Finding more profits in beef

BLOOMINGTON — At the Illinois Commodity Conference in Bloomington Nov. 20, farmers heard about plans to make beef production in Illinois more profitable. Doug Wilson, Illinois director for USDA Rural Development, presented a $98,750 check to the Illinois Beef Association. The funds will help producers working with IBA build demand for high quality Illinois beef through packaging, service and direct contact with customers.

The check was presented to IBA President-Elect Trevor Toland of Macomb and IBA Executive Vice President Maralee Johnson who directs the association’s office in Springfield.

“Illinois producers raise some of the best beef in the world, and they should be able to take advantage of their investment in quality,” Wilson said.

The project will allow producers to work directly with consumers, discover what influences their meat buying decisions and build relationship with like-minded grocers and chefs.

New technology has helped beef producers precisely identify quality characteristics in their cattle. With that information in hand, producers can raise what customers say they want and target the markets that will pay premiums for quality.

“It’s all about who values locally raised beef and finding the logical markets” said Maralee Johnson. “Now that we can raise cattle with characteristics the market wants, we need to develop a brand for our beef that consumers recognize as being fresher and having better quality.”

The project involves adding value to beef produced in Illinois through the development of an Illinois branded beef program, a quality supply chain, and an in-store marketing program run by the IBA, a producer organization. With the source and quality of the beef identified and in-store promotions by beef producers, the demand for locally raised beef is expected to increase.

The goal of the project is to test whether packaging, service and direct contact with Illinois producers is an effective way to build customer demand for high quality Illinois beef like no branded meat program has done before. The goal is based on the concept that quality creates demand and demand drives profits.

“When the work on this project is concluded, Illinois beef producers-large and small-will have a model for making the production of quality beef more lucrative,” Wilson said. “Not only is a healthy livestock market good for Illinois beef producers, it’s good for Illinois consumers and the state’s rural economy.

Rural Development provides financing and technical assistance to foster growth in homeownership, business development, and critical community and technology infrastructure. For more information on USDA Rural Development programs visit their Web site at www.rurdev.usda.gov/il.