Customers Confident in Canadian Beef Yet Over Supply of Some Cuts
The Canadian Food Inspection Agency has completed their intensive investigation of the single case of BSE and has concluded that it was an isolated incident, the meat from the infected animal did not enter the food chain and that no other animals were infected. The most likely cause of the infection was contaminated feed, fed to the animal prior to the 1997 ban on ruminant feed.
There is no risk to human health and the Canadian beef supply is completely safe - that is the message to consumers across the country. How will this affect the foodservice industry? This outbreak was not an issue for consumers - they continue to order beef at foodservice and to eat beef at home. It was not a health risk - operators do not have to handle their beef any differently. But it has become an economic and political issue. With the announcement of the BSE incident, our borders were closed and remain closed.
The export market is critical to the beef industry. Cattle and beef exports have made up a large portion of Canadian production in the past several years. In 2002, a record 69% of Canadian cattle and beef production left Canada. But, going back to export levels of 2000 and 2001, the percentage of exports has ranged between 55-60%. Of those exports, 87% went to the US in 2002. With closed borders, there is no market for this beef.
One of the most commonly asked questions is: "With all this extra beef around, why aren't prices declining?" The reason operators have not seen lower prices for Canadian beef middle meats (such as ribs and striploins) is because we can't export right now. With drastically reduced markets and fewer places to sell beef, packing plants have been forced to reduce their production.
This is a very popular time of year for grilling steaks both for the home BBQ and for foodservice (think of all those steak barbecues at golf courses across the country) so demand remains very high for these products. However, the market for cuts from the rest of carcass is underdeveloped. We have a situation where we can sell "middle meats" (the grilling steaks that are very popular in the summer), but don't have a market for the rest of the animal. To ensure we don't have a large inventory of unwanted cuts, the packing plants process fewer animals, which means there are fewer middle meats - it is a case of supply and demand. That's why the price for these cuts remain unchanged.
"If operators are looking for new menu items at an excellent price now is the time," says Carpenter. "There is an opportunity for foodservice operators to take advantage of the over supply of secondary cuts. Many of these cuts have been substantially discounted and now is the time to talk to your supplier about putting some of these items on your menu." These cuts include: Ball tip, tri tip, flat iron, flap meat, short ribs, skirt steak, flank steak and inside round.
"Many of these cuts, while popular in other countries, are new to foodservice operators in Canada," says Carpenter. "For instance the flat iron and skirt steaks are two cuts that are very popular in the US. This is a great opportunity to put something new and different on your menu."
In order to help operators better understand and utilize these cuts, BIC is developing a series of eight technical sheets to explain the characteristics and handling for each of these cuts along with merchandising and recipe ideas.
There is also an over supply of ground beef - so now is the time to promote your burgers!
Several major chains across the country are taking advantage of the supply situation to promote different items on their menu. A restaurant chain in Western Canada is featuring their 100% Canadian ground chuck burger along with tenderloin and flap meat menu items over the summer. And a number of casual dining chains are looking at new menu items like fajitas and rice bowls utilizing skirt steak.
So, whether you add new menu items like a flat iron steak or a ball tip steak sandwich to your menu or feature the ever-popular burger, now is a great time to promote Canadian beef on your menu.
