Whether it is research priorities, market access or how beef is represented to consumers and decision makers, producers benefit when efforts are aligned. Customers and trading partners see Canadian beef as one product, not a collection of regional systems. National co-ordination helps ensure that producer voices are consistent, credible and effective wherever Canadian beef is sold or discussed.

What the national check-off enables

One of the key roles of the national check-off is enabling that co-ordination. By pooling producer investments, the check-off supports shared priorities that no single region or group of producers could likely address alone. This includes aligning research efforts, supporting unified marketing and ensuring public engagement efforts reinforce one another rather than working at cross purposes.

National co-ordination helps prevent duplication and fragmentation. Without it, similar projects could be pursued independently across provinces, competing for limited resources and delivering mixed messages. Co-ordinated investment allows the industry to focus on areas with the greatest collective impact, stretch dollars further and present a clear, consistent story about Canadian beef.

This approach is especially important as the industry faces growing scrutiny. Questions around environmental performance, animal care and human health are increasingly complex and often influenced by global conversations. Addressing these issues requires credible science, consistent data and alignment across the value chain. Nationally co-ordinated research and engagement ensure responses are grounded in evidence and communicated clearly to audiences at home and abroad.

Marketing with one voice

Strong marketing outcomes also depend on co-ordination. Building demand for Canadian beef, whether at home or in international markets, requires consistent branding, messaging and positioning. Retailers, food-service partners and export customers need clarity and confidence in what the Canadian beef brand represents. National investment through the check-off supports co-ordinated domestic and international marketing efforts that reinforce quality, trust and value, helping ensure Canadian beef is well positioned in competitive protein markets and supporting demand and carcass value across the industry.

Co-ordination does not mean ignoring regional differences. Provincial priorities and programs remain essential, and local expertise continues to shape how beef is produced and marketed across the country. National co-ordination works because service providers deliver programs directly in collaboration with provinces, adapting research, marketing and engagement efforts to reflect regional realities and needs. This approach allows provinces to maintain flexibility while benefiting from shared investment, aligned strategy and national scale. Together, it creates a system that respects regional differences while protecting shared interests and strengthening the industry as a whole.

Stability through shared investment

For producers, the value of national co-ordination is often seen in stability. Stable markets, consistent demand and credible positioning reduce risk and help support long-term planning. The check-off plays a role in providing that stability by ensuring producer dollars are invested strategically and collectively in areas that benefit the entire sector.

As challenges and expectations continue to evolve, the ability to work together nationally will remain one of the Canadian beef industry’s greatest strengths. Through co-ordinated investment, producers can ensure their check-off dollars continue to support a competitive, resilient and trusted Canadian beef sector.

Learn more about how your investment supports the industry at Canadian Beef Check-Off.

Tayla Lindsey is the manager of partner engagement for the Canadian Beef Check-Off Agency, where she leads stakeholder engagement, reporting, and industry communications. Raised in Bassano, Alta., Lindsey is the fourth generation of her family involved in the Canadian beef industry.

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More than ever, generic marketing initiatives will need to be deployed across all markets as Canadian beef supply tightens and competing proteins gain increased shelf presence. Imports are up, demand remains strong and the opportunities are immense. Herd rebuilding and expansion are essential.

June is a pivotal month for Canada Beef — a time to take stock, sharpen focus and drive momentum. While the books are officially closed on the past fiscal year, the annual reporting process keeps one eye on the rearview mirror. But make no mistake — our foot is firmly on the gas. We’re committed to seeing real, measurable progress on the strategies and tactics fueling this year’s investment plan.

In June, Canada Beef will participate in a market development mission to Vietnam and the Philippines led by Alberta Minister of Agriculture and Irrigation R.J. Sigurdson. Alberta Beef Producers past-chair Brodie Haugan will be in attendance. In addition, Canada Beef will conduct and join a demand-building seminar for Japanese meat buyers at the Canadian Pavillion at World Expo 2025 in Japan, and exhibit at the Seoul Food and Hotel Show in Korea. Representatives from the Canadian Cattle Association will join both initiatives.

To further enhance Canada Beef’s export market diversification efforts, Samantha Mutuc joined the international team as marketing manager in the Philippines and Indonesia in April. Mutuc is based in Manilla, Philippines. With this new posting, we are now meeting our exporters’ needs in that market. Mutuc joins Nhu (Katie) Pham, marketing manager, Vietnam, who reports to Deana Kao, Canada Beef’s senior director, market development, for Taiwan, Southeast Asia, Hong Kong and Macau. We have been asked as well to consider representation in the Middle East-Gulf region, as the industry is trying to diversify its trade footprint.

Canada Beef also supported Alberta Premier Danielle Smith’s trade development mission to Japan and Korea in April. Canada Beef sponsored the beef for a networking event for 150 high-level senior executives in Japan and a luncheon for 45 high-level senior executives in Korea. Local representatives from Canadian beef suppliers, as well as executives from key Canadian beef import partners, were invited to attend in both markets. Canada Beef staff in these markets also participated.

During the events, Premier Smith thanked Canada Beef for its sponsorship, the Alberta government’s strong support for vibrant Alberta and Canadian beef sectors and the financial support provided for Canada Beef’s Alberta Beef Export Market Development Partner Program. While in Japan, she also visited the Costco Japan headquarters and observed Canadian beef cuts, including chuck eye and tongue, on retail shelves. Our beef products are available in all Costco Japan stores.

It is worth noting that Canada Beef’s Beef Export Market Development Partner Program hit a high note this past fiscal year, having completed the most projects during a year under the program. From April 1, 2024, to March 31, 2025, 53 projects were completed under the program. Thirty-four unique applicants received funding for projects supporting initiatives in 10 distinct export markets. Seven Canadian beef packers benefited from the financial support provided by the program.

Now entering its sixth year, Canada Beef’s Beef Export Market Development Partner Program provides cost-shared funding to facilitate export market growth for Canadian beef representative company-initiated projects and activities in five categories.

This past fiscal year, Canada Beef was proactive, responsive, flexible and strategic as the team navigated a fluid and complex changing world order that threatened negative impacts to the beef industry, among other sectors.

