The genesis of this project was to address the well-researched problems and challenges of Montana’s cattle ranching industry. In particular, the difficulties of sustaining a ranching operation within the commodity beef market. One of the ways we are addressing this is to make local niche markets an attractive option for local ranchers through the Rancher’s First pricing model. The market has responded to this pricing model and thus we are able to measure price elasticity in a manner that allows us to grow the program.

During the research phase, we studied why so many branded beef projects in Montana and elsewhere have failed. To summarize, the three primary reasons, and how we have addressed these issues, are as follows:

1. An inability to sell the entire carcass because it is too difficult to sell high volumes of ground beef. [The Ranchers’ First pricing model makes it easier to plan and market Montana Black products in particular the ground beef. It also allows us to efficiently calculate our beef product needs from cattle suppliers so inventory is kept to a minimum.]

2. An inability to attract and maintain regular orders from buyers on a consistent basis. [We have addressed this issue simply by working extremely hard to market a local niche product that the consumer is willing to pay a premium for. We have regular and consistent buyers. Our “hook” is that natural beef is healthier and tastier, Montana Black beef is focused on supporting local ranchers, and that it is in our interests as residents and visitors to eat local beef rather than commodity beef.]

3. An inability to ensure year-round supply of market weight cattle from local ranchers. [In a meeting of more than 20 ranchers in Twin Bridges in January 2007, we described this program and received very positive feedback. We have supply commitments to carry us through 2007.]

For Health’s Sake (It’s not just about economics)

For decades Americans have avoided red meat. Among other reasons, this is because animal fats are filled with cholesterol which can be harmful to one’s health. However, not all beef is the same. Grass fed beef is lower in cholesterol, higher in Omega-3, and lower in Omega-6 fats. It also contains betacarotine and CLA which is another ‘good’ fat. Research suggests that the problems associated with eating beef are actually problems associated with eating beef which is finished on grains. Thus, a new and growing market for grass fed beef has emerged.

Grass-fed beef has not been altered with chemicals and artificial feeding methods, such as the force feeding of corn products. This process fattens both the cows and humans very quickly. Grass fed beef is a more natural approach. The MCEDC is marketing beef that was born on ranches in Southwest Montana. These steers grew up eating local grass and drinking local water. This is a stress free method of production. Research has shown that stress can cause an increase of acids in the muscle tissue which leads to a tougher meat product. Selecting a grass-fed beef product from Southwest Montana means a more tender, tastier and healthier piece of beef. It’s not just about economics.