Why the price of beef goes up and down
Supply and demand set the price for beef cattle. But unlike most manufactured products, beef prices fluctuate up and down because the supply cannot be quickly adjusted.

When supply falls below levels of demand prices tend to rise. This is an automatic "signal" to farmers and ranchers to increase beef cattle numbers.  But the effect isn't immediate ... it takes two to three years from the time the decision is made to increase production until there's more beef available.

If supply increases beyond levels of demand there's no way to quickly stop the beef production line. Farmers, ranchers and feeders have to market cattle when they're ready regardless of price.  So the supply continues and live cattle prices drop.  Falling prices are a signal to decrease production, but again ... it takes two to three years to accomplish.

The cattle industry traditionally goes through 10-12 year cycles of surplus and shortage situations plus seasonal supply fluctuations. These variations result in a constant up and down profit and loss roller coaster ride for cattlemen.  Since 1950, prices paid to farmers and ranchers have gone through profit to loss swings so severe that not until 1971 did cattle prices surpass 1951 levels.  Meanwhile costs of production have consistently risen ... in the last 15 years alone, machinery costs up more than l00%, real estate taxes, 117%; labor, 140%; and financial costs a staggering 400%.

Retail prices of beef, although reflecting the short-term up and down movement of cattle prices, have generally followed an upward trend because of increasing off-the-farm marketing costs such as labor, energy and transportation over which the beef industry has no control.

Farmers and ranchers have nearly doubled beef production in the last 20 years despite discouraging price swings. Experts predict a need to double production again by the end of the century to supply growing consumer demand and growing population. To meet this goal the beef industry is trying to level out the sharp supply fluctuations, thereby decreasing drastic price variations to consumers. A steady flow of high quality beef to the market will benefit both producer and consumer.
Business-minded beef men say they can do this if they are able to make costs of production and a little profit to boot. Lots of people think there's plenty of beef no farther away than their favorite food store. But it's not that simple to get high quality beef where and when people want it.

Beef supply is no accident. It's thousands of miles and 24-30 months from conception to consumption ... from ranges, to feedlots, to packing plants ... until that steak or roast is finally cut, wrapped and ready at your neighborhood food store. In between are countless management decisions resulting in profits, losses, successes, failures, huge investments and months of long, hard work.... takes years to raise quality beef

There's no quick way to a T-bone steak. Nine months of a cow's room and board until the calf is born ... then six or seven months of cow and calf on pasture to a weaning weight of 430 lbs. Another six to eight months of hay, grass and crop residues results in a 700 lb. yearling ready for the feedlot.   After three to five months on grain, protein supplements,
hay and silage, a 1,000 lb. feedlot-finished steer is ready for the packer.

A 1,000 lb. steer doesn't yield 1,000 lbs. of beef.   On the average, that half-ton steer yields a 615 lb. carcass. Approximately 183 lbs. of fat and bone are trimmed off leaving about 432 lbs. of retail beef cuts, less than half of the initial weight. Very little of that other 568 lbs. is lost however. It includes about 27 lbs. of variety meats (liver, heart, tongue, tripe, sweet breads and brains), plus by-products that are used in a variety of foods, cosmetics, clothing and a host of manufactured items.  These by products are also an important source of life saving, life-improving medicines such as insulin and heparin.

Retail prices for beef must cover price paid the producer, cost of processing, refrigeration, transportation, rent, taxes and labor.   In the end, retail stores must competitively price their beef so that they sell it all and don't end up with less-in-demand cuts such as pot-roasts and short ribs left in the cooler.

What happened to those Big and Juicy Steak Sales?
By Melvin Tubre and Charles Ledet
I would like to take this opportunity to give some facts and personal thoughts as to what factors caused the decline in restaurant steak sales over the last ten years.

In 1972 through 1974 consumers were pushing for leaner meat, due to bad publicity on diet.  The industry associations and others picked up the banner and pushed for a grade change.  The old established USDA grading system was established in 1906 to assure the consuming public of high quality and wholesomeness.   The industry and consumer groups that wanted the grade change pushed it through in 1974.  To the consumer, the reason for the grade change was to produce a leaner more healthy product.  The reality of the change was that producers (cattlemen and feed lots) were able to reduce the number of days the cattle were required to remain on the feed lot, thus reducing the cost of production.  Within the next year steak sales began to tumble.  The new grading system was allowing leaner, less marbled, less flavorful, less tender beef to be graded USDA Choice.

