Meat&Poultry - January 2012 - (Page 26)

Where’s the beef? Beef supplies are set to decrease in 2012 while exports are poised for growth BY STEVE KAY meatpoultry@sosland.com H amburger chain Wendy’s International introduced its famous since the 2008 recession and the continued growth of specialty hamburger chains will almost guarantee recordhigh prices for fatty trimmings (50CL from fed steers and heifers) all the way record number of chucks, rounds and sirloins went through the grinder in 2011. These three sub-primals accounted for 36.3 percent of all ground beef sales, vs. 34.8 percent in 2010. Half of all Americans ate a hamburger at least once a week in 2011, according to research firm Technomic Inc. This was up from 38 percent in 2009. The hamburger boom will likely continue on two fronts. Gourmet burgers costing $12 to $15 will continue to provide consumers with a beef indulgence on the cheap. Such burgers contain everything from brisket meat to Wagyu to Certified Angus Beef. Meanwhile, specialty chains such as Five Guys Burgers and Fries and Smashburger keep expanding. Five Guys had one store in 2002. It now has 800 in 40 states and plans to add 600 “Where’s the beef?” slogan in 1984. The often-used phrase might turn out to be the catch-cry in the 2012 US redmeat complex because available beef supplies are set to fall this year to 54.1 lbs. per person, according to US Dept. of Agriculture forecasts. This would be down 3.3 lbs. from 2011’s expected 57.4 lbs. and 2010’s 59.6 lbs. It would be the lowest per capita or disappearance figure in at least 61 years. This tighter supply will set off a scramble for raw materials, notably of manufacturing beef, that will likely result in record-high wholesale prices for most beef items this year. The supply shortage (relative to demand) will be most acutely felt in the groundbeef complex. The hamburger boom Retailers and foodservice operators last year worked hard to minimize beefprice increases to consumers. But retail prices continued to rise. up to lean cow beef (90CL). These items set new record highs in early November, with 90CL averaging $189.66 per cwt and 50CL averaging $123.44. Another indicator is that a 26 • Meat&Poultry • January 2012 • www.MeatPoultry.com http://www.MeatPoultry.com

Table of Contents for the Digital Edition of Meat&Poultry - January 2012

Meat&Poultry - January, 2012
Contents
Commentary - Oozing optimism
Business notes - QSRs stop using ammonium hydroxide technology for beef
Business notes - Cargill to use HPP, resumes ground turkey processing
Business notes - Farbest to build new turkey plant in Indiana
Business notes - Seaboard Foods names new president, CEO
Business notes - Land O’Frost to acquire Wimmer’s Meats
Business notes - Hormel executive announces retirement
Business notes - Danish Crown appoints chairman, deputy chairman
Business notes - Sara Lee to expand Missouri plant
Washington - Regulatory hurdles ahead
2012 Industry Outlook - A pivotal year
2012 Outlook - Pecking orders
2012 Outlook - Where’s the beef?
2012 Outlook - Mining for global gold
2012 Outlook - Regulatory roadblocks
Farm-to-Fork - Grass-based growth
Turkey processing - Beyond the belly
Food Safety - Use judiciously
Traceability - Nature’s bar codes
Packaging - Waste not, want not
Ingredient Solutions - Sizing up sea salt
Conference Previews - Focused on Education
Names in the News
New Product Showcase
Classified Advertising
Advertisers
The Insider

Meat&Poultry - January 2012

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