Value Driven Cattle Market

Beef producers continue to examine their operation and look for continued ways to add more value and command more dollars for their calves. Certified Angus Beef Vice President of Production, Dr. Larry Corah says three drivers of value are: growth, health and beef quality

Corah: "The three big areas that we add value to cattle is — they have to have the ability to grow once they hit the feed lot or even before they hit the feedlot on the cow — the ability to grow. They have to be healthy. Health is such a huge economic importance in the industry today. Finally they have to create a quality eating experience for the consumer. We need to keep in mind that the people that really drive this industry is ultimately the consumer."

And today's consumer is demanding a high-quality beef product. Those decisions at the meat counter send price signals back to the farm or ranch.

Corah: "And certainly grade and hitting a quality target is very important. Starting to create an added $50 on these calves at weaning time. Ultimately when they came out of the feedlot maybe as much as $80 to 100, $120. So it is really this high quality part that the consuming public is demanding that has been increasing in the last five to eight years. I think it will continue to increase and that's the opportunity for the cattle industry to add value."