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CAB® and the High Quality Beef Market Certified Angus Beef LLC

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

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  1. CAB® and the High Quality Beef Market Certified Angus Beef LLC

  2. 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

  3. 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

  4. STEP 1 to become CAB®Live animal specification • Must be “Angus-type” • At least 51% black hide OR • AngusSource® tagged • In 2011, approximately 63.5% of all • fed cattle met this specification.

  5. Imitation- The most sincere form of flattery? • As of May 2012: • 132- USDA Certified Programs • 96- 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

  6. 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

  7. CAB® Brand Supply Chain 10 Carcass Specifications

  8. Carcasses Certified for the Certified Angus Beef® Brand >65,000 hd/wk

  9. Certified Angus Beef ® Brand Demand 2011 2003-06 2010 2007-09 2001-02 Source: Urner Barry and CAB LLC

  10. Defining High Quality Beef Modest00 Moderate00 Small00 Slight00 Slightly Abundant00

  11. Market Signals for Quality Modest00 Moderate00 Small00 Slight00 Slightly Abundant00 Base -$$$ +$$ +$$ +$$$$

  12. =$450 =$160 Source: USDA Source: USDA LM_CT 169

  13. Trends in Quality Grading Source: USDA

  14. Why the improvement? • Increased Angus genetics and improved genetics for marbling • Camera grading implementation • More heifers being harvested • Overall better management focus on quality grade • Nutrition • Health • Handling

  15. CAB® Best Practices Manuals

  16. How does a cattleman market through the CAB® brand? • Use registered Angus bulls with superior marbling • 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

  17. For more info on Certified Angus Beef® brand… Please visit: www.CABpartners.com

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