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Last Updated on Friday, 18 March 2011 13:03

Written by Heather Hamilton

Denver, Colo. – National Cattlemen’s Beef Association (NCBA) Senior Vice President of Marketing Kim Essex spoke on trends and trendsetters in the beef industry during the Cattlemen’s College, held in conjunction with the NCBA Annual Convention and Trade Show Feb. 2 in Denver, Colo.
Essex directs a number of NCBA programs, including the “BEEF, It’s What’s for Dinner” campaign. She also helped revamp the brand to highlight beef as an excellent source of lean protein, and she works with a number of retail and food service individuals who are in direct contact with beef consumers.
“It’s about the consumers. They tell us what the trends are by putting dollars on the table, and they will pay more if they see value in a trend,” explained Essex, adding that dollars are why trends are important to pay attention to.
“Trends gain momentum when they are in line with consumer expectations. The consumer will pay more for products that deliver on their expectations,” noted Essex.
She highlighted six trends and trendsetters currently gaining momentum and garnering a share of the consumer’s dollar, even during what many still deem challenging economic times.
“Number one is human touch. ‘The more fragmented our identities and fractured our days, the more we yearn to connect,’” said Essex, quoting Faith Popcorn.
“Consumers with an increased interest in where their food comes from is one symptom of this. They like to have social experiences at retail locations and dialog with corporate around shared values,” explained Essex
She highlighted Wolfgang Puck and Jack Daniels Whiskey as two examples that have excelled in this area.
“Wolfgang has turned his experience into a true brand, and he’s massive. He has cookware, retail products and restaurants, and he still tries to find human connections. Jack Daniels tells a story powerfully, and it’s the story of the community and the people who make their product. Their advertising says, ‘Our Tennessee sippin’ whiskey is ready only when our tasters say it is.’
“Our beef checkoff is doing this, too, and making human connections and meeting face-to-face with the consumer to hear about they care about,” noted Essex.
Another popular trend today is the idea of products being simple, fresh, natural and good.
“‘Less is more’ is a concept that’s gaining in popularity, and the recession really put this into overdrive. There is a minimalistic approach, and we’re not hearing about a lot of super foods, we’re hearing about pure, whole and straightforward products.
“Our competitors are going after this approach too. Australian lamb uses the headline ‘natural,’” noted Essex.
She listed the concept of “my way or the highway” as another popular trend today.
“We think we should have it our way, and will go to the company who can provide it. Tailored products fit needs, and people like having all the information at their fingertips so they can make smart decisions as a consumer,” noted Essex.
She listed more menu information, designing your own meal and meat case labeling as examples.
“Consumers want this information, and we need to provide it. We have a product that tells a great story, and has a tremendous amount of nutrients for a small amount of calories,” said Essex.
“Number four is, ‘make me a better offer.’ In 2010, 50 percent of revenue was based on promotion, and in 2008 it was at 35 percent,” noted Essex. “We have to find a way to fill the value equation, and give consumers satisfaction for the right price. Deals are part of it, too.”
Her fifth trend is “going global.”
“Think about Brazil, Russia, India and China. There are lots of opportunities in foreign markets, and we’re seeing those benefits in our beef prices now. The USA continues to be a dominating force, and we’re the number one beef-eating nation in the world. This is happening within our borders as well.
“Twenty-seven percent of baby boomers were ethnically diverse. Forty percent of the millennial generation is ethnically diverse, and we need to find ways for beef to fit beef into ethnic dishes. Celebrating these recipes and menu items and bringing them here to fit into the American diet is a means of exploring and taking advantage of this trend. The consumers want it – they’re interested in exploring international flavors,” explained Essex.
The final trend she highlighted was the idea of affordable luxury.
“We see things like ‘shooter desserts’ that allow us to indulge, and have a special treat, but without tearing up our pocket book or waist line. Promoting beef on more parts of the menu – as appetizers, small plate options and sharing plate dishes are some cool opportunities for our industry.”
She listed filleting ribeye steaks as one example that fits into this trend.
“We take the ribeye from a monster steak into filet cuts, which allows for a better price point and value to consumers, and also allows us to up-charge some. Consumers are responding very favorably to this.”
“Trends are impacting merchandise, and knowing what trends are going on is important. There are several gaining momentum in the marketplace, and they are out there and are a legitimate way to market a commodity,” concluded Essex.
Heather Hamilton is editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

