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CAB® and the High Quality Beef Market Certified Angus Beef LLC. Outline. Overview of the Certified Angus Beef® brand and defining “high quality” Production trends in high quality beef Best practices for targeting a high quality beef market. Certified Angus Beef LLC.
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CAB® and the High Quality Beef Market Certified Angus Beef LLC
Outline • Overview of the Certified Angus Beef® brand and defining “high quality” • Production trends in high quality beef • Best practices for targeting a high quality beef market
Certified Angus Beef LLC • Not-for-profit subsidiary of the American Angus Association • Specifications evaluated by third party (USDA/CBGA) • Never own cattle or product – only the brand • Licensing allows brand use to partnering companies • Sole revenue generated through commissions applied to the brand sales of licensed packers and value-added processors
STEP 1 to become CAB®Live animal specification • Must be “Angus-type” • At least 51% black hide • In 2013, approximately 63% of all • fed cattle met this specification. NO grid • premiums are paid for being “Angus-type”.
Imitation- The most sincere form of flattery? • For 2013: • 144- USDA Certified Programs • 107- Have “Angus” in their name • These range in quality from Prime to cull cows • Certified Angus Beef® brand is still the only program owned and operated by the members of the American Angus Association • All “Angus beef” is not created equal
STEP 2 to become CAB®Ten Carcass Specifications • Superior flavor, juiciness and tenderness • Modest or higher degree of marbling (most critical spec for eating quality and the hardest to hit for cattle producers) • Medium or fine marbling texture • “A” maturity • No hump on the neck exceeding 2-inch height • Consistent sizing • 10-16 in2 REA; < 1000 lb HCW; <1.0 in BF • Desirable appearance and plate presentation • Moderately thick or thicker muscling characteristics • Practically devoid of internal hemorrhages • No dark cutting characteristics
E.R. Boliantz Inc. ADD Enterprises CAB® Brand Supply Chain 10 Carcass Specifications
CAB® Brand Acceptance and Certified Head *Percent of Angus-type cattle meeting CAB’s 10 carcass specifications.
CAB® Demand 2013 2006 2007 2008 2004 2003 2009 2005 2001 2002 *Source: Certified Angus Beef LLC and Urner Barry
Defining High Quality Beef Modest00 Moderate00 Small00 Slight00 Slightly Abundant00
Market Signals for Quality Modest00 Moderate00 Small00 Slight00 Slightly Abundant00 Base -$$$ +$$ +$$ +$$$$
=$450 =$160 Source: USDA Source: USDA LM_CT 169
How do cattlemen participate and market through the CAB® brand? • Include marbling in genetic selection decisions • Registered Angus bulls • Utilize GeneMax™ • Incorporate a health and nutrition program that protects marbling potential • Market calves in a way that captures value • Pool calves with other producers • Build a relationship with a feedlot • Retained ownership through feedlot • Sell fed cattle on a grid
For more info on the Certified Angus Beef ®brand… Please visit: www.CABpartners.com