A return on investment (ROI) isn't always easy to report in exact dollars and cents.
That's how it is with sustainability measures, said John Stika, president of Certified Angus Beef LLC (CAB), as he addressed the Cattlemen's College attendees during the 2016 Cattle Industry Convention in San Diego, Calif., last month.
"Premiums and revenue and return on investment show themselves in different forms. I think that's the key," Stika said. "I cannot sit here today and tell you we're going to see an economic signal paid for sustainably that's as vivid and real as the one that we see today for getting paid by weight."
It's still a very important topic for the Certified Angus Beef (CAB) brand.
"It's really about demand protection and growth," he said.
John Butler, of Beef Marketing Group, moderated the panel that also included Paige Hartley, of the Darden Restaurants Inc., and Keith Anderkin, the meat buyer for Arby's.
Butler said his partner feedyards take an approach to the topic that can be summed up in a question: "Are we better today than we were yesterday?"
The panel set out to represent the viewpoint of the beef end-users.
"We have to listen to our guests and respond appropriately," Hartley said. For them, that is different in each of their seven restaurant concepts from The Capital Grille to the Olive Garden. "It's not a one-size-fits-all solution."
Anderkin also stressed the partnership mentality. "We need you guys to be successful for us to be successful," he told the cattlemen. Beef is the biggest item on Arby's menu, and Anderkin said it "has a great story to tell across the board."
Even if the beef community feels like they're already sustainable, they need to listen to the consumer's definition.
"If demand goes away for beef, how sustainable are you?" Anderkin asked.
All four companies are members of the U.S. Roundtable for Sustainable Beef (USRSB), which describes sustainability as, "environmentally sound, socially responsible and economically viable," Butler said.
This topic can come with tension, but it shouldn't, Stika said.
"It's really a low-risk, high-opportunity chance to bring people together and have communication and dialog," he said. "We're all focused on the same end point."
Stika says many consumers fit in the "trust but verify" category.
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