g n i t a r b e l e C
BEEF h t n o M
Cattle rebound on the horizon? by Gordon Wolf Beef producers face a myriad of complex challenges when navigating the market. Among the factors to consider are export demand for U.S. beef, a tighter beef supply, higher prices for feeder cattle and a moderation in feed costs. All must be balanced in order for producers to manage their risk and achieve the final goal – to make a profit while producing a quality product that helps feed the world. Lee Schulz, assistant professor in the department of economics at Iowa State University, said many indicators are pointing toward expansion in the beef industry. However, the industry does not expand quickly simply due to the biological lags inherent in raising beef cattle; it takes time to increase a beef herd. “Over the last several years we’ve seen a reduction in the cow herd, and that’s pushed expected returns higher as tighter supplies have pushed calf and feeder cattle prices higher,” said Schulz, whose research interests include agricultural marketing and risk management, and livestock economics. “Market signals for expansion are stronger than they have been in years, and the industry is poised to start rebuilding inventories,” he said. Most herd expansions in the past have included one to two years of minimal or modest herd growth before accelerating for two to three years. With
this in mind, 2014 into 2015 and 2015 into 2016 could be a period of modest growth, followed by faster growth in 2017 and 2018, Schulz commented. “Under that scenario, we’re looking at the low in the beef supply in 2016,” he added. “As we’re holding more heifers back, fewer are going into the cattle feeding sector for beef production, magnifying the tight cattle and beef supply situation.” With already tight supplies, prices of live cattle and feeder cattle will likely continue to increase, as will beef prices in the meat case. Another factor in the supply/demand scenario is the export markets. The complexity of the export market increases as trade regulations and world events impact U.S. trading partners. A press release from the Iowa Beef Industry Council (IBIC) said that beef exports remained strong in early 2014, after setting an all-time value record in 2013, but added that tight supplies and high beef prices are tempering the fast start to exports in 2014. The release cited Mexico where exports were up 26 percent and the value of exports increased 40 percent compared to a year ago. Schulz said that Mexico’s domestic beef production has decreased, as it has in the United States, and Mexico has increased beef imports from the United States and other nations. Adding to the complexity are the many countries that are net importers.
This means their quantity demanded of U.S. beef is not going to disappear, although higher beef prices are a potential challenge. “So why has export demand been so strong in early 2014? It could be that this is because short-term demands tends to be inelastic,” Schulz explained. “That is, short-term demand for beef is relatively unaffected when the price of beef changes.” He continued, though, in the shortterm, strong futures prices and forecasts of tighter supplies and sharply higher U.S. beef may have caused some trading partners to import more beef to hedge against higher prices later this year. Those countries would put some of their increase in imports in cold storage, and some beef would go into products that have a longer shelf life, Schulz added, and this is only a short-term fix, and in the longer run, nations that import beef still have the challenges that come with higher prices. The IBIC release on U.S. beef exports also commented on the situation in Canada, where a decline in the value of the Canadian dollar compared to the U.S. dollar has led to a 25 percent decrease in the volume and a 21 percent decrease in the value of imported U.S. beef compared to last year. Exchange rates are very important regarding the competitiveness of U.S. beef on the international market, said Schulz, as the currency value impacts the purchasing power of an importing
nation. “Trade regulations are also important to note - how those have implications for trade,” said Schulz. “Those are ever changing.” Schulz said this can be seen in Russia. That nation suspended imports of U.S. beef last February over an issue with beta agonists, according to the IBIC. Russia also recently banned beef from Australia. Fluctuating feed costs also enter into a producer’s management decisions. Schulz said feed costs are lower compared to a year ago. “We’re not seeing the drought-induced pricing we saw last year, which really skyrocketed prices,” he said. “I’d like to say it is more of a moderation in feed prices, not the level of pre-2006 and 2007 and also not the 2012 and 2013 levels.” All the factors totaled means that producers need to continue to manage their risk in order to make a profit. “Just because we’ve seen a moderation in feed prices doesn’t mean it’s not still an important component for price risk management,” Schulz said. “The reality of increasing volatile markets sets the stage for very dynamic conditions as producers are exposed to increasing amounts of both input and output price risk,” Schulz added. He said, “It will be increasingly important to manage risk and manage margins, and in doing so, manage both sides of the profit equation, costs and output prices.”
