Beef Buzz News
Certified Angus Beef Program is a Win for Producers, Processors and Consumers Says John Stika
Fri, 17 Sep 2021 10:48:19 CDT
Beef quality was not the same as it is today. Ordering steak at an upscale restaurant would not guarantee a top-notch dining experience. In 1978, Angus cattle ranchers, in partnership with renowned meat scientist Dr. Bob VanStavern, created the Certified Angus Beef brand. Since then, billions of pounds of CAB have been sold domestically and internationally.
Listen to Ron's conversation with John here
Fast forward about four decades later, current president of Certified Angus Beef John Stika talked with Radio Oklahoma’s own Ron Hays on the brand’s firm hold as the gold standard for branded beef programs. The main goal of the brand is to bring value back to producers.
“I think it is working out pretty well,” Stika said. “Right now, the biggest thing for Angus producers - really cattlemen in general - this weather outlook is a challenge.”
Much of the West and parts of the Great Plains are experiencing drought conditions, which have debilitated pasture and range conditions. At the same time, hay prices are high. At more than $200 per ton of alfalfa hay and more than $150 per ton for other hay, even industry experts are surprised.
Stika said it is difficult for him to see how producers are having to deal with mother nature. Luckily for Angus producers, the spoonful of sugar amid the drought is high beef demand, Stika said.
“Beef demand does not solve every problem, but solves a lot of them,” Stika said. “What I mean by that is, I think the industry moves forward - we have never been in a better spot with beef demand than we are today.”
Stika said strong beef demand makes for a sturdy springboard for the brand to tackle other challenges. Although beef demand is high, dollars are sometimes slow to trickle down the supply chain back into producer’s pockets. Alternative Marketing Agreements (AMA) have proved to be a great way for producers to get more for their cattle.
The Certified Angus Beef program essentially is an AMA. Cattle owners agree to enroll cattle into the CAB program where they must meet CAB standards. If a carcass qualifies to hit grocery store shelves as CAB, producers are paid a premium for their efforts.
“The brand and this quality revolution in the industry has been fed by AMAs,” Stika said. “There is no longer an ability to price cattle on the average. To get those cattle who are more aligned with consumer demand - let us value those cattle more.”
The goal of any program is robust price discovery and CAB is no different, Stika said. That should not be at the sacrifice of the value of cattle that are aligned with consumer demand vs. those that are not, he added.
Click on the LISTEN BAR below to hear more from day two with John Stika, as he and Ron talk more about Certified Angus Beef. Get day one with Stika by clicking or tapping here.
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.
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Certified Angus Beef Program is a Win for Producers, Processors and Consumers Says John Stika Fri, 17 Sep 2021 10:48:26 CDT
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