Many notable results were achieved despite the challenging environment. Key highlights in the domestic market included the third annual Burger it Forward campaign. Canada Beef’s national giveback campaign had nearly 30 per cent more restaurants participate, sold five per cent more burgers, and helped raise more than $60,000 to support regional food banks and Food Banks Canada.

The health and nutrition team achieved a banner year in resource distribution with an 81 per cent increase in the number of beef and health educational materials distributed in partnership with the Ashfield Engage Sample Cupboard Program.

The program provides direct access to health care professionals, including physicians, specialists, and allied health professionals, such as nurse practitioners, as well as indirect access to patients when they are offered these materials during a clinic visit.

Almost 750,000 brochures were distributed in 2024-25 compared with 400,000 the year prior. This increase was driven by the addition of two extremely popular topics: iron and pregnancy, and “eat well, age well,” a brochure highlighting the importance of quality protein for healthy aging.

Finally, the results of the 2025 Global Stakeholder Satisfaction Survey showed an incremental gain in overall satisfaction rates with Canada Beef programs, resources and initiatives. Canada Beef achieved a global stakeholder satisfaction score of 82 per cent, a gain of two per cent from the year prior.

As always, stakeholder participation in the survey is appreciated; the feedback received helps track awareness of and engagement with Canada Beef’s ongoing efforts. This feedback enables the leadership team to make meaningful improvements as we strive to increase satisfaction levels for all stakeholders. Watch for the full results of the 2025 stakeholder satisfaction survey in Canada Beef’s annual report 2024-25 to be published later this fall.

– Eric Bienvenue is a strategic leader with more than 25 years of senior leadership experience in Canada’s animal protein sectors. A native of Saint-Valérien, Que., Bienvenue is based out of Canada Beef’s Calgary headquarters and resides in Airdrie, Alta.Gina Teel is the director of stakeholder communications for Canada Beef, where she provides timely and effective communication of all Canada Beef initiatives and outcomes to funding partners and industry stakeholders, media, consumers, and other external audiences.

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The roundtable’s goal is to encourage sustainable beef production in Canada, across the value chain. This goal is rooted in science and involves contributions from all parts of the supply chain and beyond. The roundtable has four main aspects: benchmarking and goals, certification, projects and initiatives, and communications and engagement. Currently, its main challenge is producer certification.

Challenges 

The day before the official start of the Saskatchewan Beef Industry Conference in January 2025, the Canadian Roundtable for Sustainable Beef held a session in the lobby of the Saskatchewan Inn and Conference Centre in Saskatoon. Board members wanted to hear what the roundtable could do better and answer questions about certification. 

• RELATED: Sustainability in the beef sector is a ‘big picture’ topic

“It seems like at the start everybody was excited, and there was momentum,” says Ryan Beierbach, chair of the roundtable. Now that the organization is a little more mature, it’s about trying to get out where farmers and ranchers are, he adds. 

On the food service side, the opposite is true — there is more demand than the roundtable can meet. More and more retailers and restaurants would like to carry certified beef, and customers have expressed interest, too. 

“So, they’d like to see more producers sign up to help deal with the supply issue. But we haven’t figured out how to get enough supply to meet what the retailers are looking for.”

Funding is less of an issue for the roundtable. Currently, most of their funding comes from their member organizations, such as provincial cattle groups and the Canadian Cattle Association. The roundtable did increase membership fees to 10 per cent this year to keep up with inflation. The organization also receives government funding. 

“We’ve got enough funding right now, but as we move forward, ideally we’d see the certified sustainable volume grow, and that would give us more money so that we can use that,” Beierbach says.

“The idea would be, (producers) see value in it and talk to their friends and say, ‘This program is working well because I’m getting paid and it also tells the good-news story about Canadian beef.’”

At the Saskatchewan Beef Industry Conference, board members said there is currently no concrete plan for how they will become self-sufficient, but it is a priority.

The audit

The Canadian Roundtable for Sustainable Beef relies on third parties to conduct audits and certify an operation. The audit ensures the operation meets sustainability standards based upon five principles. These principles include natural resources, people and community, food safety and quality, animal health and welfare, and efficiency and innovation.

Certification is done on a five-year cycle. Using Canada’s RFID traceability system, cattle are traced through the supply chain. Food service distributors, retailers and restaurants can source beef that meets the roundtable’s requirements and market qualifying beef with a “CRSB Certified” logo and claim. 

However, the audit can be a barrier. Hearing an audit is required can give some farmers and ranchers cold feet. Others balk at the cost.

There are programs at the provincial level that will reimburse producers for at least some of their audit costs. 

Producers may run into issues when tracking cattle through the Canadian Cattle Identification Agency, and Beierbach says they should make sure they check the box that allows tracking. Producers can track their cattle through the agency’s website and contact the agency if there’s an issue. 

“In a lot of cases, I talked to producers that are frustrated because they haven’t gotten through the supply chain, and there’s a good chance that that’s because they maybe missed a step or something happened that the information didn’t go through.”

Incentives

The roundtable is working to get more producers involved, with board members going to meetings and events, as well as ensuring producers know how to become certified and what the benefits may be.

There are many incentives available to help sway producers toward becoming certified. 

Farm Credit Canada has a sustainability incentive program for producers who have loans with the organization. Customers who are certified through Verified Beef Production Plus, Ontario Corn Fed Beef or Where Food Comes from Canada can receive up to $2,000. Cargill also has an incentive program. 

The roundtable currently collects three cents a pound on certified beef. Beierbach says they want to put that toward another producer incentive starting in 2026. The roundtable is also planning a marketing campaign to share some of the Canadian beef industry’s success with the Canadian public, he adds. 

Opportunity to connect

With the high demand for certified sustainable beef, Beierbach sees an opportunity to connect with the consumer.

“We’ve got retailers and food service that want to pay for the product and use it to help us tell our story and talk about the good things we’re doing,” he says, adding there’s an opportunity to improve people’s perceptions of beef.

“What I think producers miss a lot of the time is it allows us to kind of push back when somebody or an organization says that beef is damaging the environment, or you need vegetarian diets to help save the planet,” Beierbach says. “This is where we can talk about the good things that the beef industry is doing, and we have organizations from outside of the supply chain that really add credibility.”

But without supply to meet customer demand, it is harder to tell that story. 

Beierbach encourages farmers and ranchers to look into certification. He says there are a lot of benefits for everyone involved.

