In today’s beef buzz, senior farm and ranch broadcaster Ron Hays speaks with president of Certified Angus Beef, John Stika, who discussed the brand’s strong performance during the most recent fiscal year, which ended in September. He said the company wrapped up “our third best year in our 47-year history,” noting that results exceeded expectations. CAB moved an impressive volume of beef, reaching “1.235 billion pounds of Certified Angus Beef with the highest prices we’ve seen,” a result he attributes to product improvement and continued consumer enthusiasm.
Stika emphasized how dramatically beef quality has improved in the past decade. He explained that, years ago, the industry assumed cattle would grade “2 to 3% Prime, and that’s just the way the good Lord made them.” Today, however, he noted that Prime levels have climbed to “12 to 13%,” and the market now produces “more Certified Angus Beef than we do Select product.” He credited genetics, days on feed, and management, stating that consumer dollars “have really pulled our industry toward that direction.”
Consumer demand remains exceptionally strong, even as prices rise. Stika remarked, “It’s amazing how much we’re willing to pay for something we enjoy,” and acknowledged that the industry has long wondered where the consumer’s spending limit lies. Although he believes we may be getting closer to that threshold, he said, “we’ve not found that line yet,” pointing out that Certified Angus Beef Prime was the brand’s fastest-growing category this year.
Stika also highlighted the impressive performance of top-tier cattle producers, who are achieving Prime percentages far above industry averages. While national grading sits around 12%, some producers send in groups that are “80% Prime, maybe 90% Prime,” with “almost no Selects.” He emphasized that this is the result of intentional genetic improvement, adding, “economic signals work and producers have definitely paid attention to them.”
Stika outlined CAB’s marketing focus going forward. Because the brand’s role is to “create demand,” CAB is investing heavily in education and training, including the use of its “8000-square-foot culinary center” in Wooster. The company is prioritizing the promotion of Certified Angus Beef ground beef, expanding Certified Angus Beef Prime, and developing more value-added products suitable for today’s labor-strapped market. As Stika put it, these items “really can add value to the menu, or in the meat case,” making them a key part of CAB’s strategy.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
