Overview of the Beef Industry

1
Overview of the Beef Industry

• Donnie Montemayor
• County Extension Agent-Ag
• Bee County

2
Overview of the Beef Industry

• The Bottom Line
• The cattle industry plays an integral role in the
  countrys economic growth and well being, and has
  done so since this country was formed. More than
  1 million cattlemen and women do business in a
  free-market economy, and represent the largest
  single segment of American Agriculture.

3
Beef in the U.S. Agricultural Economy

• The largest single segment of the U.S.
  agricultural economy is beef production, with
  cattle representing about 18 percent of total
  farm sales.

4
Beef Industry Highlights

• Agriculture is responsible for more than 22
  million jobs Beef production itself is a major
  employer, with the more than 186,000 full-time
  jobs on farms and ranches creating more than 1
  million more jobs throughout the economy.
• Beef is consumed 77.8 million times each day
  across America. And, about 9 in 10 households
  will serve in a two week period. That percentage
  has remained fairly stable over the past decade.

5
Beef Sales and Consumption

• Retail value of beef consumed in 1998 exceeded
  51 billion, according to USDA and Cattle-Fax
  statistics. Per capita beef consumption was 64.4
  pounds in 1998 (boneless weight), which was 56
  percent of total red meat consumption. On
  average, consumers spent 186.03 for beef in
  1997, about 45.5 percent of the total spent on
  beef, pork and chicken combined.

6
Beef Exports

• Agricultural exports totaled 57.3 billion in
  1997, according to USDA Economic Research Service
  and Cattle-Fax. Total beef exports (including
  beef by-products and live animals) were valued at
  4.8 billion that same year, compared with total
  imports of 3 billion.

7
Cattle and Beef Marketing Channels

• Purebred/Seedstock
• Cow/Calf
• Stocker
• Feedyard
• Packer
• Processor
• Retailer/Foodservice Operators
• Consumer

8
Purebred Beef Cattle

• The purebred segment, these producers build the
  genetics that will be utilized as breeding stock
  that is marketed to the cow/calf segment. While
  there are more than 50 different breeds in the U.
  S., only a handful 10 or so contribute a
  significant volume of genetics to the industry.
  Genetics are originated based on their ability to
  serve the beef system through efficient
  production, as well as the consumer through
  creation of the highest quality beef possible.
• Registered Beef Cattle Associations
• Breed Publications, Advertising
• EPDs

9
Commercial Beef Cattle Operations

• Cow/Calf
• Also known as commercial cattlemen, these
  producers may cross as many as four different
  breeds together to produce the bulk of cattle
  that will ultimately be grain-fed for harvest.
  Commercial cattlemen sell weaned calves (usually
  6-10 months old weighing 300-600 lbs.) to stocker
  operators or feedlots. Some may retain ownership
  of their calves through the finishing phase.
• Stocker
• Cattlemen in this segment purchase weaned calves,
  then graze them until they weigh as much as 900
  lbs. (usually when theyre around 12 months old,
  or yearlings), then market them to a feedlot. 
  Adding weight to cattle through grazing
  transforms natural resources many of which have
  no other use into food humans can utilize. This
  means beef can be produced more economically.

10
Specialty Markets

• Show Cattle
• Club Calves
• Roping Steers
• Equestrian Event Cattle
• Organic Grown Beef Cattle
• Branded Beef

11
Commercial Feed Yard

• Feedlot
• Feedlots may purchase weaned calves from the
  cow/calf segment or cattle from the stocker
  segment, finishing them to harvest weights of
  900-1,400 lbs. Normally, cattle are on feed
  anywhere from 110 to 250 days, depending on
  purchase and targeted harvesting weights. These
  animals are then marketed to packers.

12
Packers

• Beef packers harvest finished cattle purchased
  from feedlots, fabricating the beef carcasses
  (typically 600-800 lbs.) into boxes of sub
  primal cuts, such as the top round, tenderloin
  or sirloin. The boxed beef is then marketing to
  purveyors/processors or retailers, who cut the
  beef into products and sizes appropriate for
  consumers today.
• Kanes Corpus Christi, Texas

13
Processor/Purveyor

• This segment fabricates boxes of sub primal cuts
  into the cuts familiar to consumers. Often this
  segment will market to the hotel, restaurant and
  institution (HRI) trade, which has no production
  capabilities. Many grocery stores, though, which
  in the past have purchased directly from packers
  and done their own meat cutting, are now buying
  further-processed cuts and beef items for direct
  sale to consumers.

14
Retailers Foodservice Operators

• The segment closest to the consumer is the link
  in the chain buying from purveyors, processors or
  packers, then presenting products to consumers
  for their purchase. Because they directly depend
  on consumers, these marketers watch for trends
  and styles that may affect consumer demand for
  beef.

15
Consumer

• When domestic and international consumers
  purchase American beef, either in the retail meat
  case or as part of a meal away from home, they
  influence subsequent decisions made by every
  other segment in the beef system.

16
References

• National Beef Cattle Association Web Site
• Texas Beef Council Web Site
• Day Show Cattle Web Site
• TAMU Animal Science
• Beefmaster Breeders United Web Site
• Jordan Cattle Company Web Site
• The Show Box TCCA Web Site
• USTRC Web Site
• Buckaroo Beef Web Site
• Nolan Ryan Tender Aged Beef Web Site