Agricultural News
Analyst Invents Index to Measure Certified Angus Beef Demand
Tue, 23 Oct 2012 17:32:58 CDT
The Angus brand has increased the number of pounds sold every year since 2005, but does that mean demand is soaring?
CattleFax analyst Lance Zimmerman says yes. He invented a Certified Angus Beef brand demand index while he was at Kansas State to answer that question.
"What we found was that Certified Angus Beef brand products compared to choice gave a lot higher demand increase over 2002 essentially compared to choice. You basically compare 2002 as the base year for each program whether that base year said that CAB was higher than choice or choice was higher than CAB. We can't really tell that from the research, but what we can tell is that since 2002 demand for CAB outpaced choice."
The index points to a 70-percent increase CAB demand over those nine years with choice up 15 percent.
Zimmerman says increasing demand is a slow process that begins with the consumer and ultimately ends with the producer.
"What's important for producers to realize is that demand ultimately starts at the finished product. For us that's the product that's in front of consumers. It's the beef they eat whether it's steak, a hamburger, or a roast. And, so, as those consumers demand more of that beef from their retail store or restaurant, then in turn those stores demand more beef from their packers and processors. In turn, the packers and processors demand more fed cattle that meet those specific criteria and it ultimately trickles all the way down to the producer level. So, yes, it is removed, but at the same time it's something we can't ignore."
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