1. Overview of the Beef Industry Donnie Montemayor County Extension Agent-Ag Bee County

2. Overview of the Beef Industry The Bottom Line The cattle industry plays an integral role in the country’s economic growth and well being, and has done so since this country was formed. More than 1 million cattlemen and women do business in a free-market economy, and represent the largest single segment of American Agriculture.

3. Beef in the U.S. Agricultural Economy The largest single segment of the U.S. agricultural economy is beef production, with cattle representing about 18 percent of total farm sales.

4. Beef Industry Highlights Agriculture is responsible for more than 22 million jobs — Beef production itself is a major employer, with the more than 186,000 full-time jobs on farms and ranches creating more than 1 million more jobs throughout the economy. Beef is consumed 77.8 million times each day across America. And, about 9 in 10 households will serve in a two week period. That percentage has remained fairly stable over the past decade.

5. Beef Sales and Consumption Retail value of beef consumed in 1998 exceeded $51 billion, according to USDA and Cattle-Fax statistics. Per capita beef consumption was 64.4 pounds in 1998 (boneless weight), which was 56 percent of total red meat consumption. On average, consumers spent $186.03 for beef in 1997, about 45.5 percent of the total spent on beef, pork and chicken combined.

6. Beef Exports Agricultural exports totaled $57.3 billion in 1997, according to USDA Economic Research Service and Cattle-Fax. Total beef exports (including beef by-products and live animals) were valued at $4.8 billion that same year, compared with total imports of $3 billion.

7. Cattle and Beef Marketing Channels Purebred/Seedstock Cow/Calf Stocker Feedyard Packer Processor Retailer/Foodservice Operators Consumer

8. Purebred Beef Cattle The purebred segment, these producers build the genetics that will be utilized as breeding stock that is marketed to the cow/calf segment. While there are more than 50 different breeds in the U. S., only a handful — 10 or so — contribute a significant volume of genetics to the industry. Genetics are originated based on their ability to serve the beef system through efficient production, as well as the consumer through creation of the highest quality beef possible. Registered Beef Cattle Associations  Breed Publications, Advertising EPD’s

9. Commercial Beef Cattle Operations Cow/Calf  Also known as commercial cattlemen, these producers may cross as many as four different breeds together to produce the bulk of cattle that will ultimately be grain-fed for harvest. Commercial cattlemen sell weaned calves (usually 6- 10 months old weighing 300-600 lbs.) to stocker operators or feedlots. Some may retain ownership of their calves through the finishing phase. Stocker  Cattlemen in this segment purchase weaned calves, then graze them until they weigh as much as 900 lbs. (usually when they’re around 12 months old, or “yearlings”), then market them to a feedlot. Adding weight to cattle through grazing transforms natural resources — many of which have no other use — into food humans can utilize. This means beef can be produced more economically.

10. Specialty Markets Show Cattle  Club Calves Roping Steers Equestrian Event Cattle Organic Grown Beef Cattle Branded Beef

11. Commercial Feed Yard Feedlot  Feedlots may purchase weaned calves from the cow/calf segment or cattle from the stocker segment, finishing them to harvest weights of 900-1,400 lbs. Normally, cattle are on feed anywhere from 110 to 250 days, depending on purchase and targeted harvesting weights. These animals are then marketed to packers.

12. Packers Beef packers harvest finished cattle purchased from feedlots, fabricating the beef carcasses (typically 600-800 lbs.) into boxes of “sub primal” cuts, such as the top round, tenderloin or sirloin. The boxed beef is then marketing to purveyors/processors or retailers, who cut the beef into products and sizes appropriate for consumers today. Kane’s – Corpus Christi, Texas

13. Processor/Purveyor This segment fabricates boxes of sub primal cuts into the cuts familiar to consumers. Often this segment will market to the hotel, restaurant and institution (HRI) trade, which has no production capabilities. Many grocery stores, though, which in the past have purchased directly from packers and done their own meat cutting, are now buying further-processed cuts and beef items for direct sale to consumers.

14. Retailers & Foodservice Operators The segment closest to the consumer is the link in the chain buying from purveyors, processors or packers, then presenting products to consumers for their purchase. Because they directly depend on consumers, these marketers watch for trends and styles that may affect consumer demand for beef.

15. Consumer When domestic and international consumers purchase American beef, either in the retail meat case or as part of a meal away from home, they influence subsequent decisions made by every other segment in the beef system.

16. References National Beef Cattle Association Web Site Texas Beef Council Web Site Day Show Cattle Web Site TAMU Animal Science Beefmaster Breeders United Web Site Jordan Cattle Company Web Site The Show Box “TCCA” Web Site USTRC Web Site Buckaroo Beef Web Site Nolan Ryan Tender Aged Beef Web Site