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W1177: Enhancing the Competitiveness of U.S. Meats

Annual/Termination Reports (SAES-422): [04/01/2003] [04/01/2004] [07/21/2005] [03/07/2006] [10/06/2006] [02/22/2007]

Date of Annual Report: 04/01/2003

Report Information:
  • Annual Meeting Dates: 01/09/03 to 01/10/03
  • Period the Report Covers: 10/2001 to 09/2002

    • Participants:

    URL: Copy of participant list
    Brief Summary of Minutes of Annual Meeting:
    Larry Miller, CSREES representative, provided administrative reports. Officers for next year include: Chair: Jim Oltjen, Vice-Chair: Bill Hahn, Secretary: Warrie Means . January 8-9, 2004 was chosen for meeting dates, in Omaha, Neb. Station annual reports were distributed. A discussion of the cooperative opportunities between investigators associated with the new research project were discussed. Due to Norm Marriotts decision to retire, Scott Fausti volunteered to write the 2002 annual report. The meeting concluded with presentations of station research.


    URL: Copy of minutes

    Accomplishments:
    Objective 1: Improve meat quality, safety, and value at all levels of the supply chain to enhance competitiveness and to evaluate economic impact of these new approaches.

    Continued advances in understanding the hydrodynamic pressure process (HDP) and its application to reduce variability in tenderness and improve consumer acceptance of meat have been made. Concerns about the inconsistency in instantaneous improvement in tenderness when using HDP were shown to be of minimal concern. Provided that meat is treated with HDP anytime after 2 days postslaughter, HDP significantly improves meat tenderness. The research implication is that HDP can reduce aging time of retail beef for enhanced tenderness. The economic implication is reduced energy requirements for refrigeration. Examining the synergy of HDP with diacetyl for reducing or eliminating bacteria in ground beef is also encouraging (ARS&VPI).

    Research was conducted to investigate the role of the calpain/calpastain system in the development of pork tenderness. Research results indicate that the CAST gene affects the textural integrity of fresh pork. Work was also conducted to investigate the link between the postmortem process and pork quality. This study indicated that the duration of time from stunning to evisceration was positively correlated with loin-chop shear force levels(IA).

    On going research investigating the use of image analysis and the Japanese pork fat models as bench marks for measuring pork fat color indicate that the value of U.S. retail pork cuts, as measured by subcutaneous fat samples, failed to meet the criteria for premium Japanese no.1 and no.2 categories. Preliminary work on using image analysis to estimate beef marbling is underway (NV).

    Work on refining a prediction system for ruminant animal growth and composition is ongoing in collaboration with AgResearch of New Zealand. The refined model predicts empty body weight and fat content more accurately than the current U.S. NRC or Australian SCA systems (U-C Davis).

    Several issues related to consumer preference for beef were investigated by researchers at the Nebraska and Colorado stations. Initial results indicate that consumers preferred wet aged beef to dry aged beef. The study also found consumers are willing to pay for country-of-origin labeling

    Recent work has been completed on the topic of traceability and certification for red meat in the U.S. and the U.K.. The study finds that U.S. consumers place greater trust in the public sector relative to the private sector for meat certification. The opposite is true in the U.K. (UT).


    Objective 2: Evaluate the impacts of the changing structure of the meat industry including price discovery under alternative pricing systems, trading institutions and methods of delivery.

    Preliminary research at South Dakota State University (SDSU) indicates that the rate of return to retained ownership of weaned steer calves is positive and is affected by ranch of origin management practices and health management practices before calves are placed in the feedlot. Retaining ownership is one method of adding value to cow/calf operations. The information value of mandatory price reporting for live cattle relative to voluntary price reporting is being investigated at SDSU. Statistical analysis indicates that the former voluntary price reporting system was providing accurate information to South Dakota producers.

    The effect of recent structural changes in the U.S. Agriculture on agricultural markets is investigated using experimental economic methodology. Results indicate that private negotiation trading improves the bargaining position of buyers relative to sellers of ag commodities in spot markets (WY).


    In Oct of 2002, The ERS released a new series of retail prices. ERSs data base contains monthly average retail price data for selected cuts of red meat and poultry, based on electronic supermarket scanner data. The data set contains information on volume sold and the discount affects of featuring. The data set accounts for approximately 20% of U.S. supermarket sales.

    Impact Statements:
    1. The pork-fat-color analysis seems to show that barely and white corn produced whiter pork fat, which is preferred in the Japanese market.
    2. Research indicates that HDP can reduce aging time of retail beef for enhanced tenderness. The reduced energy requirements for extended refrigeration (aging) alone can result in significant savings and increased profits for the meat industry.
    3. Research results indicate that the CAST gene affects the textural integrity of fresh pork.
    4. The duration of time from stunning to evisceration was positively correlated with pork loin-chop shear force levels.
    5. The USDA has made available new scanner data on retail meat sales to the public in October of 2002.
    6. The rate of return to retained ownership of weaned steer calves is affected by ranch of origin management practices and health management practices before calves are placed in the feedlot.
    Last Modified: unknown

    Date of Annual Report: 04/01/2004

    Report Information:
  • Annual Meeting Dates: 01/08/04 to 01/09/04
  • Period the Report Covers: 10/2002 to 09/2003

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    Larry Miller, CSREES representative, provided administrative reports. Officers for next year include: Chair: Bill Hahn, Vice Chair: Warrie Means, Secretary: Warrie Means . January 6 7, 2005 was chosen for meeting dates, in Ames, Iowa. Station annual reports were distributed. Cooperative opportunities between investigators associated with the research project were discussed. The meeting concluded with presentations of station research.

    Accomplishments:
    Objective 1: Improve meat quality, safety, and value at all levels of the supply chain to enhance competitiveness and to evaluate economic impact of these new approaches.

    Research on the role of genetic variations in calpastatin in meat tenderness has resulted in definition of previously unidentified alleles in calpastatin that are associated with pork quality traits, including tenderness.

    Producers are using ultrasound techniques to predict marbling and carcasses yield in cattle and swine breeding stock. These tools will improve the profitability of the beef industry by generating progeny that have leaner, higher quality carcasses. Work completed in this project this year focused on improving the accuracy of this powerful technology.

    The extent to which genetics influence broiler breast composition and quality was studied using outbred by inbred advanced intercross lines of chickens. Searches for genes affecting poultry meat quality traits are underway to provide information to add value to poultry in the production, processing, and retail segments of the industry.

    Feeding supranutritional levels of Vitamin E to market animals during the finishing period may not only prevent premature off-color development in fresh beef and poultry, but may also provide some protection from oxidative conditions. In addition, it has also been shown that these high levels of Vitamin E may aid in increasing the rate of muscle protein proteolysis in beef during the early postmortem aging period.

    The degradation of the intermediate filament protein desmin, a substrate of the naturally occurring calcium-dependent enzyme calpain in muscle is related to water holding capacity and tenderness of pork. This may allow for improved methods for producing products with greater tenderness and water holding capacity and possibly improved processing functionality.

    Recent research findings suggest that if significant oxidation of proteins occurs in whole muscle fresh meat products before tenderization is complete, further tenderization will be significantly hindered and palatability of the product will be compromised. Since irradiation is a highly oxidizing process, if whole muscle products are irradiated, timing of irradiation must be considered to ensure that adequate tenderization has occurred prior to irradiating.

    Pork proteins mixtures may be softened with addition of a modified pork collagen ingredient, thus improving the texture of low-fat products. These results document that increasing the utilization and value of a relatively low value pork meat component is feasible.

    Pork fat color from pigs fed barley was whiter than for those fed corn. Less than half of the corn fed samples would qualify for the Japanese export market (no. 1 and 2). However, 100% of the barley fed pork would qualify for the Japanese export market.

    Trained sensory panels and shear force values were used to predict consumer responses to beef, using Activa" TG-RM to bind muscles after removing excess seam fat and connective tissue, yields of retail cuts from value cuts of beef, and using clam-shell cookers as methods to prepare steaks for sensory analysis. An experiment was designed to determine whether the meat state (fresh vs. frozen-thawed) and explosive charge shape for hydrodynamic pressure processing (HDP) would have an effect on meat tenderness and microbial reduction as well as to determine if there was a correlation between successful tenderization and microbial reduction. U.S. Select grade boneless beef strip loins were treated with HDP as either fresh (never frozen) or after a freeze-thaw cycle. Overall, aged HDP-treated samples had lower shear force values compared to the aged controls. Previously frozen and thawed samples had lower shear force values compared to fresh loins. Results imply that the initial bacterial populations and types of microorganisms could influence the effectiveness of HDP, with no relationship between microbial reduction and tenderness improvement.

    Vacuum packaged koshered (salted) meat typically undergoes a rapid color change (turning brown) with the formation of an objectionable odor during refrigerated storage. Alterations in muscle structure have been suggested to affect the oxidative activity of salt. Since HDP has been shown to physically disrupt portions of myofibrils without distorting the physical shape of the piece of meat, a study was designed to evaluate the effect of HDP along with the koshering/salting process on fresh meat color, odor and microbial loads. HDP was more effective in inhibiting the normal microflora than either salting or the combination of salting with HDP. After 14 days of refrigerated storage, salted samples had greater than 80% surface discoloration (brown color) compared to less than 40% discoloration on the surface for the control (non-salted), HDP and combination salting with HDP. HDP reduced the surface discoloration of koshered/salted meat samples to a level similar to that of the control.