A SPECIAL SECTION OF THE DENISON BULLETIN AND DENISON REVIEW | Friday, May 16, 2014
Page 2
Celebrating the Beef Industry
Citrus-Marinated Beef Kabobs
Ingredients 1 pound beef top sirloin steak boneless, cut 1 inch thick 1 medium orange ¼ cup chopped fresh cilantro 1 tablespoon smoked paprika ¼ teaspoon ground red pepper (optional) 4 cups cubed mango, watermelon, peaches and/or plums Instructions 1. Grate peel and squeeze 2 tablespoons juice from orange; reserve juice. Combine orange peel, cilantro, paprika and ground red pepper, if desired, in small bowl. Cut beef steak into 1-1/4-inch pieces. Place beef and 2-1/2 tablespoons cilantro mixture in food-safe plastic bag; turn to coat. Place remaining cilantro mixture and fruit in separate food-safe plastic bag; turn to coat. Close bags securely. Marinate beef and fruit in refrigerator 15 minutes to 2 hours. 2. Soak eight 9-inch bamboo skewers in water 10 minutes; drain. Thread beef evenly onto four skewers leaving small space between pieces. Thread fruit onto remaining four separate skewers. 3. Place kabobs on grid over medium, ash-covered coals. Grill beef kabobs, covered, 8 to 10 minutes (over medium heat on preheated gas grill, 9 to 11 minutes) for medium rare (145°F) to medium (160°F) doneness, turning occasionally. Grill fruit kabobs 5 to 7 minutes or until softened and beginning to brown, turning once. 4. Season beef with salt, as desired. Drizzle reserved orange juice over fruit kabobs. Makes 4 servings. Recipe and photo courtesy of The Beef Checkoff.
May 16, 2014
Grecian Beef Strip Steaks
Ingredients 2 beef strip steaks, boneless, cut 1 inch thick (about 10 ounces each) 1 pound medium mushrooms 1 medium red onion, cut into wedges 2 tablespoons olive oil 6 lemon wedges ¼ cup crumbled feta cheese (optional) Salt Lemon Pepper Rub: 3 large cloves garlic, minced 2½ teaspoons lemon pepper 1½ teaspoons dried oregano Instructions 1. Combine Lemon Pepper Rub ingredients. Combine mushrooms, onion, oil and 2 teaspoons rub in medium bowl; toss. Alternately thread mushrooms and onion onto six 12-inch metal skewers. Finish with a lemon wedge. 2. Press remaining rub onto beef steaks. Place steaks and kabobs on grid over medium, ash-covered coals. Grill steaks, covered, 11 to 14 minutes (over medium heat on preheated gas grill, 11 to 15 minutes) for medium rare (145°F) to medium (160°F) doneness, turning occasionally. Grill kabobs 6 to 8 minutes or until mushrooms are tender, turning occasionally. 3. Remove vegetables from skewers; toss with cheese, if desired. Carve steaks into slices. Season beef and vegetables with salt, as desired. Makes 4 servings.
THANK YOU We support the efforts of all our hard working farmers and packing plant employees who work hard to make sure we have safe beef on our plates.
AlwAys
There
Thank you, Iowa beef producers! in honor of national Beef Month, Bank iowa would like to thank the iowa beef producers for being there for our community. your enthusiasm and dedication to providing quality and nutritious beef products as well as your commitment to our community through contributing to our state and local economy is greatly appreciated.
Please join Iowa beef producers in celebrating National Beef Month and enjoy the high quality, mouth-watering, grain-fed beef that Iowa is so well-known for.
Denison Bulletin
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Denison Review
May 16, 2014
Celebrating the Beef Industry
Page 3
2012 Census of Ag shows change in number of farms, head of cattle and calves The number of Crawford County farms producing cattle and calves decreased from 2007 to 2012, according to the 2012 Census of Agriculture. Farms producing cattle and calves numbered 384 in 2007 and 357 in 2012. Final results of the 2012 Census of Agriculture, including county-specific data, was released on May 2 by the United States Department of Agriculture’s National Agricultural Statistics Service The Census of Agriculture is conduct-
ed every five years. Data for Crawford County also showed a corresponding decrease in the inventory of cattle and calves, from 54,566 head in 2007 to 48,913 head in 2012. Other cattle statistics from the 2012 Census of Agriculture, compared to the 2007 census, follow. Number of farms producing beef cows: 2012 – 302; 2007 - 317 Number of beef cows: 2012 – 18,611; 2007 - figure withheld to avoid disclosing data for individual farms
Thank You, Area Beef Producers, for your great products!
