This is a victory that should be shared across the supply chain, as the production of more AAA and prime cuts is a result of better genetics, feed and management of cattle in the feedlot.

At the recent Beef Industry Convention in London, Ont., hosted by the Ontario Cattle Feeders Association, I observed that several speakers mentioned the improved eating experience as a contributing factor to the rise in beef prices.

The supply of beef has been a challenge as the number of beef cows in North America declines, but the growth in the marketplace has also been driven by demand from consumers willing to pay more for the beef-eating experience.

Steve Davidson, of Flanagan Food Service, an Ontario-based food service company with a branded beef partnership with the Ontario Corn-Fed Beef program it calls Carve, said that his company is seeing significant demand from restaurants for beef.

In the past, Davidson said there weren’t enough prime cuts available in Canada to fill the market demand for top beef. That’s no longer true, and that’s important as Canadians are asking for Canadian beef.

If Canadians are spending so much for a cut of beef, they’re often making the decision to buy the best cut. Then, demographics are dictating that an older couple will buy a top-quality cut of beef, but they will share it.

The main day of the Beef Industry Convention is on a Friday and that evening, my wife and I went to The Keg for dinner.

After a day of hearing about beef as a premium eating experience, it was fitting to end it with a quality steak, cooked perfectly, the meat surrounded on the plate with other fine food that enhanced the meal nicely.

The large Keg at the north end of London was full of people willing to put down extra money for a meal with beef as the star.

Continuing to win consumers with a top eating experience is critical for the beef sector, but it’s also important that beef continue to be a meal people can afford to eat not just when they’re out.

There are many more cuts than steaks and prime rib, and those have to flow through the system as well. Demand for ground beef is way up, said Davidson, as restaurants also look for less expensive ways to include beef on their menu. Flanagan has launched an expansion of its Carve program to include lower-quality and priced cuts of beef.

Beef prices and demand are up across North America, but beef hasn’t had the growth seen by chicken, which is the protein of choice, as it’s more affordable and has so much recipe flexibility.

The beef sector, more than ever, provides a top eating experience for consumers, who continue to be willing to pay for it, but the creeping challenge for the industry is to make sure they can also afford it, more than just for an occasionally great meal.

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The Beef Farmers of Ontario (BFO) said in a release the partnership has a significant impact on the Ontario cattle and beef sector.

“First off, it demonstrates the confidence the market has in high quality Ontario beef. That confidence continues to drive demand for Ontario cattle, which benefits many agriculture sectors in the province including, but not limited to, cattle farmers, crop farmers, vet services and feed mill/animal nutritionists and beef processors. Secondly, the partnership contributes to Ontario’s economic development and supports local rural communities across the province,” the BFO said.

“The partnership with Ontario Beef is an important one,” Lyndon O’Hearn, director Purchasing-Culinary & Beverage Development for Lone Star said in the release. “As an Ontario company, we wanted to connect with Ontario beef farmers to bring high quality locally produced Ontario beef to our menu. The consistent great taste of Ontario Corn Fed Beef aligns well with our commitment to quality.”

Jim Clark, executive director of the Ontario Corn Fed Beef Program and CEO of the Ontario Beef Market Development program said “We wanted to partner with an Ontario-based restaurant chain who value the commitment our members make in producing consistently great tasting beef.”

Lone Star is Ontario’s original full service Tex-Mex restaurant. It’s headquarters are in Oakville and its been in business since 1986.

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One of them was Chuck’s Roadhouse, a high-volume steakhouse with 60 restaurants that featured Ontario’s Corn Fed Beef (OCFB) this summer, John Baker told Beef Industry Convention attendees last month.

Why it matters: Sales volumes of Ontario beef increased last year and marketing efforts played a role.

“They reach into the rural areas (and) there’s strong growth potential there. They’re a company that’s expanding, growing,” said Baker, director of brand management and business development for OCFB and Ontario Cattle Feeders Association.

“And it’s a good opportunity for us to develop that local supply chain and give them something to talk about on their menus.”

Creating dialogue about the local flavour of Ontario beef raised on family farms extends awareness and supports brands that are marketed at national trade shows.