    Through genetic and dietary strategies, todays pork has less fat and more edible lean tissue. This decrease in fat has negatively influenced meat tenderness. Pork loin muscles treated with HDP improved in tenderness by an average of 22% when compared to their matched non-treated controls. Also noted in this study, was a wide variation in tenderness improvement to HDP treatment (-6% to 46%) which is being further investigated.

    A study was designed to determine the effect of three initial concentrations ranging from 2 to 6 log10 colony forming units on the reductions of a cocktail of six strains of E. coli O157:H7 (EHEC) in ground beef by HDP. The initial concentrations of EHEC were 3.11 log10 CFU/g, 4.46 log10 CFU/g and 6.34 log10 CFU/g. After HDP treatment, the EHEC populations were reduced by 0.2 logs for the lowest initial inoculation level and by 0.1 logs for the other initial inoculations.

    Some of the challenges that the beef industry has experienced over the years have been inconsistency in tenderness and the inability to distinguish between tough and tender beef before cooking. Our protein chemistry laboratory is developing a rapid, noninvasive method for screening beef samples for tenderness without having to cook them. Current research involves utilizing HPLC and CE techniques for the purpose of analyzing water soluble proteins as tenderness predictors. This technique may be suitable for other meat species. A prediction system for ruminant animal growth and composition was refined by using sheep datasets from Nebraska and New South Wales. This includes adjustments in the model for gain of muscle protein and loss of body fat at near maintenance feeding, and more precisely estimated variable maintenance parameters. The model predicts gain and composition more accurately than the current United States NRC or Australian SCA systems. Wagyu longissimus muscle was more tender than Limousin muscle after 14 d, but not 1 d, of postmortem aging. Tenderness differences between Wagyu and Limousin steaks were not explained by collagen attributes or calpastatin activity, proteolytic degradation rate may have contributed to tenderness advantages of Wagyu., Sunflower oil did not affect palatability but increased conjugated linoleic acid (CLA) content of muscle by up to 500% especially during the backgrounding period.

    Yellow restaurant grease in beef feedlot diets increased CLA content without decreasing palatability.

    The effectiveness of a web/CD based Dairy beef: Maximizing quality and profits was evaluated and the program was effective in promoting intended practice changes by dairy producers to reduce carcass defects and to market cull dairy animals more profitably.

    Objective 2: Evaluate the impacts of the changing structure of the meat industry including price discovery under alternative pricing systems, trading institutions and methods of delivery.

    Empirical analysis of the relationship between the USDA voluntary Nebraska dressed weight cattle price report and the South Dakota mandatory dressed weight price report indicates that the information in the voluntary price report was an accurate proxy for South Dakota transactions during the period mandatory price reporting was required in South Dakota. This conclusion supports the supposition that the voluntary price reporting system was an efficient mechanism for providing spot price information to the SD market--- Variability in the rate of return to retained ownership is a function of systematic (market risk) and unsystematic risk (risk associated with management). Empirical analysis indicates unsystematic risk explains a majority of the variability in the rate of return to retained ownership.

    Aside from the related issues of market concentration and consolidation in agricultural industries, the results of laboratory markets suggest that the trading institution and method of delivery can strongly influence market outcomes. Total surplus and seller earnings are greater in auction trading than in private negotiation trading with spot delivery. An examination of consumer perceptions of food safety and food quality for beef products was undertaken in the United States and the United Kingdom. The findings revealed that USDA inspection signals food safety to U.S. consumers while other types of certifications such as Certified Angus Beef signal quality. British consumers prefer private certifications to government certifications. American consumers, on the average, did not perceive organic and natural beef products as being of higher than average quality. However, British consumers did view organic products as having higher than average quality.

    Results of a study that examined the determinants of livestock prices in northern Kenya confirm the importance of livestock characteristics and exogenous events such as low rainfall. The imposition of health quarantines on livestock was shown to have a significantly negative effect on livestock prices. This indicates that the Kenyan approach to disease control favors highlands ranchers, where disease is less prevalent, and consumers at the expense of poorer pastoralists in the dry lands of northern Kenya.

    In order to assess consumers perceptions of a mandatory country-of-origin labeling (COOL) program, a consumer survey indicated consumers are willing to pay an average of $389.47 per household annually in order to obtain a COOL program for all types of meat products. Consumers are willing to pay premiums of 26.5%, 30.6%, and 42% of the original market price for steak, pork chops and chicken breast, respectively, to obtain Certified U.S.-labeled meat. Results also indicate that consumer preferences for country-of-origin labeled chicken products, which are not currently included in the mandatory COOL program, differ from consumer preferences for Certified U.S.-labeled beef and pork. Other conclusions drawn from the survey responses indicate that food safety inspection, freshness, and high quality grade are the three attributes consumers ranked the highest among 15 meat characteristics. Studies on U.S. wholesale meat demand for lamb differentiated by three country of origin (United States (domestic), Australia, and New Zealand) estimated cross-price elasticities of demand, as well as the transmission of international prices to the domestic market.

    An econometric model for U.S. demand for beef, pork, lamb, chicken, and turkey allowed measurement of how taste/technology shifts have affected the demand for meat by species. State-space econometrics allowed a test for unit roots in meat consumption, another type of taste/technology shift.

    Impact Statements:
    1. Due to research showing that calpastatin inhibits development of tenderness of meat, the discovery of the first genetic marker associated with meat tenderness was made.
    2. Convincing evidence that timing of specific processes can be altered to improve quality and increase efficiency has helped several large commercial plants (total production approximately 8,000,000 pigs/year) to reduce processing times and improve chilling of pork carcasses.
    3. Processed meat product texture can be improved with a lower valued pork meat component; at least one Iowa based company is using this product.
    4. An objective procedure was superior to subjective scoring of pork fat color by visual comparison to the Japanese fat block models.
    5. Blade tenderization when combined with hydrodynamic pressure processing improved the instrumental tenderness of cow beef better than either treatment alone. Additionally, hydrodynamic pressure processing alone and the combination of it with blade tenderization also decreased microbial numbers associated with the cow beef. Frozen-thawed meat can be used to evaluate tenderness effects of the HDP treatment. HDP successfully tenderizes beef and pork muscles.
    6. In beef, HDP tenderizes beyond conventional aging. It appears that HDP may diminish the undesirable pro-oxidant effects (muscle discoloration) of koshered/salted fresh beef.
    7. Sheep growth and composition is more accurately predicted with a revised model, which represents body protein in two pools, one closely associated with carcass muscle - the economically useful component. New additions refine predictions at levels of energy intake at or below maintenance. The model provides the structure for predicting composition of growing cattle as well, but has yet to be completely parameterized and tested.
    8. Wagyu genetics may enhance ability of U.S. producers to export beef. Yellow grease in beef feedlot diets may be a low cost means of increasing beef CLA content without decreasing palatability. Adoption of practices promoted in Dairy beef: Maximizing quality and profit will decrease number of downer animals & increase overall quality & wholesomeness of beef from cull cows resulting in improved profitability of dairy industry, improved image, & access to foreign markets for US beef.
    9. Empirical analysis of the potential consequences resulting from the loss of regional live cattle price reports indicates that there is a loss of regional pricing information that has not been replaced by the new series of mandatory price reports. Regions negatively affected are CA-NV, MT, SD, and WA-OR-ID.
    10. A study on the wholesale demand for the five major meats showed evidence of unit roots in consumption. The problem with these unit roots is that conventional filtering methods can not eliminate them without inducing other problems. (State-space techniques are more general.) Taste/technology shifts have decreased red meat consumption relative to poultry. However, our estimates show a break in this trend in the late 1990s yielding a slight shift toward red-meat demand.
    11. Overall, the COOL survey results suggest that consumers are willing to support a mandatory COOL program, that they perceive domestic beef to be very safe, and have a high level of confidence in U.S. government agencies as potential certifiers. However, when COOL is compared to other attributes such as food safety inspection, traceability and tenderness, COOL is valued the least.
    12. While COOL may be important in isolation of other attributes, the relative importance declines as other attributes are introduced in the choice set. It appears that a system that would assist in the traceback of meat throughout the food system would be more valued than country-of-origin labeling.
    Last Modified: unknown

    Date of Annual Report: 07/21/2005

    Report Information:
  • Annual Meeting Dates: 05/09/05 to 05/10/05
  • Period the Report Covers: 10/2003 to 09/2004

    • Participants:
    Brief Summary of Minutes of Annual Meeting:

    URL: Copy of minutes
    Accomplishments:
    Objective 1: Improve meat quality, safety, and value at all levels of the supply chain to enhance competitiveness and to evaluate economic impact of these new approaches.

