In this file:
· Certified Angus Beef Continues Record Sales Growth to Benefit Angus Purebred Owners
· Certified Angus Beef Continues to get Creative to Drive Demand
Certified Angus Beef Continues Record Sales Growth to Benefit Angus Purebred Owners
Oklahoma Farm Report
07 Nov 2019
John Stika, President of Certified Angus Beef visited with Ron Hays about the remarkable brand of Certified Angus Beef. The organization just finished up their 41st year. 2019 went down as the 15th consecutive year of growth, and the 13th record year for sales in a row. The organization is up by 3% and hit 1.25 billion pounds in sales. Stika is excited about the energy “We continue to build off of the momentum for quality that we are starting to see among consumers and among our retail and food service partners.”
The retail and domestic business is also growing by 9%, and by 4% in food service. They also showed gains in the international markets. Stika says “We feel really blessed to be hitting on all 8 cylinders right now”
While there have been some challenges in the cattle industry with falling prices, the premiums are still there for CAB. Stika added, “While the base price may not be what we would have liked to have seen in Cattle country, what we do know is that the value added is still there. So while it may not be as high as some would have liked, that calf is still worth more if they hit certified angus beef or prime.”
Certified Angus Beef produces a higher return, a certified angus beef Carcass brings back $100 a head more than the average, and a prime Carcass would have brought about more than $240 a head more. “Those are real dollars that cattleman can access in one way or another that ultimately help drive their sustainability and their viability in the business” states Stika...
Certified Angus Beef Continues to get Creative to Drive Demand
Oklahoma Farm Report
08 Nov 2019
Dr. John Stika joined the Angus beef team back in 1999, and for over a decade has served as their President. Today Ron Hays continues his conversation with John Stika about the improvements and genetics in the past decade, that has increased the number of carcasses that are high choice, but also a lot more carcasses being rated prime. Stika says the market place has noticed. "As an industry this year we expect we are going to be 72% choice and 8% prime on average."
There was a time in the industry was running upwards of 10-11% prime in the market place and when that product was available retail, the food service industry really jumped all over it. "What happened was we kinda got them addicted to it. They really like the product" says Stika, "Their customers like it. It presents that experience of taste, flavor and juices that we want all beef customers to have."
With the demand for Certified Angus Beef high we need to see more cattle hitting those 10 specifications for quality, because that is what the market place is requesting. Stika adds "The marketplace is saying we will reward producers who can produce that quality of product because the demand is there"
One of the ways the CAB brand has been able to sell more product year after year is helping good chefs get creative with their Certified Angus beef cuts. Through interactive experiential based learning The CAB has really learned how to drive demand in a nice way. Stika explains "A little over 7 years ago CAB opened their education and culinary center in Wooster, Ohio. Stika says what that allows us to do is really provide a complete immersive style of experience where our partners at retail and food service, domestic and international can really learn everything they need to know about Certified Angus Beef." Stika goes on to say that "With that experience, the confidence goes way up, and when the confidence goes up, the sales go up as well. We all get excited about selling something we know, and that we appreciate, and that we are confident in, and we see that time and time again helping us drive demand"
So with demand high, what does the future of the CAB look like? Stika says...
more, including audio [5:40 min.]