Grass Fed Beef

Presented by

Charles Moss, Andre Schmitz, and Troy Schmitz

June 23th 2014

21th Annual Moose Jaw Conference

An Economic Model of Demand

2

SteakLbs.

CabbageLbs.

5

2

4

3

A

B

SteakLbs.

Price ofSteak

Cabbage Lbs.

Price ofCabbage

Household Production Models of Demand

3

Steak Lbs.

Cabbage Lbs.

Household Time

Household Production

Meals

Attributes

Taste

Convenience

Nutrition

Prices,Income,Wages

Steak Lbs.

Cabbage Lbs.

Household Time

Household Production

Meals

Attributes

Taste

Convenience

Nutrition

Prices,Income,Wages

Environmental Impact

Grass Fat Beef is Healthier

Grass Fat Beef is Healthier and Better for the Environment

My 1976 Show Steer - Bandit

4

Cost of Gain

5Dan Childs – Noble Foundation https://www.noble.org/ag/economics/costofgain/

Cost of Gain and Slaughter Weight

6

R w w p w

CC w q w p

C w

w

R w

w

Corn PriceIncrease

*ww

Cattle and Corn Prices

7Source: USDA QuickStats

Oklahoma City Feeder Prices

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Grass Fat and Grain Fed Ribeye Prices

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Grain and Grass Fed Beef Markets

10

GrassMeatp

GrainFatp

GrassFarmp

GrainFeederp Grain

FatD

GrainFatS

GrainFeederS

GrainFatS

GrassFatD

GrassFatD

GrainFatS

GrainMeatS

Grain Fed Beef Grass Fed Beef

Evolution of the U.S. Food Guide (1)

11Food Guide Pyramid (1992-2005)

Evolution of the U.S. Food Guide (2)

12 My Pyramid (2005-2011)

Evolution of the U.S. Food Guide (3)

13My (2011-present)

Anti-Inflammatory Diet & Pyramid

14

Why am I Broke

15

Grass Fed Beef (Berkeley California)

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Whole Foods (Berkeley California)

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Markets and Prices (Gainesville, Florida)

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Trader Joes (six weeks ago)Organic ground beef 6.99-7.49 per pound

(15% fat)Regular hamburger 4.49 per pound

Fresh Market (a month ago)Grass fed beef [Australian beef] Tenderloin

14.99 per pound burger 6.99 per poundRegular 8.99 per pound per pound Ground

Chuck 4.99 per pound Wards (last Saturday)

Own U.S. Beef Porterhouse 14.80 regular 8.98 per pound labeled hormone antibiotic free

Markets and Prices (Gainesville, Florida)

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Publix (two months ago)Packaged beef strip steak 8.5 ounces 11.99.Sirloin 8 ounces 8.99Rib Eye 10 ounce 12.99.Labeled Grass Fed hamburger 7.99 per pound

Comparable 4.97 per poundPrice for T-bone was 9.99 porter house 9.99

Rib Eye 13.99, New York strip 13.99.Shelf space was 1/100 of shelf space of all

beef.Stores like Winn-Dixie do not sell beef.

Likely income