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Value adds up for beef producersIowa For beef producers, soaring new retail sales figures for the beef value cuts brings welcome news. The value cuts are new steaks and roasts cut from the chuck and round. They work to fill the price/value "gap" between premium steaks and ground beef at the retail level. During the past 10 years, the checkoff has been a driving force behind the research and market development for this new product line. The new retail numbers indicate dramatic sales increases. Just nine months into 2007, value cut volume sales increased more than 4.9 million pounds, compared to all of 2006. As of September 30, 2007, value cuts volume pound sales accounted for 2.4 percent of pound sales for all cuts from the shoulder and round. That's up from a 0.8 percent share in 2003. According to the checkoff retail team, the increases are due in large part to an increase in case-ready programs that have made cuts, like the popular Flat Iron steak, more available at retail stores. "The new beef value cuts, which through a checkoff-funded muscle profiling study, have turned undervalued chuck and round into new cuts to help cattle producers improve overall profitability," comments Dan Cook, cattle producer from New Providence and vice-chair of the Iowa Beef Industry Council. "Consumer demand for a beef chuck pot-roast has declined due to the need for quick meals. We know they like steak, so cutting up the chuck into more steaks sells the chuck primal at a higher value." Cook adds, "We have worked with Fareway and Hy-Vee Stores to introduce these new value cuts in recent years. They are great grilling steaks, and have become very popular across Iowa and the United States. It hasn't happened overnight. It's exciting to see these numbers and realize that our checkoff investments are working to create new products and new producer profit opportunities by increasing the value of the beef carcass." 5/26/08 Date: 5/21/08
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