Have you heard of the beef industry’s “Big Four”? The “Big Four” are a group of U.S. meatpackers (Tyson Foods, JBS, Cargill, & National Beef) who control over 80% of the American beef market. In 2015, the United States Department of Agriculture (USDA) repealed the country of origin labeling laws, creating a loophole for the Big Four. Currently, imported beef can be labeled as a “product of the USA” when it’s processed in a USDA facility.
So what’s this mean for the American Consumer? This means the Big Four can import beef from other countries (Namibia, New Zealand, Mexico, & Canada just to name a few) and slaughter the cattle in one of the Big Four’s meatpacking facilities, and slap a “product of the USA” label on the meat package, before sending that meat to the grocery store for American consumption. And why is this a problem? Not all beef is equal. Laws and regulations concerning acceptable veterinary practices, animal husbandry, medical withdrawal times, vaccine usage, and hormonal growth agents varies by country. Therefore, something that’s considered an “acceptable practice” in another country might not be legal in the US; however, that animal can be imported and sold as “American Beef” and there’s no way for a regular consumer to know the difference.
Now what’s this mean for the American Beef Producer? This means the Big Four have the ability to import large volumes of foreign cattle to artificially block market access to the American Farmer. Additionally, with such minimal competition the Big Four wield an enormous power over the beef industry. Such was evident to me, even during my short time working at a local Livestock Auction. Each week three to four chairs were lined up alongside the auction ring and almost every cow brought through was purchased by one of the individuals in those chairs. Bids were rarely made against one another and cows were almost purchased on a rotation by the group. Without competition the sale prices remain low, making it possible for the Big Four to maximize their profit margins.
The retail dollar consists of four components: production, processing, marketing, and distribution. Currently, production equates for only nine cents of the retail dollar. That means that beef producers only receive nine cents for every dollar of beef purchased, that’s a mere 9%.
So how do American Farmers combat the Big Four? The same way American Consumers can combat them… direct marketing & buying local.
The best way to source American Beef is to buy directly from a farm or ranch. And that’s where we can help.
It’s our mission at Central Bridge Farms to bridge the gap between producers and consumers, by providing high-quality, pasture-raised proteins. Our 100% Black Angus cattle are raised from birth to finish right on our family farm; spending 365 days a year on pasture. We desire to provide customers with confidence, knowing they can purchase ethically & sustainably raised proteins. And we’d be honored to be your family’s source of true American Beef.
Sincerely,
Mattea VanDerwerken