Product Quality vs. Differentiation

[ValueChainFX]

THE ABSOLUTES OF QUALITY MANAGEMENT 1.) Quality has to be defined as conformance to requirements, not as goodness. 2.) The system for causing quality is prevention, not appraisal. 3.) The performance standard must be zero defects, not "thats close enough". 4.) The measurement of quality is the price of non-conformance, not indexes.

[cowman]

Grassfarmer: I don't know how old grassfed beef is. I assume they would be long yearlings?
Lots of exotic cross calves fed grain should be hitting the market right around one year old, maybe up to 15 months.
My experiences with grass fed beef are pretty limited. Beefed an 8 month old calf once right off the cow and he was pretty tough! Got an Aussie steak in Montanas that was really bad. That's the only experience I've ever had!
If we bother to butcher a beef here we usually go for a heifer and we really grease her! Unfortunately I can't handle any fat anymore so it mostly gets trimmed! I usually just keep a few sirloin steaks, the liver, and lots of very lean hamburger and give the rest to my family. Being a bachelor I don't eat at home all that much. Maybe 2 or 3 meals a week! I have to watch what I eat pretty carefully, no butter, or margarine etc. Maybe grass beef would the real ticket for someone like me who can't eat any fat?
However what I was trying to point out is the "economics" of grain fed baby beef? The packing industry(as represented by the big plants) is geared to volume in volume out? This is a very efficient system that probably puts the most profit into the packers and retailers pockets? I would guess that fresh meat should be able to sit in the meat case for quite a few days without going bad? It just seems like it is a very good system of moving a product?
Now I don't know if grassfed beef could work in this system or not? I always assumed grass beef had to be aged or else it was tough. Maybe that isn't true?

[grassfarmer]

Ok, I misunderstood you Cowman, when you talk "baby beef" you are referring to the length of time it isn't hung for! I think it's clear that hanging beef to age it helps all beef - but the packers have persuaded people to buy un-aged beef because it helps their bottom line. Perhaps that is why some people are dissatisfied with grainfed beef from the stores.
When you talk of "greasing a heifer" before killing it then trimming all the fat and throwing it out you highlight to me the stupidity of our current mainstream production system. Imagine the cost of an animal standing in a feedlot putting on excess fat just to be thrown away once she is slaughtered. You sound like an excellent candidate for grassfed beef - I'll supply you with some good sirloin steaks later in the fall if you like - free of charge.

[cakadu]

Grassfarmer has hit on something very important - how we have been growing the animals for the last 25 years or so. We give them hormones to put on weight faster, antibiotics to combat the heavy grain feeding - for an animal that was never meant to eat grain but designed to eat grass - push grain to them to get them fat and then ship them off.

If people knew how that beef was grown, they might look at it a little differently.

There is good and bad in anything that we do and the poor grassfed beef will not get purchased any more than poor grain fed beef will be purchased. There is a reason that customers are giving negative feedback about the beef they are buying from the big chains. How many times have steaks been purchased from the supermarket that were not good? The conditions that the animals are kept in also play a factor.

Providing consistent quality is indeed one way to differentiate your product. Get it to the point that the customer (be it food service, a neighbor or other individual customers) knows that they will get the same thing every time, time after time. Nothing is more disappointing than to get something really good one time and terrible the next.

Cowman - one problem with the leaner cuts of meat like steaks and roasts is that we have become so used to the marbling in the beef that we rely on it in our chosen cooking methods. It does take time and patience to learn how to cook the leaner cuts properly so that they come out an enjoyable eating experience, rather than eating an old boot.

[cswilson]

We actually did a trial with Sask Ag and Food where we ultrasounded some yearling steers off grass and then slaughtered and had them graded. They graded A1's as the grading system at that time didn't recognize marbling-fat colour was good and taste was awesome. For our own families use we butcher a dry two year old heifer off grass-excuse me had to drool a bit here lol. Good thick British cattle could be finished on high quality hay in the off grass months-without a doubt the genetics for successful grass finished beef are different than for calves finishing off grain at 13 months. One thing I do no without a doubt is that cattle that perform good on grass will rock and roll in the feedlot-the opposite unfortunately is not true.