Even with the lover standards, many packers chose not to grade their product.  No-Grade or No-Roll means the product is not graded for quality by the USDA, but is inspected for wholesomeness.  Hey, wait a minute!  What does all this have to do with steak sales?  Very simple, if prior to 1974 you were serving USDA Choice beef products in your restaurant, then on today's standards, in order to achieve the assurance of the same quality, you would have to serve USDA Prime.  In addition to this fact, by allowing Holstein (dairy cattle) to be graded USDA Prime, Choice and Good, another problem occurs - dairy cattle are older animals that produce less tender beef cuts.  The customer recognizes that something is different in quality, but the prices are basically the same.  You would probably never have considered buying USDA Good or lower quality products prior to 1974.  Why now?

If you want to buy USDA graded beef, how can you be assured that this is what you are receiving?  First, beef graded by the USDA will require a federal grade stamp on the fat cover of the product.  The grade roll will be continuous across the fat cover on the strip loin, short loin, chuck, sirloin butt, rounds, ribs, etc.  the inner muscles, such as tenderloins, briskets, flanks, etc are normally not graded, but can be graded USDA Choice or higher by a federal inspector monitoring these products throughout processing.  Then the shipping container is grade-labeled USDA Choice or higher.  Tenderloins, as well as portion products must have the USDA grade on the container.  NOTE! is the USDA grade does not appear on either the products or the shipping container then that products is ungraded or No-Roll.   Descriptions, such as Choice or Prime appearing on invoices or other printed materials does not constitute graded product.  The USDA does not grade invoices, just the meat products.

In closing, let's go back to what stated the decline of beef sales since 1974.  Beef is not bad as some publicity would have you believe.   Let's look at the facts and debunk the myths about meat.

Debunking the myths about meat

MYTH:  Beef is high in cholesterol.
FACT:  Three ounces of cooked lean beef contains 73 mg. of cholesterol.  By comparison, the same amount of roast chicken contains 76 mg.; fried chicken 74 mg.; pork, 77 mg; shrimp, 130 mg.; cheddar cheese, 90 mg.

MYTH:  Beef is high in calories.
FACT:  Three ounces of lean roast beef contain 169 calories.   Three ounces of top loin (strip) steak contain 195 calories.  Three ounces of baked chicken, without skin, contain 174 calories; with skin, 209 calories.

MYTH:  Beef is high in saturated fat.
FACT:  Beef actually contains less fat than is often assumed.   Three ounces of cooked lean beef contain about 9 grams of fat - less than half of that is saturated.  Of all the fat in the U.S. food supply, only 36% comes from meat and fish.  The increase in fat intake in this country has been caused primarily by an increase in vegetable fats.

MYTH:  Beef is hard to digest.
FACT:  Beef is highly digestible - more digestible than vegetables, in fact.  Beef's ingredients are 96% digested.  It's abundant nutrients are almost completely absorbed.

MYTH:  Beef causes cancer.
FACT:  Reported links between diet and disease have been mostly hypothetical.  Scientists convened by the American Cancer Society concluded that no single dietary factor could account for more than a fraction of cancer cases.
Source:  National Cattleman's Association

Now, on the lighter side, let's talk about the sexy side of beef.  Who says red meat improves your sex life?  Lendal Kotschevar does in a recent study at the School of Hospitality Management at Florida International University, where he is a professor.  In the study, Kotschevar suggests that adequate sexual performance rests on getting enough protein, which red meat has in large quantities.   Meanwhile, the National Beef board is promoting the sexy side of beef with a new advertising campaign featuring Cybil Shepard and James Garner.

Melvin Tubre and Rosalie Tubre of Crest Meat Company, Inc., are loyal supporters of the Louisiana Restaurant Association.

COOKING CHART FOR THAWED STEAKS

Cooking times stated are approximate, depending on intensity of heat

*Well-done will produce a finished product that is very dry, chewy and somewhat tasteless.  We do not recommend a well-done state in order to appreciate the richness in flavor and tenderness.