OVER 80 YEARS 1209 Broadway, Denison, Ia 51442 www.thamsagency.com
OF
Did you know ... ... that, driven by steak, beef volume sales in foodservice increased 4 percent, or 49 million pounds, year-on-year in 2012? Steak remains king of the consumer plate, over competing proteins -- and that’s good news for producers’ bottom lines. In fact, steak is not only what’s for dinner these days, but also for lunch, breakfast, bar menus and more, thanks to innovations perfected through your checkoff-funded culinary center and Beef Innovations Group. And while beef prices might experience seasonal fluctuation, demand for beef at all price levels remains high because your checkoff helps you keep beef products in tune with consumer demands for things like convenience, nutrition, taste, value and tenderness. Behind the numbers is a simple, timeless point: Nothing satisfies like beef.
Number of farms selling cattle and calves: 2012 – 319; 2007 - 374 Number of cattle and calves sold: 2012 – 37,642; 2007 - 45,090 Following is general information about farms in Crawford County. Number of farms: 2012 – 900; 2007 - 855 Land in farms: 2012 – 450,871 acres; 2007 - 432,351 acres Average size of farm: 2012 – 501 acres; 2007 - 506 acres Median size of farm: 2012 – 180 acres; 2007 - 199 acres
From: www.beefboard.org, and MyBeefCheckoff.com
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Celebrating the Beef Industry
May 16, 2014
Beef industry showcases sustainability National Standards Foundation certifies beef Industry Sustainability Assessment The beef industry has improved its sustainability by five percent in just six years according to the results of the checkoff-funded Beef Industry Sustainability Assessment. Kent Pruismann, cattle feeder from Rock Valley, serves as chairman of the Joint Freedom to Operate Committee of the Cattlemen’s Beef Board and Federation of State Beef Councils. He explained that the beef sustainability assessment is the most detailed examination of a commodity value chain ever completed, taking into account every aspect of beef production from the growth of feed to the disposal of packaging by the final consumer. “All of the inputs and outputs required to produce a pound of boneless, edible beef were examined for the 1970s, 2005 and 2011,” said Pruismann. He explained that the 1970s and 2005 each represents major shifts in beef production practices, while 2011 represents present-day.
Improvements in crop yields, better irrigation, innovations in the packing sector, improvements in technology and better animal performance are examples of innovations that have all played a role in advancing industry sustainability, according to Kim Stackouse-Lawson, Ph.D., director of sustainability for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff Program. “The completion of the life cycle assessment (LCA) project provides the industry, for the first time, the science-based evidence necessary to lead conversations about the sustainability of beef,” said StackhouseLawson. “The Beef Checkoff and the Beef Promotion Operating Committee had the foresight three years ago to see the importance of this work and make it a priority for the industry. By completing the LCA, the checkoff positioned beef as a leader on the topic of sustainability.” Stackhouse-Lawson said the project was extensive. “We examined millions of individual data points and then created models to simulate specific aspects of beef production practices so that this data and these results are truly representative of beef production in the United States.” “The results of this work show the beef in-
w Reduced emissions to soil by 7 % w Reduced greenhouse gas emissions by 2 % w Lessened occupational accidents and illnesses by 32 % w Reduced emissions to water by 10 % w Reduced resource consumption by 2 % w Decreased water use by 3% w Decreased land use by 4% w Lowered energy use by 2% “The results of the Beef Industry Sustainability Assessment, which was just certified by the National Standards Foundation (NSF), show the industry is on a path of continuous improvement,” said StackhouseLawson, who explains that the certification by NSF lends third-party credibility to the work, making it more acceptable to non-governmental organizations and other potential partners in the sustainability arena. “When we talk about the sustainability of an industry, that’s what it’s all about, getting better over time. As an industry, beef is doing a good job at making progress on the path toward a more sustainable future. The certification of these results confirms that,” she said. A PDF version of the Sustainability Executive Summary may be downloaded at www.beefresearch.org.
