Agricultural News
Demand for Certified Angus Beef Keeps Growing Providing More Opportunities for Producers
Tue, 08 May 2012 16:05:39 CDT
The Certified Angus Beef brand continues to enjoy growing success despite an economy that remains sluggish. John Stika, president of Certified Angus Beef, spoke with Ron Hays recently and said there's nothing magic about the results. They are simply due to decades of efforts by thousands of people from Angus producers all the way down the chain to retailers who are focused on one thing: quality.
"This brand, first and foremost, is really all about quality. Quality beyond just marbling alone which is what we're the most known for as those little white flecks of flavor of fat that are in the product that make it so special. It's about quality at every level. It's about quality in the product, quality in the people who associate with the product from the producer clear to the end user that represents it to the consumer."
Oftentimes when people think of the term "brand" they think of focus groups, slick logos, jingles, packaging and advertisements designed to entice people to try an inferior product or service. While marketing tools have their part to play, Stika said that's not the centerpiece of the Certified Angus Beef brand.
He says that, at its heart, the Certified Angus Brand is "really a quality or level of integrity that when a consumer sees that brand logo, they've established a loyalty and a trust in that brand, that Certified Angus Beef brand, that means they are going to have an enjoyable experience every time, not just once in a while but every time."
Satisfying the customer every time is a difficult target to hit for any business, but in the cattle business, it's an even smaller target. Unlike a factory full of machinery that can be measured and calibrated and tweaked until it turns out identical products day in and day out like clockwork, the challenge of turning out a consistent beef product is a bit tougher. The American beef industry--and the Angus producers as a subset of that-- is, for the most part, a fiercely independent bunch. There are as many ways of managing a cow-calf operation in all its many facets as there are operators. And results can vary widely from operator to operator to operator. So how does the CAB brand work? How do you get all the different producers from different areas of the country-and of the world-to work toward a common goal? What part does CAB play in all this?
One answer, Stika said, boils down to focus, it boils down to the bottom line.
"In brief, that's kind of what brings it all together, but I think in function this is a brand that's really all about driving value back to rural America. And doing so by realizing the fact that the only flow of sustainable dollars into animal agriculture, into the beef industry, ultimately, has to come from the consumer who is willing to pay an increasingly higher price for our product."
And today's consumers are picky-and rightly so, said Stika-but that makes the branding effort that much more important. But it can't be a false façade. It has to center on the solid value of the product.
"It's got to be worth more, not the same amount, because the genetics oftentimes, in Certified Angus Beef are more expensive, justifiably. It takes money to feed cattle to a quality endpoint and, you know, our retail partners are expected to pay more for this product, so they have to sell it at a higher price. It's about doing things above and beyond what we've historically done as a commodity industry to truly realize a value above what we can do just by producing that commodity and truly producing a premium product.
" We're here to promote the registered Angus breed, but do it by focusing on the best the breed has to offer, so that those consumers who associate quality with the Certified Angus Beef brand come back to being willing to pay more for it," Stika said.
And there are measurable differences in the quality of Angus beef. There has been more research done on Angus cattle than any other breed in the world.
"Without a doubt, we've been very, very fortunate that the Angus Association has built a database that's second to none in the beef industry. That really brings a lot of predictability to the genetics we have out there today. The way it coincides with Certified Angus Beef is probably not by chance, but almost by design in the end. You know, we talk about the product and the importance of driving that demand from the consumer back to the production side."
And just what do consumers want?
"A consumer who will to step up to buy CAB is one who wants a great-tasting steak. We clearly have a demographic that's right there in the middle-that 35-55 mom or dad. That's probably our core demographic. Whether it's a Millennial or someone who is in assisted living or a healthcare type of venue all demand Certified Angus Beef and the commonality there is they want a great tasting experience at a value.
"Our consumer is pretty broad in terms of who's willing to buy Certified Angus Beef, but the common thread they share is they want value, they want quality at a price that's fair."
Despite the ups and downs of the economy and controversy over Lean Finely Textured Beef, there hasn't been a lot of impact on sales of Certified Angus Beef. In fact, Spika said, demand keeps growing even though supply is limited. He says the American Angus Association will continue to assist producers with quality genetics to ensure ever higher levels of quality. This, he says, will continue to increase demand and with increased demand comes increased interest from producers willing to step up and meet that demand with a superior product earning a premium return. It's just a matter of time.
Press on the LISTEN BAR below to hear the full conversation between Ron Hays and John Stika.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
