with no middle man is going 3.50-4.00/lb in my area, let alone what organic or grass fed prices are.

And higher end grocers go even higher.
Beef in general is going high because they're is a "shortage"
Herd numbers aren't what they used to be because of drought reducing them and other factors of nature.
There really is money to be made in all areas of the beef industry.
Especially since ground no longer goes cheap.
The only time you see cheap ground is when you come across the 70/30 garbage, even that has a high enough price tag.
 
Running Arrow Bill":j5deyb40 said:
We sell our 95% to 98% lean grass fed Longhorn ground beef for $6.00 a pound.

Bill I drive right by your place from time to time
If you ever find 6.00 in your mail box put me a pound in there and I'll pick it up on my way back through
 
Most speciality beef are sold at the meat markets. Our local meat market has a huge selection of beef and other meats that you will never see them at your typical supermarkets.
 
Running Arrow Bill":pvyy5qik said:
We sell our 95% to 98% lean grass fed Longhorn ground beef for $6.00 a pound.

There's a heart patient in Fort Worth that needs to hook up with you. His Doc tells him he can eat allt he beef he wants, provided it is LH. I sent him a link to your website.
 
backhoeboogie":21piih7v said:
Running Arrow Bill":21piih7v said:
We sell our 95% to 98% lean grass fed Longhorn ground beef for $6.00 a pound.

There's a heart patient in Fort Worth that needs to hook up with you. His Doc tells him he can eat allt he beef he wants, provided it is LH. I sent him a link to your website.

That's the nice thing about these lean breeds.
I have two cousins that are customers of my brother since their heart attacks, they get to enjoy just as much red meat as they did before with our BB cross and don't get one bit of grief from their doctors.
:)
 

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