Beef industry sets sights on marketing
U.S. groups host Vision 20/20 seminar for foreign buyers

By JULIET BRISKIN | Staff writer

Beef cattle, and the marketing of the end product, were in the spotlight at the Vision 20/20 seminar. Topics at the event ranged from world export markets to value-added and branded beef items. -- Staff photo by Carolyn Rost

July 15, 2004 - As the U.S. beef industry continues to re-establish export markets lost following the discovery of a BSE-infected cow in Washington, industry organizations such as the U.S. Meat Export Federation (USMEF) and the Texas Beef Council (TBC) are working to provide foreign buyers with information that will help them make purchasing decisions that are best suited for their markets.

On June 24-26, beef industry producers, buyers and marketing professionals from the United States, Mexico, Central and South America, and the Caribbean gathered in Houston for the most widely attended Vision 20/20 seminar to date.

"All of the Vision 20/20 programs have truly helped to promote a better understanding of the U.S. beef industry," stated Jim McAdams, National Cattleman's Beef Association president-elect. "These seminars help the foreign participants understand how the U.S. production and marketing system works and in turn we (U.S. producers) get a chance to better understand what their needs are."

This year Vision 20/20 kicked off at Astros Stadium with an all-American evening of baseball, stadium tours, a cocktail party and a buffet dinner featuring Nolan Ryan's Tender Aged Beef. The seminar, co-hosted by the USMEF and TBC, was funded by the beef checkoff program and featured speakers discussing topics ranging from the current state of the world's export markets to the importance of value-added and branded beef items.

According to Philip Seng, president and CEO of the USMEF, world meat consumption is increasing at twice the rate of population growth. "In China, beef consumption is growing four times faster than the population."

During his luncheon presentation, Seng asserted that free trade agreements promote domestically efficient production, lead to reduced food costs and increased consumer buying power. Using Mexico as an example, he explained that since the 1994 North American Free Trade Agreement, beef consumption is up by 24 percent and beef production by 8 percent. In addition, the per person gross domestic product (GDP) of Mexico increased 36 percent between 1994 and 2000.

Seng ended his presentation with a forecast that included global economic growth, new safety and global sanitary standards, and a slightly stronger U.S. dollar.

Following lunch McAdams, in a discussion on the importance of value-added beef items to producers, explained that just meeting specifications may not bring the premiums expected by producers. This is especially true when there is a large number of cattle on the market that all meet basic industry specifications.

"Value-added programs identify and create value throughout the supply chain. This can be done to the raw product by the retailer with things like photo processing or enhancing, different presentations or cuts, or the way they market it to the consumer," stated McAdams. "Producers create value-added products through management practices and genetics, and one really great way to create a value-added product is to get involved with a brand."

McAdams explained that, when developing value-added programs, the parties involved need to work together throughout the production and supply chain.

"Producers want to be considered partners in a supply chain alliance," he asserted. "They don't want to be considered merely suppliers. Where value-based marketing starts to become successful is when it really is a partnership and there's that synergy there."

Dr. Larry Corah with Certified Angus Beef (CAB) explained that branding creates an easily identifiable product for the consumer.

"Branding is a label, it's a commitment to certain standards and consistency," stated Corah. "Branding implies value and is a promise of better taste and quality. When producers target a specific brand they increase the value of their product."

According to Corah, most brands on the market today are USDA "Certified Programs" because they are linked to USDA grades. "Ten years ago, less than 5 percent of beef was part of USDA certified programs," he stated. "By 2003, that grew to 17.4 percent. The future of beef brands is still in its infancy, but it is pretty exciting."