Angus VNR: CAB Brand Basics
Uniquely not-for-profit and owned by ranchers, the Certified Angus Beef brand drives value in the beef supply chain from beginning to end. It’s the original premium beef program but even after 42 years, many cattlemen still have questions on how it works for them.
“That's something we're very, very proud of as a brand and the fact we do not take any dollars out of the pocket of cattle producers, and instead we are driving those Certified Angus Beef premiums back into the pocket of producers through the consumer demand that we are able to build through our partners, says Kara Lee, CAB assistant director of producer engagement. “Obviously, having that diverse portfolio of food service, retail, international, there are a lot of different places that product can go on once it leaves the packing plant, and we are unique in the fact that, Certified Angus Beef never owns a pound of product, we never own cattle.”
Through its global network of licensed partners, the company creates what’s called a pull-through demand model: more consumers knowing and asking for the brand means more demand for registered Angus cattle.
“When the consumer is willing to pay more, we know that packers are willing to pay more for those high-quality Angus influenced feeder calves. When the feeder is willing to pay more for those calves, we know that the commercial cow-calf producer is willing to, in turn, pay more for high-quality registered Angus bulls in order to upgrade the quality of the calves that they're weaning off every year. While many pieces that this beef supply chain can feel very segmented, we know that they're all very directly tied together in terms of achieving that overall mission statement,” Lee says.
The first threshold to earn the Certified Angus Beef logo starts at a licensed packing plant.
“Today, the way we identify those cattle as being Angus type at the packing plant is that they do have to be predominantly solid black hided. What that means is that the entire animal from behind the point of the shoulder above the flank and in front of the tail head must be a solid black hide,” Lee says. “No cattle get the brand before that hide comes off and every one is evaluated on an individual basis by that USDA grader for all 10 of those standards.”
Of those 10, one factor stands out as the highest hurdle – 92% of eligible cattle that don’t earn the brand, fall short of those premium dollars for lack of adequate marbling.
“The reason we talk about marbling so much, it's not because we think it's the only trait you need to pay attention to,” she says. “We know that marbling is a highly heritable trait. Roughly about 40% of what influences your marbling overall is based on genetics. We know that has to be coupled with high quality health, nutrition, overall management of those cattle, but the best way to start out with a clean slate and good potential is to start out with high quality genetics.”
The message is clear from consumers: high-quality beef is worth more and they’re willing to pay.
“The number one area where producers can make meaningful and measurable progress in terms of their own bottom line for Certified Angus Beef premiums by increasing that acceptance rate and where we as a brand can really put our focus in trying to grow more supply for that growing consumer demand,” she says.
