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BEEF QUALITY BAR RISING The Midwest Cattleman · February 24, 2022 · P21

Consumers are willing to pay more for what they want.

Domestic beef demand is ing eating experience to con- with COVID, we couldn’t sell
the strongest it has been in sumers. Prime through restaurants,
three decades. Beef gained Good expects the quality it went through retail. Every
about 8% market share over grade trend to continue. major retail chain in the U.S.
the last two decades. U.S. “There will be a time when now has a premium product
beef exports through Novem- we produce 20-30% prime in offering. Consumers want it,
ber 2021 were on a record the national herd, and it’s not so we’re going to have to pro-
pace in terms of volume and that far away,” Good predict- vide it.”
value. ed. “As we think about what Hereford.org Consumers are willing to pay more for
Kevin Good, CattleFax an- our customer is demanding, what they want. Domestic beef demand is
alyst and vice president of in- let’s remember that last year, the strongest it has been in three decades.
dustry relations, said this is
all a result of listening to the
consumer.
Good was speaking to
members of the American
Hereford Association (AHA),
guests and allied industry
partners during an educa-
tional forum at the organi-
zation’s Annual Membership
Meeting and Conference in
Kansas City, Mo, Oct. 22,
2021.
“Think about grade, think
about consistency. They are
the driving points,” Good
explained. “Today, we have
a much better product than
we had in the past and our
customers are rewarding us
with more dollars.”
For perspective, 72.7% of
all beef cattle graded Choice
in 2020 and 10.2% graded
Prime, according to USDA’s
Estimated National Grading
Summary. Just 10 years ear-
lier, 60.1% were Choice and
3.4% were Prime. Through
October this year, 72.6%
were Choice and 10.1% were
Prime.
Whether regarded as the
proverbial chicken or egg,
Good pointed out carcass
quality increased as the in-
dustry applied premiums
and discounts in order to get
what consumers wanted.
“About 70% of the [fed] cat-
tle we sell in the U.S. today
are sold on a grid or formula,
so cattle are rewarded once
the hide is taken off,” Good
explained. “Plainer, poor-
er cattle that used to be par
are now at a discount. The
premium has gone away for
middle-of-the-road cattle.
You still have very distinct
premiums for the top end.”
Certified Hereford Beef®
is an example of a quali-
ty-based program offering a
value-based grid to produc-
ers and a dependably satisfy-