    Colorado State's meat science department continues to focus on microbiological food safety and also conducted research to characterize postmortem aging curves for 18 beef carcass muscles. At the University of Nevada, Reno, researchers have used imaging technology to improve the understanding of how muscle tenderness evolves post-mortem and developed a new, value-added products made from culled cow's beef. The USDA Agricultural Research Service (ARS) continues to investigate the use of the hydrodynamic pressure process (HDP) to tenderize meat and its effect on meat safety. ARS also found that PCR assay tests were as accurate as culturing but quicker in detecting Salmonella contamination in chicken meat. ARS conducted research into the relationship between protein content and meat tenderness.

    The meat and animal science department at Iowa State (ISU) has a wide-ranging program related to meat quality. They have discovered previously unidentified alleles that are associated with pork quality traits. ISU researched the effect that vitamin E increases meat tenderness by limiting protein oxidation. They have studied the biochemistry of post-mortem pork muscles and discovered various controllable factors that impact meat quality.

    Escherichia coli O157:H7 has cost the food industry 270 million dollars a year from 1992-2002. Two to four million cases of salmonellosis occur in the U.S. annually. High hydrostatic pressure (HHP) is a non-thermal processing technique used to control pathogens. Results from Wyoming Station research show that Escherichia coli O157:H7 and Salmonella can be controlled by multiple hurdles (high hydrostatic pressure, moderate temperatures, and bacteriocins) in frankfurter type products.

    The University of California, Davis (UCD) has improved its models of the growth and composition of ruminants. UCD also developed software to estimate and evaluate growth models. Texas A&M worked on in-home consumer evaluations of beef and lamb cuts, intrinsic factors affecting tenderness of beef and lamb, and methods to improve the tenderness of beef round muscles.

    Objective 2: Evaluate the impacts of the changing structure of the meat industry including price discovery under alternative pricing systems, trading institutions and methods of delivery.

    Colorado State economists analyzed survey data to better understand factors underlying Colorado consumer preferences for beef products. South Dakota State surveyed ranchers risk and production practices, analyzing how attitudes toward risk affect sell-versus-retail decisions for feeder calves. South Dakota State also investigated the effects that shifting from voluntary to mandatory price reporting had on reported premium and discount schedules (the grid) for slaughter cattle.

    The USDA Economic Research Service (ERS) has found that starting in the late 1990's that the demand for Choice-grade beef began to improve. This is one of the first studies to find demand shifts consistent with growth in low-carbohydrate-diets.

    Economic research at the Wyoming station (WY) addressed two issues matching and inventory loss risks as facilitators of market power and the price impact of buyer dominance in English auctions. Using laboratory markets designed to incorporate alternative sources of matching risk in private negotiation trading with advance production, prices in buyer concentrated markets were about 23% below the predicted competitive level. Prices in seller concentrated markets were higher and seller earnings were twice those in the symmetric treatment. Preliminary results suggest that when a dominant buyer purchased an animal in an English-cull-cow auction, the selling price decreased $2.03/cwt (average price for all 7,722 sale observations was $33.72), ceteris paribus.

    Utah State (USU) completed a project in 2004 examining consumer willingness to pay for traceability in red meat (beef and pork) in Canada. The findings suggest a market for traceability and meat characteristics that can be certified using traceability exists in Canada. USU also led a round table on food traceability.

    Economic research at North Dakota State focused on measuring the effects of BSE on cattle and beef markets with a special emphasis on the problems faced by North Dakota producers.

    Impact Statements:
    1. Colorado State‘s microbiological intervention systems have been adopted by the industry resulting in fewer (as documented by USDA-FSIS and CDC) incidents of beef recalls and/or positive tests for presence of pathogenic organisms in meat products. U. of Nevada‘s analysis of muscle architecture by imaging using fluorescent probes may lead to a better understanding of meat tenderness problems. Imaginative beef product development may improve pricing for cows due to value-added items.
    2. SDSU analysis suggests that producers who have been in contact with Cooperative Extension are more likely to retain ownership, market on a grid, and use risk management tools. Also, SDSU has shown that mandatory price reports contain relevant market information that was not revealed by packers under the voluntary price reporting system.
    3. USDA-ARS research into meat tenderization techniques could lead to improved meat quality. Their research into protein profiles and meat tenderness and their work in developing quicker tests for pathogen contamination could save meat producers considerable money.
    4. Economic research at the University of Wyoming shows that market power can have significant impacts on prices in auction markets. Research by Wyoming‘s Animal Science Department shows that the use of multiple hurdles can improve the microbiological safety of frankfurters and similar products.
    5. Ruminant animal growth and composition are more accurately predicted with University of California-Davis (UCD) revised models, which represents body protein in two pools, one closely associated with carcass muscle - the economically useful component. New additions refine predictions at levels of energy intake at or below maintenance and for different breeds. New software provides the vehicle for quickly testing new/modified models, which was used for predicting composition of growing cattle.
    6. Utah State University led a roundtable on traceability in meat production. Findings from the roundtable and the publication generated from the roundtable discussions were presented to USDA economists and also the Congressional Research Service and congressional staffers in Washington DC. Its work with a regional project on animal identification generated a publication that included 11 fact sheets dealing with various topics relating to animal ID and its eventual implementation.
    7. Texas A&M findings will help us in our understanding of consumer responses to beef and lamb, factors affecting beef and lamb tenderness, and methods to improve the tenderness of beef round muscles. Because of North Dakota State University Research, North Dakotas beef producers have a better understanding of how significantly they may be impacted financially in the event of a catastrophic event such as a BSE outbreak and what actions can be taken to help limit overall economic losses.
    Last Modified: unknown

    Date of Annual Report: 03/07/2006

    Report Information:
  • Annual Meeting Dates: 01/05/06 to 01/06/06
  • Period the Report Covers: 10/2004 to 09/2005

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    The meeting was called to order at 9 a.m. in the offices of the National Cattlemens Beef Association in Denver, Colorado. Dale Menkhaus chaired the meeting as the President, Warrie Means, was unable to attend.

    The agenda was revised to allow the business meeting to be conducted first. Thayne Dutson, Dean of the College of Agricultural Sciences and Director of the Oregon Agricultural Experiment Station at Oregon State University, served as the administrative representative to the committee. He indicated Larry Miller is now Acting Associate Administrator for the Cooperative State Research, Education and Extension Service of USDA and will be unable to attend the meeting. A replacement representative to this committee has not been named.

    A discussion occurred about the future of the project, which is currently scheduled to terminate in 2007. If we choose to renew this committee, the submission should be ready in January, 2007 in time for the spring meeting of the Regional Implementation Committee of West Regional Experiment Station Directors. Their meeting is in March. Three options were discussed: continuing as is, with revisions; changing to a coordinating committee; termination. After discussing the benefits of being a regional research committee, the group decided by consensus to seek renewal next year. It was acknowledged that to continue as a regional research committee we would have to improve coordination among the stations.

    Examples of coordination between universities were identified. The University of Nebraska contingent has submitted joint research proposals with Colorado State University (which are still pending). Colorado State University and the University of Wyoming were unsuccessful with a proposal they submitted. During this meeting, collaborative research was initiated between University of Nebraska and Iowa State University. Utah State University is collaborating with Colorado State University as well.

    It was noted that a termination report is due in the Fall of 2007. No year-end report is done the final year because of the termination report. Everyone will need to provide input into the termination report, paying particular to how the objectives of the overall project. The chairman is charged with compiling the termination report.

    After considerable discussion, the proposed title and objective of the next version of this committee were identified. There were two primary changes - a focus on beef and development of a single objective to foster collaboration.

    Accomplishments:
    Objective 1: Improve meat quality, safety and value at all levels of the supply chain to enhance competitiveness and to evaluate economic impacts of these new approaches.

    On December 23, 2003, Bovine Spongiform Encephalopathy (BSE) was detected in an imported dairy cow in Mabton, Washington. Subsequently (June of 2005), a second domestic case of BSE was detected in Texas. As a result, the Program in Meat Science at Colorado State University allocated substantial resources and effort to address marketing and food safety issues associated with discovery of BSE in the U.S., including a collaborative focus with the Federal government and all major trade organizations to re-establish market access for U.S. beef exports. Beef trade with Japan and Hong Kong was restored in December 2005. Food safety issues (related to BSE) associated with cross-contamination of beef with Specified Risk Materials (SRMs) was addressed by conducting three field studies; efforts in this area will continue in 2006. Pre- and post-harvest microbiological food safety continued to be emphasized by the Meat Science Program, and several separate studies were conducted in 2005 in these regards. Over time, such food safety efforts have continued to generate reduced prevalence of food-borne pathogens on meat products as documented by USDA-FSIS and CDC. Human prevalence of vCJD due to ingestion of contaminated beef remains extremely low globally. Red meat quality issues were addressed by extending efforts to characterize post-mortem aging curves for 18 beef carcass muscles, by researching the impact of Optiflex (an approved ±-agonist) on beef quality, and by assisting the private sector and government with implementation of beef carcass instrument grading technology. The latter efforts will result in national implementation of USDA Yield and Quality Grading using video imaging technology by 2007.

