Even with Growing Competition, CattleFax CEO Randy Blach Says Consumers Willing to Pay for BeefTue, 06 Feb 2018 10:18:45 CST
During this past year, a total of 98.5 billion pounds of protein was produced by the US poultry, pork and beef industries. This year, that number is projected to increase up to 102.2 billion pounds and will continue to grow the following year to projected 104 billion pounds. CattleFax CEO Randy Blach, who spoke with Radio Oklahoma Ag Network Farm Director Ron Hays recently at the National Cattlemen’s Beef Association and Cattle Industry Convention in Phoenix, said that one thing is for sure - there is plenty of meat to go around and meet that growing international demand. The question beef producers want answered, is how they stay competitive and differentiate themselves in the marketplace for consumers.
“From a price standpoint, we’re not going to compete with poultry on a daily basis,” Blach said. “It’s just so much cheaper to produce that protein than what we can do in the beef industry. But, the other attributes - the higher quality protein - that’s still what people want. Beef is what’s for dinner.”
Blach says beef has surprised those in the industry with the price spreads it has managed to maintain between other proteins. He says this is demonstrative of just how strong beef demand is. Looking at where the beef cow herd is now, referencing USDA’s latest Cattle Inventory report, the industry is approaching that 32 million head mark. Blach contends that once that benchmark is obtained, the industry will have reached a sustainable yet still manageable capacity. As production increases, though, what Blach says is important for producers of each industry to realize is that it is the “pie” that is growing.
“We may not have a larger market share in the beef industry, but if the pie is growing, then we all have the opportunity to grow our enterprises. That’s where we are today and I think we are right on target.”
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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