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Last Updated on Saturday, 03 March 2012 10:37

Written by Saige Albert

Casper – In the food service and meat packing industry, keeping the consumer happy by addressing quality and safety of products is most important, explained President and CEO of Melotte Distributing, Inc. Harry Melotte at the 11th annual Casper College Doornbos Lecture Series on Feb. 21.
    Melotte Distributing, Inc. is headquartered in Green Bay, Wisc. and is a custom meat processor and wholesale distributer. The company, formed in 1976, focuses on high quality value-added products that are safe and reliable.
    As primary focus of his business, Melotte emphasized meeting the demands of the consumer is most important in the meat industry, and that includes maintaining a safe, quality product.
Food safety priorities
    Recent regulatory changes have required the meat packing industry to test for six more strains of E. coli bacteria, explained Melotte, and the rule will be implemented on June 12.
    To address the growing concerns about bacteria, Melotte began implementing a multi-step intervention system over a year ago. His food safety strategies extend beyond traceability, and all meat that enters his facility is thoroughly cleaned before entering the rest of the plant.
    “We started working on it before they came out with the rule,” said Melotte. “As meat products come in, they are declared unadulterated, and we have to deal with them because they may be contaminated.”
    The company treats all their meat products with an organic wash that is considered the most effective tool for intervention. After looking at potential residues, as well as what concentration is necessary to kill bacteria, Melotte noted that the product allows his facility to eliminate contaminants.
    “This wash literally turns to table salt by the time it is done, and has been considered the most effective,” he added. “It costs over $15,000 per month – or about 1.8 cents per pound – to treat all of the meat before it goes into our plant.”
    “It’s our responsibility to our customer and the people that we deal with everyday to make these food safety efforts,” said Melotte, adding that, in two cases in the last year, the intricate system has stopped a contamination at his door.
    To prevent contamination in the facility, Melotte explain that edible oils are used to drive all belts and lift stations, and the equipment is built by the facility.
    “We have a complete fabrication and metal shop,” he said, adding, “We know what will fit our facilities and what we are doing.”
    He also trains all employees in food safety measures.
    “Every person is trained in food safety, why we do what we do, and the importance of safety,” said Melotte.
Traceability in packing
    “There are only two types of plants – those that have had a recall and those who are going to have one,” said Melotte. “There is nothing in between. It may not be your fault, but some product we obtain may be contaminated.”
    Because food safety is a priority for the meat packing industry and to meet the food safety needs of consumers, he has implemented a complete traceability system. Not only does the system allow Melotte to isolate and track every product that comes out of his facility, he has also allowed that each box is numbered and can be easily traced.
    “We put in a system two years ago that tracks every box by license plate number into production through where it is sold,” said Melotte. “I know which packer and box number everything is in, so if I have breaks in the line, I know where to find it.”
    Melotte added that they system is completely computerized and allows him to locate information on all products within 30 minutes or less.
 Maintaining value
    “Never grind what you can dice, and never dice what you can slice,” said Melotte. “The more intact muscle you have, the more money you can get for it.”
    Melotte also emphasized that current market trends are moving toward premium programs, such as Certified Angus Beef, and it is essential for his business to integrate the value-added component of the industry.
    “We need to be on board with the premium programs – it’s not a wish list,” he emphasized. “We have to commit to it.”
    At the end of the day, Melotte said that selling product to consumers is what is important and it is necessary to maintain the value and quality of products to keep consumers happy.
    “The day I quit looking at market trends is the day I might as well retire,” said Melotte, noting that the industry is driven entirely by “the butts” at the table.
    “The people paying the bill – the butts – are the ones who will determine what you sell,” he explained. “The most important people in the restaurant are the butts, because if they aren’t happy, they probably aren’t coming back.”
    Saige Albert is editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Selecting beef products
    Harry Melotte of Melotte Distributing, Inc., who spoke at the annual Casper College Doornbos Lecture Series on Feb. 21, explained that segmented programs require an in-plant selection process to isolate the highest quality meat products.
    “We pull all of the upper end carcasses for the premium programs, and they are segmented based on yield grade and marbling,” explained Melotte. “As the animals are selected off, all we have left is Choice.”
    Though Choice is a good option for less expensive products, he noted that those products tend to be more inconsistent.
    He emphasized that his programs feature genotypic verification of cattle for quality, rather than phenotypic. Cattle are evaluated on their genetics and heritage, rather than hide color or other physical features, and the approach allows him to sell a product that grades in the mid to upper 90 percent.
    “Consistency comes from the premium programs,” he said. “They take the gray area out of what you buy.”

