Beef Buzz News
Beef Quality Increase Has Led To Higher Profits For Beef Producers Says CattleFax CEO Randy Blach
Tue, 01 Sep 2020 13:05:10 CDT
The trend to produce high quality beef has led to more profitability for producers says Randy Blach, CEO of CattleFax, a global leader in beef industry research, analysis and information.
Ron Hays Beef Buzzes With Randy Blach
Blach was a featured speaker at the recent virtual Feeding Quality Forum sponsored by the Certified Angus Beef program.
There has been a remarkable quality shift in the last 15-20 years which has boosted demand, he said.
This is the reality of what’s going on in the industry, Blach said.
We have basically taken an industry that was producing 50 to 55 percent of choice or prime (in 2005) to 82 percent this year, he said.
That takes us from 11.5 billion pounds of choice and prime in 2005-6 to over 18 billion pounds this year.
Three or four years ago there was concern that we would produce too much quality and not generate enough premiums, Blach said.
That has not happened as consumers have said they prefer the higher quality beef. This demand push has led to a dramatic increase in profitability for beef producers.
From 1980 to 1998 our average profitability was $32 per head, Blach said.
The low profits sent more than 400,000 producers away from the industry, Blach said.
The CattleFax CEO said over the last 20 years we have increased profitability to an average of $249 per head.
This is a powerful story as there is a lot more money in our industry today, mainly driven by demand, Blach said.
He wants to make sure all segments of the industry share the profits.
Price discovery is important, but it is also important to produce the right product, he said.
This is an issue here in our industry and we need to send signals to our producers to produce the good stuff that consumers are willing to pay for, Blach said.
Click on the LISTEN BAR below to hear more comments from Randy Blach .
The Beef buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
New EPA Administration Water Officials Appear Willing to Work With Agriculture Says NCBA's Scott Yager Thu, 25 Feb 2021 07:41:53 CST
Help is on The Way For Cattle Producers Impacted by Brutal Cold Weather And Covid-19 Says NCBA's Ethan Lane Wed, 24 Feb 2021 08:18:25 CST
Data And Information Should Drive Cattle Market Transparency, Not Emotion, Says KSU Economist Dr. Glynn Tonsor Tue, 23 Feb 2021 08:12:31 CST
Latest Cattle on Feed Report Shows There Are Plenty of Cattle in The System, Says OSU's Dr. Peel Mon, 22 Feb 2021 08:15:22 CST
Everyone Agrees, Including Oklahoma Legislature, There Will Be a Cattlemen's Congress in 2022 Fri, 19 Feb 2021 08:53:52 CST
BQA Program Gives Consumers Confidence in Beef Producers, Says Idaho Rancher And Former CBB Chair Kim Brackett Thu, 18 Feb 2021 10:33:39 CST
Large Genetic Toolbox Available For Angus Breeders Says AGI's Joel Cowley Wed, 17 Feb 2021 08:07:00 CST
KSU Veterinarian Offers Advice on Keeping Newborn Calves Alive During Brutal Cold Tue, 16 Feb 2021 10:08:08 CST
Latest Technology on Display at Express Ranches Spring Bull Sale March 5th Mon, 15 Feb 2021 09:35:08 CST
When Brutal Cold Hits, Cows Need Extra Energy And Attention, Says KSU Extension Beef Cow Specialist Justin Waggoner Fri, 12 Feb 2021 08:18:54 CST
Tight Corn Supplies Equals Higher Corn Prices And Raises Cost of Gain For Feedlots, Says OSU's Derrell Peel Thu, 11 Feb 2021 08:37:08 CST
Good Nutrition Critical for Keeping Cattle Healthy in Brutal Cold Weather Says OSU Veterinarian Dr. Rosslyn Biggs Wed, 10 Feb 2021 08:32:21 CST
OSU Veterinarian Dr. Rosslyn Biggs Offers Advice on Preparing Cattle For Bitter Cold Temperatures Tue, 09 Feb 2021 08:41:30 CST
Tight Beef Supply Indicated in Latest USDA Cattle Inventory Report Says Katelyn McCullock, LMIC Mon, 08 Feb 2021 08:30:47 CST
Vilsack Makes it Clear During His Senate Ag Committee Confirmation Hearing he Wants More Cattle Market Transparency Fri, 05 Feb 2021 08:56:06 CST
Cattle Play a Major Role in Keeping us Healthy Says Dr. Sara Place Thu, 04 Feb 2021 08:15:12 CST
Widespread Industry Support Helped Get The Livestock Dealers Statutory Trust Law Passed Says LMA's Chelsea Good Wed, 03 Feb 2021 09:14:13 CST
New Law Will Help Livestock Sellers Recover Funds When a Dealer's Check Bounces Says LMA's Chelsea Good Tue, 02 Feb 2021 08:20:23 CST
January Cattle Inventory Report Shows Stability Depsite Pandemic says OSU's Dr. Derrell Peel Mon, 01 Feb 2021 09:00:43 CST
Congressman Frank Lucas Determined to Resolve Cattle Market Manipulation Issue Fri, 29 Jan 2021 08:30:44 CST
RAMP-UP Act Would Benefit Both Livestock Producers And Consumers, Says Cong. Frank Lucas Thu, 28 Jan 2021 08:29:08 CST
U.S. Beef Exports Expected to Increase 10 percent in 2021 Due to Growing E-Commerce Trade Says Dan Halstrom, USMEF Wed, 27 Jan 2021 08:20:12 CST
Latest Cattle on Feed Report Shows Higher Than Expected Placements Tue, 26 Jan 2021 08:25:41 CST
Helping Commercial Cattle Producers Capture Value of Angus Genetics is Troy Marshall's Focus With the American Angus Association Mon, 25 Jan 2021 08:38:48 CST
Oklahoma Cattle Producers Cautiously Optimistic Says OCA's Michael Kelsey Fri, 22 Jan 2021 08:34:02 CST
MOU Between USDA and FDA on Gene Editing is Good Business Says NCBA's Ethan Lane Thu, 21 Jan 2021 08:24:49 CST
January Cattle Inventory Report Expected to Show a Stable U.S. Cow Herd Says OSU's Derrell Peel Wed, 20 Jan 2021 08:33:42 CST
Simmental Cattle Breeders Expect a Great Year After Their Success in 2020 Tue, 19 Jan 2021 08:05:42 CST
American Hereford Association Executive Jack Ward Proud of Breed's Genetic Improvements Mon, 18 Jan 2021 08:17:21 CST
Gene Editing Technology Could Soon Be Common Practice For Beef Cattle Industry Fri, 15 Jan 2021 08:08:55 CST
Seedstock Industry Undergone Many Changes in Last 20 Years, Says Jack Ward, American Hereford Association Thu, 14 Jan 2021 08:06:15 CST
2020 Taught Beef Producers a Valuable Lesson, Says American Angus Assoc. CEO Mark McCully Wed, 13 Jan 2021 10:42:47 CST
Angus Breeders Survived 2020 By Being Flexible And Quickly Adapting, Says CEO Mark McCully Tue, 12 Jan 2021 08:02:38 CST
Superior Livestock's Bell Ringer Sale Opens The Year With a Record Number of Cattle Offered Mon, 11 Jan 2021 08:45:57 CST
Oklahoma City's Central Location Helped Breed Association's Pivot Quickly When Denver Canceled, Says Shane Bedwell, American Hereford Association Fri, 08 Jan 2021 15:19:27 CST