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Industry's Reaction To Technology And Consumer Demands Causing Rapid Change In Beef Business

By Pete Anderson

We are used to slow change in the cattle business. But after decades at that pace, a rapid transition has set in.



“Part of that is from technology,” said Pete Anderson, research director for Midwest PMS, “as we add technology to any industry it tends to happen faster. Part of it is communication directly from consumers. Where we now understand to a much greater extent what consumers want and what they won’t accept and we’re reacting to that and part of it is speed of the way everything is happening in the globe these days.”

The markets have seen increasingly wild price swings.

“The price volatility of fed cattle over the last few years has exceeded what supply and demand differences would have predicted,” Anderson said. “So, we know there are other forces at work. Some of that is more investment in agriculture commodities than used to be. And some of that money is sort of transient. There is money coming in and out of agricultural commodities that didn’t used to pay attention to them and its some pretty big amounts. That creates volatility.”

The unpredictable moves and the rise of social factors in the market make risk management more critical today.

“We need to put in front of consumers exactly what they ask for and so as consumers dictate more of one branded program or one type of specification or another, we need to meet that,” Anderson said. “But we also need to make sure we can do it in a way that is profitable and economically sustainable.”

Consumers pay premiums for what they want. They get behind social media platforms and rally for causes that they believe in, sometimes regardless of practicality.
 

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Trending Video

Secure Pork Supply Plan | Preparing for the Future | U.S. Pork Producers

Video: Secure Pork Supply Plan | Preparing for the Future | U.S. Pork Producers

Join Jill Brokaw, a third-generation pig farmer and staff member of the National Pork Board, as she dives into the vital role of the Secure Pork Supply (SPS) Plan in preparing the U.S. pork industry for potential foreign animal disease outbreaks. This video is an essential watch for pork producers who are looking to safeguard their operations against the threats of diseases like foot and mouth disease, classical swine fever, and African swine fever.

Why Should Pork Producers Care? An outbreak of foreign animal diseases in the U.S. could lead to severe restrictions and potentially result in industry-wide financial losses estimated between $15 to $100 billion. The SPS Plan is a collective effort to prevent such catastrophic outcomes by enhancing biosecurity, ensuring animal traceability, and promoting effective disease monitoring.

What You'll Learn:

The Importance of Preparedness: Understand why being proactive is crucial for maintaining business continuity during an outbreak. Enhanced Biosecurity Measures: Write a site-specific biosecurity plan that can serve as the first line of defense against potential outbreaks. Animal Disease Traceability: Learn about the significance of tracking animal movement and how acquiring a premises identification number (PIN) and using AgView can facilitate this process. Disease Monitoring: Find out how continuous observation and reporting can keep your herd healthy and disease-free.

Getting Started with SPS: The video breaks down the seemingly daunting task of preparing for a foreign animal disease outbreak into manageable steps. With free resources available at www.securepork.org, including templates and instructions, Jill guides producers on developing a customized plan to enhance their farm's defenses.

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Takeaway: The Secure Pork Supply initiative is more than a plan; it's a commitment to the resilience of our food supply and the livelihoods within the pork industry. By embracing these proactive measures, we can collectively enhance our preparedness for foreign animal disease outbreaks.