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Last Updated on Friday, 26 February 2010 08:19

Written by Christy Hemken

Denver, Colo. – The big decrease in the meat expenditure index from 2008 to 2009 will continue into 2010, according to European consultant Richard Brown.
Brown was present to speak at the 2010 International Livestock Congress during the National Western Stock Show in Denver, Colo.
“In 2009 the price reaction came down more than we were expecting, because the economy was worse than we were expecting, except for China,” noted Brown.
He explained China’s prices stayed high because of a Porcine Reproductive & Respiratory Syndrome (PRRS) epidemic in the country’s pork industry that reduced production by 3.5 million tons in 2009.
“The Chinese government didn’t turn to the world markets, saying they had a problem and importing more to have meat available for their people,” said Brown. “Instead, their purchases were strategic and lifted the pig price, which caused Chinese pig farms to make a serious effort to produce more meat.”
“The place where a quarter of the world’s meat is consumed does not have a huge bearing on world trade,” said Brown. “China does not import much meat at all.”
Brown noted that the Middle East and Africa are complicated regions, but “massively important vacuums” for importing meat, including chicken, sheep and beef.
“Those regions are very important for the future because they’re very likely to import an ever-increasing quantity of meat, and exporters need to have a better understanding of how that market works,” commented Brown.
Although Russia can be “huge” for importing meat, Brown said that country has an “erratic total import volume.”
“The long-term trend expectation for importation to Russia is down for pork and poultry, but less so for beef,” explained Brown. “It’s clear the Russians don’t have a vital beef industry, and not much capital into increasing beef production. It’s likely the volumes of beef imported will be considerable for quite some time, and the prices will be interesting to all of us.”
“China will be the big question mark for the long term,” said Brown.
Of the worldwide cattle herd, which takes a long time to build up, Brown said everyone around the world has been surprised the U.S. cattle herd has not seen the expected upturn.
“Not surprisingly, production is down and thank heavens for that,” said Brown. “If it hadn’t been down we’d face much lower prices than we’ve had in the last year. It’s a fortunate coincidence as far as cattle farmers are concerned.”
“The U.S. is the largest producer of beef in the world, and its trend is down for 2009 and 2010. Brazil is not down, with a big change there in the last couple years,” noted Brown.
Regarding worldwide markets, Brown emphasized it’s “not one big homogenous cattle industry.”
“Different types of cattle are needed in different parts of the world, at different costs and different conditions,” he added. “There are significant differences in the preference of beef people like to eat. Producers need to be extremely careful to understand the different national cultures in beef.”
Because of that, it’s not easy to make meaningful production cost comparisons across countries. “If you look at Germany, France, Italy and the U.K., their cost of production is much higher than Poland’s, and the U.S. has a lower cost than all of Europe, and South America is much lower than the U.S.,” said Brown.
“Absolutely you’re not comparing like to like and one shouldn’t regard beef as a homogenous commodity and there are opportunities to market in different places in different ways. It’s an interesting, segmented beef market,” he added.
Looking ahead, Brown said a “very significant” decrease in volumes exported by Brazil is expected.
“They have not responded to traceability, and it’s taking Brazilian farmers a very long time to respond to what the politicians require, and the retailers,” he explained. “It’s incredible how the thinking has changed over a two- or three-year period of time. Now there are supermarket chains with absolutely no interest in South American beef whatsoever. They’re extremely sensitive to the issue of sustainability and everything that goes with that. It’s a very complicated subject.”
“There are whole loads of factors that are changing, including the supply chain, regulations and protectionism, cost of production, profitably, sustainability and climate change,” said Brown. “Producers will need to reflect carefully upon them in forming long term strategies. It’s a time for the meat industry and farmers to be very cautious, understanding the market before we pour too much capital into developing our businesses on historic assumptions.”
Christy Hemken is managing editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

