Looking beyond value-based pricing of beef in North America

Russell Tronstad, James Unterschultz

Research output: Contribution to journalArticlepeer-review

11 Scopus citations


Purpose - Quality traits desired by consumers may not be adequately captured by beef industry standards associated with grid or value-based pricing alone. Aims to demonstrate this shortcoming by examining strategies of selected companies in North America at the four supply chain levels of cow-calf genetics, feedlot feeding, processing, and retailing that have been proactive in producing desirable beef attributes efficiently to better meet consumer beef demand. Design/methodology/approach - The vertical alliance between Ralphs retailing, Sunland Beef processing, and a handful of feedlots using narrowly defined beef genetics are examined to illustrate how consumer market research and coordination throughout the supply chain may address many shortcomings associated with current value-based pricing of beef criteria. Findings - Better information sharing and coordination between seedstock and retail industries could help assure that consumer preferences of beef palatability and consistency are met while meeting high production efficiency standards. Practical implications - Cow-calf, feedlot, and packing industries need to better track and manage information flows of genetic-management paths from consumer to seedstock producer in order for the beef industry to be more competitive. Originality/value - Experiences of our case companies suggest that the beef industry will need to look beyond the North American grid or value-based pricing of beef in order to maintain or improve market share with competing pork and poultry sectors.

Original languageEnglish (US)
Pages (from-to)214-222
Number of pages9
JournalSupply Chain Management
Issue number3
StatePublished - 2005


  • Animal feed
  • Canada
  • Livestock
  • Meat
  • Supply chain management
  • United States of America

ASJC Scopus subject areas

  • General Business, Management and Accounting


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