    Iowa State University research has contributed to the line of inquiry regarding the role of the calpain system in development of meat tenderness. Previous work has demonstrated that calpastatin (an inhibitor of calpain enzymes) alleles are associated with differences in fresh meat quality. An important reported result in 2005 is that calpastatin markers are associated with dry-cured ham quality. Degradation of the intermediate filament protein desmin and the membrane protein integrin, substrates of the naturally occurring calcium-dependent enzyme calpain in muscle, is related to water holding capacity and tenderness of pork. Our work suggests that integrin and desmin play different roles influencing water holding capacity of pork. The degradation of integrin contributes to the formation of drip channels between the cell membrane and cell body and subsequently increases the drip loss. However, since intact desmin helps transfer the myofibril shrinkage to the whole cell level and force water out of the myofibril, degradation of desmin may increase water-holding capacity. Continued research is being conducted at Iowa State University to identify the precise mechanisms underlying this phenomenon. Greater understanding of the mechanisms underlying the activity of calpain against desmin and other muscle proteins will lead to improved methods for producing products with greater tenderness and water holding capacity and possibly improved processing functionality. Because calpain is the enzyme system that degrades many of the proteins involved in regulating product quality, much of our focus is on determining factors that affect the activity of the two major enzyme isoforms (µ- and m-calpain) and their inhibitor, calpastatin. Our recent results demonstrate that rate of pH decline directly impacts inactivation of calpain proteinases. Activity of µ-calpain was greater at pH 6.5 than either pH 7.5 or 6.0. A rapid pH decline in post-mortem muscle also reduces µ-calpain activity. Previous work from our laboratory observed that porcine muscles with low early post-mortem pH had earlier µ-calpain autolysis and inactivation and earlier degradation of desmin than muscles with higher early post-mortem pH. Additionally, moderate rates of post-mortem pH decline (pH of 5.8 to 6.2 at 3 h) have been shown to produce the most tender beef loin steaks, whereas rapid rates (pH of 5.5 at 3 h) and slow rates (pH 6.8 at 3 h) of post-mortem glycolysis produced less tender meat. The novel observations reported this year indicate greater µ-calpain activity at the intermediate pH (6.5) than pH 7.5 and 6.0. If the pH decline is rapid, µ-calpain activity is diminished due to the lower pH. If post-mortem glycolysis is slow and the pH does not decline as rapidly, µ-calpain may autolyze earlier post-mortem, thereby losing proteolytic activity earlier and not allowing for maximal proteolysis. Thus, intermediate pH decline allows more proteolysis and slower completion of autolysis; therefore, ultimately allowing for greater post-mortem protein degradation and increased tenderization. Our laboratory has also demonstrated that oxidizing conditions inhibit calpain activity. It is therefore expected that oxidation of µ-calpain before it associates with calpastatin results in inactivation of calpain, little myofibrillar fragmentation and little improvement in tenderness and water holding capacity. The results presented demonstrate that pH decline and protein oxdation are heretofore undefined sources of variation in post-mortem proteolysis and associated development of meat water holding capacity and tenderness.

    Texture of meat products is dependent on the gelation characteristics of myofibrillar protein. Gaining an understanding of the gelation mechanism of meat gel systems is beneficial for the development of processed meat products as well as maintaining quality in meat products. Iowa State University meat scientists have documented that lower pH (5.6, 6.0, 6.5, and 7.0) significantly alters gelation properties of myofibrillar proteins in solution. The data support a relationship between pH and the textural properties of porcine myofibrillar protein gels. This relationship is most apparent after 60°C and strongest during gelation. The gelation period of most importance is during the temperature range of 60-75°C where pH and the storage modulus have the strongest relationship and water-holding capacity and the rate of gelation are directly correlated. Therefore, pH can be altered in meat products to reach the desired gel strength at a given temperature, or pH must be monitored to ensure consistent quality from product to product.

    In the summer of 2004 the University of Nebraska group investigated the influence of cooking rate and holding time on beef steaks from the chuck and round. Seven muscles from 10 beef carcasses were cooked quickly or slowly and held 0 or 1 hour to explore the influence of cooking rate and holding time on beef flavor. Off-flavor intensity was lowest when beef was cooked slowly (on a 149°C grill instead of a 249°C grill) and when it was held for 1 hour prior to sensory evaluation. The infraspinatus (flat iron) had the least intense off-flavor and the vastus intermedius (knuckle bottom) had the most intense off-flavor. Slow cooking or holding for 1 hour prior to consumption reduced the intensity of off-flavor in value cuts. During the previous study it was noticed that if an animal had one off-flavored muscle, then the rest of the muscles tested from the same animal would also be rated as off-flavored. Therefore, a follow-up study was conducted to determine the relationship of off-flavors, pH, and heme iron content among the different beef value cuts. After grading, knuckles and shoulder clods were removed from 16 Choice and 14 Select-grade beef carcasses, vacuum-packaged, and aged 7 d. Heme-iron concentration and pH were determined on steaks derived from six muscles from each carcass. Sensory analysis was conducted using a trained taste panel. Muscles differed in sensory and off-flavor characteristics. Heme-iron concentration did not differ among muscles. Three Select-grade carcasses had intense off-flavor in each of the muscles tested. Few significant relationships between heme-iron, pH and off-flavor notes were found. These data suggest liver-like off-flavors are animal specific and that pH and heme iron have little relationship to off-flavor notes.

    Since the off-flavors, especially the liver-like flavor, appeared to be animal related it is important to determine the cause. It was suggested that the recent increase in the number of flavor related complaints could be due to a recent change in feeding practices. Therefore, the Nebraska group investigated feeding wet distillers grains plus solubles (WDGS) to determine if there were increases in liver-like off-flavors in beef and to determine the sensory attributes of cattle finished with WDGS. Crossbred steers were fed with varying levels of wet distillers grains to test the incidence of liver-like off-flavors. USDA Choice steaks, when compared to Select, had significantly higher trained sensory muscle fiber tenderness scores, less detectable connective tissue, higher juiciness scores, and more intense off-flavor ratings. USDA Choice steaks had a higher percentage of panelists denote liver-like and metallic off-flavors. Wet distillers grains did not significantly influence off-flavor indicating these by-products can be used to finish cattle without causing detrimental effects on the sensory profile.

    During the initial study of the cooking rate and holding time, it was observed that the off-flavored samples could be smelled when cooking. Therefore, an audit at a plant was undertaken Nebraska researchers to try to obtain more off-flavored samples, test the slice and sniff theory and try to establish a percentage of the animal population that had the flavor. In the first sampling 354 10g-slices were taken from the beef knuckle. The sample was quickly cooked in the plant and sniffed, and if necessary eaten, to determine if there was an off-flavor, especially a liver-like off-flavor. Thirty-one samples were collected as off-flavored as well as 29 for controls. The samples were brought back to the university and stored until trained taste panels could be conducted to verify the off-flavors. Preliminary results indicate the slice and sniff method cannot be used instead of a trained panel. Several more trips were taken to the plant, but only 1 off-flavored sample was identified in the more than 600 tested.

    To try to eliminate the possibilities that might be causing the off-flavors, the Nebraska scientists have tried to identify the actual off-flavors using GC-MS. A protocol for identifying the volatile compounds in off-flavored beef is being developed. Extraction of the volatile compounds can be accomplished by mixing powdered meat sample with distilled water and flushing with nitrogen in a 40°C water bath. Volatiles escaping the flask can be trapped on a porous polymer column. Solvent is used to remove the compounds which can then be analyzed using a gas chromatograph (GC) and mass spectrophotometer (MS). More work needs to be conducted on the best solvent, cryogenic MS conditions, and column lengths to optimize conditions to be able to identify compounds or classes of compounds that are causing off-flavors in muscles from the chuck and round. A purge and trap method on the MS may be investigated to eliminate the previous steps and send the volatiles from the sample into the MS for identification.

    At the University of California-Davis we compared the previously developed Davis Growth Model (DGM) with the French (INRA) Growth Model (IGM) to predict protein and fat deposition in growing cattle. In the DGM, protein synthesis is governed by DNA accretion related to hyperplasia; whereas, both protein synthesis and degradation in IGM depend on physiological age. Fat deposition results from the difference between MEI and the energy in protein gain plus heat production in DGM; whereas, IGM predicts fat synthesis and degradation based on physiological age and MEI. Maintenance requirement is clearly expressed in DGM, but only calculated in IGM. We fitted each model to three datasets from published experiments on Salers heifers, Angus-Hereford steers and Charolais bulls. To avoid bias, evaluation of the models was performed on the quantities of body protein and fat predicted using the same data as for calibration. Both models gave accurate and precise predictions of body protein. They also performed well for body fat in Charolais bulls growing continuously. However, DGM tended to underestimate body fat deposition during feeding restriction periods with Salers heifers. This suggests that DGM overestimated heat production during periods of low MEI. IGM was not sensitive to MEI as it overestimates body fat at low MEI and it underestimates body fat at high MEI in Angus-Hereford steers. These results suggest that formalisations of protein accretion in DGM and IGM are valid.

