B igger than a single ranch, grocery store or restaurant, it takes a community to produce the best beef. Selling and serving the <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand isn’t something that happens by accident, just like it isn’t a coincidence when ranchers produce it. Only a few years ago, it was a question of whether enough carcasses would qualify for the <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand. While the pandemic changed business decisions and the availability of premium beef, the cattle supply remains steady. Driving across rural America, black cattle fill pastures. The North American cow herd has never been more <strong>Angus</strong> or focused on quality. Consumers drive the record-high demand seen today by casting votes with their wallets. “The future supply of the <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand is going to be very reflective of demand,” says John Stika, <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> president. The more product sold, the greater the economic signal sent back to farmers and ranchers. Cattlemen earn more than $1.7 million in grid premiums each week for raising cattle that meet the brand’s high standards. “We’ve delivered high-quality beef in the past and consumers keep coming back every year asking for more,” Stika says. “That ultimately elevates the demand and cattlemen respond.” Farmers and ranchers purposefully breed cattle to registered <strong>Angus</strong> bulls that excel in marbling. But it’s not just quality they’re focused on; they are after a more consistent product to ensure carcasses are meeting the other nine brand specifications, too. It’s a combination of selecting the right traits and progressive management practices. Cattle can never have a bad day to make it into the brand, and family farmers, ranchers and cattle feeders make sure their cattle receive the best care to maintain their health and optimize genetic potential. What they’re doing is working, proven by the record 36.8% <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand acceptance rate reached in <strong>2021</strong>. The rising tide is lifting all boats — the percent choice and prime carcasses are at all-time highs. This volume growth creates more opportunities to carry and sell the <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand. Greater availability of <strong>Certified</strong> <strong>Angus</strong> <strong>Beef</strong> <strong>®</strong> brand Prime allows partners to build business around it. “As more people trade up, the more they are committed to the benefits of quality,” Stika says, “which tend to be increased sales, higher margins, and repeat business from happy customers.” There’s a relationship between the people who sell beef and those who produce it, where incentives entice each to do better for the other. As more consumers get a taste of the best beef, ranchers will respond to supply it. 66
CATTLE CERTIFIED & ACCEPTANCE RATES 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 <strong>2021</strong> 0.0% Cattle <strong>Certified</strong> Acceptacnce Rate ANNUAL U.S. RETAIL BEEF DEMAND INDEX *ACCORDING TO CATTLE-FAX 105 100 95 DEMAND INDEX 90 85 80 75 70 65 BEEF DEMAND WAS CUT IN HALF BETWEEN 1980 AND 2000 BEEF DEMAND HAS STABILIZED AND IS GROWING 60 55 50 45 1980 1985 1990 1995 2000 2005 2010 2015 <strong>2021</strong> YEAR 67
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