August 4, 2006

 

US ranchers capitalise on rising popularity of grass-fed beef

 

 

US farmer Fred Nick has always served his cows a pretty bland menu of grass until a few years ago, when he learned that meat from exclusively grass-fed animals was gaining popularity among consumers for its reported health benefits. Now his steaks and burgers are showing up for sale at a health food store near his 1,300-acre ranch in California.

 

"We did not even know we had a health product," the 72-year-old Nick said.

 

Nick is one of a small but growing number of ranchers who are bucking convention, letting their animals graze on grassy pastures until slaughter.

 

About 45,000 grass-fed head of cattle were produced in the US in 2005, livestock marketing consultant Allen Williams said. That's a small number compared with the roughly 30 million animals that spend their final months in feedlots, growing big on a diet of grain.

 

Still, the current number of grass-fed cattle represents a huge increase over the roughly 5,000 produced 10 years ago, Williams said. He expects the nation's yield of grass-fed beef to more than double, to about 100,000 head, in 2006.

 

The growth comes as more consumers buy into the belief that grass-fed beef is better for consumers' health, ranchers' financial well-being, and even the cows themselves. The niche grass-fed beef market is showing signs of growing into something bigger.

 

The US Department of Agriculture is due to issue regulations for labelling beef as grass-fed after a public comment period on its proposed rule ends Aug 11, agency spokesman Scott Cox said.

 

The Whole Foods Market (WFMI) chain, which has been selling pasture-raised beef from Australia and New Zealand for several years, could soon start buying from US ranchers as part of an initiative to promote local farmers and ranchers, spokeswoman Amy Schaefer said.

 

Much of the growing interest in grass-fed beef follows research showing potential health benefits.

 

Meat from animals raised on grass is generally lower in fat and often contains higher levels of omega-3 and other fatty acids that could reduce the risk of cancer, heart disease and other illnesses, said Dr Kate Clancy, a nutritionist with the Union of Concerned Scientists.

 

Some ranchers say raising grass-fed animals benefits them economically because they sell meat directly to consumers, markets and restaurants, instead of selling live animals to feedlots and letting those operations pocket the final mark up.

 

Yet, demand for grass-fed still remains limited to a core of shoppers willing to pay a premium for pasture-raised meat. Grass-fed beef costs more because it takes longer for the cows to reach a slaughter weight, and they typically have less meat per animal than grain-finished cattle.

 

Grass-fed beef producers, generally small operators, are also hindered by their limited access to established distribution chains and, sometimes, their limited marketing connections.

 

Alice Waters, founder of restaurant Chez Panisse in Berkeley, said she stopped serving beef that was not grass-fed about two years ago when she learned about its health and environmental benefits. Since then, her chefs have been struggling to tap into a consistent supply.