Gary Smith on Value-Added Marketing, Branded Beef and Animal Welfare

“All of the money we have in the beef industry is the sum of the amounts that domestic and international customers and consumers are willing to pay for out products,” Dr. Gary Smith, Colorado State University, pointed out. To increase the amount of money we get for our product, we have to add value that consumers are willing to pay more money for.

Value-Based Marketing refers to naturally occurring genetic variability in the product.

Value-Added Marketing focuses on management practices that can be verified to assure compliance.

Up to $30/cwt price spread on feeder calves occurs every week across the United States, based on health, performance history, and eligibility for premium or export programs. Producers can “climb the staircase to profitability” with management practices, data collection and alliance with established programs.

Currently, more than HALF of the beef sold in the United States is marketed under a branded beef program. That is up almost 10 percent in just four years. There has also been a shift to more retailer-owned brands, which Smith anticipates will be reversed.

True brands offer traceability, a story and quality control. An increased component of many brands’ stories includes animal welfare as groups like People for the Ethical Treatment of Animals continue to cast doubt in consumers’ minds about the treatment of animals. Consumers want to feel someone is overseeing the care of the animals and the environment all the way through the production system. This trend will likely see increased