At the end of September, Industry At A Glance highlighted the ongoing solid premium for Prime in the wholesale market.  That surge was surprising, given the sharp slowdown in food service volume in the past six months due to COVID. The column noted, “…the premium for Prime has been defying gravity – the moving average now stands above $30 and has been positively diverging from other categories in recent weeks.”  

That’s even more surprising given the production trends. That is, the fed steer/heifer mix has been producing more Prime product than ever – hovering around an astounding 10.5% of total production. This week’s graph provides a long-run view of quality grade trends dating back to 2000.   

Within that illustration, several key trends are important for the beef industry:

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And it’s the final aspect that’s really enabled the beef industry to maintain some continuity through COVID-19 – and also allowed many consumers to experience the very top end of beef quality they may not have had opportunity to enjoy otherwise.  

Whatever the outcome, it’s clear the beef industry has made great strides in terms of quality grade and that’s paid great dividends through the most challenging times. Ultimately, the self-reinforcing loop of higher premiums and more volume underscore the importance that a consumer-oriented focus is the ultimate path to success.

Nevil Speer is based in Bowling Green, Ky. and serves as director of industry relations for Where Food Comes From (WFCF). The views and opinions expressed herein do not necessarily reflect those of WFCF or its shareholders. He can be reached at [email protected]. The opinions of the author are not necessarily those of beefmagazine.com or Farm Progress.