RAAA Highlights New Fed Cattle Grid Pricing System

SAN ANTONIO – The Red Angus Association of America hosted a reception on Thursday, Feb. 6, following the conclusion of the NCBA Trade Show at the Henry B. Gonzalez Convention Center. More than 50 attendees gathered to learn about an innovative fed cattle grid pricing system that offers competitive premiums for upper two-thirds Choice Angus carcasses.

Tom Brink, RAAA CEO, shared that Sustainable Beef LLC, a new beef processing plant slated to open in April 2025 in North Platte, Nebraska, will implement the innovative grid. Notably, the grid is unique in that it equally rewards Red Angus, black Angus and smoky cattle.

"This grid pricing system could have a ripple effect throughout the industry, starting with the feeder calf market," Brink explained. "Backgrounders and feedlots supplying cattle to Sustainable Beef can confidently pay the same amount for Red Angus and black-hided feeder cattle, knowing they will be rewarded equally for quality."

Brink emphasized that Sustainable Beef's grid will be among the most competitive in the industry for finished Red Angus-influenced cattle. He also underscored the strong partnership between RAAA and Sustainable Beef.

"We are committed to helping Sustainable Beef source high-quality Red Angus cattle and ensuring their success," he stated.

Kelly Smith, RAAA director of commercial marketing, detailed the organization's efforts to prepare for the anticipated demand resulting from Sustainable Beef's opening.

"Our commercial marketing team has been building a feeder cattle network to connect Red Angus feeder cattle with feedlots that market their finished cattle to Sustainable Beef," Smith explained. "North Platte is ideally situated for a beef processing plant, at the heart of cattle feeding territory and with all the necessary resources."

Smith illustrated this point by referencing a map showing a 500-mile radius around North Platte. He also noted that cattle enrolled in the RAAA's Feeder Calf Certification Program are well-suited for Sustainable Beef. All cattle processed at the plant will be required to have an EID tag, and FCCP-tagged cattle meet the genetic verification requirements for the "Angus" label.

Mark Nelson, director of cattle procurement for Sustainable Beef, articulated the company's commitment to a sustainable model for producers. “We in the beef industry aren’t going to let anyone else define sustainability for us,” Nelson said. "We believe sustainability encompasses economic, environmental and community components.”

“Cattle producers have a long history of economic sustainability and environmental stewardship is inherent in their practices,” he continued. “Sustainable Beef meets community sustainability standards by providing an exceptional work environment. With one shift, a spacious workspace and state-of-the-art facility, we’ll be the best packing plant work environment in the country."

Nelson also detailed Sustainable Beef’s procurement specifications. “We have two things that go on our label at retail: Angus and Choice. To us, Angus is Angus. It doesn’t matter if they’re red or black, both will qualify.”

The company’s grid will begin discounting heavy carcasses at a lower weight than the industry standard, favoring cattle with more moderate carcass sizes – a natural fit for Red Angus cattle.

“Since we’re targeting the lighter half of the population and preferencing upper two-thirds Choice cattle, our grid should be the best market out there for Red Angus fed cattle,” Nelson said.

The relationship between RAAA and Sustainable Beef represents a significant step forward in recognizing the value of Red Angus cattle and providing producers with a rewarding market for high-quality animals. This collaborative effort promises to enhance the beef industry's focus on quality, sustainability and producer profitability, ultimately benefiting consumers with a superior product.

For more information about the Red Angus Association of America or marketing programs for Red Angus-influenced cattle, visit RedAngus.org.

The Red Angus Association of America serves the beef industry by enhancing and promoting the measurable advantages of Red Angus and Red Angus-influenced cattle. RAAA provides commercial producers with objectively described cattle by implementing new technologies and using scientifically sound principles that quantify traits of economic importance to beef producers in all segments of the beef industry. For more information, visit www.RedAngus.org.