“It shows that we’re leading on the sustainability side, and the producers are doing good work so consumers can feel good about eating Canadian beef.”

– Melissa Jeffers-Bezan is a field editor for Canadian Cattlemen and a graduate of the University of Regina School of Journalism. She grew up on a commercial cattle farm in western Manitoba, and is now based out of Regina.

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Canada Beef has been working hard to expand Canadian beef’s presence in key export and high-opportunity markets, many of which were affected by the U.S. reciprocal tariffs. Canada Beef is actively exploring all alternative export markets where the further expansion and diversification of Canadian beef exports have potential.

In March, the Canadian Beef Check-Off Agency board approved the Canada Beef Investment Plan and Budget for the 2025–26 fiscal year, which commenced April 1. The investment plan represents an increase in strategies to maximize opportunities for Canadian beef and broaden consumer loyalty despite a tight market and sustained pressure on the retail price environment. 

The market diversification activities in the investment plan are more important than ever in the current uncertain environment, including the renewal of the USMCA in 2026.

With robust demand for beef and a tight supply forecasted to continue, the strategies in the investment plan will help Canada Beef deliver on its mission to create value for producers and the entire beef value chain through marketing solutions to enhance demand, experience and awareness.

Plan tactics are designed to position Canadian beef as the protein of choice, appreciated worldwide, to maximize the return on investment for producers, partners and customers. 

Market diversification is why Canada Beef travelled to the United Arab Emirates, Mexico, Japan, South Korea, Vietnam, Taiwan and the Philippines in recent weeks. During these trips, the team met with major retailers, importers and distributors, as well as packers’ sales teams, to share the Canadian beef advantage story and explore opportunities. We also participated in four food shows.

From April to October, Canada Beef plans to exhibit at the Seoul Food Show in South Korea, Food and Hospitality Indonesia, World Food Expo in the Philippines, ANUGA in Germany as well as a demand-building seminar in Japan. Additional demand-building seminars in Canada Beef’s key emerging Asian markets are in development for later in the year. 

Eric Bienvenue, Canada Beef president, and Albert Eringfeld, vice-president of export market development, will also expand the number of market development missions to Asian markets. Canada Beef will meet with new and existing importers, distributors, retailers and food-service operators; participate in various promotional initiatives; and further leverage the support available from the Canadian trade commissioner service and other Canadian government organizations in the region. 

Canada Beef is working hard to elevate affinity for Canadian beef at home as well, using platforms such as the “Pick the Beef with the Leaf” campaign. The latest tactic involved the launch of a high-visibility, Canadian Beef wrap on the exterior of a Toronto transit commission bus that encouraged Canadians to pick the beef with the leaf. Additional signage inside the bus encouraged riders to post a selfie with the bus and enter the “three cues” contest. The bus took different routes through Toronto streets each day of the campaign to maximize exposure to the messaging on city streets. Posts promoting the bus and its travels were featured on Canada Beef’s social media channels.

The investment plan will also see Canada Beef use tactics to elevate customer experience and connection with Canadian beef and partner with industry to grow mindshare in areas of mutual interest. 

The Canadian Beef Marketing Alliance Program is a new, collaborative marketing initiative to support projects that expand the reach of messaging for Canadian consumers to grow mindshare in priority areas, such as underused beef cuts. This innovative cost-shared initiative (50-50 projects) is open to industry partners that meet the program requirements for collaboration on projects with Canada Beef to promote Canadian beef.

Appealing to Canada’s changing demographics is another focus area, with millennials now outnumbering baby boomers and immigration driving most of the population growth. Tactics that focus on sustainable beef production to build public trust will help to influence and promote awareness of Canadian beef in shifting market segments. 

Domestic initiatives to promote the value of beef as a protein and nutrition powerhouse for all ages and stages of life, and strategies to showcase the versatility of beef value cuts and beef products to satisfy a range of preferences and household budgets, will cultivate brand awareness among demographics such as women, parents of infants, seniors and immigrant and new Canadian communities. 

Positioning the Canadian beef advantage as a representation of the positive attributes that differentiate Canadian beef, while highlighting specific attributes valued by consumers and customers at home and abroad, will instill a sense of pride and build an emotional connection to Canadian beef.

Canada Beef recently amalgamated both of its X accounts to @CanadaBeefInc, tooled specifically for a beef producer and industry stakeholder audience. Additionally, oversight of @CanadaBeefInc and the producer Facebook channel @CanadaBeefInc was transitioned to Canada Beef’s stakeholder communications department.

Content for @CanadaBeefInc will focus on pertinent information for stakeholders and timely updates on activities underway at Canada Beef to increase demand for Canadian beef at home and abroad. 

Be sure to follow us on the producer handle @CanadaBeefInc on X and Facebook for the latest information.

– Eric Bienvenue is a strategic leader with more than 25 years of senior leadership experience in Canada’s animal protein sectors. A native of Saint-Valérien, Que., Bienvenue is based out of Canada Beef’s Calgary headquarters and resides in Airdrie, Alta. Gina Teel is the director of stakeholder communications for Canada Beef, where she provides timely and effective communication of all Canada Beef initiatives and outcomes to funding partners and industry stakeholders, media, consumers, and other external audiences.

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Canada’s cow-calf industry ranges from herds with less than 10 cows to ranching operations that run several thousand cows. For this discussion I have decided to create just three groups:

• The 53 per cent of herds that hold 12 per cent of the cows. Average herd size: 16.
• The 23 per cent of herds that hold 23 per cent of the cows. Average herd size: 56.
• The 24 per cent of herds that hold 65 per cent of the cows. Average herd size: 198.

The above is based on the 2016 Census, and there has certainly been a continuing reduction in beef, four per cent over the last five years. Herd numbers are likely to have declined a similar or greater amount. I am also aware that much of this decline has been forced because of a long and savage drought in the Prairies. 

These three quite arbitrary divisions suggest that their needs, challenges and opportunities may be quite distinct.

• SHOW US THE MONEY, PART 1: What does the producer share of the retail beef dollar mean?

The first and largest group are those producers who once saw a modest-sized herd as a good fit as a secondary enterprise or with off-farm employment. One wonders, however, whether this “opportunity” has become more of a “nuisance” given the low profitability of this sector. I suggest it would be informative and useful to conduct an online survey to determine why they left or are considering leaving and, more importantly, what measures might slow or reverse the exodus. 

