Demand for grass-fed beef is growing!

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February 1, 2013

Grass-fed beef accounts for only about 3% of the market, but demand is growing 20% a year, a study shows. It's a result of the backlash against corn-fed cattle. There were only 100 producers of grass-fed beef in the U.S. in the late 1990s. Now there are more than 2,000, says Alan Williams, who produces grass-fed beef. One of them is Grassland Beef Co. in Missouri. Jeremy Parker is a rancher who raises his cattle the old-fashioned way. His herd feeds on grass."There's definitely growing demand" for grass-fed beef, he said. "There's more demand than there is availability."Although still only about 3% of the beef consumed in the U.S., grass-fed beef will keep rising in popularity, advocates, consumers, and producers predict. One study put demand growth at 20% a year...Read the Article in the LA TIMES

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Allen’s Cattle Industry Update

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One year ago fed cattle sold for $124.15 resulting in losses of $9.62/head.Average Packer margin decreased $3 per head this week with packers losing an average of $82.37 per head.Industry Updates:Republicans and the White House share similar thoughts on how much to cut the new Farm Bill. Both sides have proposed cuts in the neighborhood of $32 to $35 billion. Both sides agree that there need to be cuts in farm subsidies and conservation but disagree about cuts to food stamps. Treasury Secretary Tim Geithner has stated that the government can save a lot of money through Farm Bill reform. It appears there is a consensus that the direct payment subsidy to farmers is in trouble and that funds for conservation efforts will be significantly reduced. 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In addition, Texas and Oklahoma experienced sharp inventory reductions due to severe drought conditions, resulting in overall beef cow decreases of 3.1%. The end result is that cattle numbers are dropping in areas where crop competition is greater. This relegates the beef cow herd to the drier regions of the country. The same phenomenon is occurring in South America as well due to sharp increases in crop production there. However, this increased conversion of arable pasture and hay land for crop production will inevitably result in an increase in forage value which can impact the way that land is managed. Higher forage value should incent more efficient use of our remaining forage resources and even encourage greater use of corn stalk residue through grazing. With fewer acres of pastureland available, livestock producers will have to adopt better forage systems that will allow for increased production per acre and extension of grazing seasons.The Cattlemen’s Beef Board, the group that manages the Beef Checkoff dollars, now has their first grass-fed beef producer as an appointed member. Secretary of Agriculture Vilsack has appointed Dr. Tom Parks, a Colorado Veterinarian, and grass-fed beef rancher, to the board. Dr. Parks will serve a three-year term on the board. He is the owner of Sun Prairie Natural Beef.The ongoing drought has resulted in a loss of more than $400 million in Oklahoma. These losses include agricultural crops, livestock, and wildlife property loss. This comes on the heels of a more than $1.6 billion loss in 2011 due to the severe drought that year. That makes the combined two-year loss greater than $2 billion. 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