Agricultural News
If They've Got the Money, We've Got the Time - Affluent Consumers Willing to Pay for High-End Beef
Tue, 17 Oct 2017 10:50:55 CDT
Today more than ever before, consumers are reaching levels of affluence that allow them to be picky when it comes to choosing the food they eat. According to retired ag industry expert Dr. Lowell Catlett, who spoke recently with Radio Oklahoma Ag Network Farm Director Ron Hays at the Texas Cattle Feeders Association Convention, the fact that consumers are picky in their decisions presents producers with an opportunity to market their cattle into some very profitable niches.
"We've got a bunch of consumers with money and the wise thing to do is figure out what they want and are will to spend their money on," Catlett said. "If they truly want animals that you can identify their mother and father and certify their source - and they're willing to pay for that - my message is, 'harvest them!'"
As an industry, Catlett says it is up to the ranchers to take advantage of this opportunity and must produce specifically to the needs of that market, where before, ranchers simply produced for a one-size fits all, mass audience. The interesting thing is, this type of consumer is not limited to just the US or other developed nations. We are seeing these consumers throughout the entire world. And the cattle needed to meet the growing demand for high-quality or specially produced beef, can all be raised right here in the US - efficiently and cost effectively.
"We can prove and have proven that the amount of inputs to get a given output is so much less in an intensive operation. We know and can measure that," he said. "You just don't use as much feed and other things to get a pound of protein out of these animals versus being in an open system. And, because you can concentrate it, we have a smaller negative impact on the environment. And, we can prove that animals' physical health, because they are monitored, is far superior. So, it's a win-win-win."
Listen to Catlett explain to Hays why consumers' pickiness, as a result of affluence, is actually a good thing for producers and how they can turn a profit from it, on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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