BEEF SUSTAINABILITY ASSESSMENT The first step in demonstrating beef’s path of continuous improvement.
After two years of data collection and research, the beef industry has proven it is on a sustainable path forward. So, what did the life cycle assessment determine?
BETWEEN 2005 AND 2011, THE BEEF INDUSTRY REDUCED: Emissions to soil
Greenhouse gas emissions
Acidification potential emissions
Emissions to water
Water use
Land use
Resource consumption & Energy use
Occupational accidents & Illnesses
7%
2%
3%
10%
3%
4%
2%
32%
The overall environmental and social fingerprint of the beef industry has been reduced by 7% in just 6 years!
BEEF’S OVERALL SUSTAINABILITY HAS IMPROVED 5% IN 6 YEARS! SO, HOW DID WE ACCOMPLISH THESE IMPROVEMENTS?
FUTURE OPPORTUNITIES: • Reducing food waste by half improves industry sustainability by 10%
• Better crop yields as a result of precision farming and improvements in irrigation techniques
• Conduct regional assessments to help identify practices that contibute to improved sustainability
• More efficient machinery
• Address concern about sustainable rangelands and nitrogen emissions
• Improved animal health and performance • Biogas capture and conversion
• Document beef community’s commitment to animal welfare
• Closed loop water cooling systems and waste water recycling in packing plants
• Obtain retail, restaurant and consumer data to identify further opportunities for improvement
• Right-size packaging
For more information and research results, visit www.beefresearch.org.
dustry is becoming more innovative and efficient, while also doing an excellent job protecting the resources with which they have been entrusted,” said Pruismann.
Iowa cattle producers can be proud that we had the foresight to contribute additional checkoff funds to this project. Stackhouse-Lawson explained that during
s Con
r Livestock Operation or H u o Y r o f om lar o S d idere
e?
At FSC We Are Committed to “Providing Quality Supplies, Services and Marketing At A Competitive Price For The Economic Benefit Of Its Members And Their Cooperative”
Have Y ou
Thank you, beef producers
the six years between 2005 and 2011, the beef industry has: w Reduced environmental impacts by 7 % w Improved its overall sustainability by 5 %
Members of Western Iowa Power Cooperative,
Have you been thinking about solar? As the solar market continues to grow it crosses more of our minds as we look for ways to control costs. As your power cooperative we are committed to providing you safe, reliable electrical power at the lowest cost possible. That is why during the January 2014 board meeting, your Board of Directors approved adding solar to the list of services available at Western Iowa Power Cooperative. Solar compliments what we already offer today with our geothermal and air-to-air heat pumps, water heaters and electrical equipment sales and services. Solar has advanced over the past 15 years to where it is now more efficient, reliable and economical. We have done our research and will be selling and installing RAIS PV systems from ten K Solar. They have a very unique design that increases production with less panels, runs at a lower voltage eliminating arc hazards, gives you web based monitoring of your output along with a 25 year warranty and still very reasonably priced. Many find themselves tranquilized by the statement from the solar sales professional of “Look at the money you will save by the kilowatt hours that you will no longer be purchasing.” Unfortunately it’s not that easy. There are a lot of other questions that need to be answered before proceeding.
Your Denison FSC offers a full line of beef minerals, creep feed & supplements and formulated custom rations to suite your operation.
We can make your Beef Business Better
We want to continue to be the energy expert for you and stand as a resource as you consider options. We can look at how many kilowatt hours you are using, how much of your load are you looking to offset and what you are currently paying per kilowatt hour. We are able to do an analysis on approximately how long it would take for the system to pay off and are there other programs we offer through the cooperative that you could be participating in to decrease your bill without having to make a large investment.
