A&W results

[greybeard]

A&W had some of the best growth of all the quick service restaurants in Canada.
Who will be the first to follow?

[kato]

Interesting. I just wish there was a big Canadian written in front of that hormone free statement. The consumers are telling their food suppliers that they want food that is more natural, and whether there is actually any real difference in an implanted beef is irrelevant. The people who buy it don't seem to want the implants, and since they are the customer after all, whoever jumps on that will profit.

The implant vs non implant debate will go on forever, but it's the one that actually sells that will come out ahead. It has nothing to do with science, because food choices are a more emotional/comfort level kind of purchase.

This is just the beginning. Other livestock sectors have seen a lot more of this than beef. Think layer cages, farrowing crates, and veal. We should be preparing for our turn in the spotlight, and being proactive.

[BFW]

Anyone wonder why we dont' see similar campaigns by other firms such as the Keg. I would be hesitant to hitch the future of the cattle industry to fast food chains like A&W or even McDonalds and there sustainable beef push. I guess good on them for providing choice or whatever to their customers but remember they purchase a relatively small part of overall production for there restaurants. Should we be working with them yes. Do we have to walk the line for them, don't think we should be.

[KoolRanch55]

greybeard – do you happen to know the stats on A & W growth?

kato – you are right to say that “hormone free” marketing sells. It’s just too bad that it pits beef producers against one another. Not to mention that the information that they are “selling” isn’t 100% accurate.

BFW – the key difference between A&W marketing strategy and McDonalds… is that McDonalds is actually involving the industry on its “sustainable beef” plans. Should they not get at least some credit for their approach?

[greybeard]

You can google Q1 results, about 5% in a down market.
I don't think it as much pits producers against each other as it exposes how weak our beef supply system has been developed here.
We produce this product, we just don't choose to capitalize on it.
I'll bet it's all done with affidavits at the producer level.

[littledoggie]

I believe that an opportunity is presenting itself to the feedlot and processor and they are not capitalizing on it. The feedlot is the cow/calf producer's direct customer. What do you want? Is the processor communicating to the feedlot what they want for their branded products? Grass finished, hormone free, antibiotic free, grain finished, organic, angus-certified???? Whatever, just let us know. If we can produce it and it's worth the time and effort - VOILA

Any producer can get on the A&W band wagon - some extra work, but some extra $$$ too.

[KoolRanch55]

There are so many ways to look at the A & W/McDonald marketing efforts. But perhaps the best option we have is to look at it as an opportunity rather than viewing it as “everyone is against us” kind of mentality. Perhaps the biggest challenge though is giving industry enough time to transition into an environment that fits into these marketing campaigns.

I would be interested to know the price difference between conventional ways of raising beef and the sustainable beef options. Input costs are increasing and it has to be a big enough difference in order to want to jump on board.

[kato]

The thing that jumps out at me is that I don't know a single cow calf operator that wouldn't be considered "sustainable" just by the very nature of how calves are raised. That covers the largest part of the raising of that beef. It's only those last few months/weeks that are left to modify.

Exactly what is sustainable? Our calves, after weaning, are fed a ration that is made up in a great part of screenings and grains that don't have a use in the human food chain. Their manure feeds our hayfields, which sequester carbon, and help control that notorious runoff water that is devastating the eastern prairies now. The cows graze corn for most of the winter, saving fuel in the tractor. They sleep on straw that is a byproduct of the neighbour's grain fields.

That makes us sustainable, in my eyes. The thing to think about is that we are not unusual by any means. More than likely, a majority of operations fit the definition too. People just don't know about it!

Any company that is looking for such beef should have no trouble finding it. It would also be nice if they paid for it as well.

[littledoggie]

http://www.albertafarmexpress.ca/2014/05/26/canada-picked-for-sustainable-beef-pilot/

McDonald's claims they will not be paying a premium for sustainable beef but will be promoting all the good things we do.

[kato]

I wonder if the points I made have something to do with them choosing Canada over Australia and Europe... mm.. They already know that we're doing it right already. If it sells beef, then go for it. As long as the whole thing is set up with input from the cattle producers, not just from the top down. We can be a stubborn bunch if someone tries pushing us around. LOL

Notice the US is not mentioned?? interesting...

[littledoggie]

What difference does it make what production system banner beef is being sold under? The main thing is that beef is being sold! What really bugs me in all of this (A&W versus McDonalds) is that the cattle organizations have picked winners and losers by supporting McDonalds and criticizing A&W. And maybe the simple reason is because A&W sources its beef from other countries besides Canada. It's hypocrisy at it's finest because Canada will go to other beef producing countries and push our beef. Doesn't that displace the local beef? And whose to guarantee that McDonalds wouldn't do the same?

[BFW]

McDonalds will be asking the cattle industry to jump through several hoops to meet the sustainable standards for no stated premiums and their partner here appears to be Cargill. At the feedlot level this will be relatively easy to accomplish since most already keep the type of records they are talking about and such. It will be much more difficult it looks like to get this done at the cow calf level without an obvious premium ( think age verification and CCIA tags). Hopefully the powers that be in these companies are experiencing an "oh F&%$K moment in regards to sustainability and politically correctness right about now