NEW GENERATION
BY JARED WAREHAM
Dynamic Expansion on the Way Wow! This is one heck of a time to be decessors. These new generation models utilize cooperain the beef business. Supply and tive networks to link premium demand fundamentals are finally on value beef genetics from the ranch all the way to the our side, feed is cheap and both consumer. They will follow the blueprint laid before trends look to last for a while. them by Certified Angus Beef LLC (CAB), started As we ride this incredible wave of decades ago by the American Angus Association. good times, we must keep an eye beThe folks at CAB have cultivated a tremendously suclow the surface for signs of changing cessful program that serves as the standard by which all riptides that might impact our busi- other programs are measured. CAB’s resume is so powerness. That’s not a call to panic, just a ful it can carry an entire breed association on its back. reminder of the collaboration that Make no mistake, the impact of more than 100 employees quietly happens behind the scenes of at CAB has created a brand so influential that consumers industry. Record prices in all industry consistently recognize it by name and identify it as a brand segments keep them cloaked in obscurity, yet We might finally see the difference they often move forward with unyielding force. in premium and commodity beef The current dynamics shaping our industry remind me of the “dot com” bubble representing quality. Those who breed and market Angus of the late 1990s. A slew of new dot or Angus-hybrid genetics must realize that decades of com startups emerged, jumping to brand building by CAB is why Angus remains the domigrab a share of new markets. The nant beef breed in the U.S. The success of this brand-cermajority of those startups flamed out tified program has clearly opened the door for attempted before even heating up. Those that replication by others. survived, however, have cemented Our industry might finally realize the long-forecasted themselves in the U.S. economy. price divide between premium beef products and commodity quality beef. Extremely tight beef supplies We may soon witness a boom- will keep prices high and this separation at bay for a or-bust period of new startups while, but supplies will eventually grow and allow the and strategic partnerships in the premium/commodity price spread to develop. beef industry. The landscape is ripe Beef that can be sold into certified or verified markets with opportunity for entrepreneurs will take advantage of built-in quality grade values and willing to take the leap. still demand a premium. The remaining cattle may slip One area to monitor is the contin- into a commodity pricing system never before seen. ued development of certified beef As the wave of high prices surges headlong, keep an programs. Many of the eye to the future and the undercurrents that are in pernew certified and veri- petual motion in our industry. Prepare for the reality that fied beef programs tak- producing average-quality beef cattle will likely fetch ing shape are more below-average prices in the future. It’s also another readynamic than their pre- son to research and build relationships with genetic suppliers who have the foreJared Wareham sight and ability to be jwareham79@gmail.com Deepwater, Mo. involved in the next industry boom. They will be your best Jared Wareham devotes much of his time to cattle source for premium-generatbreeding, bull development, marketing and strategic planning. He is part of a three-person team, which ing bulls and help you maxiincludes his wife Jill, that markets 300 bulls annually. mize the value from their They reside near the bull development facility with their certified genetics.
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three young daughters Mikah, Rhett and Sawyer.