The second group of producers is critical to the industry’s future. That’s where we find a quarter of the national herd. The average herd size in this group is large enough to contribute significantly to the farm income and to benefit from innovations. I’ll come back to that anon.

The third group is the indispensable heart of the cow-calf industry. These ranchers are making the best possible use of land well-disposed for grazing and ill-disposed for much else. If we can’t harvest the meat protein from those spacious areas, they cannot contribute to the human diet.

So, what to do? 

The industry’s common language

I’ll start, to no one’s surprise, with the grad- ing system. I have referred to it before as the “common language of the industry,” the point where shared interests, concerns and opportunities meet, the point where the product itself occupies centre stage. It is the portal between the live animal and the prod- uct. It is the basis for pricing. The grading system should and could be far more useful than it is presently.

In this discussion, I will focus only on the grades as they apply to fed, youthful cattle without referring to the grade standards for cow or bull carcasses. They are, however, an important part of the industry supplying about 15 per cent of the total tonnage. 

The present grading system was introduced in 1993 and was intended to “assess” quality and “measure” yield. I used the word “assess” as it relates to quality because quality is a subjective characteristic that cannot be measured. Yield can and should be measured. What this means is that price negotiations should proceed based on quality and adjusted up or down for yield. I will illustrate with an example a little later.

Quality is the most important carcass attribute and is determined almost solely by the degree of marbling on the face of the longissimus dorsi muscle at the ribbing site. The quality grades are Prime, AAA, AA and A. A carcass that does not qualify for any of the aforementioned quality grades is assigned a B grade, of which there are four: B1, B2, B3 and B4.

In 2021 only one carcass in 1,000 was graded B1, so graded because it had less than two millimetres of fat cover at the ribbing site. Fewer than one carcass in 1,500 was graded B2 because of a fat colour deemed too yellow and implying grass-finished. About two carcasses per thousand were graded B3 because they were deemed of poor conformation or muscling. Finally, 1.3 per cent of carcasses were deemed dark cutters and consigned to the B4 grade. Dark cutters are a worrisome industry issue but not a grading issue. So fewer than half of one per cent of the carcasses, not counting the dark cutters, were downgraded for quality defects.

The above supports my assertion that the level of marbling is, in all but the rarest of cases, the sole determinant of quality. But the degree of marbling is an imperfect indicator of eating quality and tenderness. Some method of determining eating quality and tenderness must be found within, or supplementary to, the grading system because these traits are of paramount importance to consumers.

So, how important are these quality traits to the cow-calf producer and the cattle feeder?

The cow-calf producer is primarily and rightly concerned with high reproductive performance and a healthy calf that grows rapidly until sold at weaning or later for feeding. But since cow-calf producers rarely get feedback, they can’t be expected to be much concerned about the grade and yield of the final product. And those who are concerned don’t have the information to do much about it. But most cattle feeders will know where the best cattle, as determined by grade and yield, come from. This imbalance of information needs to be rectified.  

The cattle feeder is concerned about quality because in many or most sales agreements, a premium is paid for Prime and AAA carcasses, and/or a discount for AA and A carcasses. To that end, as is now obvious, the feedlot operator often feeds the cattle to a considerable level of over-finish to ensure a Prime or AAA grade. The cattle feeder also desires feeder cattle that are healthy and growthy cattle based on a high degree of feed efficiency.  

Who cares about yield?

It may be helpful to offer a little definition of terms. In doing so I do not wish to insult producers’ intelligence. Rather, I think it is useful and sometimes necessary to clarify and standardize some industry jargon.

“Dressing per cent” is the ratio of carcass weight to live weight. The average dressing per cent of a fed steer or heifer is 60 per cent. 

“Yield per cent” is the ratio of carcass cut-out to carcass weight and the average yield is 75 per cent. Thus, the average saleable yield from 100 pounds of live animal is (100 x 60 per cent x 75 per cent = 45 per cent.)

There continues to be some confusion between dressing per cent and yield per cent, and no wonder, as I will explain directly.

When the decision was made to update and alter the beef carcass grading standards circa 1992, a very wise decision was made to include both quality and yield in the standards. To that end, Canadian meat scientists were consulted. They did some cut-out analyses and told us that the baseline or average “yield” of a fed beef carcass was 57.34 per cent with upward and downward adjustments based on measurements of the area of the longissimus dorsi muscle, and fat thickness measured at the ribbing site. 

This was, at one and the same time, the most accurate and the most misleading yield indicator. It was the most accurate because it measured, very carefully, the amount of “closely trimmed lean meat in the five major primals.” Those five primals are the chuck, rib, short loin, sirloin and the round. Together these primals make up 84 per cent of the carcass. The researchers’ advice was that this was the best technique to measure yield variations between carcasses.

This was good science but bad from a common-sense perspective. We don’t reduce all of the carcasses to closely trimmed lean beef and we certainly don’t ignore the three remaining primals: the flank, plate and brisket. Consumers don’t buy closely trimmed lean beef in place of steaks and roasts. Most of all we shouldn’t be telling anyone that their cattle are yielding only about half of their carcass weight. 

Until the most recent change in yield classes from three to five, the grading system was telling producers that:

• A Y1 carcass had a yield of 59 per cent or higher. 
• A Y2 carcass had a yield varying from 54 per cent to 58 per cent.
• A Y3 carcass had a yield of 54 per cent or lower.

Such information was and is extremely misleading to producers, implanting the idea that the yield range in fed cattle runs from something as low or lower than 54 per cent to as high or higher than 59 per cent.  

Other available and reliable sources, foremost among them Canfax, tell us that the average cut-out or “yield” of a fed cattle carcass is 75 per cent and varies up or down a few percentage points. Yield variations obviously indicate variations in value. 

Common sense should have told us that we could easily have changed the base yield from 57.34 per cent to the new and correct base of 75 per cent and adjusted the yield percentages accordingly. The math is simple: 

• A Y1 carcass would indicate a yield of 77 per cent or higher. 
• A Y2 would indicate a yield ranging from 72 per cent to 76 per cent.
• A Y3 carcass would indicate a yield of 71 per cent or lower.