[kato]

To an extent they can, but they will fatten up pretty quick, and the size may not be there. That can lead to discounts under the current packer system.

We background calves, and you can soon see the ones that would shine on grass finishing. We've really got to watch how we feed those ones in the winter, or the grass market won't want them. They say they're too fat.

At the moment, in our present system, the premiums are not there for that type of calves, but I expect it will be in the future.

I guess if you were marketing your own beef it wouldn't be such an issue, though.

[cakadu]

One issue that comes up with selling your own product i.e. direct marketing is pricing and dealing with the consumer mindset. To give you an example, we market our whole lambs for $4.50/lb. If they want specific cuts i.e. loin chops or a leg, we charge them a different price. Where some customers get stuck is on paying $4.50/lb for ground/stew/shanks. It takes some of them some time thinking to understand that they are also getting the loin, leg and rack for that price as well. Our other problem is that people don't realize how small a lamb carcass actually is - they still equate it to a cow - and that if they want certain cuts, they can't have others.

Customers need to know what cuts are available and how they will be packaged, priced etc. You may sell your roasts at 4/5 lbs and someone may want all 2 lb roasts. That means more expense - how are you going to price it?

You as the seller have to have a good grasp of all of this so that you can explain it to your customer who doesn't have much, if any, grasp at all. The difference between rail and finished is one that must be understood by the customer and by you. Are you going to charge by the animal, on the rail or by the finished cut?

We've been doing this a long while, have made some mistakes and learned from them and have learned from others as well. Granted, we have a lot smaller carcass to deal with, but many of the issues are similar.

What are you going to do with the cuts that no one really wants? There is only so much ground, chuck, stew etc. that people want to have, so what are you going to do with the items that don't sell as well?

What will make your product different from your neighbor's? Many more are going to be trying the direct marketing avenue - what are you going to do that will make you stand out and will make people want to buy your specific product?

There is a need to have a good handle on this before the first animal even goes to slaughter, unless you're the type that doesn't mind learning as you go and can afford to "eat" the mistakes. ;-)

[nerves]

Cakadu I believe you are exactly right. We learned some things the hard way to make sure you sell quality or it will bite you in the bite.

[ALICIA]

RP KAISER - Never was a more true statment. Match your activity to you consumption and you will live as long as your supposed to live.

[rsomer]

smcgrath76 : Getting back to your question "how we differentiate our Canadian product in the global marketplace"

We can look to Australia and Aus Meat to see how they did it. Aus Meats mission is "To provide and ensure the integrity of relevant industry standards on behalf of the Australian Meat & Livestock industry " See http://www.ausmeat.com.au/standards/

The AUS-MEAT Standards Group is committed to providing a quality service that meets the needs of both internal & external customers, at all times.
Our quality system will be maintained to ensure the requirements of I.S.O. 9001 are met.
We will use recognised management tools, including I.S.O. certification, to achieve our goals as defined in the Mission Statement and to improve both individual and Group performance. Other goals of AUS-MEAT Standards Group are:
· To establish AUS-MEAT Standards Group as a vital and integral group within the Australian Meat & Livestock industry by improving and ensuring the integrity of relevant industry standards.
· To provide all our customers (external or within AUS-MEAT) with quality service in all interactions.
· To be the recognised authority for relevant industry standards relating to meat & livestock in Australia.
· To maintain I.S.O. certification and to use I.S.O. techniques to streamline and improve our performance as individuals and as a Group.
· To use Industry resources in an efficient manner to meet industry's needs.


I think it is not a given that Canada should differentiate its product in international markets. Certainly that is not the way our industry is headed as we strive to integrate and harmonize our industry with the U.S. to create a North American industry. Canada’s beef herd is about ½ Australia’s and our industry is not independent as the Australian industry is. I question whether Canada can even differentiate its product domestically given our NAFTA commitments much less successfully differentiate Canadian beef globally.