    Researchers at Texas A&M University reported on factors affecting pork quality, the use of peroxyacetic acid as a pathogen intervention, and in-home assessments of beef from the round and sirloin. This work will generate methods which, when adopted by industry, will enhance pork quality. As the industry develops a more comprehensive food safety system; development and application of microbial inhibitors, such as peroxyacetic acid, will allow process options and increased hurdles to food-borne pathogens. In-home assessments of beef products will give researches guidance for further product improvement and marketers the ability to capitalize on existing product attributes.

    Consumer acceptance of many muscle foods is largely determined by price and palatability traits expressed during consumption. Tenderness is one of the largest factors dictating consumer acceptance of beef products and tenderness inconsistency as a main reason for dissatisfaction. The fetal origins hypothesis states that insult to the mother during gestation can have lasting effects on the fetus during later life. Fetal under-nutrition has been linked to disproportionate fetal growth, cardiovascular disease, and an increased incidence of insulin resistance as an adult. Wyoming and the Rocky Mountain West have several natural and geographic factors that create problems for producers to maintain sustainable beef cattle production systems. The regions short growing seasons, arid climates, shallow/rocky soils, and high elevations make much of the land fit the description of non-tillable rangeland. Additionally, these rangelands are very dynamic due to the variation in precipitation. These factors lead to possible nutrient restriction during early to mid gestation. A specific objective at the University of Wyoming station was to evaluate how maternal nutrient restriction of the beef cow from day 30 to day 120 of gestation impacted final carcass traits, muscle growth, and muscle quality of subsequent progeny at typical finishing endpoints. Control cows (C) received 100 percent of the NRC requirements for a gestating beef cow. The nutrient restricted cows (NR) received 68.1 percent of the NRC requirements for a gestating beef cow. At d 120 of gestation, control cows were maintained on similar diet (100% NRC requirements) and the NR group was fed a diet to achieve a similar body condition score to control cows at time of calving. Steer calves were raised in the University of Wyoming feedlot until they reached a typical finished weight and a back fat thickness determined by ultrasound measurement. Steers were harvested at 13-14 months of age using accepted agricultural methods over a 1 month period with 2 separate harvest weeks, allowing for fabrication between the two harvest groups. Virtually all measures of muscle growth and carcass quality were similar, except carcasses from NR dams tended to have less dissectible fat (P = 0.07) and more dissectible lean (P = 0.08) as percentage of the 9-10-11 rib section, indicating a trend toward leaner carcasses from NR dams. There were no differences between Warner-Bratzler Shear Force values for steaks from the two treatment groups. Our data indicate that nutrient restriction of the cow will cause only minimal, if any, differences in quantity and quality of meat produced by steer offspring at typical slaughter endpoints. Nutrient restriction may be more important when livestock remain in the herd to more mature stages, such as replacement females.

    Objective 2: Evaluate the impacts of the changing structure of the meat industry including price discovery under alternative pricing systems, trading institutions and methods of delivery.

    A confounded factorial conjoint choice experiment was conducted with 12 University of Nebraska classes (6 Animal Science and 6 Statistics classes) to examine the effects of price, country-of-origin labeling, marbling, tenderness guarantee, traceable-to-the-farm labeling, class discipline and the possibility of receiving a gift on preferences toward beef rib-eye steaks. All factors except class discipline and the possibility of receiving a gift had a significant impact on consumer preferences. Based on the odds ratios, the relative importance of these factors were price (1.97), tenderness guarantee (1.92), country-of-origin label (1.68), marbling (1.43) and traceable-to-the-farm labeling (1.30). This relative order of importance was also supported by the willingness-to-pay estimates: tenderness guarantee ($3.03/lb), country-of-origin label ($2.40/lb), marbling ($1.67/lb) and traceable-to-the-farm label ($1.20/lb). Preferences were also affected by a number of interactions. Marbling interacted with country-of-origin, tenderness guarantee, discipline and gift, which indicated that relative preference of moderate to slight marbling was dependent on other factors. Also, preference for a tenderness guarantee, or a country-of-origin label was price dependent with larger preferences for these attributes at lower prices. A three way interaction between class discipline, marbling and country-of-origin label suggested that knowledgeable students placed a high value on the amount of marbling when the country-of-origin was known while the country-of-origin label had little impact on the value placed on marbling for students who are less knowledgeable about beef.

    ERS published a report (Perry, MacDonald, Nelson, Hahn, Arnade, Plato) on the effects of the mandatory price reporting act on cattle markets. This study focuses on fed cattle markets to compare the mandatory price reporting system developed by USDAs Agricultural Marketing Service in 2001 with the previous voluntary reporting system. The study evaluates whether the mandatory system has improved the amount and quality of information available to the market. We find that prices received with formula purchasing arrangements, which were not comprehensively reported under the voluntary system, appear to closely match prices received with negotiated purchases. The trend toward formula purchases has slowed since mandatory price reporting was implemented, and the volume of cattle moving under negotiated purchases has increased. Futures prices did not seem to respond to prices under mandatory reporting; however, the mandatory data seem to better represent market conditions. Other market factors such as cyclically low cattle inventories and the discovery of BSE in North America may have influenced the shift back to negotiated cash transactions.

    ERS has completed initial research comparing Bureau of Labor Statistics (BLS) and retail-store scanner data prices for meat cuts. The ERS purchase of scanner data was mandated by the Act. BLS, scanner, and USDA wholesale prices for the meats ERS analyzed were cointegrated. Statistical tests suggest that the BLS and scanner data sets are from different market niches. Scanner data provides additional information about meat markets; however, its value is somewhat limited due to the 50-day lag between the end of the month and the publication of the data. (BLS retail prices are usually available 15-20 days after the end of the month.)

    Researchers at ERS have completed the estimation-phase of a demand study that divides beef into three quality grades: (1) steer and heifer beef grading Prime and Choice, (2) steer and heifer beef grading Select and lower, and (3) cull-grade (cow & bull) beef. The study also included the demand for pork, chicken, turkey, and wholesale-to-retail processing services. Part of the study was the measurement of taste-shifts for the various meats. None of the meats showed stable demands. However, demand shifted from Choice beef to Select beef during the 1980's and 1990's. There has been some recovery in the demand for Choice beef since the end of the 1990's.

    Applied economic analysis at Colorado State used survey data from two national consumer surveys to evaluate consumer value and willingness to pay (WTP) for beef attributes. The first study used 2003 U.S. survey data to assess WTP for a mandatory country-of-origin labeling (COOL) program applied to beef rib-eye steaks, chicken breasts, and pork chops, all labeled as Certified U.S. products. Results indicate that consumers are in general very concerned about food safety issues, viewing U.S. meat as the safest among the selection of countries considered. Nevertheless, consumer WTP for Certified U.S. products is relatively small, although above the expected implementation costs associated with a mandatory labeling program. This finding coincides with the fact that only 36% of the sample favored consumers paying directly for the costs related to a mandatory COOL program. Additional work is being done with this data set using choice sets to determine WTP for COOL relative to traceability, tenderness, and food safety inspection.

    The second consumer study conducted at Colorado State University utilized data from a 2004 U.S. consumer study, and factor and cluster analysis to determine market segments for various (varied by production protocols and other meat attributes) natural beef products. Findings from the cluster analysis indicate that there are multiple segments of consumers who are likely to purchase natural beef, and that different segments are motivated by different factors. The most important factor explaining almost two-thirds of the differences among consumer responses relates to consumers' perceptions of the importance of meat attributes related to production practices (e.g. use of antibiotics, hormones and environmentally friendly grazing). Interestingly, the two consumer segments that are willing to pay a significantly higher premium for natural, local beef are motivated by different aspects of the meat and its intrinsic production attributes. One segment, representing 12.5% of consumers, ranked the importance of all production attributes significantly lower than the sample average. Consumers in this segment appear to be motivated by their perceptions of the extrinsic quality of natural beef products. The other segment, 13% of consumers, appears to be altruistic, ranking all production attributes such as no antibiotics, no hormones, and humane treatment, significantly higher than all of the other clusters. These results indicate the potential strength of production methods (and marketing of such quality differences) as product differentiation criteria. Additional analysis with the data was used to estimate the probability that a consumer will purchase and pay a premium for two natural and regionally produced beef products: rib-eye steak and ground beef. Results indicate the probability a consumer will pay a premium depends on purchase behavior and shopping location, stated importance of production attributes, ni addition to awareness and interest in private and civic agricultural issues. This research illustrates the type of market research that may be useful for beef producers seeking value-added marketing opportunities, and portrays the types of consumers who are fueling the growth in natural meats in the United States. Such market analysis can facilitate producers' ability to effectively develop product concepts, labeling and promotional strategies targeted at the most receptive consumer segments, and illustrates that there is more than one type of consumer interested in purchasing products differentiated by sustainable production methods.

    Research during the past year at the Wyoming station was directed toward the study of the impact of reported price information on bargaining behavior in private negotiation trading. The culture of private negotiation trading leads parties to agreements below a price that anchors beginning bids and offers. One such anchor is publicly reported information, which may cause a downward or upward drift in negotiated prices. Using bilateral bargaining data from laboratory experimental markets, this research demonstrates how price information reports create drifts in negotiated prices. A downward drift is robust and causes sharp declines in total surplus. The downward drift in market price results from the tendency of traders to use the average from which to begin further negotiations. Also, relative earnings are distributed toward buyers and away from sellers.

