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State's Cattle Farms Take New Approaches to Marketing Beef Products

Posted on: Monday, 31 October 2005, 03:01 CST

By Elmer, Joann C

Beef farmers may be some of the savviest businessmen when it comes to utilizing technology and marketing their products.

With marketing slogans like "top choice,""prime" and "select," beef farmers are appealing to consumers' taste buds. And when it comes to West Virginia, many in the industry say the state's beef market has a strong reputation for producing a consistently valuable product.

In West Virginia, cattle farmers have several options when it comes to getting their beef to consumers. One is board sales, where the cattle are graded exclusively on their local farm and sold by telephone. In those cases, genetic backgrounds, diet information and other records are available to buyers.

Livestock auctions are another way to move cattle. West Virginia has 12 livestock markets throughout the state. Cattle brought to these markets are independently graded by the state Department of Agriculture and sold based on weight and grade. The gradings are based on standards set by the United State Department of Agriculture.

"Beef cattle represent about 22 to 25 percent of all cash sales in West Virginia agribusiness," said Dwayne O'Dell, who oversees livestock marketing for the state Department of Agriculture. "Poultry is the largest. They represent about 50 percent. But that's vertically organized with three or four companies controlling most of the state's business in five counties. Beef is more localized and spread throughout the state."

West Virginia has about 1,200 farms with beef cattle. The average farm size is about 175 acres. Most of the cattle on these farms are cross-bred, but about 7 percent are pure-breds including the Black Angus breed, according to O'Dell.

Even though they're not huge farms, O'Dell said farmers are making a profit by responding to consumer wants.

"Farmers have become more concerned about how consumers perceive their products," he said. "Twenty-five years ago, one out of five steaks would be considered unacceptable today. Generally, they would be too tough."

In addition to quality, farmers also are becoming more aware of consumers' fears about meat enhancements. Hormones are used by some farmers, but several West Virginia beef farmers have discovered a market for an all-natural herd.

Mon Valley Farms in Morgantown markets its beef as "local raised, grass fed, antibiotic- and hormone-free flash frozen beef products." Roxley Farm in Kearneysville sells its products as "hormone and antibiotic-free Black Angus Beef."

"Farmers are definitely becoming more business-minded," said Bob Williams, executive secretary of the West Virginia Farm Bureau. "They're really beginning to understand and embrace the value of a good marketing strategy."

But marketing is only part of the equation. Beef farmers have steadily improved their products by utilizing the latest technologies. So as technology improves, so do beef farmers' marketing campaigns.

Farmers currently are using data on individual cows to determine what methods need to be taken to improve their final product.

For instance, if several calves in the herd are weighing in too light, the farmer can examine the feeding habits, diet and makeup of both parents. If the feeding habits and diet are sufficient, O'Dell said, the farmer knows he needs a bigger bull. It's all about genetics.

"Farmers have been able to improve quality by picking the right mom and dad," he said.

O'Dell said by selecting cattle with better carcass quality, farmers can breed herds with a more consistent quality. To examine carcass quality, farmers are using ultrasound technology.

"Technology and marketing are giving our farmers focus," said Phil Osborne, an extension specialist with the West Virginia University Extension Service. "Today, we can use ultrasound- technology to screen the cows before they're slaughtered. We can see ribeye size, the back fat and even marbling (the little flakes of fat that give beef its taste) through ultrasounds."

Farmers also are using technology to improve feeding methods for the livestock. Osborne said programs are under way to measure individual feed efficiency and nu trient levels in grazing fields.

The National Animal Identification system is another technological step in improving the nation's beef industry. The program, currently in its early stages, will assign individual numbers to livestock to track the animals as they're moved around the country. The USDA is mandating all states be in compliance by 2009, but O'Dell said West Virginia will be well ahead of that.

The ear tagging system is similar to a barcode. The tags will be scanned each time an animal is moved from one location to another. When the final beef product is sent to a grocery store, the ultimate goal will be for that number to be attached to each cut of beef sold to consumers.

"This I.D. system will position U.S. farmers to compete worldwide," O'Dell said. "They'll be able to market their products in places like Japan, which currently does not accept U.S. beef."

The goal is to have a 48-hour trace back for any animal if there is a disease outbreak.

"We should be able to find out every place that cow has been and every other cow it's come in contact with to help contain an outbreak," he said.

West Virginia beef cattle are shipped all across the United States. O'Dell said the industry is in a good position for the next several years as America's demand for beef is on the rise. Currently, cows in West Virginia sell for at least $1 per pound. But O'Dell said some 700pound animals can bring in as much as $800.

"Market prices are as good as we've seen them in 20 years," he said.

Copyright State Journal Corporation Sep 30, 2005

Source: State Journal, The

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