Much of your profitability depends on how well you operate -- your management techSolar won’t be the right choice for everyone and we can help you determine that. If you are interested in niques, your skills, and your dedication. But having a review of your account to assure you are taking advantage of all programs available or have an interest in solar please call Randy Healy at 800-253-5189 and let his 27 years of energy expertise work for you. even the best cattleman has need for our For questions related to tax credits, member-consumers should consult their tax advisor for tax advice specific to their factual situation. We have additional information about ten K solar at our office, stop by and take a services, because not all oflook.your profitability • 20% More Production comes entirely from how well you make your Sincerely, • Unique Reflector Technology cattle perform. For that little “extra” help that • 25 Year Warranty on Modules makes quite a difference, just give us a call Jeff Bean Executive Vice President and General Manager • Minimized Losses from Shade ... We understand cattle, we understand the www.tenksolar.com cattle business, and we want to help make • Very Safe Low Voltage Lisa Jones your operation more profitable. Feed Specialist
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May 16, 2014
Celebrating the Beef Industry
Page 5
Despite supply concerns, beef exports off to solid start in 2014 After setting an alltime value record of $6.16 billion last year, U.S. beef exports have remained strong in early 2014. Through February, exports totaled 183,700 metric tons (mt), a six percent increase in volume over the same period last year. At $994.8 million, export value is 14 percent ahead of last year’s record pace. Success in the international markets continues to be well-illustrated by the remarkable growth of beef export value on a per-head basis. Last year, export value on per head of fed slaughter equated to $245 – up 13 percent from the previous year and more than double the per-head average from 2009. So far in 2014, the per-head average is $246.13. This year’s fast start is tempered somewhat, however, by concerns about tight supplies and high beef prices. While the international markets continue to deliver excellent returns for U.S. producers, it is important to keep in mind that some destinations can be very price-sensitive. Exports to Mexico, for example, are up 26 percent in volume (37,638 mt) and a remarkable 40 percent in value ($182.9 million) from a year ago. Strong demand from Mexico helped fuel round prices to $2.90 per pound in January and prices surged again to $3.15 per pound in March, up 46 percent from last year. But U.S. Meat Export Federation (USMEF) regional director Chad Russell cautioned that maintaining this pace throughout the year will be difficult. “The price point is
The chart above shows the increase of beef export value per head of fed slaughter from 2009 -2013. Graphic submitted.
going to create some challenges for Mexican consumers in terms of affordability,” Russell said. “The market is short on domestic beef due to the drought Mexico has suffered in recent years. So if our prices were at historical levels it would be a great opportunity to ship more product, but at this point our prices are well above those levels.” Price is also a factor regarding exports to Canada, which are down 25 percent in volume (23,595 mt) and 21 percent in value ($157.3 million) from a year ago. But in this case, the price challenge is mostly tied to exchange rates. The Canadian dollar has steadily declined against the U.S. dollar over the past 18 months, with its purchasing power falling about 11 percent during that time. Canada’s beef production has also rebounded this year, with year-over-year cattle slaughter up 7.5 percent in the first quarter. Benefiting from expanded market access and demand for high-quality U.S. beef, Japan and Hong Kong
continue to lead export growth. Last year Japan reclaimed its position as the top destination for U.S. beef exports and it has continued to perform well. Through February, exports are up 51 percent in volume (30,032 mt) and 34 percent in value ($184.7 million) from a year ago. It should be noted, however, that exports to Japan under the expanded 30-month cattle age limit really gained momentum in March of last year, so smaller yearover-year gains are anticipated going forward. Hong Kong also expanded access for U.S. beef last year – accepting bone-in cuts from under-30-month cattle and boneless beef from cattle of all ages for the first time since 2003 – and the results have been excellent. After shattering previous records in 2013, exports to Hong Kong through February are up another 44 percent in volume (22,835 mt) and 69 percent in value ($144.7 million) from a year ago. Exports to South Korea are running lower in volume (19,250 mt, -14 percent) but higher
in value ($133.8 million, +17 percent) so far this year, while exports to Taiwan are off to a sluggish start – down 30 percent in volume (4,023 mt) and 25 percent in value ($32.1 million). U.S. beef continues to grow its presence in Central and South America, with exports to the region up 10 percent in volume (5,568 mt) and 15 percent in value ($23.7 million) compared to the record pace of 2013. Recently implemented free trade agreements have helped Panama and Colombia emerge as promising markets, joining mainstay destinations Chile, Peru and Guatemala. U.S. beef also recently regained access to Ecuador for the first time since 2003. Russia suspended imports of U.S. beef in February 2013 over the use of beta agonists and the market remains closed. Russia also recently banned beef from Australia. U.S. beef also lacks access to mainland China, but negotiating teams have set July of this year as a target date for opening the market.
