Industry At A Glance: Carcasses grading Prime & Choice hit a record-high

by Nevil Speer via Beef Magazine

Planned Grazing: A Study Guide and Reference ManualThe percentage of cattle grading Prime and Choice combined to 75% for the first time in recent history.

The past several weeks have marked a significant accomplishment for the beef industry. That is, the percentage of the fed steer/heifer slaughter achieving the Choice grade has surpassed 70%. Meanwhile, the percentage of cattle grading Prime is consistently running near 5%. In combination, the grading mix of the fed steer and heifer population has eclipsed 75% for the first time in recent history.A Handbook for Ranch Managers

The last time the industry achieved that type of performance was in the early 1970s. From a long-run perspective, the 2011 National Beef Quality Audit outlined historical combined Prime and Choice percentages as follows:

1974 – 74%

1991 – 55%

1995 – 49%

2000 – 51%

2005 – 55%

2011 – 61%

Environmental & Natural Resource Economics: The Austrian ViewNevertheless, the performance in recent weeks isn’t a fluke. It’s merely a continuation of a long-standing trend.

The beef industry has been highly committed during the past 20 years to improving the quality and consistency of beef products. The business has becoming increasingly effective at incentivizing producers along the way to become more consumer-centric. Producers have responded accordingly. It has all resulted in widespread strategic changes with respect to breeding systems, genetics and management systems to achieve the grading trend outlined in the graph.The Betrayed: On Warriors, Cowboys and Other Misfits    Combat Shooter's Handbook

Clearly, that’s been an important development. Improved quality and consistency keeps consumers coming back – they’re more likely to make repeat purchases with little or no hesitation. And most important, when that occurs, it allows for improved pricing power – as the beef industry has witnessed during the past 15 months or so.

The Essence of Liberty: Volume I: Liberty and History: The Rise and Fall of the Noble Experiment with Constitutionally Limited Government (Liberty and ... Limited Government) (Volume 1)  The Essence of Liberty: Volume II: The Economics of Liberty (Volume 2) The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3) How do you perceive this trend with respect to the industry and/or consumers? Where do you foresee the quality grade mix ultimately landing? Have we hit a plateau with the current cattle mix or can this number go higher yet? What might be the implications if we continue to ratchet even higher? Leave your thoughts in the comments section below.

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Planned Grazing: A Study Guide and Reference ManualPlanned Grazing: A Study Guide and Reference Manual. This is the ideal squeal to A Handbook for Ranch Managers.  Although the ecological principles remain the same, what was originally known as “The Savory Grazing Method” now answers to a multitude of different names: ranching for profit, holistic management, managed grazing, mob grazing, management intensive grazing, etc. Land & Livestock International, Inc. uses “Restoration Grazing” under its “Managing the Ranch as a Business” program.” No mater what you call it, this summary and synopsis will guide you step by step through the process and teach you how to use it as it was originally intended. No more excuses for failing to complete your grazing plans.

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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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