Record Premiums Shows Quality is No Fad

Record Premiums Shows Quality is No Fad

Marbling is important - say those who are buying your cattle. Brian Bertelsen - with U.S. Premium Beef explains.

Bertelsen: "We buy all of our cattle on a value-based system. That system is set up to attract and reward high quality cattle meaning high quality grade -- in other words high marbling cattle."

He says around 75-percent of the cattle coming to their plant are black-hided - and of those Angus-based animals - 43-percent made the Certified Angus Beef brand in a recent quarter. Another 21-percent qualified for U.S. Premium Beef's premium brand. Those cattle that make the grade and are put into branded programs, means more money in the rancher's pocket.

Bertelsen: "When you compare total dollar value per head - for example looking at CAB versus select. In addition to getting higher price per pound they are also heavier carcasses. And so when you look at those Certified Angus Beef versus select carcasses -- that's $160 per head more for the CAB carcasses on average compared to the select carcasses."

This isn't just a passing trend - Bertelsen says. The past four years have seen record-high quality grade premiums.

Bertelsen: "So if you think it is a fad that there are rewards for high quality cattle -- it is not a fad. They are here to stay and they are doing well and we continue to set records over the last four years."

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