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Page 6
Celebrating the Beef Industry
May 16, 2014
Value-Added Cuts research available The book of data from the checkoff’s groundbreaking “Muscle Profiling� research that led to identification and development of more than 15 new value-added cuts now is available for FREE, to aid processors in development and preparation of new products based on inherent muscle properties. Bovine Myology and Muscle Profiling profiles the physical and chemical characteristics of beef muscles in the chuck and round. At right is the Beef Value-Added Cuts mini-poster that illustrates the innovative cuts developed and marketed during the last 10 years, as a result of this research. To request a free copy, email Wendy David at wdavid@ beef.org. Graphic from www. beefboard.org.
Thank you beef producers! Newspaper advertising is a cost-effective way of reaching your potential customers.
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We salute the hard work of those involved in the Beef Industry that provide us with such a fine quality product.
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May 16, 2014
Celebrating the Beef Industry
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Grill your way toward better health Grilling season is here, a time to tame the flame with America’s favorite protein: beef. Lean beef is low in fat, high in protein and pack with essential nutrients, and many lean cuts are available – from new choices like the Ranch steak to traditional favorites such as T-Bone steak and 95 percent lean ground beef. With the new online Interactive Meat Case available at www.iabeef.org, individuals can learn more about the variety of nutritious and satisfying beef cuts now available, including cut descriptions, recipes and cooking tips, to make the most of the grilling occasion. “Grilling is a low-fat and healthy way to cook that brings together family and friends to enjoy delicious food,” said Nancy Degner, executive director of the Iowa Beef Industry Council. “From flavorful beef kabobs and T-bone steak to farm-fresh fruits and vegetables, everything tastes better on the grill.” Following are a few simple steps to delicious and healthy grilling with lean beef cuts: • Look for lean Lean cuts like chuck shoulder steak, filet mignon, strip steak, top sirloin, top round and 95 percent lean ground beef are perfect for the grill. These cuts meet government guidelines for lean, meaning they have less than 10 grams of total fat, 4.5 grams or less of saturated fat and less than 95 milligrams of cholesterol per 3½ -ounce serving. • Farm fresh Lean beef pairs well with seasonal fruits and vegetables that are bountiful during the spring and summer. Step outside of the traditional grilling fare of burgers and corn-on-the-cob by serving a cool salad made with crisp romaine, grilled sweet bell peppers and zucchini and top with slices of grilled flank steak. • Mouthwatering marinades 0pt for marinades with little or no sugar to help protect meat from charring. Instead, try a simple and tenderizing marinade by using an acidic ingredient like lemon or lime juice, balsamic vinegar or wine or a natural tenderizing enzyme found in fresh ginger, pineapple, papaya and figs. • Avoid the burn For even browning and cooking, turn occasionally using a spatula for burgers and tongs to turn steaks and kabobs. Do not press, flatten or pierce the meat as flavorful juices will be lost, which can also lead to fire flare-ups. And, cut off any burnt or charred pieces before eating should minimal overcooking occur. To learn more about the lean cuts of beef, the Interactive Meat Case and how to become a true grill master, visit www.iabeef.org. The site also has recipes, nutrition information and more information on how to include naturally nutrient-rich lean beef during the grilling season.
