Contains Opinion
WE have all seen it first-hand. The livestock buyers offer more money for the black cattle over Herefords and other breeds.
Why?
I strongly suspect that it’s because of the marketing from the Angus society, which has the town/city-based consumer convinced that ‘Angus’ is a superior brand. The livestock buyers have to fill orders from restaurants that specify ‘Black Angus’ on the menu.
I am hearing a huge amount of angst from Hereford breeders about the difference being offered for Angus beef in comparison to Hereford beef.
I attended a Herefords Australia meeting in Hamilton a couple of years ago - where two JBS buyers declared that "once the skin comes off, they look the same."
As a Hereford Breeder myself - the difference in my last offering at the saleyards was $12,000 between comparable weight Angus steers and my Hereford steers at the same sale.
I spoke to many of my fellow Hereford breeders at the sale - and they are all asking the same questions. The general consensus is - that the Angus society have done a great job of marketing the brand and now the public consider that 'Angus' is the ‘premium’ brand of beef.
We are aware that this is a trend that has been growing for some time now - but what is Hereford Australia doing to address the disparity in the pricing and to lift the profile of Hereford Beef?
I can assure you - that if breeders have expanded their farms, and have plans of expanding further - then that price differential cannot be ignored. Traditional Hereford breeders will make the change to chase the dollar - it all comes down to the bottom line.
Tony Hudson of Hudson Facilitation said that “there has been a change in beef production over the last 25-30 years and there is a lot more black cattle in the market. Over those years the Angus society have been very successful in marketing their product as superior. It’s all about perception and lots of people have now switched their genetics to meet that demand – to access that premium.
A local livestock identity, said that “the lifting of the meat trade suspensions with China, that saw five Australian abattoirs reinstated to supply beef, is great news and the flow on effects should be good for all producers.
But it’s interesting that the high-end meats that they want are Angus and Wagyu. It’s been great marketing by the Angus Society over a long time now.
Even the McAngus burger puts the ‘Angus’ brand front and centre. I know of at least two beef producers that have changed from red to black over the last eight years. We could see a lot more of it.”
The Teys Bros purchasing grid has clearly marked 360-480kg Angus steers is paying $3.60 while the Euro breeds for the same weight range is paying $3.25.
The math tells me that an Angus steer of 360kg at $3.60 is going to be $1296 while a Hereford steers of 360kg at $3.25 is going to be $1170 – a difference of $126, per head and we never sell just one – so put that per head loss over 30 steers is $3780 – or around 3 more head of stock. I know there are the variables of which breed will get to 360kg quicker, grain fed or grain fed and costings - but withstanding all the variables, the difference of $126 per head cannot be ignored.
Thomas Foods International only trade in Angus beef - they advertise on their website that is where the demand is.
I put this to the Hereford Association for comment - We are aware that this is a trend that has been growing for some time now - but what is Hereford Australia doing to address the disparity in the pricing and to lift the profile of Hereford Beef?
Herefords Australia has embarked on a significant cultural shift over the last 4 years to place Hereford cattle Research and Development (R&D) with real world implementation through marketing and ultimately adoption for the wider beef industry. Our five-year strategic plan focusses on profit driving, through the use of Herefords in pure bred and cross breeding businesses in the constantly evolving beef market with cost of production a major focus.
With the push for sustainability within the beef sector Herefords Australia, like the USA, is primed to take full advantage of the strengths of the breed.
These strengths, along with MSA market compliance, are on-farm advantages.
Herd and bull longevity, fertility and weight for age are our comparative advantage.
Saleyard price for steers is only one area in running a profitable beef enterprise.
Cost of production is the major profit driver and Hereford breeders know that cost savings in areas such as bull longevity, increased conception rates through female fertility and ability to hit market specifications earlier are the major profit drivers and a clear proven advantage that Hereford cattle have over Angus breeding herds.
The major gains that can be made by the industry to hit carbon targets by 2030 is reducing the days to slaughter and Herefords are the breed that can take full advantage of that industry direction.
Over the last 2 years it has been documented that in many markets throughout Southern Australia there is absolutely no difference in c/kg for all of the major British breeds, namely, Hereford, Angus and Shorthorn.
These markets include grass finished steers and heifers into major ‘grass’ branded beef programs, short fed feeder cattle markets, EU feeder markets, surplus female markets for cast for age cows and what has proven to be a lucrative market is PTIC Hereford females.
Focussing on Southern Australia, over the last two years we have seen at the major autumn weaner sales at Hamilton/Casterton there was 1c/kg advantage for Hereford steers over Angus steers.
At the famed Mountain calf sales in March, there was $163/head advantage for Hereford steers over other British breeds with similar results shown throughout Tasmania.
The buyers of these cattle recognise the clear advantage Hereford steers have off grass to supply the lucrative branded markets of Southern Australia.
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You be the judge. Will we all end up with black beef? That would be boring!
