Opportunity?

[ValueChainFX]

Just as a point of clarification, the following information is from "Beef Carcass Grading Reference" of the Canadian Beef Grading Agency".
---------------------------------------
Canada Grade Standards for Canada A, Canada AA, Canada AAA and Canada Prime

31. The standards for a beef carcass of the grade Canada A, Canada AA, Canada AAA or Canada Prime are the following:

(a) the maturity characteristics set out in Schedule I to this part;

(Maturity I)
1. Cartilaginous caps on the thoracic vertebrae that are no more than half-ossified.
2. Spinous processes that are generally porous and red when split.

(Maturity II)
1. Cartilaginous caps on the thoracic vertebrae that are more than half-ossified.
2. Spinous processes that are generally hard, white and flinty when split.

(b) muscling that ranges from good, with some deficiencies, to excellent;

(c) Longissimus muscles that, 10 minutes after being exposed by knife-ribbing, are firm and bright red in colour;

(d) the refined marbling level set out for that grade in the table to this section; and

(e) a fat covering that is
(i) firm and white or slightly tinged with a redish or amber colour, and
(ii) not less than 2 mm in thickness at the measurement site.

---------------------------------------

This is the basic info and does not talk about quality of carcass although this reference seems to be inferred throughout. Also colour is a big determining factor for our grade system as is maturity and conformation.

Very few animals are actually graded prime most of these animals go into Canada AAA, export product is usually taken from Canada AAA.

When we discuss Quality you need to define what quality is! My definition of quality in the meat industry is simply this.

1.) Quality has to be defined as conformance to requirements, not as goodness.
2.) The system of causing quality is prevention, not appraisal.
3.) The performance standard must be zero defects, not "that's close enough".
4.) The measurement of quality is the price of non-conformance, not indexes.

What this means to me is there are customers that want grass fed, organic, natural and feedlot product. Each has a standard they believe will fill their needs. Conformance to the standard a customer requires is the quality they are after.

The question remains can we agree that the foundations of the system need to be improved. Issues surrounding who or what make the "BEST" do not help in moving us forward (although they are important to individuals) Our focus is how do we overcome the situation we are in today, and build a stable foundation for the future. To do this an industry focus is needed and the basic foundations need to be put in place today.

[charliep]

Foolish questions from a grain guy.

What percent of animals that are killed at a federally inspected plant are graded? All (like wheat). Less - some like oats where more emphasis on valuing quality characturistics that grade? (As a tongue in cheek comment on the grain, grade has everything to do with price and very little to do with value) Why have a grade at all and rather rely on contracted specifications/value grid or premiums and discounts for quality characturistics?

Reasons might be 1) food safety, phyto sanitory, etc outside quality needs, 2) branding if representing a regional, provincial or federal promotion program/defintion or 3) providing a standardized reference for establishing pricing between buyers and sellers.

[charliep]

Virtually all of the youthful cattle A and B grades are graded in federally inspected slaughter/processing facilities - the grading system provides a both a quality indication and a marketing service to the system.

Many of the branded programs have a minimum grade to them - Canadian Angus Beef - AAA for example!

The branded beef programs are all about market niche development in order to generate greater margins for that specific product.

[grassfarmer]

Yes, cjc, the hoops that a producer would have to jump through to sell grass fed beef in North America look daunting as you well point out. On the other hand it's a matter of perception as this complex looking system runs well enough in "backward" countries like Argentina. Difference there is that grass fed is the majority market so their packers are set up to package and sell this beef so the job of rearing fat cattle for their system is "easier" for the rancher than it is for us here. It's another case of how complicated we like to make things!

[ValueChainFX]

Charlie in actual fact the majority of cattle in a federal plant are graded with the exception of those that may be shipped as carcass beef down to the American breaking plants and only when the money is right.

Grassfarmer there are some markets for grass feed beef they have really not been pushed into the main stream part of this is due to the challenge of getting them processed with any kind of consistency.

[jensend]

On the other hand it could be one of those insurmountable opportunities.

[cakadu]

In the South American countries, they can leave the cattle on grass year round and aren't forced to feed for a good portion of the year. Same thing happens with sheep coming in from Australia and New Zealand - they can get it here for cheaper than it costs us to produce it because we have to feed.

One of the stumbling blocks that I know of with respec to grass fed beef is the lack of consistency and this is coming from chefs. One order will be really good, the next will not be so good. With some consistency in product, I'm sure it will see a boost in sales.

I've often wondered though what will happen when these South American countries get their hoof and mouth problems cleaned up and are able to export to many more countries than they can right now. Brazil is said to have something like 160 million cattle all grass fed - we can't compete with that or at the very least we'll have to differentiate some how and in my mind it won't be any different than what we as lamb producers face. We have a far superior product, but cost wise we can't compete with off shore imports.

Granted, the beef industry may have a little more sway in getting some of that kept out or at least having high tariffs placed on it, but the lamb industry is not big enough (so the government says) to implement tariffs.

How any one in the meat industry is going to get ahead right now is anyone's guess. How are pork and poultry faring now that there is this "cheap" beef hitting the market - does anyone have any idea?

[rusty1]

I found the best claification on this who BSE issue - it's a must read. Finally something that makes sence @ http://www.leiss.ca/chronicles/125
William Leiss is a prof at the U of Calgary.

[kato]

There are different markets for different types of beef.

I have a niece who went to Texas to work as a nurse. Texas is supposed to be the beef capital of the world, isn't it? Then why, as soon as she returned home, did she ask us to barbeque some steaks? The fact was that she said she couldn't find good beef down there to save her life. Two year old corn fed steers just aren't the same as our young barley fed ones. Premium young tender beef, without that yellow fat and flavour that the corn produces is hard to beat. We have a superior product, and should be promoting the fact.

There are places where price is the driver, and places where quality is the driver. Just look at Canadian wheat. There is a reason why the Americans are always pushing to dismantle our marketing system, and that's due to the quality of our product. (Please don't start a Wheat Board discussion.....we've all had enough of that!) In the grain business Canada has always placed top priority on quality, and it pays off.

We need to stick to our guns. I don't know about everyone else, but around our neighbourhood, there is very little grass this year. We had a neighbour just pull 500 steers out of the pasture because there is nothing for them to eat. Personally, I wouldn't put all my eggs in the grass fed beef niche without a very very reliable source of grass...irrigation or something like that. It would be a nice way to feed cattle, but we have to live with our climate, like it or not.

[grassfarmer]

Cakadu, Re the potential of the South American countries once they get their hoof and mouth problems cleared up... As far as I understand these problems are history - the outbreak that occurred at roughly the same time as the UK 2001 outbreak seemingly was cleared up very quickly. I personally would doubt any South American country has the infrastructure and organisation to effectively deal with a disease like this yet the story they told the world was good and I believe they were able to export beef again before the UK could! It's a classic case of ignore the facts and tell a good story instead - perhaps we should try doing the same?