More regulation and oversight could create a bigger problem. Alliances between ranchers, feeders and packers through contracts and marketing agreements is a growing trend, allowing cattlemen and women to produce a more consistent product that consumers are demanding. Alliances have the ability to give producers more chance to gain a greater share of the consumer dollar, Hall said. These types of business arrangements are new to the industry, Hall added. They are innovative, and they offer producers many options to improve profitability, animal quality and their bottom line.
Current data show that changes in the beef industry are for the better.
After years of steady decline, beef demand has been rebounding for the last two years. In fact, consumer spending on beef set a new record during the first half of 2000, according to CattleFax data. True, increase in consumer demand is partially due to our industry s marketing efforts that have helped change consumers perception of beef and given them a reason to choose beef whether they purchase it in the grocery store or go out to eat, Hall said. But we must have favorable policy to maintain the financial health of the beef industry. If we encourage government policy that creates a positive business and regulatory environment, we will have a greater opportunity to continue to increase demand, Hall said.