    Research undertaken at Utah State University has focused on issues related to meat traceability. During the last year research examined consumers' willingness to pay for meat traceability and characteristics that can be verified using traceability. These studies were conducted in the United States, Canada, the United Kingdom, and Japan. Findings indicate that consumers in all four countries value meat traceability; but, that traceability would best be bundled with other characteristics that can be verified with traceability, such as enhanced food safety or guarantees about humane animal treatment in meat production. A separate study examined how the discovery of BSE in the United States and Canada might have affected the value of traceability and county-of-origin certifications for U.S. and Canadian beef. The findings indicated that following the December 2003 announcement of a BSE case in the state of Washington that American consumers, while not reducing their demand for U.S. beef, exhibited more uncertainty about beef products than prior to December 2003. However, U.S. consumers did exhibit less willingness to pay for Canadian beef after December 2003 than before December 2003.

    Preliminary economic analysis conducted at the South Dakota station focuses on quantifying the effect of weaning regime on the economic return to the investment decision to retain ownership of a steer calf at feedlot placement to slaughter. The data set has 145 steer calves, 71 are classified as normal weaning date, and 74 as early weaned calves. There are 71 South Dakota calves, 35 are classified as normal weaning date, and 36 as early weaned calves. There are 74 North Dakota calves, 36 are normal weaned calves and 38 are early weaned calves. Early weaned calves had a higher level of production efficiency and lower average cost of production, but early weaned steers spent on average 55 days longer in the feedlot, and their total feedlot cost was, on average, $50.00 higher than normal weaned steers. Early weaned steers, on average, also had a significantly higher medical cost per head relative to normal weaned steers. It appears that the cost of feeding early weaned steers longer, accounts for the statistical conclusion that there is no economic benefit associated with adopting a early weaning regime relative to a normal weaning regime. However, early weaning did produce productivity benefits that need additional investigation. Early weaned steers, on average, were 31 days younger and of equivalent weight and quality as their normal weaned counter parts. This represents a 7.5% reduction in the lifecycle time of a steer. Early weaned steers, on average, also had a 1.7% improvement in dressing percentage over their normal weaned counterparts. A caveat, however, is attached to these conclusions. The economic analysis has not at this time considered the benefits of an early weaning regime for the potential improvement of cow health and pasture quality.

    Impact Statements:
    1. Food safety efforts have continued to generate reduced prevalence of food-borne pathogens on meat products as documented by USDA-FSIS and CDC.
    2. Research and outreach efforts will assist the private sector and government with implementation of beef carcass instrument grading technology resulting in national implementation of USDA Yield and Quality Grading using video imaging technology by 2007.
    3. Calpastatin gene markers have been associated with dry-cured ham quality.
    4. Rate of pH decline and protein oxdation are demonstrated sources of variation in post-mortem proteolysis and associated development of meat water holding capacity and tenderness.
    5. Meat product pH can be altered to reach the desired gel strength at a given temperature. Similarly, monitoring pH can ensure consistent product quality.
    6. Comparative analysis provides meaningful information on the models behaviour for further improvement of process simulations. Results from previous work can now be incorporated into revised models, which will allow refined predictions at levels of energy intake at or below maintenance and for different breeds.
    7. Nutrient restriction of the gestating cow will cause only minimal, if any, differences in quantity and quality of meat produced by steer offspring at typical slaughter endpoints.
    8. Tenderness guarantee and country-of-origin label (COOL) are almost as important as price in student purchase intent; with the relative importance dependent upon other factors, such as the level of knowledge about beef and marbling level. In addition, the large number of significant interactions indicated and the ability to evaluate these interactions with confounded factorial conjoint experiments demonstrated the importance of using these experimental designs.
    9. Accounting for some measures of beef quality improves the analysis of beef markets. The pattern of demand shifts for Choice versus Select grades of beef reflects what many feel has been an important driver of meat consumption: increasing concerns about the effects of dietary fat on health starting in the 1970‘s followed by declining concerns starting in the late 1990s with the increasing popularity of low-carbohydrate diets.
    10. The probability a consumer will pay a premium for beef depends on purchase behavior and shopping location, stated importance of production attributes, awareness and interest in private and civic agricultural issues.
    11. Specific types of market research have been identified which may be useful for beef producers seeking value-added marketing opportunities. Such market analysis can facilitate producers ability to effectively develop product concepts, labeling and promotional strategies targeted at the most receptive consumer segments.
    12. Market research has portrayed the various types of consumers who are fueling the growth in natural meats in the United States. There is more than one type of consumer interested in purchasing products differentiated by sustainable production methods.
    13. Consumers desire more traceability in meat products than is currently generally available and potential market opportunities exist for using traceability to verify/certify other enhanced meat characteristics.
    14. Publicly reported prices can anchor transactions, give traders a cue from which to begin a bargaining round and can result in a downward drift in market prices. More information does not necessarily improve market performance in private negotiation trading.
    15. Beef producer‘s macro view of mandatory price reporting is that it has had a positive effect on market transparency at the industry level, but has not had a significant effect on the individuals price discovery process.
    16. Preliminary analysis of AMS grid premium and discount weekly reports pre and post the implementation of mandatory price reporting indicate that price report variability increased after mandatory price reporting was implemented. This would indicate that mandatory AMS grid premium and discount price reports contain relevant market information that was not revealed by packers under the voluntary price reporting system. This suggests that mandatory price reporting improved price discovery in the cash market for cattle being marketed on a grid.
    17. Potential economic benefits may exist for producers if they engage in an early weaning strategy.
    Last Modified: unknown

    Date of Annual Report: 10/06/2006

    Report Information:
  • Annual Meeting Dates: 08/02/06 to 08/03/06
  • Period the Report Covers: 09/2005 to 08/2006

    • Participants:
    Brief Summary of Minutes of Annual Meeting:

    The meeting was called to order at 8:00 a.m. on August 2, 2006 in the conference room of the Utah Dept. of Agriculture in Salt Lake City, UT. Minutes from the previous meeting were approved as submitted. Thayne Dutson, Administrative Advisor, explained the project renewal process. After discussion, the consensus was to develop a revised project outline for a funded project. The proposed title will be: Enhancing the Competitiveness and Value of U.S. beef.

    The remainder of the meeting was spent developing an outline for the new project, describing each of the segments of the project and assigning individuals to help write each segment. Results of the discussion follow.

    Accomplishments:
    General Project Outline:

    Statement of issues and justification

    a. BSE and world trade (closure of markets, government interventions in markets, international competition, etc.)

    b. Work of committee related more to trade and quality issues and consumer acceptance more than technical questions related to meat processing. The reason for this is that these appear to be the principal issues being faced.

    c. There are important new issues that have emerged requiring a new emphasis for the project. These issues include:
    -Traceability
    -Enhancing Palatability and Process Innovation
    -Food Safety
    -Determining and creating quality and value for different customers
    -Organizing and managing the beef production and marketing system (supply chain management)

    II. Related, current and previous work
    -Literature review for each of the issues
    -Traceability
    -Enhancing Palatability and Process Innovation
    -Food Safety
    -Determining and creating quality and value for different customers Organizing and managing the beef production and marketing system (supply chain management)

    b. Literature review provided by persons assigned to each issue

    III. Objectives: Integrating economics and meat science to enhance the domestic and international competitiveness of US beef by measuring and improving beef quality, safety, and value through:
    -Traceability
    -Enhancing Palatability and Process Innovation
    -Food Safety
    -Determining and creating quality and value for different customers
    -Organizing and managing the beef production and marketing system (supply chain management)

    IV. Methods
    a. Written for each issue by persons assigned to that issue

    V. Measurements of Progress and results
    a. Outputs
    b. Outcomes or Projected Impacts
    c. Milestones

    VI. Projected participation

    VII. Outreach plan

    VIII. Organization and governance

    IX. Literature cited

    Details of each segment were identified.

    Enhancing the Competitiveness and Value of U.S. beef

    Objective: Integrating economics and meat science to enhance the domestic and international competitiveness of US beef by measuring and improving beef quality, safety, and value through

    X. Traceability
    XI. Enhancing Palatability and Process Innovation
    XII. Food Safety
    XIII. Determining and creating quality and value for different customers
    XIV. Organizing and managing the beef production and marketing system (supply chain management)

    Other issues to be listed in the introduction: Developing knowledge to improve the value chain, institutions and incentives to adopt new technologies.

