Beef Industry Long Range Plan

VISION STATEMENT

A dynamic and profitable beef industry, which concentrates resources around a unified plan, consistently meets global customer needs and increases demand.

INDUSTRY PRIORITY

PROFITABILITY: Increase potential for the profitability of all industry segments

LRP GOALS

BEEF DEMAND: Increase beef demand 6 percent by 2004.
BUSINESS CLIMATE: Enhance and protect the business climate for cattle and beef.

TAKING ADVANTAGE OF TURNING THE CORNER

The beef industry has turned the corner. After a 20-year decline, consumer beef demand is increasing...and the past three years have clearly demonstrated that growing demand contributes to industry profitability. However, this is no time for the industry to rest on its success. Focusing on the right things and capitalizing on this positive development is the opportunity of the hour. In other words, it's time to put the accelerator to the floor. So, this is an aggressive plan to...improve potential for profitability...increase beef demand 6 percent...and enhance the business climate for cattle and beef.

PROFITABILITY

Increase Potential for the profitability of all industry segments.

BEEF DEMAND GOAL

Increase beef demand 6 percent by 2004*

BEEF DEMAND DRIVERS

Key factors influencing consumer demand for beef

CONSUMER CONFIDENCE IN BEEF

Outcomes

Food Safety: Consumer confidence in beef safety increases:
- Research & industry application
- Industry practices & quality control
- Consumer & influencer communication
Nutrition: Consumer recognition of beef's nutritional benefits increases.
- Research
- Consumer & influencer communication
Positive Eating Experience: Consumer satisfaction with the palatability and consistency of beef products increases, resulting in more positive eating experiences.
- Research
- Production & processing product enhancement
- Industry practices & quality control

BUSINESS CLIMATE GOAL

Enhance and protect the business climate for cattle and beef.

BUSINESS CLIMATE DRIVERS

Key factors influencing the beef industry business climate.

INDUSTRY ISSUES & IMAGE

Outcomes

Government: Legislation and regulation is consistent with cattle and beef industry goals.
- Taxes
- Environment
- Property rights
- Federal lands
- Animal Health
- Good safety & nutrition policy
- Trade & market policy
Public opinion: The industry's credibility and image is enhanced.
- Issues monitoring & management
- Consumer & influencer communication
Effective industry voice: Industry segments work together to promote a positive image.

BEEF PRODUCTION

Outcomes

Efficiency: Quality cattle and beef products are produced more efficiently.
- Research & technology
- Producer, processor & retailer education
- Good management practices
Cooperation among segments: Information and price signals are effectively sent from the consumer or global customer to all segments along the beef production chain.
- Data gathering
- Information sharing & utilization
- Paying for value
Human Resource needs & issues: Sufficient, competent human resources are available to manage and work in an evolving beef industry.
- University & community college education
- Recruitment
- Ongoing leadership & job training
- Technology & information flow

MEGA TRENDS

Major trends the Beef Industry must effectively address to reach its goals.

As the beef Industry Group gathered facts and information to write this plan, these trends emerged as key factors that will impact the success of all businesses, including the beef industry. Because of their significance, the Planning Group feels an obligation to summarize them...not because it endorses this change, but because they are realities which must be recognized and addressed to help the industry prepare for the future. These trends do not change our vision or goals, but should be taken into consideration when determining how to implement this plan.

CONSUMER DEMOGRAPHICS...responding to a changing population

Consumer demographics such as age, disposable income and ethnic background significantly influence beef demand. These factors are changing - "Baby Boomers" are aging, wealth is transferring to the next generation, the female work force continues to grow, "Generation X" and others are cooking less, youth are not as predisposed to consume beef, and U.S. population growth among Hispanics, Asians and other ethnic groups are increasing. These and other changes impact tastes, preferences and target markets for beef. Depending on how the beef industry responds, these factors will be an ally or adversary. It is critical that the industry monitor these changes and capitalize on them.

TECHNOLOGY...responding to new opportunities

Bio Tech: The potential for this area to improve production efficiency and product quality is significant. Also, other beef producers around the world will attempt to use bio tech to their competitive advantage. A number of bio tech applications are under development by private firms. New start-up companies, intellectual property rights and patents are influencing this development. Which applications ultimately succeed will depend primarily on two factors - their commercial viability and consumer acceptance. Like any technology in its infant stages, bio tech needs to be monitored and viewed as a potential tool to help the U.S. beef industry achieve its objectives.

eBusiness:

Uses of the Internet are increasing at a rapid rate. A growing number of businesses in agriculture and the food industry are using it to exchange information and sell goods or services to other businesses and consumers. The potential applications of this technology are nearly unlimited for all segments of the beef industry and its organizations. Knowing the possibilities and realistically determining the potential application to your business or organization are the keys to capitalizing on this technology.

GLOBALIZATION...responding to a worldwide market

Information transfer is becoming instantaneous and more businesses view the world as one market. Economics and technology are driving this mega trend and reshaping the way government and businesses look at the exchange of goods and services. Geographic and political boundaries alone no longer define markets, competitors and business opportunities. While there will be issues to manage, succeeding in this era of globalization will require a different mindset and new approaches. Careful analysis and planning will be required by beef industry producers, businesses and organizations to address global trends.

THE ENVIRONMENT...responding to growing public concern

The general population is increasingly sensitive to a variety of environmental and societal issues. Beef production is under greater public scrutiny and government regulation due to growing concern about land, water, air, animal welfare, and food issues. Science and common sense often lose out to perception and emotion, particularly in a culture that is increasingly detached from agriculture. Achieving domestic and global credibility and trust by effectively managing these issues will significantly influence the business climate for producing, processing and marketing beef.

CHARGE TO THE INDUSTRY

The Beef Industry Planning Group encourages all industry segments and organizations to pursue the goals of this plan. Although beef demand has recently increased, accomplishing these outcomes will not be easy. It will require focused effort by the total industry and the investment of additional resources. Knowing that all segments must be involved, this plan intentionally addresses the challenges and opportunities facing the industry as a whole, rather than internal issues between segments. The next few years will determine whether we build on recent industry growth or revert to declining demand and a shrinking industry. The industry must work together...and every person along the beef production chain can be part of the solution. Determine where you should focus and how you can contribute...together, we can make a difference for the industry and ourselves.