Advantages and Disadvantages of North American's Beef Industry

The North American beef industry has a unique advantage says ag economist Glynn Tonsor compared to the rest of the world.
Tonsor: “We’re the center globally of grain-finished beef production. So we do compete globally with a lot of grass-finished and there is some growth of grain-finished elsewhere, but an aggregate around the world — U.S. and Canada combined are the core of that.”
Looking toward growth, we have the ability to get that high-quality beef to market as well.
Tonsor: “We also have a lot of infrastructure here that is not in existence elsewhere. Whether it is the feed-grain base but modern and large economy of scales feedlots, packing industry and well recognized safety institutions. For the most part we have well working trains, rivers, roads all that kind of stuff that a lot of times we take for granted. But it is here and compared to other parts of the world it is relatively maintained we can rely on it and we can build our industry from it.”
But our grain-finished beef is among the most expensive options—among all proteins—and even when compared to other beef suppliers.
Tonsor: “So that gets at the point of the value — the eating experience. The story with the beef and other points of differentiation but in price it is critical because we are never going to have a absolute price advantage.”
The economist says other countries are making inroads and the only way to keep ahead is by increasing information flow throughout the chain.
Tonsor: “The U.S. beef industry is less coordinated and communicates a little bit less effectively — both vertically in the industry as well as horizontal in each sector than our competitors in other meat sectors as well as competitors around the world. That is a huge challenge because it limits the ability to make changes."