www.txfb.org/TexasAgriculture/2000/051900cattle.htm -
[Cached Version]
Published on: 5/19/2000
Last Visited: 9/18/2008
Businesses that are organized around knowledge, rather than tasks, will have opportunities to create wealth," said Dr. Harlan Ritchie, Extension beef specialist at Michigan State University.
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Ritchie said the industry must move towards coordinated systems of production and marketing of beef to solidify demand and markets that enhance profitability and ensure sustainability.
He cited the following factors as reasons that moved competing meats in that direction:
- Increased responsiveness to consumer demand.- Improved quality control (consistency, food safety, etc.).- Increased efficiency, resulting in reduced cost of production.- Risk shifting and risk reduction.
Characteristics of a food supply chain, according to Ritchie, include a traceback system, a better flow schedule, and a chain that is end-user friendly.
Ritchie noted that the kind of system that is shaping up for the beef industry is "coordinated," rather than "vertically integrated," which puts power in the hands of those who have resources to add value.
He explained that the key points of control are at the ends of the food supply chain, suggesting that genetics at one end and information from end-users at the other will control how the system behaves.
"Middle participants must become indispensable to have a measure of control of governments or mitigate the role of genetics through unique processing technology," he added.
Ritchie said the small producer can compete, but again, he must appear to be big, through an alliance, network, or marketing pool.
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Ritchie said progressive seedstock breeders will become full-service vendors capable of providing numerous services for their commercial customers, such as: assistance in merchandising feeder cattle; programs for retained ownership that will return feedyard performance and carcass data on individual cattle; contracting of specific matings two years in advance of delivery of bulls; recipient females carrying male embryos for commercial producers who wish to raise their own bulls in their specific environments; and replacement heifers that are A.I. bred and sorted for calving date and sex of calf.
According to Ritchie, there will eventually be widespread availability of semen and embryos specific for gender, color, polledness, production traits, reproductive traits and disease resistance traits.
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However, some could be replaced by others waiting in the wings," said Ritchie.