Prime Time Summer 2018

Consumer Demand for

mium Choice, Low Choice, Select and Standard quality categories is 97, 93, 82, 66 and 55 percent, respectively. Alternatively, the odds of having a negative eating experience were roughly 1 in 34, 14, 5, 3 and 2 for Prime, Premium Choice, Low Choice, Select and Standard, respectively. Last, the paper detailed the effects of upgrading from a lower quality grade to a higher category. Each step up in quality grade results in a better chance of having a positive eating experience. For instance, moving to Premium Choice from Low Choice enhances the odds of a satisfactory eating experience by nearly 3 to 1 (see illustration be- low). Moreover, the further the upgrade, the greater the improvement. Meanwhile, the market is telling us the same story and reinforcing those findings. For instance, during the 

HIGH

-Quality Beef

BY NEVIL SPEER, PH.D., INDEPENDENT CONSULTANT

T he principle is or product, the key to suc- cess for any business is gen- erally derived by providing a quality product. It’s always the lasting differentiator in the marketplace and the driving force behind creat- ing loyal customers. When it comes to protein, consumers gravitate to beef because they like it. Beef’s primary advantage in the marketplace is taste. It’s the ultimate factor that enables the beef industry to garner the biggest share of consum- straightforward. Whatever the service

satisfaction and consumer perception. Several years ago, Daryl Tatum, Ph.D., Colorado State University, and Certified Angus Beef ® published a comprehensive review of USDA Beef Qual- ity Grades. The analysis re- vealed that marbling serves as a very effective tool for sorting beef carcasses with respect to quality and value. Increased marbling im- proves the odds of purchas- ing a favorable product. Specifically, the probability of a strip loin steak produc- ing a positive eating experi- ence within the Prime, Pre-

er spending – beef gets about 48 cents of every dollar spent on protein. The more the in- dustry can stack the deck in terms of its market advantage (quality, taste), the bigger the spend- ing gap can become. The most effective and efficient way to do that is to increase marbling. That’s because U.S. Department of Agri- culture (USDA) Qual- ity Grade scores re- ally do matter when it comes to eating

Akaushi Prime Time • Summer 2018

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