Adding Value to Beef - Morrisons Traditional Breeds Venture

The news that Morrisons supermarket has introduced a scheme paying farmers a premium for beef from traditional cattle breeds marks a new effort to prove that value can be added to a product which many dismiss as a commodity.
This is an attempt to brand both a breed, the beef Shorthorn, and in the case of the other traditional breeds, to brand a distinctive sector which is part of British farming heritage.

Why might Morrisons, one of the "Big Four" supermarkets, be doing this?

They will have noted that with branding comes as premium price, as proved by Waitrose who for years have sold Aberdeen Angus and Hereford beef alongside standard British. A store check today showed their Angus mince at £8.87p per kilo compared with £5.78p for standard, and Hereford rump steak at £15.99p versus £12.49p for standard.

Morrisons pursuit of premium products reflects another trend which is to introduce higher priced, higher margin products to help offset falling profits caused by cutthroat competition among supermarkets. Importantly, they have recognised that the product has to live up to the price charged, hence their wish for supplying farmers to stick to a specific feeding regime which will enhance product quality.

Clearly this is a commercial move. Morrisons would not be doing it unless they had identified interest among their shoppers.

They do though appear to have considered all aspects of the supply chain, showing flexibility in relaxing some of the grading grid requirements to accommodate the conformation and fat cover which can come with traditonal breeds, and allowing the breed to be determined by the dam as well as the bull.

It is to be hoped that the initiative works. Morrisons have high hopes, believing it will create demand for another 16,000 cattle, a 10% increase on current requirements. It will add value to beef. And, if the idea is well publicised it will allow the many millions who shop at Morrisons every week to understand more about where their meat comes from, and to recognise that meat is not just a commodity to be bought at the lowest possible price.