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Missouri Department of Agriculture

Ag Business Development

Beef

Like most of production agriculture, the trend in the cattle industry has been to larger and fewer farms with a growing share of livestock producers joining vertically integrated supply chains. While consolidation has been slow in cattle production, the consolidation trend is increasing in cattle feeding. This trend, being driven by changing consumer food demand, also increases the demand for technology as food companies look to maintain or gain a competitive advantage by cutting costs. There are a number of efforts underway in Missouri for small producers to find new ways to enhance profitability and develop niche markets.

Grid marketing, electronic identification tags and data management systems to target cattle towards premium markets provide increased returns for both small- and large-scale production. The production practice of Management Intensive Grazing provides a niche market for producers wanting to sell ‘pastured beef’. Antibiotic free, hormone free and organic are all niche markets growing as a result of increasing consumer demand. For the small-scale producer, direct marketing to wholesale markets, restaurants, institutions and grocery stores, and further processing of meats, adding value to less expensive cuts, provides marketing options. For producers interested in forming marketing alliances or cooperatives, a producer-owned processing plant allows producers to move up the food value chain and increase control over the end product. Forming producer groups also increase the ability to reach beyond local markets and maintain a consistent supply to the consumer.

General Beef Resources:

• University of Missouri Commercial Ag Beef Focus Team
• The Iowa Ag Opportunities website provides a business start-up manual to move you up the food chain; provides case studies. Also provides a resource manual called “Adding Value to Beef Production: A Business Start-Up Manual to Move You Up the Chain” for beef value-added projects.
• Angus Journal
• Beef Magazine
• Feedstuffs
• “Value-Added Beef Production for Specialty Markets” (pdf) (University of Idaho)
• Alternative Beef Marketing (Appropriate Technology Transfer for Rural Areas)
• Missouri Organic Association
• “Profile of the Agricultural Livestock Production Industry” (Environmental Protection Agency)

Associations:

• Missouri Beef Cattle Improvement Association
• Missouri Beef Industry Council
• Missouri Cattlemen’s Association
• Missouri Cattle Women
• National Cattlemen’s Beef Association
• American Angus Association, which provides information about the Angus breed and the Certified Angus Beef program

Examples of Value-Added Beef Businesses:

• “Adding Value to Beef Production: A Business Start-Up Manual to Move You Up the Chain” (produced by Iowa State University), includes case studies of U.S. Premium Beef, West Liberty Foods, LamPost Meats, and Goridto’s Meats
• U.S. Premium Beef, a producer-owned beef company which gives producers an opportunity to retain ownership of the beef they produce from the ranch to retail. U.S. Premium Beef members market finished beef cattle through their beef processing company, Farmland National Beef, the nation’s fourth largest beef processor. USPB also owns Kansas City Steak Company with Farmland Industries.
• Case study: Northern Plains Premium Beef (University of Manitoba)
• Cattlemen’s Texas Longhorn Beef Cooperative, a project of the Rocky Mountain Farmers Union
• Grassland Beef
• Laura’s Lean Beef