“When restaurant operators go to a food show, they’re in an open mind; they’re in a buying mood,” Baker said. “So, it’s a real good opportunity to be able to connect with a captive audience type of approach … (and) we’re talking about unique Ontario brands that cannot be substituted.”

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A consumer-friendly QR code links to four videos on a website that promotes Ontario family farms, beef livestock care, nutritionally balanced feed and sustainable beef production practices.

The next step is to get the QR code on packaging and onto shelves, which is part of ongoing discussions with Loblaws, said Baker.

In export markets, Japan remains the highest priority and provides the most robust growth potential, said Baker.

“Outside of Canada, (Japan is) the only market where we actually have stronger, better market access versus the U.S.,” said Baker. “We have a tariff rate advantage over the U.S. … and it’s a real strong, fastest growing market in southeast Asia.”

Ontario beef exports rose in the first quarter of 2022 compared to 2021. Japan and Vietnam remained stable markets with a seven and three per cent increase in volume and a 24 per cent and 23 per cent increase in dollar values, respectively.

Pre-pandemic in-store sampling in Japan was a massive driver in increasing consumer and retail confidence, as were trade shows. Baker said OCFB used product giveaways and creative solutions during the pandemic to keep Japanese consumers engaged, but it was a struggle.

This year in-person marketing has returned, with a strong showing at five tradeshows in Japan and one each in Taiwan and Vietnam.

Incoming trade missions are also expected to increase brand confidence and uptake in export markets.

“The single most impactful thing we can do is bring them to your farm and show them what you do on a daily basis,” said Baker.

“When meat shows up in their shipping container in the port of Japan or Tokyo, they know what happened to that product and how those cattle were raised. It makes them part of the story, and they can now take to their consumers.”

Baker said collectively, in 2020 and 2021, the increase in meat exports to Japan was roughly equal to 131,000 head of cattle. The projected increase in demand for 2022 is equivalent to an additional 75,000 head.

“That works out to be about 1,500 cattle per week that are either increased demand for, or value for, because of our efforts in Japan,” he said. “That’s the power of the market, and again, that cannot be substituted by any other product.”

In 2022, Ontario’s beef sector regained access to the Saudi Arabia market.

“The Middle East market is extremely strong. They value high-quality beef,” Baker said. “We have strong competition in those markets, but we are unique.”

Exports to the Saudi Arabia saw a 282 per cent increase in kilograms shipped and a projected increase of $47.3 million in sales, up from $8.5 million in 2021.

The overall increase in sales to Japan and Saudi Arabia was a $64 million boost, with a checkoff export investment of $250,000.

The United Arab Emirates and Taiwan saw a 44 per cent and 86 per cent increase in the dollar value of beef shipped in the first quarter. At the same time, U.S. export volumes declined 10 per cent but dollar values increased by three per cent.

The Gulf Cooperative Council countries of Kuwait, Saudi Arabia, United Arab Emirates, Qatar, Bahrain and Oman saw significant population and wealth growth, said Baker.

More significantly, the Middle East has moved toward a tourism-based economy.

“With that comes growth in the distribution and food service sectors, and that rising affluence increased demand for high-quality meat,” he said. “We’ve also started developing new relationships in Kuwait, Bahrain and Qatar.”

By working with packer partners, Baker said strong distribution partnerships have developed in Saudi Arabia and the UAE. Given the seven-star hotels in those regions, it opens high-end market opportunities where OCFB products can realize growth.

“Over 40 per cent of beef carcass value is generated through export markets. That’s over $1,400 a head right now,” Baker said.

If Japan sets the value of a skirt steak at $10, a provincial processing plant unable to export to Japan still benefits because the export price sets the local value of the same steak, he explained.

“If we take $1 from the checkoff dollars and put it towards Ontario beef market development in those markets, we return $256 for every dollar,” Baker said. “That’s for beef sourced from Ontario cattle that cannot be substituted … (and it has) to be Ontario Corn Fed Beef cattle because that’s the only way we can verify those cattle, in fact, came from Ontario.”

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