Change is inevitable
By James D. Ritchie

More than ever before, consumers are influencing the way farmers produce beef. Producers attending MFA's Beef Innovators seminar in August found out what consumers want. They also found that change is inevitable.

Consumers shape our industry," said Jerry Lipsey, executive vice president of the American Simmental Association. "It has always been this way, but because of enhanced communications, consumers exert more influence on our industry than at any time in history."

Lipsey, formerly an animal science professor at the University of Missouri, was speaking at the 2000 MFA Beef Innovators seminar. Along with other beef leaders, he outlined his vision of the industry's future. In addition to Lipsey, seminar speakers included:

• Michael Uetz, executive director, retail/food service marketing, National Cattlemen's Beef Association (NCBA).
• John Butler, chief executive officer of Ranchers Renaissance.
• Dan Netemeyer, MFA ruminant nutritionist.
• Mike John, director of MFA's Health Track Beef Alliance.

"Consumers want quality beef and are willing to pay for it," said Lipsey.

They define quality as beef that:

• looks, smells and tastes great.
• is nutritious and free from waste fat.
• is free from contaminants and additives.
• does not threaten lifestyles, communities or the environment.
• is well worth the price.

"The latest quality factor is beef that is always convenient," Lipsey added. The factor that will determine producers' competitive edge, he said, is how industry segments respond to consumers. "Any lack of focus on opportunities to produce high-quality products at competitive prices will cost nearly every segment of the beef industry," said Lipsey.

Several groups now are identifying bulls that have the ability to transmit beef tenderness, he noted. "The American Simmental Association has begun to compute and publish tenderness EPDs (expected progeny differences)."

Michael Uetz picked up on Lipsey's theme: Beef must be easy to use and easy to choose, he said. Uetz outlined NCBA's integrated consumer marketing and communication plan.

"We are targeting 59 million women who are between the ages of 25 and 54 and have children at home," Uetz said. "We have a three-year goal to stabilize beef demand by the year 2001."

Retail marketing is a major part of the plan. "Today, when a customer goes to a supermarket meat case, she sees a sea of red," said Uetz. "The different cuts of beef are confusing; she doesn't know what to do with some cuts. We want to organize the beef section by separating by cooking method, with on-package cooking instructions. This will speed purchase decisions, increase the customer's confidence to buy a broader range of beef cuts, make the meat case easier to stock and increase overall beef sales."

NCBA is working with several retail chains and food-service outlets. Denny's chain restaurants, for example, are featuring a beef fajita dinner. Louis Rich (of poultry fame) launched grilled beef steak strips last February.

"We want consumers to believe that beef is an important component of healthy diets," said Uetz. "We are putting beef checkoff dollars to work where people buy beef. We want a dynamic and profitable beef industry that consistently meets consumer needs and increases beef demand."

John Butler outlined the organization and goals of Ranchers Renaissance, a cooperative started by three cattle ranchers.

"This is a customer-focused, integrated, beef-production system with profits derived from increased efficiency and consistent, high-quality finished products," Butler said. "We have one target: the beef customer."

Ranchers Renaissance today has several members in all segments of beef production: seedstock breeders, cow/calf producers, stockers and backgrounders, and feedlots. The cooperative also partners with Excel and has plans to inaugurate its own branded-beef program.

"We are using electronic identification (EID) to track cattle all the way through the production system," said Butler. "Performance and carcass data are made available all the way back to the farm of origin. Until you see the carcass data, you cannot know what you are producing."

Ranchers Renaissance sets treatment standards and quality parameters for each stage of beef production. Butler said such vertical "coordination" will continue to grow and soon dominate the marketplace for value-added beef products.

"The drivers for vertical coordination will include branded products with specific promises, enhanced risk management and the [rapid] transfer of information," he said. "New product development will have a tremendous impact on increasing consumer demand for beef."

Nutritionally stressed calves do not respond well to either health treatments or vaccinations, said Dan Netemeyer, MFA's director of nutrition.

"You can't needle your way out of all problems," he stated. "Calves need to be in a positive energy balance at weaning or no vaccination can be fully effective."

Running cattle through a chute is stressful for animals. Add the trauma of a calf being weaned off his mama, and the calf is set to get sick.

"It needs energy and protein in a form that it will eat," said Netemeyer. "The good news is, when calves are fed right, they will make enough post-weaning gain to more than pay for the feed."

He cited the results of a post-weaning trial with 85 fall-weaned calves. For the first 14 days, the animals got 10 pounds per head per day of MFA Cattle Charge with AS700. For the next 38 days, they received seven pounds per day of Cattle Charge with Bovatec.

The cattle weaned at 467 pounds per head average gained 133 pounds per head and finished the trial at an average 600 pounds for an average daily gain of 2.56 pounds per head. They consumed an average 7.8 pounds per day for a feed conversion of 3.04 pounds of feed per pound gained.

These cattle stayed healthier and responded better to vaccinations than similar-weight calves weaned onto diets of mainly hay or fescue pasture, noted Netemeyer.

"Calf feeding also has a positive effect on carcass quality," he added, noting that feeding a balanced ration is especially important for early weaned calves. "Good nutrition and good health go hand-in-hand; both are necessary when producing quality beef."