K-State's Ted Schroeder Talk About The Beef Value System

“In producing, processing, marketing, positioning and putting that product in the consumers’ hands, all of those activities take investment, take scrutiny to make sure that there is integrity throughout that value chain,” Schroeder says. “Everyone involved in that has an additional cost incurred. If you are the retailer, you have different shelf space that you have to allocate to this product. If you are the processer, you have a sorting mechanism that you have to incur in order to ensure that you have product flowing into that right retail channel.”

 

Schroeder says the added expense at each level means wholesale premiums for higher quality will not match the Choice-Select spread.