    Traceability
    1. Key Issues
    a. National Animal/ID Systems, cost versus benefits, impact on producers by size and scale

    2. Outputs
    a. Regional analysis of cost/benefits (Davis)
    b. Use trace back for disease control
    c. Value of traceability in market-based programs

    3. Impacts
    a. Understanding of optimal implication

    4. Milestones
    a. Davis: Publishing cost/benefit analysis in '08-'09
    b. Scale economy study, Bailey at Utah, Spring '08
    c. Value of Disease '08

    Enhancing Palatability and Process Innovation
    1. Key Issues
    a. Tenderness and flavor is problematic
    i. Need improved and identification of tenderness and flavor
    ii. Tenderness prediction necessary for increasing consumer value

    b. Current processing methods may inhibit value enhancement

    2. Outputs
    a. Development and assessment of tenderness prediction technology (NE and TX)
    b. Identify Sources of and methods for reducing off flavor (NE, TX)
    c. Evaluation effectiveness of tenderness and flavor enhancement technologies (NE, ND)
    d. Evaluate effectiveness of genetic pre-harvest markers of tenderness and flavor (IA, KS, TX)
    e. Evaluate alternative fabrication procedures for beef (NE)

    3. Impacts
    a. Enable prediction of beef quality
    b. Increase palatability of beef products
    c. Improved efficiency in carcass fabrication

    4. Milestones
    a. Prediction technology
    b. Reduce off flavors
    c. Product improvement control
    d. Evaluate genetic markers
    e. Assess alternative fabrication procedures

    Food Safety
    1. Key Issues
    a. Food borne illness potential exists for beef products
    b. Risk of food borne illness must be reduced
    c. Food safety inspection policies may inhibit foreign marketing

    2. Outputs
    a. Identify pre-harvest and post harvest interventions to improve beef product safety. (CO and TX, maybe IA)
    b. Understand basic molecular and microbiological factors in beef product safety (CO and TX, IA)
    c. Evaluate implication of U.S. food safety policy irregularities on international trading relationships (WY, KS)

    3. Impact
    a. Improve human health, protect markets, build consumer confidence
    b. Improve international trading relationships for beef

    4. Milestones
    a. 2008/09 Theoretical framework, case study, identify data sources for policy analysis
    b. 2010 match observations with theoretical framework

    Determining and creating quality and value for different customers
    1. Key Issues
    a. Consumers make purchases based on many value perceptions. To improve marketing US beef these value of perceptions must be understood.
    b. Why don't demographics matter?

    2. Outcomes
    a. Determination of value factors for customers
    i. Understanding impact of various factors for value determination (WY, NE, UT, CO)
    ii. Understanding of market segmentation factors

    3. Impacts
    a. Enhancing ability to create product composition (which factors) that will improve market demand
    Think about international studies

    4. Milestone
    -environmental quality, ethics...

    Organizing and managing the beef production and marketing system (supply chain management)
    1. Key Issues
    a. Extremely variable production systems are not channeled appropriately to produce constituent products to meet different demands

    2. Tools
    a. Tools to predict end point fat content under different management regions (CA, UT, WY?, TX?)
    b. Identify regionally optimal production and marketing for cows and calves systems (UT, CA, NE, SD)
    c. An evaluation of the current public price reporting program (SD, WY)
    d. Understanding barriers to efficient international trading created by different grading systems (UT)

    3. Outcomes
    a. Cattle produced marketed appropriately for different end points in their environment
    b. Quantify risk-return trade offs associated with different marketing systems
    c. Identify factors influencing positive and negative effects on marketing systems

    4. Milestones
    a. Have a fat prediction model by 2009
    b. Regional optimal production system identification '10
    c. Evaluation of weaning and feeding programs on cow failure

    Note: Need to move away from one base price to different value-based marketing.

    The time-line for writing the project includes the following milestones.

    August 28, 2006 Writing assignments communicated to committee members.
    August 28, 2006 First draft of justification for the project revision prepared.
    October 1, 2006 Input provided to committee chairs from committee members.
    October 16, 2006 Committee portions of project revision submitted to full committee.
    November 1, 2006 Draft project revision submitted to entire committee for comment.
    December 1, 2006 Final version of the project revision compiled and shared with committee.
    Feb., 2007 Annual meeting of the committee to finalize project revision.

    The next meeting of the committee was proposed to be in February, pending the time-line for the project to be submitted to the Western Directors for approval.

    The meeting was adjourned by noon on August 3, 2006.

    Impact Statements:
    1. Impact Statement: The project will be rewritten and submitted to the Western Directors in time for their spring meeting in 2007.
    Last Modified: unknown

    Date of Annual Report: 02/22/2007

    Report Information:
  • Annual Meeting Dates: 01/03/07 to 01/04/07
  • Period the Report Covers: 10/2005 to 09/2006

    • Participants:

    URL: Copy of participant list
    Brief Summary of Minutes of Annual Meeting:
    The meeting was called to order by Chris Calkins at 8:30 AM. For this meeting, Chris is serving as the chair and Jeff Savell is serving as the secretary. The purpose of the meeting is to prepare the final draft of the project, which must be submitted by January 15, 2007 to the West Central Directors. Meeting participants revised the draft of the new project and discussed when and where the next meeting would be held. Two ideas for locations were discussed: Hawaii and Texas. The participants discussed having the meeting sometime mid-March 2008. The Secretary for 2008 was voted on. Mariah Tanner Ehmke was elected to serve in this capacity. Scott Fausti will serve as Chair and Rhonda Miller will serve as Vice Chair for 2008.


    URL: Copy of minutes

    Accomplishments:
    Accomplishments:

    Objective 1: Improve meat quality, safety, and value at all levels of the supply chain to enhance competitiveness and to evaluate economic impact of these new approaches.

    A meta-analysis was conducted to assess the effects of biological type (early-moderate or late maturity) and implant status (estrogenic, combination, or nonimplanted; repeats included) on hot carcass weight (HCW, kg); longissimus muscle (LM) area (cm2); 12th-rib fat thickness (fat thickness, cm); kidney-heart-pelvic fat (KPH, %), and intramuscular fat (%) at harvest, to provide inputs to an ongoing program for modeling beef cattle growth and carcass quality. Forty-three publications from 1982 to 2004 with consistent intramuscular fat data were evaluated. Two studies were undertaken: 1) with fat thickness as a covariate and 2) with BW as a covariate. The difference between early-moderate and late maturity (studies 1 and 2) confirmed that frame size accounts for a substantial portion of the variation in carcass composition. Studies 1 and 2 also indicate that implant status had significant effects on carcass quality (CA).

    In a collaborative study with New Zealand scientists we showed that grass-fed beef is higher in certain bioactive compounds than grain-fed beef, but we need to determine grazing regimes optimizing content of nutritionally significant compounds and palatability. For several fatty acids, an interaction between treatment group and muscle indicated that muscles do not react exactly the same to treatment, but group rankings were usually the same for both muscles. In genomics studies conducted in collaboration with WSU scientist Dr. Zhihua Jiang, differences between double heterozygous animals at two polymorphic sites and slim genotype animals exceeded 2.3 standard deviations, providing evidence for a new mechanism - involvement of compound heterosis in extreme obesity (WA).

    Work was reported on breed type and stress related factors and how they affect beef palatability, pathogen interventions for hides, and in-home assessments of beef from the round. Getting work published in a timely manner was achieved (TX).

    Ongoing research at Iowa State University on fresh pork quality across breeds, postmortem muscle biochemistry, meat protein functionality, shelf-life extension, reducing carcass defects, reducing microbial pathogens has been conducted during the last year (IA).

    Colorado State University scientists conducted research addressing current red meat (a) safety, (b) quality, and (c) marketing issues in 2006. Our group conducted a study to better characterize cattle that do, versus cattle that do not, persistently shed E. coli O157:H7 using molecular techniques; this research resulted in isolation of E. coli O157:H7 molecular subtypes from a larger population that displayed relatively greater attachment efficacy than less prevalent subtypes. CSU researchers continue to conduct a substantial amount of research geared towards addressing prevalence of Listeria monocytogenes in ready-to-eat meat products. Over time, food safety efforts continue to generate reduced prevalence of food-borne pathogens on meat as documented by USDA-FSIS and CDC. Red meat quality issues were addressed by completing efforts to characterize postmortem aging patterns and tenderness improvement of 18 beef muscles, resulting in NCBA Guidelines for Beef Aging. Efforts to research beef carcass instrument grading technology resulted in significant advancements during 2006 (CSU). Consumer valuation of wet and dry-aged beef was published. There were no differences in sensory traits for flavor, juiciness, tenderness, or overall acceptability between wet-aged Choice samples and dry-aged Choice samples and consumers placed similar bid values ($3.82/lb for wet-aged and $3.57/lb for dry-aged Choice). Consumers (29.3%) who preferred the dry-aged Choice were willing to pay $1.99/lb more for dry-aged samples, while those who preferred the wet-aged samples (39.2%) were willing to pay $1.77/lb. Wet-aged Prime samples were rated more desirable for flavor, tenderness, and overall acceptability than dry-aged Prime samples, and they were valued higher ($4.02/lb versus $3.58/lb, respectively). Consumers who preferred the wet-aged Prime samples (45.8%) paid $1.92/lb more and those who preferred dry-aged Prime (27.5%) were willing to pay $1.92/lb more. Although more consumers prefer wet-aged beef, markets do exist for dry-aged beef and consumers are willing to pay a premium for it.

