ISSUES POLICY
Beef Cut Discoveries Add Value By Molly K. McAdams
T
HE BEEF CHECKOFF HAS PLAYED A SIGNIFICANT ROLE IN THE development of new beef cuts that are proven to increase profi tability.
Value-added cuts like the Flat Iron have kept beef in
the center of the plate at a time when our industry has had to absorb billions in increased government regula- tions in food safety, thus putting beef at a competitive disadvantage to other proteins. These new cuts have kept beef strong in a competitive market. It’s interesting to see just how these new cuts came about and how your dollar helped to fund some of the most ground- breaking innovation in meat science today. It began in the late ’90s when consumer demand for
ground beef was low and prices weren’t much better. Consumers were clearly looking for more options at the meat counter. When they couldn’t fi nd them, they turned to other sources of protein. At this time, end cuts from the beef round and chuck
were largely destined for ground beef. Though ground beef is convenient and popular, it is still one of the low- est value options for merchandising and selling beef. Considering that the end cuts make up the majority of carcass weight, it was important to look for ways to derive higher value from these high tonnage cuts. In response, beef producers sitting on the Joint Prod-
uct Enhancement Committee — a committee once within the Cattlemen’s Beef Board and comprising representa- tives from all segments of the beef industry — set out to determine if it was possible to characterize muscles from the beef chuck and round complexes that might have positive consumer benefi ts. Dollars from the checkoff were used to fund a series of interrelated projects with the goal of maximizing the value of the entire carcass. A major study was launched to characterize the
intricacies of the beef animal muscular system. That information was distributed to every sector of the beef industry. This was the most extensive and comprehen- sive study of the muscles of the chuck and round ever conducted. The results prompted new information that
96 The Cattleman February 2014
allowed us to fi nd the most optimal use and value for muscles that were previously destined for grinding rather than merchandising to their potential. All this research and innovation led us to discover
a few “diamonds in the rough,” meaning new cuts of beef that are tender, delicious, consumer-friendly and land somewhere between premium steaks and ground beef as far as price and quality. To date, 13 new value cuts have hit the market in-
cluding the popular Flat Iron that is seen on menus all over the country and in grocery stores. Eight of those 13 new value cuts meet USDA’s criteria for lean beef (less than 10 percent fat). Signifi cant checkoff dollars were devoted to this
multi-phase effort, and it took some time to see the results. For example, the Flat Iron was one of the fi rst cuts launched and required 10 years to fully be imple- mented into the market. But it was worth the wait. In 2009, Technomic Inc. reported that the food ser-
vice volume of the Flat Iron was 86 million pounds. That’s compared to 19 million pounds of Porterhouse and 44 million pounds of T-Bone. That same year, 40 million pounds of Petite Tender and 27 million pounds of Ranch Steak passed through the food service channels. That’s more than 150 million pounds of beef that had value added above and beyond its value as ground beef. It’s estimated these 3 cuts alone have added $50 to
$70 of value per head, and the additional 10 cuts are expected to add anywhere from $20 to $50 of value per head. Considering we pay a $1 per head into the beef check-
off, I’d say that’s a pretty good return on investment. This initiative perfectly illustrates why the checkoff is
so benefi cial to our industry. No single sector could have initiated and implemented something so groundbreaking alone. Every dollar you invest in your beef checkoff is used to increase the profi tability of all involved in the beef chain. It’s an investment that continues to work for the good of our entire industry.
thecattlemanmagazine.com
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