Beef supply chains and vertical coordination programs
Increasing demand for specification beef products continues to pull our industry away from a commodity system toward a value-based system, increasing the need for supply chains or alliances. Just a few years ago the number of cattle marketed through such programs represented only a fraction of the nation’s total. Today, with more than 300 new, convenient beef products that have reached the market, the demand for cattle that can fill those needs is on the rise. Industry analysts estimate that cattle marketed through some form of vertical coordination program will reach 25 percent of the national total this year, with rapid growth projected over the next few years.
Industry leaders recognize, however, that several markets for beef exist, and that not all specifications must be alike. Many of the supply chains or vertical coordination programs listed on this poster have their own objectives. Those objectives may include working to increase the value of bulls from a certain breed, provide marketing opportunities for cattle of specific types, help feedyards identify healthy and efficient cattle to feed, or to help producers market calves and feeder cattle at premium prices. Some objectives may be more complex, such as creating a verified production system that manages every variable, including genetics, animal health regimens, feeding management, harvest and fabrication practices. But whatever the specific objective, each supply chain seeks to add value to cattle by eliminating variability and defects and to increase consumer acceptance of beef by producing satisfying eating experiences.
One or more of the supply chains listed on these pages may help you realize greater value for your cattle. When selecting a supply chain, find one compatible with your operation.
The information listed on this poster is intended to enable you to make initial contacts with the supply chains or marketing arrangements of your choice. Phone numbers and primary contact names are listed, and e-mail and website addresses are provided if available. Descriptions of the various programs and their specifications listed here are intended only as brief summary information. Contact the individual supply chain to obtain detailed information on program specifications and requirements.
This list of supply chains is also available at www.drovers.com and a limited number of additional posters are available by writing to Drovers, 10901 West 84th Terrace, Lenexa, KS 66214, or by e-mailing the editor at ghenderson@drovers.com
[Click here to view the 2010 Alliance poster]
