January 2024 NEBRASKA CATTLEMAN 15 CONTINUED ON PAGE 16 plus years of success in spite of competing with much larger companies in the same arena. “We have consistent pricing and customers who stick with us through thick and thin,” Meyer continued. “We look at our base cattle costs and price each individual item we sell. If we don’t sell it for that, we will lose money. So many of the price challenges we are seeing now are not sustainable prices in the long term.” Stretching the Consumer Dollar However, not everyone can build their niche in that “top 1 percent of consumers” demographic. As grocery store prices continue to rise, consumers are looking for ways to stretch their dollar. Adam Wegner and the Nebraska Beef Council team are dedicating an ongoing focus to sharing information with both consumers and ranchers – how to make a dollar go farther and identifying opportunities on underutilized cuts. “As an industry, let’s not become lobster,” Wegner urged. “That’s a barrier to the general consumer’s plate. We are constantly looking for ways to make sure we have a product for just about anybody’s budget. It’s difficult right now, no doubt.” Sticker shock is causing consumers to get creative. “’Instead of a ribeye, can I get a sirloin?’ ‘Instead of a steak, can I afford ground beef?’ These are the questions consumers are asking themselves. And it’s one of the advantages we have as an industry,” Wegner continued. “We offer a variety of products at a variety of price points. Part of what we do at the Beef Council is highlight those opportunities for a great eating experience that fits any budget.” If consumers are asking those questions, the Beef Council is ready with some helpful education to ensure a great eating experience enhanced by proper preparation techniques. “If you’re a ribeye person and buy a round steak thinking you’ll get the same eating experience by cooking it the same way, you’re in for a rude awakening,” Wegner said. “We help educate consumers by sharing that information. If you’re trading down to a different cut, you should be marinating, tenderizing or changing your cooking method to suit the cut you buy.” The biggest challenge? Making that connection in consumer minds ahead of time so they don’t make a simple mistake and associate beef with a bad eating experience. Been There, Done That While there’s no denying that the current market conditions are intensely challenging, it may be helpful to remember that they are cyclical in nature. Many in the industry have been through tough times before and come out stronger, and Craig Uden of Darr Feedlot has been through more than a few. “We’ve been through this kind of cattle tightening era before in 2014,” Uden said. “It broadened our horizons a little bit and created a systems approach for us. We had to work farther out of our region and clean up our cow herd a lot.” Today, that pressure has shaped a stronger cattle herd. “We have almost no problem finding cattle to grade because there are good cattle in every segment of this country right now, a lot better than there was 10, 15 or 20 years ago,” Uden said. “Grading shows it – from 50 or 60 percent Choice and Prime to virtually 85 percent.” The challenges of that time also pushed Darr Feedlot to seek more vertical integration opportunities, especially relating to size and scale. Jessica Sperber, Ph.D., moderates a 2023 Nebraska Beef Summit panel with panelists Jordan Schlake, Nebraska Department of Agriculture; Adam Wegner, Nebraska Beef Council; Craig Uden, Darr Feedlot; and Ryan Meyer, Creekstone Farms.
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