When the new five yield classes were introduced in 2019 to parallel the U.S. yield system, there was a missed opportunity to replace the yield classes with actual yield percentages based on carcass cut-out.

There is little need to comment on the new five-yield class system except to note that the yield percentages are lower to the point where the highest yield under the present system is lower than the lowest yield under the previous system. 

While the above seems inexplicable, I am more troubled that the industry continues to express yield in categories when camera and computer technology exist to express the actual percentage yield. What is the point of developing technology capable of measuring yield to a percentage and not using it?

I write the above from the vantage point of 1996 when I was retained by the Canadian Cattlemen’s Association (as it was known at that time), to privatize the delivery of the grading service. I was told to proceed with all due speed because computer and camera-assisted technology would follow very closely behind the privatization of the service. I started my work in July 1995 and completed it nine months later and the industry moved seamlessly from government-employed graders to private delivery. 

The price the industry is paying for virtually ignoring the yield issue is most evident in the chart above. The chart covers 1993 to 2021 and displays the per cent of carcasses that graded Prime or AAA and also were classified as Yield Class 1. It indicates that only about 10 per cent of carcasses met that condition in 1993. That is understandable since the previous system placed far too much emphasis on leanness. But over the next two decades, that percentage of high-quality, high-yield carcasses increased to nearly 25 per cent as the focus shifted to quality. 

This chart is an excellent illustration of the biological tension that necessarily exists between quality and yield. The challenge for the industry is to find the right balance. 

Since quality is more important, emphasis should be on how to achieve higher yields while maintaining as high a proportion of quality as desired. The chart shows us that the percentage of carcasses that were graded Prime or AAA was very low in 1993 because the earlier system had largely ignored quality. But as the new system favoured quality, the percentage of carcasses that were graded Prime or AAA and classified as Y1 increased steadily towards 25 per cent between 2003 and 2008. This was accomplished without any specific effort or intent, but it does demonstrate that such carcasses exist in significant proportion. Then we note that after 2008 the incidence of this desirable combination of quality and yield began to lose altitude and the percentage dropped precipitously to below five per cent in 2019 before creeping back up to six per cent in 2020 and 2021.

I suggest these conclusions from this data:

Since it was possible to have nearly one in four carcasses that have a combination of high quality and high yield without any apparent effort, imagine the possibilities if we try.

Producers at every level do not usually produce something they are not paid for. Hence little effort is made to produce high-yield carcasses, especially if it puts the quality grade at risk.

A high proportion of carcasses that are both of high quality and high yield is also the most efficient route that benefits producers and consumers alike.

A real-world example

So, a final word about how to accomplish this. I did this in my work with Natural Valley packers two decades ago.

A base price is negotiated on quality, for example, $290/cwt on the rail for an AAA carcass. A premium or discount would or could be applied.

Think carefully about what the seller and buyer have agreed upon. They have agreed that one pound of AAA carcass is worth $2.90 plus or minus premium, or discount.

The next step is frustratingly obvious. How many pounds are we talking about?

The camera-assisted technology tells us that a particular carcass has a 76 per cent yield. Recall that the base yield is 75 per cent. Therefore, the seller of the higher-yielding carcass gets ($2.90/75) x 76 = $2.93.

Until this is done,the producer of high-yield carcasses will be underpaid while the producer of lower-yield carcasses will be overpaid. 

Here is where I recall my editor naming this two-part series Show Us the Money. There is absolutely nothing wrong with having a high percentage of AAA and better carcasses, nor is there anything wrong with striving for high yield. The reason for the present situation is that producers are rewarded for the higher-quality grades while yield is essentially ignored.

There are two ways of ensuring high-quality carcasses. It is obvious that the main route has been through the feed trough, and that route is increasingly costly. The better route is to breed and select cattle that will produce high yield and high quality in the same carcass. This can be done — but not without supplying the breeder and cow-calf producer with grading data and market signals that they can use.

The post Show us the money, Part 2: Balancing beef carcass quality and yield appeared first on Canadian Cattlemen.

Junelle Dion is a fan of Canadian beef, and directly supporting a rancher makes purchasing beef even more satisfying.

“I love Canadian beef. I’ve travelled to other countries, and honestly, no other beef compares to what we have in Canada,” says Dion, who lives south of Calgary with her fiancé.

Living outside the city, Dion prefers to stock up on groceries every two weeks and buys beef about once a month. When a co-worker told her about their daughter buying beef from a local producer, she wanted to learn more.

“I had never thought about purchasing beef directly from the farmer,” she says. “I went online to see what they offered, but they were selling their beef by the quarter, half or whole. I wasn’t interested in purchasing my beef in those quantities, so I continued to search online, and I found TK Ranch.”

Dylan and Colleen Biggs of TK Ranch at Coronation, Alta., started direct marketing their grass-finished beef in the 1990s, and their brand now includes pasture-raised pork and grass-finished lamb. Their products and vision were just what Dion was looking for, and she’s purchased beef from them for three years.

“When I was young, I spent time on my grandparents’ farm in Saskatchewan. I have a lot of great memories on the farm, and I also remember that it was a lot of work for my grandparents,” she says. “Once I knew that I could purchase beef from the farmer, I knew I wanted to support the farmer directly.”

TK Ranch’s offering of individual cuts and delivery service appeals to her, as does their commitment to stewardship of endangered native grasslands, allowing for livestock to share the landscape with species at risk. “I was aware that fescue grass in Alberta has been diminishing over the years and is very important to the health of the Prairies,” she adds.

Dion is one of the millennial consumers who shared her perspectives on beef with Canadian Cattlemen. This small sample of consumer interviews features millennials who all enjoy beef and have positive impressions of the Canadian beef industry, so it’s important to note this isn’t a general representation of this generation’s attitudes, as discussed later. But it does provide an idea of why some millennials do choose to eat beef, what their values are and how they buy it.

Affordability and value are key considerations when Rebecca Wells purchases groceries, especially in light of current economic factors. Wells, who lives in St. John’s, Nfld., does the majority of the grocery shopping for her two-person household. She buys perishables about once a week to every two weeks, then does a what she calls her “large freezer order” grocery trip once a month, buying meat and non-perishable food items.

Nutrition is another important factor in her choices. “I like to be a label reader,” she says. “I try to stay away from highly processed food and will choose the natural fats option over the low fat/salt options that are generally full of chemicals.”

