Beef industry’s focus on quality pays dividends

Livestock producers have seen favorable prices, but Extension analysts say they need to stay on top of expenses. (Journal photo by Dave Bergmeier.)

Cattle producers have an opportunity to continue to grow future profits if they focus on quality and value.

That’s an assessment from Lamar Steiger, an owner of The 808 Ranch, who said the formula has worked for him and his wife, Shari.

Lamar moved to the Bentonville, Arkansas, area in 1970 when his family relocated from Wyoming. Shari’s father worked at Walmart, first as a merchant and later became president in the late 1970s, continuing that role throughout the 1980s. Both Steigers are third-generation ranchers.

His experience began with a conversation with a Walmart executive who noted a desire to improve the quality of beef. The Steigers raise purebred Black Angus cattle with operations in northwest Arkansas and southwest Missouri.

Lamar Steiger (Courtesy photo.)

In 2014, Lamar said the CEO of Walmart-US Business, said the company had grown into the nation’s largest grocer by the early 2000s. However, the CEO also knew the company lacked the high-quality beef consumers wanted and demanded. The CEO wanted a true ranch-to-retail supply chain that ensures consistency and quality at an everyday low price.

Previously, Steiger was the general manager of JAC’s Ranch—the largest Angus seedstock producer in Arkansas. That began Steiger’s consulting role with Walmart and nurtured a relationship with Prime Pursuits, a venture by 44 Farms and Bob McClaren, Cameron, Texas. The operation serves more than 500 Walmart stores, initially focusing on the Southeast.

The Steigers also have a cooperative arrangement with McClaren and 44 Farms focusing on raising upper Choice and Prime beef for Walmart.

McClaren’s 44 Farms has an annual auction, and Prime Pursuits tracks calves and their performance to ensure they meet a high Choice and Prime Angus program that is verified.

“We produce about 225 purebred calves a year, mostly all embryo transfer,” Steiger said. “From 2020 to 2025 we concentrated on sexed male semen to 80 to 90% and we have good quality bull calves.”

In the end, it is about delivering a product consumers desire, Steiger said. Beef producers have DNA testing and expected progeny differences that major breed associations offer. With today’s technology, all are major influences in enhancing the quality of the American beef herd.

One of his messages to ranchers, regardless of operation size, is to establish relationships and build connections. The grocery business has changed over the years and continues to evolve. Ranchers who consistently deliver quality will be rewarded, he said.

Being fearful of new ways of doing business is a hurdle all businesses face. Walmart has had to reinvent itself several times over the years to remain successful, he said. He reminds ranchers it is about finding their fit.

When ranchers ask, Steiger says his advice is to focus on the needs of grocers and retailers first because they are closest to consumers. Then it is important to identify and develop a supply chain that consistently delivers the quality of meat consumers’ demand.

Steiger also is a founding partner of Ranch2Retail, which offers grocers the chance to partner to build a supply chain of beef that solves their problems. 

Ranchers need to have a realistic plan, but it starts by having conversations that may require them to think big—and be patient.

“If you want to participate in something bigger, become an active participant at meetings and conferences and meet with like-minded people,” he said.

Steiger said that can include working with ag technology companies or venture capital firms.

“I think you have to get outside your bubble and find like-minded people, they’re actually pretty easy to find,” he said.

If a rancher sees an opportunity to interact with representatives from 44 Farms or Sustainable Beef in North Platte, Nebraska, he should do so. They want to see the beef industry grow.

Walmart has an ownership stake in Sustainable Beef in North Platte, Nebraska, showing its long-term commitment to high-quality beef in its stores nationwide. What’s important for farmers and ranchers to know is Walmart, other grocers and restaurants are listening to consumers and want feedback from those raising their beef, Steiger said.

He is optimistic about the beef industry. Ranchers, including himself, remember how difficult the past herd rebuilding period was 10 years ago. However, he said ranchers have used technology, resources and a new vision to build beef demand. While herd rebuilding this time is stubbornly slow because of factors beyond ranchers’ control, they have been successful.

“Consumers love beef,” Steiger said. “There’s been several times over the last couple years where I’ve been very fearful that, oh my gosh, I’m going to hear from my friends in the grocery business that people are protein swapping out beef for poultry or pork.”

The good news, he said, is consumers have shown they are committed to beef, and it is a trend he believes will continue.

Steiger will be a featured presenter at Crops and Cattle, Aug. 4 to 6, in Kansas City, Missouri. For more information, visit cropsandcattle.com.

Dave Bergmeier can be reached at 620-227-1822 or [email protected].