CHICAGO, HI. Cattlemen
want to sell more beef at a pro
fit. A retail meat manager, howev
er, wants to show a department
profit, regardless of which meat he
sells.
Can both businessmen, at oppo
site ends of the beef supply pipe
line, get what they want? The
answer is “yes,” according to two
beef checkoff-funded studies.
One study found retailers can
increase sales and improve meat
case profits by 4 percent if they
keep their cases well stocked with
a variety of beef cuts.
There are so many unknowns in
the complex retail store process
that meat managers often don’t
know which factors affect retail
meat case profits, the study
concluded.
“Many managers told us
increased beef sales would not
increase profits of the entire fresh
meat category,” said Sheila Cour-
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Research Shows
ington, research project manager.
Courington, who is associate
director of market research for the
Meat Board, says the study
tracked actual performance of 10
stores in two separate markets
over three weeks. Movement of
beef, veal, pork, lamb, chicken,
and turkey was checked seven
times a day to record the quantity
of each item, the price per pound,
price featuring and markdowns,
and to note items out of stock.
The study found out-of-stocks,
on average, exceeded 40 percent
on 9 of the 39 beef cuts observed,
but were maintained at less than
10 percent on only 5 beef cuts.
The study also found when beef
inventory is increased, gross mar
gins in beef increase and overall
fresh meat case gross margins
increase.
“These results may surprise
some managers,” said Courington.
“The study shows that, by increas-
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Ways To Improve Beef Sales
ing beef sales by 10 percent, meat
managers can increase their over
all profits by 4.3 percent.”
Another opportunity to increase
beef sales may be to use case
ready meats, a second study has
found. Preliminary information
from the study, which is still under
way, reveals that 1 in 4 consumers
has tried case-ready products and
3 out of 4 consumers who try the
DES MOINES, lOWA The
National Pork Board, at a regular
meeting March 8 in Louisville,
KY, appropriated $1.25 million in
supplemental producer checkoff
funding for several projects.
The supplemental grants are in
addition to the $26.25 million
already budgeted by the Pork
-»»■ ■ „
$1.25 Million To Supplement
products are repeat purchasers.
Information already collected at
the retail level includes interviews
within 23 retail and wholesale
companies. The study now is
gathering consumer reactions in
five market areas where case
ready beef products are offered.
This portion of the study will
include 2,000 in-store interviews,
SOO follow-up telephone calls, and
S focus groups.
Checkoff Funding
Board for 1990 programs to be stlonger initially proj ected,
implemented through state and ca US jng the board’s reserve funds
national producer-run orgaiuza- b u ild above levels viewed by
tl0 " s -. , the board as necessary.
« f A breakdown of the supplemen-
Schroeder of Sauk City, WI, said funding approved by the Pork
the supplemental funding was at its March 8 meeting;
being provided because hog prices . Nationa l p ol k Producers
since last fall have been much Council (NPPC) will receive
$610,000 to add five additional
television target markets to the
present 32 metropolitan television
markets that will air Pork The
Other White Meat® advertising
this year. The additional funding
will allow the message to reach an
additional 16 million consumers.
• NPPC also will recieve
$llO,OOO in supplemental produc
er checkoff funding to develop a
non-commercial food service
program by mid-year. The addi
tional funds will be used to target
SO of the largest non-commercial
food service accounts (hospitals,
nursing homes, etc.), representing
about 40% of the giant food
service industry.
• NPPC and the Pork Industry
Group of the National Livestock
and Meat Board will share
$200,000 in supplemental check
off funds for the dissemination of
information to consumers, health
professionals, and producers
about new pork nutrient data
expected later this year.
• NPPC, in association with the
U.S. Meat Export Federation, will
receive $135,000 for additional
U.S. pork promotion in the Orient
and a study of the potential for
U.S. pork sales in eastern and
western Europe.
• NPPC will receive $145,000
to fund additional research in the
animal care, molecular biology,
and environmental management
areas, and for a producer and con
sumer information project in the
animal Welfare area.
• The Pork Industry Group will
receive $50,000 for additional
work involving nutritional
research.
Lancaster Farming, Saturday, April 7,1N0-E1
Consumers say they like the
consistent quality, tenderness, and
extended shelf life of the freezer
ready, prepackaged beef products.
More important, while there are
several barriers to widespread
acceptance of case-ready pro
ducts, the study is finding that
innovative merchandising and
marketing can overcome most of
these barriers, said Courington.
Northrop King
Promotes 2
GOLDEN VALLEY, Minn.
David Thomas has been promoted
from director of production to vice
president of production for North
rup King’s worldwide field crops
division.
Thomas is responsible for all
U.S. field crops production activi
ties, and for providing production
direction and support to the man
agement of Northnip King’s over
seas affiliate companies.
Dr. Jim Mock has been named
vice president of product manage
ment, field crops. Mock, previous
ly vice president of field crops
lesearch, is responsible for organ
izing and managing Northrup
King’s new field crops product