Olivia Bassett of Prince Albert, Sask., shares this focus on nutrition when choosing food to purchase. “My partner tries not to eat simple carbs to help control his blood sugar as he has diabetes. We eat a lot of meat, cheese, eggs, vegetables and apples,” she says. Beef is on their menu about two or three times per week.

“I read labels on products we buy to make sure we aren’t eating things that are overly processed. We aren’t very adventurous with our day-to-day culinary choices and stick to pretty basic meals.”

Like Wells and Bassett, nutrition is a priority for Kim Cheel when grocery shopping, as well as sticking to her budget. Cheel, who calls Airdrie, Alta. home, aims to eat beef at least once a week and cooks steak most frequently. “I usually search out discount steak. I try to budget my meals to be about $7-$8 per meal, and if I got full-priced cuts of steak, then I’d have a hard time keeping within that budget,” she says.

Cheel tends to purchase beef at Safeway, and she feels very confident in beef raised in Canada. “I feel like Canadian beef is all I know!” she says. “I certainly trust it to be safe to eat.”

Where they purchase beef also highlights the level of engagement of these particular millennials. Daniel Bersani of Guelph, Ont., buys beef about once a week, and his preferred cuts are tenderloin, striploin and flank. “I try to buy it from a local butcher because the quality is a little better, but if not there then I get it from the butcher counter at the grocery store,” he says.

“I am generally a fan of Canadian beef. It seems to be reasonably priced and I’m able to get cuts and quality that I am happy with.”

Bassett and her partner purchase beef from Brenda’s Blue Ribbon Beef of Birch Hills, Sask., making this connection through the Prince Albert Farmers Market. In the past they’ve bought a quarter of beef, and they’ll purchase individual cuts on special occasions. They also buy pork directly from a local farmer.

Having a relationship with the producer has strengthened Bassett’s positive perception of Canadian beef. “I have faith in the local farmers in our area. The quality of the beef Brenda raises is exceptional. It’s tender, delicious, fairly priced and we have peace of mind knowing we’re supporting a local and ethical business. We will be lifelong customers,” she says.

“In addition to Brenda’s Blue Ribbon Beef, we’ve been very impressed with Kattle Squared Services. Their beef farming with a focus on regenerative agriculture is very innovative. I hope it catches on and changes the Canadian beef industry.”

Wells, who usually eats beef two to three times per week, purchases beef from a producer when possible. “When I am financially able to, I like to buy a half and split it between my parents’ house and myself,” she says, noting this will usually last both households for eight months to a year.

When that’s not a possibility, she prefers to buy beef at Costco for the value on larger packages of meat in comparison to other grocery stores. “The more I can support local the better. The best-tasting beef I’ve had is always when I purchased directly from a farmer.”

Positive stories shift attitudes

As stated earlier, the perspectives of these consumers are not reflective of the average millennial, but they do show what motivates millennials to support beef producers through their purchasing power.

In July 2020, the Canadian Cattlemen’s Association’s Public and Stakeholder Engagement program conducted consumer research that took a closer look at millennials to better understand their perceptions of Canadian beef.

This survey revealed that millennials tend to view the industry overall in a less than positive light, especially in the case of millennial women. The same is true for their attitudes towards beef producers.

“Their concerns with the industry are not unique to their generation, they are just felt more strongly amongst this group, compared to Canadians overall,” the research summary states.

For example, while 68 per cent of Canadian consumers overall rate the Canadian beef industry as either excellent or good stewards of the land and water, only 46 per cent of millennials surveyed chose those options. Similarly, when asked if they believe the industry is making a sincere effort to limit the environmental impact of its work, 66 per cent of all consumers surveyed chose excellent or good, while 43 per cent of millennials agreed.

The research summary goes on to state that “seeing negative content doesn’t have a strong impact on perceptions, but the lack of positive content does. Among millennials who feel negative/neutral about the industry, 25 per cent have never seen positive content regarding farmers and the environment.”

This provides an opportunity to shift attitudes in a demographic the Public Stakeholder and Engagement program wants to win over. Conveying information through powerful emotional stories can help to change perspectives. Sharing positive content on specific environmental practices used by farmers and ranchers, the survey found, helps to give a better impression of the beef industry.

“While millennials are more skeptical about farmers doing their part to lessen their environmental impact, they are easily convinced once given more information. Impressions of the industry improved once learning about the specific work being done on land use and (greenhouse gas) emissions.”

Also promising is the fact that 70 per cent of millennials surveyed want to learn more about Canada’s beef industry, aligning with a recent increase in public interest in food production. This offers a valuable opportunity for the industry to connect with millennials.

This strong interest in learning more about beef production was reflected in our own consumer interviews. Most bought beef directly from producers at least some of the time, indicating that they see value in learning about beef production directly from producers.

“I wish there was more of a social network to connect farmers with your general consumer who doesn’t know about buying beef by the quarter or half,” says Wells.

“I didn’t learn about it until a few years ago when I met my friends, who are wonderful beef farmers. Being a horse girl myself, I had a whole new appreciation of what work and education goes into raising cattle and the science behind the breeding and nutrition.”

The post Winning over millennials appeared first on Canadian Cattlemen.

The ground beef category represents 60 to 65 per cent of retail sales, Young, president of Canada Beef, told the crowd. But a lack of recent innovations combined with pressure from faux meat mean future market share is far from a sure bet. In an interview, Young added that the focus is on creating new, distinct products that won’t eat into market share of existing products.

“We don’t want to replace anything. It’s all incremental.”

Young and his colleagues aren’t stopping at ground beef. They’re looking at everything from smaller beef roasts (sized for two people) to thinly sliced meat for hot pots to tips for turning a barbeque into a smokehouse. The goal is to introduce new ideas to the marketplace every six months.

“We want a bigger market share in the retail case. We want a bigger market share on the menu. We know we have to earn it. And that’s what these programs will do.”

Beefing up export demand

On the export side, Canada Beef is rolling out new grading labels. Young says international customers understand the U.S. grading system, but not the Canadian grading system. He notes that Canada has harmonized its grading system with the American system in many areas, which puts an “as-good or better product in the box. However, nobody knows about it.”

The new grading label will feature the grade itself and descriptive text, but will have a large transparent area, so it doesn’t cover too much of the product.