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Last Updated on Saturday, 17 March 2012 13:43

Written by Saige Albert

Denver, Colo. – Consumers are searching for a product that provides the same positive attributes consistently, and Colorado State University Animal Science Professor Daryl Tatum and JBS meat scientist Derek Vote say that the importance of quality and consistency of beef products is becoming more critical.
    “It dates back to the early 1990s and the first ever quality audit,” explains Tatum. “The interests of the audit were to improve quality and consistency with beef.”
    Tatum adds that the first audit revealed beef products were too fat, too tough and too inconsistent to compete effectively in markets. Since 1991, quality audits are done every five years to analyze industry trends, the current status of beef products and steps to improve the beef products.
From the beginning
    After the initial quality audit of the cattle industry, a series of goals were identified to improve beef products. According to Tatum, the results and goals of the 2010 audit are very similar.
    “There are still problems with fat, inconsistency, tenderness, marbling and other quality issues,” he says, mentioning other goals include improving the supply of live cattle and delivering the product attributes that meet consumer needs and expectations.
    Tatum also mentions there is a strong push in the industry to increase marbling, control weight and size, and decrease variability in beef products.
Technology improves
consistency
    Technology can be utilized to ensure quality and consistency in beef products, and Tatum emphasizes the use of instrument grading to improve consistency.
    By 2005, companies were beginning to utilize instrument-based grading, but he notes that these grades were interfacing ineffectively with USDA grades.
    “Companies were using it to maintain records on where they were going,” explains Tatum, “but it wasn’t really until 2009 that the USDA began implementing instrument grading.”
    Other issues posed by instrument grading include human errors, as well as regional differences in quality grade.
    “The option of camera-based grades increases consistency,” explains Tatum. “Camera-based grades do a pretty good job.”
    In a look at the consistency within each grade, one study observed 99 percent consistency within Prime cuts, 62 percent in Low Choice and only 29 percent consistency in Select, and Tatum mentions that the industry needs to improve both quality and consistency in the lower grades.
    Of the inconsistency of Select beef, Tatum says, “Tenderness accounted for about 80 percent of variability.”
    “I think the industry can do a lot of things to try to improve the marketability, consistency and quality of beef,” he adds.     
A look at marbling and
variability
    “We have seen quality grades increase from the mid-‘50s,” Tatum says. “We’ve seen some major shifts in the way beef is marketed, as well.”
    He specifically notes a shift away from Select beef in the retail sector in favor of Choice, and when Americans began to dine more in the home, more Choice was made available on retail shelves.
    “What we have seen recently is a huge increase in the Choice-Select spread,” Tatum adds.
    He also comments that stabilization of yield grades has been observed since the 2000s, but the industry has failed to control weight in cattle.
    “Weight is such a huge economic driver that I don’t see that 30-year trend changing very much,” says Tatum. “Projections are that it probably won’t decrease, but it might not increase at the same rate it has been.”
    While one of the goals of the cattle industry is to decrease variability, Tatum mentions that controlling variability has its limits.
    “Anytime you deal with a biological system where we have environmental effects and practices, we will have variation,” he says. “We are producing in a lot of different environments across the country, so we have to live with a certain amount of variation.”
Consumer demands
    With climbing beef prices, Vote says the industry is working hard to carve out smaller price segments to meet consumer demands.
    “We need to hit those price points and keep beef on the plate instead of some other protein,” explains Vote, noting that programs provide products to consumers at a variety of price levels.
    He also adds that, with an emphasis on characterizing and measuring product quality and consistency, “The customer has a better idea of what they are getting and a better idea of what to go back to, if it is something they are happy with.”
    “Are we maintaining quality and consistency? We are doing a pretty good job in certain areas, and there are places we still need to work and improve,” Tatum comments. “The concept of continuous improvement is the mentality of the industry and where we should be right now.”
    Vote and Tatum addressed concerns of quality and consistency at the International Livestock Congress held on Jan. 10 in Denver, Colo. Saige Albert is editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .