by Bryan Salvage ,editor
In the past, meat producers, packers and processors have been in concert on one overlying issue-they all want to ensure the continuing prosperity of their companies, specifically, and the American meat industry, in general.
However, they have oftentimes resembled allied but separate armies. In many cases, they fought for the same causes-but under the orders of different generals using different strategies. Such actions have made it difficult for the industry to quickly respond to issues in one unified voice.
Fortunately, the concept of alliances is catching on in the meat industry. Recently, a new industry alliance was proposed to help strengthen America's beef business. During the 1993 Cattlemen's Beef Board meeting, attendees were updated on the current status of the beef cattle industry based on research done by the Beef Long-Range Planning Task Force.
Not all of the findings were positive.
Beef producers were told the beef cattle industry has been production-driven, not consumer-driven; beef market share has been declining while competitive center-of-the-plate protein share has been increasing; beef quality and consistency must be improved; and some beef products are not consumer-friendly.
"It's been said that we have an island mentality because many segments of our industry just worry about themselves and their own profits," said an industry spokesman during a teleconference announcing the task force's findings. "And at times, we've had adversarial relationships between [producer] segments and packers."
Breaking the mold
The task force then recommended the creation of a single, consolidated organization that would handle the functions now carried out by four existing national organizations-the Beef Industry Council of the National Live Stock & Meat Board, Cattlemen's Beef Board, National Cattlemen's Association and the U.S. Meat Export Federation.
By merging four groups into one, greater efficiencies will lead to quicker, unified responses to the issues that the beef industry faces today.
This newly-proposed organization will focus on results rather than activities. It will have clearly defined areas of responsibility, and everyone will be focused on the same set of objectives.
There is a timetable involved in a two-step organizational process. First, each of the four organizations must accept the concept in principal by Feb. 28. Second, a committee will build the structure, which will be presented to the four organizations on Oct. 1. The task force is hoping for final approval of the plan by January 1995.
Under the proposed merger, a set of eight leverage points (strategic points of impact) will be addressed:
-- Beef quality and consistency: reducing consumer dissatisfaction and increasing the amount of branded, case-ready beef.
-- Domestic marketing: improving consumer price/value perceptions and stopping the decline in market share.
-- International marketing: doubling the share of exports.
-- Issues management: managing disruptive issues and speaking with one voice on government and other issues.
-- Public relations: presenting a positive image of cattlemen and increasing consumer confidence in beef.
-- Production efficiency: making beef more price-competitive.
-- Producer and packer alliances: increasing cooperation between producers and packers.
-- Strategic alliances: improving efficiencies among two or more businesses in the production chain.
Backers are confident the merger will pass, but it will not be an easy process.
Each organization has members who will not want their groups to surrender their separate identities. Change is always difficult, but now is the time for the beef cattle industry to unify.