“We tested it in Canada first, and everybody who saw it said they want it, which is interesting. The export market definitely wants it,” says Young.

Last year, Canada Beef also rolled out an export market development program through the national check-off. That program includes all provinces and eligible end-users, says Young. It covers 50 per cent of eligible costs in activities such as incoming or outgoing trade missions, promotion (including branding, co-branding or generic promotion), event attendance and competitive benchmarking.

Canada Beef also has a similar model for domestic market development.

The export market development program is designed for export markets only, but Canada Beef doesn’t dictate the priority export markets, Young says.

“Priority markets to a supply partner are markets of opportunity for them. And they can exist anywhere as long as they are outside of Canada and they meet the eligible criteria, which is fairly stringent.”

Earlier this year, the Alberta government granted the agency $500,000 to stack on top of the national program.

“It’s an exciting program because it takes it from a 50/50 support to a 75/25 and it covers a wide berth of initiatives and tactics that are needed for export growth,” says Young.

Although the model is new to the beef industry, it’s built on a long-time pork industry model, and so is familiar to the Alberta government.

Young adds that it allows them to leverage money that’s already on the table with provincial dollars to boost that region. “So you’ve got regional investment for global growth.”

Canada Beef will also be looking for partnerships with other provincial governments, Young adds.

“These are good programs because they are true partnerships, meaning that it’s a partnership between Canada Beef, the local provincial government and also the local industry.”

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The national check-off, which hasn’t changed in about 20 years, will increase from $1 per head to $2.50 per head, says Melinda German, general manager of the check-off agency. Most of the agreements with provincial beef industry associations, approving the increase are in place, she says, with three yet to be finalized.

German says while the national check-off generates about $7.5 million annually now, in real terms the “buying power” of the initial $1 levy created in the late 1990s provides a 70 cent dollar.

Alberta beef producers, for example, in 2017 paid a total $3 per head check-off with two of those dollars going to the provincial Alberta Beef Producers, and $1 going to the national check-off. Starting in April 2018, Alberta ranchers will be paying a total of $4.50 per head, with $2 still going to ABP and the new $2.50 amount going to the national check-off.

The Alberta national check-off collected about $3.8 million in 2017, Saskatchewan just under $1 million, Ontario $896,000, Quebec about $887,000, B.C. about $235,000. In Atlantic Canada, New Brunswick $17,000, P.E.I. about $15,000 and Nova Scotia $8,200.

Six of nine provinces have all agreements in place for a 2018 start, German told delegates attending the recent Alberta Beef Producers annual general meeting in Calgary. In fact, Nova Scotia and P.E.I. producers are already paying the increased check-off. Manitoba, Saskatchewan and Alberta producers will start in April 2018, with B.C. to follow in July, 2018.

Ontario beef producers are close to finalizing their agreement. Quebec is committed to have their agreement in place at some point in 2018. And after a legal delay, New Brunswick is working on its agreement.

The need to increase the check-off was approved collectively by all provincial beef industry associations about four years ago. It was all part of developing a Canadian National Beef Strategy needed to improve marketing and research efforts to keep the industry moving forward, German says.

Producing and marketing beef in the world is a competitive business with some big players. Canada’s national check-off collects between $7.5 and $8 million annually, compared to Australia which collects about $106 million, New Zealand collects about $10.5 million and the U.S. about $40.5 million.

Canada’s national check-off is spent in three key areas — market development, research and promotion. There’s also an option to direct money to provincial initiatives. Money for marketing and promotions goes to Canada Beef, while the research dollars go to the Beef Cattle Research Council. German emphasized that it is provincial beef associations that directs the agency on where they want their national check-off money used.

For example, B.C. wants 90 per cent of its national levy spent on market development with 10 per cent to research, Alberta directs 80 per cent to market development and 20 per cent to research. Saskatchewan goes for a 70/30 split, while Manitoba wants 85.5 per cent spent on marketing, seven per cent on research and 7.5 per cent on provincial initiatives.

Eastern provinces lean the other way. Ontario wants 32.6 per cent spent on marketing, 17.4 per cent on research and 50 per cent on provincial initiatives. Quebec, New Brunswick, Nova Scotia and P.E.I. have all earmarked anywhere from 88 per cent to 98 per cent of the national check-off to provincial initiatives.

As the new $2.50 check-off comes into effect with each province, the provincial associations have a one-time chance to reallocate how they want the national levy used.

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In 2015 the output, or productive capacity of the national herd was reduced: almost 13 per cent in numbers of animals marketed and 10 per cent in tonnage. Most of that reduction, however, is explained by an almost 20 per cent decline in heifer marketings and a 16 per cent decline in cow marketings. Inasmuch as dairy cow culling rates are quite stable one can be confident that all of the decline in cow marketings was out of the beef herd so I have recalculated the decline in beef cow culling to be 21 per cent. This is quite conclusive evidence that the long decline in the beef breeding herd has at last ended. The heifers that did not appear in the market in 2015 had obviously been retained from the 2014 calf crop and were bred in the summer of 2015. Alas their calves will not reach market until 2017, but one can be quite confident that the long decline in the national herd has been ended and growth has begun.

As stated often before, a decline in cow marketings is not, in itself, a sign of herd growth. Herd growth can only come from an increase in heifer retentions that exceeds the rate of cow culling. In 2015 approximately 800,000 fewer heifers were marketed than steers and were therefore available for herd replacements. The total cow cull was approximately 600,000 head. Since dairy cow marketings make up about 40 per cent of total cow marketings that means that only about 360,000 beef cows were culled in 2015. That’s a culling rate of about nine per cent, close to the lowest possible practical culling rate.

The data above suggests a very vigorous growth rate with 800,000 replacement heifers replacing 360,000 culled beef cows. Bump that up to about 400,000 to allow for natural death loss in the breeding herd. However, two other factors must be taken into consideration. The first is that the fed cattle slaughter includes a sizeable number of dairy steers and very few dairy heifers. Also my estimate is based on the assumption that heifers and steers in the export data were present in the same ratio as in the domestic kill and this may not be the case. Reliable data on the sex of exported fed and feeder cattle is difficult to find. So, if we allow for 200,000 dairy steers, based on an estimate that I have made, and assume that exports of feeder and slaughter cattle were equally divided between steers and heifers, the spread between steers and heifers marketed would be reduced to about 525,000 head. That suggests a net increase of 125,000 beef cows or a beef herd expansion rate of 3.1 per cent. A more conservative estimate is that the beef breeding herd has expanded by 2.5 to 3.0 per cent. I’ll stand by that estimate for 2016 and we will see what the inventories show.