The Denison Tyson plant, is the original Iowa Beef Packers plant, opened on March 21,1961. IBP is credited with helping to revolutionize beef processing by moving carcasses on conveyors and creating boxed beef. Photo by Bruce A. Binning
Tyson announcement among top beef stories of 2014 Beef plant employs more than 380
The importance of the Tyson Fresh Meats beef plant to Denison, Crawford County and western Iowa, and to area cattle producers, was illustrated in the company’s announcement in March that it currently has no plans to close the plant. The announcement was welcome news as, on March 1, 2012, Tyson reported that an improvement project at its Dakota City, Nebraska, beef complex might lead to the closure of the Denison plant in 2013. The year ended without any kind of announcement from Tyson headquarters. In March this year, Tyson told its Denison Fresh Meats team members that it currently has no plans to close the plant. In an email to the Denison Bulletin and Review on March 11, Tyson spokesperson Gary Mickelson said the Dakota City project had taken longer than origi-
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Celebrating the Beef Industry
May 16, 2014
Opening China’s doors to U.S. beef by Gordon Wolf China is already a major importer of U.S. pork and soybeans, but U.S beef has officially been shut out of the export market to China since the Bovine Spongiform Encephalopathy (BSE) scare of 2003. Opening the doors to more U.S products, including beef, was the focus an Iowa Meat Trade Mission from March 31 to April 5. Iowa beef producers Roger Brummett, of Bedford, and Dean Black, of Somers, represented the Iowa Beef Industry Council on the mission, as did Nancy Degner, executive director of the Iowa Beef Industry Council. Degner said the U.S government and trade representatives have been working diligently to open China to U.S beef. She added that the China market tends to also be closed for political reasons. “Predictions are that we are getting closer to opening up China to U.S beef. Although nobody knows for sure as it is up to the two governments, it appears to be getting closer,” Degner said. “From our experiences there, China has many people to feed. They import some of their food and are looking at increased meat demand from their growing middle class,” said Degner. “They don’t have the land to grow the crops to feed the livestock, have a lot of desert land and also have increased urbanization.” Degner added those on the trade delegation saw hundreds, if not thousands, of high-rise apartment buildings from Shanghai to Beijing, but mostly in Shanghai. In China, Iowa is known as the state in which President Xi Jinping spent time, but in terms of recognition of Iowa as an agricultural trade partner, more awareness of this exists in Japan, for example, said Degner. Granted, trade delegations representing Iowa, Midwest and U.S. beef have not spent a lot of time in China because the market has been closed for more than 10 years. However organizations like the U.S. Meat Export Federation have continued to maintain relationships with importers and provide education about U.S. beef for when U.S. beef enters the market. If China opens its doors to U.S beef, one would think that would increase beef production here, said Degner, but exports to China would not be as great reason for expansion of the U.S. beef herd as weather. “They recognize the value of U.S. beef in China because our market niche is the grain-fed beef, and
If trade negotiations prove fruitful, beef raised in Iowa could be served once again in China.
China is building more hotels and more restaurants that want high quality beef,” said Degner. “But our supply is going to grow with appropriate weather conditions for pasture land to graze our cow herd. If we don’t have the rain, exporting beef to China is not going to really drive expansion, but it would certainly assist it.” Trade delegations are important as they provide a face to the beef industry in Iowa and the Midwest. Iowa Secretary of Agriculture Bill Northey was on the trip to China, which Degner said opened more doors. “Relationships are really important in the Asian market,” she said. “I was told by the Agriculture Trade Office and the Foreign Ag Service, which works out of the U.S. Embassy, that bringing a government official and bringing farmers who raise cattle and hogs shows that we have a really strong commitment over and above a visit from a company that sells the product. “That’s been more of the direction of our state government to make those visits and develop relationships, and then we can provide the connections with Iowa companies.” The need for relationships and connections varies from country to country, but visits by producers are important. Degner said, for example, when exploring trade
Photo by Gordon Wolf
with Mexico, representatives from the beef industry and producers visit one year, then work with the U.S. Meat Export Federation to invite a group of 15 or 20 buyers from Mexico to tour plants and visit with farmers in Iowa to learn about U.S. beef production. A buyers’ session is organized with representatives of 10 or 15 meat companies in a room, and the visitors from Mexico can visit one-on-one about potential purchases. “With China, our state beef organizations and producers enhance the recognition of U.S and Midwest beef,” said Degner. “Our trade missions and international activities are coordinated by the Iowa Economic Development Authority.” Exports are important for beef producers and packers as they help to increase the value of each head of cattle. The U.S. beef exports update for March showed that exports account for $271 per head on a marketweight steer. The goal is to find a market for every part of the beef animal. “The hide, heart, tongue and liver, a lot of that goes into the export market,” said Degner. “If the packer couldn’t get value from selling that, the cattle would be worth less money. Using every bit of the cattle in some way adds value.”