    Fatty acid profiles of muscles from male and female veal calves in Portugal were obtained from animals harvested during spring and autumn. Neutral lipid content was most influenced by season. Neither sex nor slaughter season influenced cholesterol or alpha-tocopherol content. Males always had higher total saturated fatty acid content but lower total monounsaturated fatty acids than females. Generally, calves harvested in autumn had higher contents of conjugated linoleic acid. Phospholipid content was influenced by gender and season. Results demonstrated significant seasonal and muscle effects, but generally support the desirable nutritional advantages of veal. Internationally, carcass fabrication procedures are diverse, reflecting the uses for meat cuts in a particular country as well as for export. Many countries are unencumbered by the traditions of U.S. fabrication and thus have been free to explore alternative cutting strategies. An industry task force was convened at the University of Nebraska spring of 2006, which supported the need for improved fabrication procedures in beef. The group encouraged study of international fabrication strategies, cutting in such a way as to remove muscles intact rather than cutting them into smaller pieces, and evaluating tenderness variation across a muscle. Aspects of fabrication needing additional study were identified and have formed the foundation of a research proposal (NE).

    Research goals include conducting historically-rooted, policy-relevant research regarding food safety and international trade policy: (a) historical analysis of how niche-market export certification programs have resolved or exacerbated trade disputes over food safety and animal disease; (b) identification of food safety challenges and opportunities small- to medium-sized beef processors face in international niche markets; (c) development of international political economy framework(s) to explain domestic food safety policy at it pertains to beef; and (d) with a view to identifying possible niche-market export-certification opportunities, review of existing import-restriction data for foreign markets (available through the Economic Research Service) as well as food safety, animal disease, and plant disease regulatory notification data (available through the World Trade Organization) (KSU).

    Objective 2: Evaluate the impacts of the changing structure of the meat industry including price discovery under alternative pricing systems, trading institutions and methods of delivery.

    Economic analysis of early weaning as a herd management strategy for cow/calf operations was completed. Empirical work on regional public price reporting of fed cattle prices was completed for the SD and NE cash markets. Preliminary work on the effect mandatory price reporting had on value of AMS grid premium and discount price reports for slaughter cattle is under way. Evaluation of the weaning age treatment effect on feedlot performance and market value at slaughter for 184 steer calves from SD and ND found potential benefits for producers if they engage in an early weaning strategy. Early weaned steers had an average cost per kg gained of $1.10 as compared to normal weaned steers of $1.364. Early weaned steers were 7 weeks younger than normal weaned steers, but 41.7 kg lighter and had a slightly lower quality grade. Lower slaughter weight resulted in lower per head revenue. Thus the effect of early weaning on profit was not statistically significant. However, early weaning did reduce forage disappearance by 28% relative to the normal weaning group. Cows in the early treatment group, on average gained 7.27 kg versus normal weaned cows that lost, on average, 62.27 kg. Body condition score for cows in the early weaned group, on average, increased from 5.18 to 6.09, while cows in the normal weaned group declined from 5.26 to 4.70.

    Empirical work on regional public price reporting of fed cattle prices suggest that prior to the implementation of federal mandatory price reporting (MPR), the voluntary price reporting system (VPR) was providing market transparency in the South Dakota and Nebraska cash markets. Analysis indicates 75% of a price shock in the Nebraska cash market is transmitted immediately, 94% of the shock is transmitted the next transaction day, and by day two 98.5% of the shock is transmitted to the South Dakota cash market

    Research at the Wyoming station (WY) continues to focus on the impacts of reported price information and matching risk on bargaining behavior in private negotiation trading when there is advance production. More information does not necessarily improve market performance in this market environment. Increased market concentration alone may not necessarily result in the use of market power. At issue are factors or influences that potentially facilitate the use of monopoly power, such as matching risk.

    The research and extension program at Iowa State University has focused on economics information in animal health management and marketing practices. This work looks at the value of biosecurity, post weaning cattle management, and factors impacting and predicting individual animal performance and value in a grid marketing system (IA).

    Research examining economic incentives of investment in cattle and beef marketing systems of Argentina and Uruguay was completed. Government policies in Argentina increase the risk of investment in the Argentinean beef industry relative to Uruguay. Uruguay is further along in development of its beef industry for international competition (UT).

    ERS has completed initial research comparing Bureau of Labor Statistics (BLS) and retail-store scanner data prices for meat cuts. ERS also completed the estimation-phase of a demand study that divides beef into three quality grades: (1) steer and heifer beef grading Prime and Choice, (2) steer and heifer beef grading Select and lower, and (3) cull-grade (cow & bull) beef. The study also included the demand for pork, chicken, turkey, and wholesale-to-retail processing services (ERS).

    Colorado State University scientists conducted research addressing current red meat (a) safety, (b) quality, and (c) marketing issues in 2006. Efforts to restore beef export trade continued following the 2003 detection of Bovine Spongiform Encephalopathy (BSE) in the U.S. Although several key export markets were re-opened to shipments of U.S. beef (e.g., Japan, Korea, etc.) in 2006, export volume remained low due to overly-restrictive trade terms concerning definitions for prohibited tissues; research was initiated to assist U.S. negotiators and domestic policy-makers in clarifying such definitions. Prevalence of BSE in U.S. cattle has remained at two positive cows since initiation of enhanced surveillance in June of 2004 (CSU).

    Current efforts are focused on providing information and practical examples of strategies such as niche marketing, product branding, traceability, and process verification for adding value (OR).

    Impact Statements:
    1. Biological type and implant status of beef cattle affect most carcass characteristics. Differences between early-moderate and late maturity breed types indicate that frame size does account for most carcass composition variation (CA).
    2. Increased market concentration alone may not necessarily result in the use of market power by firms purchasing agricultural commodities/products. At issue are factors or influences that potentially facilitate the use of monopoly power, such as matching risk (WY).
    3. Research on the Latin American beef industry indicates the US beef system faces risks from competition through international trade (UT).
    4. Our new method for fatty acid methyl ester synthesis meets a number of criteria for fatty acid analysis including not isomerizing conjugated linoleic acids or introducing artifacts. It is applicable to fresh, frozen, or lyopholyzed tissue samples, oils, waxes and feedstuffs. It saves time, effort and is economical (WA).
    5. Results show the needle-free, transdermal injection system to be effective and safe. Elimination of needles will prevent residual needle fragments in carcasses and associated carcass defects that develop from needle-induced injection-site lesions. Findings indicate that certain methods involving refrigeration (4°C) for decreasing the internal temperature of whole turkey roasts from 57 OC to 5 OC may result in multiplication of C. perfringens to dangerous numbers and compromise the microbial safety of this ready-to-eat meat product (IA).
    6. BLS, scanner, and USDA wholesale prices for the meats ERS analyzed were cointegrated. Statistical tests suggest that the BLS and scanner data sets are from different market niches. Scanner data provides additional information about meat markets; however its value is somewhat limited due to the 50-day lag between the end of the month and the publication of the data. (BLS retail prices are usually available 15-20 days after the end of the month. The demand study conducted a measurement of taste-shifts study for the various meats. None of the meats showed stable demands. However, demand shifted from Choice beef to Select beef during the 1980s and 1990s. There has been some recovery in the demand for Choice beef since the end of the 1990s (ERS).
    7. USDA-AMS now has approved video image analysis (VIA) instruments for official measurement of ribeye area (REA) and marbling scores, as well as for official application of Yield Grades. Commercial adoption of instrument augmentation for purposes of beef carcass grade application is anticipated to be widespread in 2007 (CSU).
    8. Results of a Dakota cow/calf producer survey reveal a strong preference by producers for public marketing outlets and local sources for market information. These findings suggest the recent trend in public price reporting toward more aggregated reporting of market information is inconsistent with the preferences of cow/calf producers in this region. Empirical work on regional public price reporting of fed cattle prices suggest that prior to the implementation of federal mandatory price reporting (MPR), the voluntary price reporting system (VPR) was providing market transparency in the South Dakota and Nebraska cash markets. These findings suggest that VPR may be a solution to the lack of market information at the regional and local level under the current federal MPR system (SD).
    9. Better knowledge of how consumers value product traits is important for developing domestic and international markets. U.S. consumers apparently are used to a particular flavor profile and not strongly attracted to dry-aged beef. Seasonal and muscle differences in fatty acid profiles of veal are important because of their impact on the nutritional value of the meat. Knowledge gained from veal in Portugal will be beneficial in assessing advantages in the U.S. Alternative cutting procedures for beef offers the potential to make U.S. beef more attractive to the international market. It could also lead to increased development of domestic markets for particular muscles. Although the economic impact is difficult to assess, increased demand for given muscles will improve the value of the carcass and thus benefit producers. Consumers, too, will gain with products that more closely fit their desires (NE).
    10. In 2006, approximately 100 hundred producers from around the region participated in one-day symposium that focused on marketing options for beef producers (OR).
    11. Analysis of the production effect associated with early versus traditional weaning of steer calves found that early weaning improved feedlot production efficiency and reduced cost. Early weaned steers were lighter at slaughter that lowered carcass revenue. Thus, early weaning did not affect profit compared to traditional weaning. However, cow health and pasture utilization did improve. Early weaning may be a useful management strategy during periods of drought (SD).
    Last Modified: 23-Feb-2007
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