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Explore the world of red meat production, from sources like swine, sheep, and cattle to the process of slaughter and meat production. Discover the breakdown of a carcass, wholesale and retail cuts, and the composition of red meat. Learn about the marketing strategies in the livestock industry and the utilization of the futures market for risk management. Dive into the food service industry and its growing role in the red meat market.
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Animal Products Red Meat Products
Red Meat Products • Sources • Swine • Sheep • Horses Poultry is often called white meat
Red Meats • Cattle • Beef is from cattle greater than 1 yr of age • Veal is from calves less than 3 months of age • Grey color tint • Swine • Pork • Sheep • Lamb is from young sheep less than 1 year of age • Goats
World Ranking for red meat supply • 1. • 2. United States • Red meat ranking • 1. • 2.
Slaughter • Animals transported to packing plant alive • Animal made unconscious • Electricity • Jugular and/or carotid artery severed to drain blood from animal • Hide is removed • Hogs are scalded to remove hair • Skin is usually left on • Viscera, head, and other by-products are removed • Often referred to as offal
Dressing Percentage • Average Dressing Percentages • Hogs – 70-75% • Cattle – 60-65% • Sheep – • Goats – 45-50% • Primary factors affecting dressing percentage: • Fill (digestive tract fill) • Weight of wool • Muscle
Slaughter Continued • Following offal removal • Carcasses are split, washed, and chilled • Pork and beef • Aging • Improves tenderness of meat • Not common in large packing plants • Many plants process carcasses into wholesale cuts or retail cuts • Boxed beef; boxed pork; boxed lamb • Shipped from packing plant as a retail cut
Breakdown of a Carcass • Wholesale Cuts
Primal Cuts • Beef- • Round, Loin, Rib, Chuck • Lamb- • Pork- • Boston Butt, Picnic Shoulder, Loin, Belly, Ham
Red Meat Composition • Physical – visual observations • Lean • Fat • Intermuscular • Bone • Connective tissue • Tendons attach muscle to bone • Other connective tissue holds muscle together
Red Meat Composition • Chemical – determined by chemical analyses • Chemical composition of lean meat determines nutritional value • 65-75% water • 15-20% protein • 2-12% fat • 1% minerals • As animals age fat percentage increases while water and protein percentages decrease • Fat soluble vitamins • Contained in fat • A, D, E, and K • Water soluble vitamins • Abundant in muscle • B – vitamins • Carbohydrates • Less than 1% • Glycogen • “Dark cutters”
Markets • Terminal Markets • Direct Packer Buying • Public Auctions (sale barns; “ebay”) • Auctioneer sells animals to highest bidder • Open to public • Seller pays commission to sale barn • Typical feeder livestock and cull breeding stock
Marketing • Traditionally animals were purchased on live weight basis • Buyer estimates the value of the carcass and makes offer • Now, an increased number of animals are sold on a carcass merit basis • Seller is paid based on what is actually determined to present in the carcass
Ways to Market Livestock • Carcass merit index
Livestock Marketing Terminology • Shrink • ADG
Futures Market Terminolgy • Short • Hedge • How can the futures market be utilized as a risk management tool?
Food Service Industry • Rapidly growing • Capture high market share • McDonald’s • Quality assurance