Beef Month is built for burgers If the beef burger isn’t the number one all-American food, it’s certainly in the top five. Need proof the burger is All American? Try the fact that hamburgers and cheeseburgers represent 71 percent of the beef served in U.S. commercial restaurants. Or that Americans eat about 14 billion burgers a year – they account for about 60 percent of all sandwiches sold – and that if you put all of those burgers in a line, they would circle the earth more than 32 times. As the Iowa beef industry celebrates May Beef Month, it can look at the hamburger from many perspectives. Iowa cattle producers know the importance of providing beef in forms that fit both consumer lifestyles and pocketbooks, and
make good use of beef available. Ground beef comes from whole muscle cuts that don’t make it into steaks and roasts. However, it still must pass all kinds of government and industry hurdles before it gets to your table. In fact, much of the ground beef sold comes from trimmings from steaks and roasts. Ground beef that goes into hamburgers is a wholesome, versatile product
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that comes in different levels of lean. While it sometimes can come in a ratio that is 3-1 lean to fat, many ground beef varieties today are up to 93 percent lean. If buying it in the grocery store, look for the lean to fat ratio on the package. If buying it from a restaurant, you can ask your server what leanness they serve. Ground beef found in hamburgers also delivers 10 essential nutrients, all in one tasty package. These nutrients, including zinc, iron, protein and B vita-
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May 16, 2014
Celebrating the Beef Industry
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Beef – it’s what’s on social media State and national beef groups keep in step with consumers and technology by Gordon Wolf A lesson in marketing is to know where your customers spend their time. It’s a lesson that the Iowa Beef Industry Council (IBIC), the Cattlemen’s Beef Board and the National Cattlemen’s Beef Association (NCBA) have taken to heart and continue to monitor, especially as technology has changed the way in which people communicate and seek information. The IBIC has added social media to its toolbox of marketing approaches as it promotes beef to consumers. “We are using a variety of digital marketing, and it all starts online where we are utilizing online ads as well as a Google search opportunity to drive people to our main, national website, beefitswhatsfordinner.com,” said Michelle Baumhover, IBIC’s director of consumer marketing. She said the website is geared toward cooking information, recipes and other beef information that consumers are seeking. The IBIC has its own website, iabeef.org, that it uses as a platform to reach out and inform Iowa consumers. IBIC also uses a Facebook page (Iowa Beef Council) to share recipes and cooking tips and to inform consumers about promotions. Baumhover said the use of the digital marketing is a result of re-
The Interactive Meat Case, also called the Interactive Butcher Counter, can be found on the Iowa Beef Industry Council’s website, iabeef.org. Consumers can use the tool to learn about different cuts of beef and how to best prepare them.
search, funded by the Beef Checkoff, on where consumers are looking for information. “Millenials (people born between 1980 and 1995 and sometimes called the internet generation) like beef and some
may not be confidence about the types of cuts and how to cook beef,” she said. She continued the Facebook page is geared toward simple recipes and useful information. “We even have inter-
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active tools, such as the Interactive Meat Case,” Baumhover said. “If someone, for example, sees that steak is on sale, they can go there to get cooking instructions, recipes and nutritional information for that cut.
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That is a helpful tool.” Baumhover said the IBIC tracks the number of visitors to their social media sites “We just completed our first round of digital advertising. We received a .22 to .24 click rate. That’s above the av-
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erage for industry standards,” she said. “We’ve also done some internet and mobile marketing. Depending on the topics, we’ve had as high as over a 2.5 click rate, so we know people like beef and want to learn more about beef,” she added. As changes continue in communication technology and how consumers prefer to receive information, the IBIC will adjust as well. Baumhover said the IBIC has done a text program to promote nominations for the Best Burger contest and has participated in a couple email blasts. “We’re trying a variety of digital methods to try to reach consumers,” she added. The IBIC does not yet have a mobile app but the national website, beefitswhatsfordinner.com, is mobile friendly. “Within the next year our website will be mobile friendly as well,” said Baumhover. “We know a high percentage of Millenials have smart phones, and we definitely want our information to be in a compatible format.” “We’re fortunate in that we work closely with the national organization, which has a market research team that monitors the pulse of what consumers want and where consumers are getting their information, so we can offer them the information they are looking for in the way they want to find it,” said Baumhover. She added, “The Beef Checkoff is the go-to consumer resource for beef. Our goal is to help consumers by providing them with information so they can be confident in when selecting beef at the meat case and preparing it for their families.”
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Celebrating the Beef Industry
May 16, 2014
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