9:15 a.m. - 10:45 a.m., Room 217 A/B

RM 103: The Cost of Meeting Consumer Demand

John Lawrence, Iowa State University.

The Cost of Meeting Consumer Demand
As consumer demand for beef grows, there will also be an increase in expectations for U.S. beef.

SAN ANTONIO, TEXAS (Feb. 2, 2005) — The U.S. beef industry has enjoyed increased demand for its product during the last six years, but Iowa State University (ISU) Extension livestock economist John Lawrence says to continue that growth the beef industry is also going to need to keep up with expectations for its product.

“There are increased demands on beef. Consumers are expecting more for everything they buy,” Lawrence told cattlemen in attendance at the Cattlemen’s College® Feb. 2 in San Antonio. That means consumers, especially global consumers, will be expecting producers to prove things about the beef they raise and market.

John Lawrence, Iowa State University
“The world operates on a prove it basis,” he said, adding that gone is the day producers can simply say their calves have all had their shots. “You need to prove it.” As examples, Lawrence said producers are going to need to be able to verify the age, handling, management and vaccination protocols that take place on their ranch.

To that end, Lawrence said the beef industry has already seen value-added markets, certified marketing programs and certified production programs. “The next step beyond that is to certify the capacity of the operation to produce to specifications.” He cited as examples the ISO9000 and process-verified quality system assessments. This is already going to be required in plants for export to Japan, and Lawrence said the day is coming when farms and ranches will need this certification as well.

Lawrence said the impending export requirement for age verification is certainly a “consumer demand” driving this process.

However, he added that in the long run, having source verification information will be beneficial for producers. “This information will impact market access, your market flexibility, and ultimately help you make better management decisions that lower costs,” Lawrence said.

ISU intends to post forms to help producers with their source and process verification record keeping and quality system assessments. You can visit its site at www.iowabeefcenter.org.

— by Kindra Gordon, field editor, Angus Productions Inc.
© Copyright 2005 Angus Productions Inc.

Editor’s Note: This article was written under contract or by staff of Angus Productions Inc. (API), which claims copyright to this article. It may not be published or distributed without the express permission of Angus Productions Inc. To request reprint permission and guidelines, contact Shauna Rose Hermel, editor, at (816) 383-5270 or shermel@angusjournal.com.

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