YourCattle.com

By Jill J. Dunkel

Natural Beef. Take a stroll down the meat isle of your supermarket, and you’re likely to see some packages with the “All Natural Beef” label. Like it or not, natural beef is a growing market.

According to the Ag Marketing Resource Center (AgMRC), industry experts estimated there were a total of 375,000 to 425,000 head of cattle in the United States who fit the natural product regime just one year ago. And more and more producers are taking note. Increasingly, the buzz words, “eligible for an all natural program” are seen as part of the description on lot loads of cattle on internet and video sales nationwide.

Sales of other all natural and organic products in retail stores are rapidly increasing, according to AgMRC. And although all natural and organic beef sales are not growing as fast as other all natural and organic items, the beef market is steadily growing.

The USDA’s Economic Research Service says increased sales of organic and natural food products are being driven by health conscious consumers. Natural foods supermarkets and other specialized retailers are benefiting from the trend.

“There are consumers who are willing to pay a premium for an all natural product,” says John Butler of the Beef Marketing Group, a co-op of 14 growing and feeding operations in Nebraska and Kansas. The Beef Marketing Group has established relationships with Tyson and Certified Angus Beef to produce and market a branded, all natural beef product.

“ All natural is merely a choice. It’s not better or worse than any other cattle we produce. It’s just another choice to our consumers. Both products are healthy and safe,” Butler says.
However, no one said producing all natural beef was easy. The markets are becoming increasingly competitive, and premiums are available. But producing beef without ionophores, implants and antibiotics does reduce gains and feed efficiency.

When Butler’s organization stepped into the all natural market, he said it became evident how valuable such products are. “When you take those away, it becomes very challenging to produce beef.”

Studies at Iowa State University showed implanted cattle fed a ration with ionophores showed an average daily gain increase of 15 percent, and a feed to gain improvement of 13 percent. Translated into dollars, this equated to an increased cost of feed from $.35 to $.40 cents per day, based on a feed cost of $100 per ton.

Kansas State University reports it costs 25 percent more to produce natural beef as compared to conventional beef using growth promotants. And USDA research shows that anabolic agents can improve weight gain by five to 20 percent, feed efficiency by five to 12 percent, and lean meat growth can be improved by 15 to 25 percent.

Because of these numbers, companies are exploring other ways to offset such production “costs” associated with an all natural beef program.

One such possibility includes natural feed additives that stimulate rumen activity. “A microbial, like Amafirm, helps maintain the correct pH of the rumen, and that helps cattle stay on feed,” says Dennis Delanie of BioZyme. “A microbial can increase the effectiveness of digestion by stimulating rumen activity.”

Individuals who consider feeding for an all natural program, should realize they will give up some of the gain and efficiency, says Delanie. “However, by using a product like Amafirm, they are not going to give up as much gain.”

Bob Norton, president of BioZyme, says their product is a viable alternative to ionophores. “You will see enhanced performance – not to the level of ionophores – but we are working on research every day. Our goal is to provide the same level of effectiveness.”

Although some performance is sacrificed, Butler says there are substantial value added opportunities to participate in an all natural program. “It’s economically driven.”

All cattle entering the program go through an intense approval process. Many cattle are procured in the country, while others are purchased through auctions. “We are heavily involved in developing relationships with producers,” Butler says.

When cattle complete the feeding phase, they are either marketing through Certified Angus Beef’s natural label, or through the Star Ranch Natural Angus Beef brand. Currently, all cattle going into the program are black hided. “Our colored cattle are treated as commercial cattle and go to another feedyard. Ultimately, the Beef Marketing Group is looking at developing an all natural colored beef label, but, “we’ve got to get it right, first.”

Although definite premiums exist, experts agree that success with an all natural beef program takes a lot of work. Being familiar with the icreased costs of production and identifying a marketing plan must be substaintially developed to take advantage of such premiums. ©

Many other companies offer all natural beef programs, some for certain breeds or colors. To see a list of various all natural beef companies, simply search “natural beef” on the world wide web.