The declining supply led to a 5.3 per cent decline in domestic slaughter but a much larger 32.4 per cent decline in slaughter cattle exports and a 31 per cent decline in feeder cattle exports.

Despite a decline in overall supply, total beef exports remained unchanged. However, exports to the U.S. increased 5.3 per cent while exports to Mexico and to offshore markets declined 12 per cent. Beef imports rose but only slightly, declining 4.0 per cent from the U.S. and rising 12.4 per cent from offshore for an overall increase of 1.4 per cent.

In 2015 per capita beef consumption has taken the sharpest drop in many years to 17.7 kg per capita on a retail weight basis. That converts to 24.2 kg (53.4 lbs.) on a carcass basis. Per capita consumption or disappearance is now lower than it has been since the mid-1950s.

The industry in Canada has been much slower than the U.S. in commencing herd growth.

Note: The numbers in this analysis that relate to weight are all expressed as “retail weights” which are 73 per cent of carcass weights. I did this to bring domestic production in closer alignment with beef imports and exports. This conversion factor of 73 per cent is used to convert per capita consumption from a carcass weight to a retail weight basis.

Charlie Gracey is an industry analyst living in Ontario.

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The modernized Rancher’s Beef facility located in a vast industrial area east of Balzac, Alta. is now loaded with the latest European technology to provide a safe, comfortable work environment and produce a safe, quality product in the most efficient manner possible.

Vesta and his sons, Jeremy and Christopher chose the new name of the plant to reflect their intent to operate in harmony with all aspects of the beef business. It’s a role Vesta has fulfilled time and time again in a lifelong career in the meat-processing industry serving as both manager and owner of several large packing plants south of the border.

Christopher joined his dad in the packing business after college, while Jeremy’s background is in risk management and grain trading.

Vesta says the original Rancher’s Beef plant was state of the art in its day back in 2006-07 when it was certified as a federally registered, European-approved plant.

Although he realized the extent of the renovations that would be required when he purchased the plant in November 2013 — chiefly a European-designed water treatment plant and mechanical upgrades — the job has taken longer than he anticipated.

As of June they were preparing to begin construction on the water treatment plant this fall with a start date for the plant sometime in the first quarter of next year.

“Having our own water treatment facility to recycle and purify water will cut our need for fresh water by 80 per cent. That’s unprecedented in North America. We will still use the same amount of water overall as any plant our size, but we will be an efficient user of water.”

Vesta has no doubt Harmony Beef will be able to meet all the requirements needed to ship product into Asia, Europe and other key markets. As per standard Canadian Food Inspection Agency (CFIA) protocol, the plant will operate as a domestic (provincial) plant for the first three months as it ramps up production.

In anticipation of that day marketing and sales staff have been busy hosting plant tours and buying and selling beef from other sources to build up relationships with potential customers. They’ve already been in touch with 250 buyers in Canada alone.

Their procurement strategy has been ongoing as Harmony has been building relationships with a number of western Canadian feeders and is still open to further inquiries.

They will operate on a just-in-time delivery schedule for cattle to eliminate overnight stands. That’s normal industry practice but Vesta says it will be easier to manage in a mid-size plant, particularly one in a province like Alberta with so many large feedlots relatively close to their doors.

The tour

On a walk-through tour Vesta points first to the receiving area with its covered scale and serpentine-shaped handling system with deeply etched heated concrete floors to provide good footing and easy cleanout even on the coldest days. It’s the one area of the plant that Vesta didn’t see any need to renovate.

Next are the three welfare areas — hide on, hide off and fabrication. In keeping with European requirements each step is carried out in separate rooms, with separate fresh-air ventilation, complete with precision-engineered fans for quiet operation.

The carcass rail was engineered in Holland for quiet operation. Like the walking beams in the cooler, conveyor table chains and many other structures, the rail is made with stainless steel to avoid corrosion which can potentially become a food safety issue.

The computer-controlled rail is set to run at 93 head per hour, or 750 to 800 head per day at full capacity, compared to 200 head per hour in typical plants of similar size. In this plant the computer stops the rail for 25 to 30 seconds at each work station to give the employees time to complete their task without rushing to keep up with a steadily moving rail. All work stands above floor level can be lifted up or down by air-powered controls to reduce strain on the employees.

Food safety measures begin right at the start. In the hide removal room each station is equipped with three knives and a sterilizer so a clean knife is used for each cut through the hide to lessen the chance of bacteria contacting the meat. Each exposed area is sprayed with a five per cent lactic acid solution that kills bacteria within 20 seconds.

The wash box is next in line, and the evisceration room. The conveyor table in the evisceration room is fitted with dividers to separate white offal (stomach and intestines) from red (kidney, heart, liver, trachea and lungs and head) as they are pulled from the carcass. This is done to avoid losing all of the drop credit organs from several carcasses should there be an issue with a carcass down the line.

The offal on the table is aligned with the carcass above for examination by CFIA inspectors. Separate rooms are set aside to process white and red offal before it enters the blast freezer. Blast freezers are common in large plants, but less so in mid-size operations like Harmony Beef. Typically, says Vesta, the offal goes into a freezer truck stationed by the plant.

The last step in the evisceration process is splitting the carcass into sides before it enters a high-pressure wash box with 190 F steam for 1.5 minutes followed by a complete lactic acid spray before chilling.

Each of the four coolers that hold 300 head (600 sides) have overhead walking beams that space out the carcasses so they cool evenly. Double-size refrigeration units take carcasses from 92 F down to 40 F or less in 36 to 48 hours to attain the best yield.

Carcasses are then graded and sorted by grade and weight.

From the cooler the sides pass through another lactic acid cabinet on the way to the remodelled fabrication floor with separate lines for the chucks, ribs, loins and rounds. All trim will be sold to further processors.

The cold-storage room has been completely retrofitted from floor to the highest rack and can now hold 27,000 boxes at a time.

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