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Industry At A Glance: Growth Of USDA-Certified Beef ProgramsIndustry At A Glance: Growth Of USDA-Certified Beef Programs

Certified Angus Beef (CAB), initiated in 1978, holds the distinction as the first USDA-certified beef program. Over the next 20 years, only 10 additional programs were established. However, in the 14 years since then, 129 new programs have been introduced.

Nevil Speer

April 23, 2013

2 Min Read
Industry At A Glance: Growth Of USDA-Certified Beef Programs

Previous charts have provided some coverage on branded beef programs noting that: “The U.S. beef industry has undergone some significant changes during the past 10 years. One of the most important aspects of that transition has included an increased focus on meeting consumer preferences across a variety of attributes.”

That particular coverage focused on the specific increase in the proportion of branded beef sales over time. Much of that has been driven by increased differentiation in the marketplace and the sharp rise in the number of certified programs – especially in recent years. That is, consumer markets are increasingly demanding specified-type product; correspondingly, the industry has increased its efforts to meet that demand.

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Certified Angus Beef (CAB), initiated in 1978, holds the distinction as the first USDA-certified beef program. Over the next 20 years, only 10 additional programs were established. However, in the 14 years since then, 129 new programs have been introduced! This trend clearly has important implications for the beef industry going forward. Most significantly, it points to ever-increasing marketing differentiation. That ultimately means more committed and intensively managed supply chains requiring specific genetics, management and marketing schemes to participate.

That has important implications for the industry. Will the number of certified programs, and the corresponding shift away from commodity sales, plateau in the future? Or do the upward trends signify even more growth in the years ahead? How do you see this playing out in the future? Leave your thoughts in the comments section below.

 

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About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
 
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
 
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
 
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

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