When beef prices plummet, what's a rancher to do? One profitable option is to raise grass-fed, rather than grain-fattened beef, suggests a newly released University of California publication.
Current beef prices are less than 60 cents per pound, down dramatically from the normal price of about 70 cents per pound.
"Ranchers are telling me that they can't sell the beef at the price their bankers say is needed to break even," says Glenn Nader, UC Cooperative Extension livestock advisor for Yuba, Sutter and Butte counties. "Preliminary research suggests that grass-fed beef could be an additional market niche, allowing ranchers to diversify their income."
The new publication, "Natural Beef: Consumer Acceptability, Market Development and Economics," grew out of a 1996 project funded by the UC Sustainable Agriculture Research and Education Program, based at UC Davis. It reports strong consumer and restaurant interest in the lower-fat, grass-fed beef. The study was conducted by a team of ranchers; researchers at California State University, Chico; and UC Cooperative Extension personnel and students.
In the new booklet, researchers present a sample marketing plan and four case studies for ranchers interested in grass-fed beef production and marketing.
The publication identifies several concerns for producers of grain fed beef: transportation, advertising costs, product liability insurance, inventory management, packing, labor laws and county environmental health requirements.
It is available from UC SAREP at (530) 752-7556 or on the Web at . A digitized color image of a grass-fed steer is available at .
Media Resources
Pat Bailey, Research news (emphasis: agricultural and nutritional sciences, and veterinary medicine), 530-219-9640, pjbailey@ucdavis.edu