Agricultural News
Eighth Straight Record for Certified Angus Beef
Tue, 11 Nov 2014 16:21:47 CST
Certified Angus Beef has sold 882 million pounds of beef this past year. This becomes the branded beef program's eighth consecutive sales record for the CAB brand, which ended its fiscal year September 30th. CAB President John Stika gives credit to the brand's 17 thousand licensees who work to process, prepare and market the beef in 47 countries.
"What's impressive about the 8 year run and record annual sales every year is the fact it goes against what many would have been the case and honestly solidified the fact that consumers don't buy on price alone," Stika said. "They buy on the price-value relationship and thus far consumers have continued to communicate to us we aren't at the point yet where price exceeds value."
During that same period there was 400 - thousand head decline in the number of Angus influenced cattle available at the brand's 30 licensed packing plants across North America.
"Supply is clearly a big concern for our entire licensee base, it's one of the most popular questions we get," Stika said. "Is there going to be enough product for me to continue to grow my business? So we have been talking about supply for a long time already."
Harvest numbers are at the lowest level that Stika has seen in his 16 years with the company. Yet CAB has been able increase the volume of CAB certified carcasses to supply the brand.
"We grew it by more than 1.7 percent," Stika said. "That was the result of having a record high acceptance rate. Our acceptance rate this past year exceeded 25 percent. Ultimately topping out at an average of 25.7 percent. That's absolutely phenomenal."
That proves producers are responding to market signals, Stika said. Packers pay 50 million dollars each year for CAB acceptance, not counting other rewards for choice and prime. For more than decade, moving past the world market disruptions of late 2003, CAB sales have been on an increasing plane.
"Ever since that time, this brand has been on a path of not just a path of recovery in sales," Stika said. "But a path of really charging a new course with how far this brand can go to reach to consumers worldwide but also take that reach, take that brand equity and drive added value back into rural America in Angus farmers and ranchers."
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