alternative beef marketing

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Alternative Beef Alternative Beef Marketing Marketing C. Chad Carr University of Florida

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Alternative Beef Marketing. C. Chad Carr University of Florida. Value-Added. Producer Options. Retain Ownership Sell into a Natural program or other Process Verified Program OR Start your own program. Retained Ownership. Source Verification. Consumers’ Quality Categories. - PowerPoint PPT Presentation

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Page 1: Alternative Beef Marketing

Alternative Beef Alternative Beef MarketingMarketing

C. Chad CarrUniversity of Florida

Page 2: Alternative Beef Marketing
Page 3: Alternative Beef Marketing

Producer Options

Retain Ownership Sell into a Natural program or other Process

Verified Program

OR Start your own program

Page 4: Alternative Beef Marketing

Retained Ownership

Page 5: Alternative Beef Marketing

Source Verification

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Consumers’ Quality Categories

Consumption QualityConsumption Quality Nutritional QualityNutritional Quality Technological QualityTechnological Quality Hygienic QualityHygienic Quality Ethical QualityEthical Quality

(Andersen, 2000)

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The Quality of a Product Establishes Customer Loyalty

Do you get a mental picture of quality beef?

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8

What is Quality?

• Consumption Quality• Ethical Quality• Hygienic Quality• Technological Quality• Nutritional Quality

Page 9: Alternative Beef Marketing

Consumers’ Quality Categories

Ethical QualityEthical Quality Beef cattle welfare Production environment

(outdoor production) Natural/ Organic farming Religion

(Andersen, 2000)

Page 10: Alternative Beef Marketing

Quality: Perception is Reality

Identification of a customer willing to paywilling to pay for these definitions of quality constitutes a value-added opportunity for the beef production chain

Page 11: Alternative Beef Marketing

Quality: Perception is Reality

Identification of a customer willing to pay for these definitions of quality constitutes a value-added opportunitya value-added opportunity for the beef production chain

Page 12: Alternative Beef Marketing

Quality: Perception is Reality

Identification of a customer willing to paywilling to pay for these definitions of quality constitutes a value-added opportunity for the beef production chain

2 general ways– Superior or unique product quality

Breed Specific

– Social or credence attributes Production Methods

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VS.

VS.

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2001 Certification Regulations

Can only be fed “Certified Organic” feedstuffs No growth promotants, antibiotics, or

dewormer Cattle must have access to pasture

Page 16: Alternative Beef Marketing

2007- Preliminary USDA Standard

No growth promotants, antibiotics, or animal by-products

--- However--- Dewormer and probiotics are allowed No restriction on CAFOS

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2007- Final USDA Standard

Post-weaning ruminants- Only forage from pasture or harvested

forage Continuous access to pasture during the

growing season Any grain consumption must be documented

explicitly

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Commodity vs. Specialty

No evidence that specialty meat products (Organic or Naturally-Raised) are safer or more nutritious than commodity meat products (Honikel, 1998)

No USDA claims

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Antibiotics and Pesticides

Human health is not affected by antimicrobials in livestock production

No proof of human antibiotic resistance USDA Pesticide Monitoring Program-

– All commodities (< 1% above tolerance)– Meat generally has fewest above tolerance

SOURCE: G.C. Smith et al. (2006) Conventional, Natural, Grass-Fed & Organic Beef.

Page 20: Alternative Beef Marketing

Grain-Fed vs. Grass-Fed

Grass-fed is:– Leaner– Less saturated fat and cholesterol (Hedrick et al.,

1983)– More “off-flavors”– Tends to be tougher & less juicy (Regan et al.,

1977; Hedrick et al., 1983; Crouse et al., 1984)

Than Grain-fed

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Nationally Distributed

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Nationally Distributed

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Nationally Distributed

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Nationally Distributed

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Nationally Distributed

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Nationally Distributed

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Starting a Niche Meat Program

Determining the target audience Product quality relative to the demographics

of the target audience

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Starting a Niche Meat Program

Assessing the product’s point of differentiation

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Starting a Niche Meat Program

Determining a contract packer

Page 30: Alternative Beef Marketing

Starting a Niche Meat Program

Cost Analysis

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Quality: Perception is Reality

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Quality: Perception is Reality

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Quality: Perception is Reality

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