“The production side is looking for something bigger to cover their increased costs,” he said, “but the retail and foodservice sides are looking for [more units of] something much smaller that’s easier to manage from a portion-control standpoint and a unit-cost standpoint.

Salebarn studies routinely prove uniformity in weight and cattle type mean premiums at auction, but the rancher really noticed the difference when he began working closely with Haverhals Feedlot near Hudson, SD, a decade ago. Simons has retained partial ownership on steer and heifer calves ever since.

T-bones, sirloins, filets and strips—these are the beef cuts referred to as “middle meats.” Such steaks make up 12 percent of the carcass, but represent just under half of its total value. That and the difference in cooking method lead many to believe it’s the only place where beef grades matter.

Even the nightly news shows feature stories on how a consultant helped consumers save on prescriptions or when buying a car saying, “That’s real money!” Some of you may be of the same philosophy that we adhere to in our house.

Data from Cattle-Fax and USDA shows a sharp decline in cash sales in the past seven years, from 52.1 percent in 2005 to just 26 percent in 2012. The inverse of that is the steep gain in negotiated sales, like grid marketing and other arrangements, which moved up from less than half of sales to more than three-quarters during those years.

“Producers do put pressure on growth, since they get some of the benefit in added pounds at weaning,” he said. “Unfortunately, grade is often overlooked as folks think, ‘It’s not my problem.’” More than 70 percent of today’s cattle are sold on a grid or formula where quality is a key component.

“We sell to people who are going to cook product and please guests—they’re not buying for themselves and they’re not shopping for price,” says Mort Kent, U.S. Foods of Denver, CO. “They have a reputation to uphold and their customers expect consistency and quality, and they’re willing to pay for it.

Some presents were wrapped in gold paper with a big red bow. Others were less elegant, but showed they were packaged with love. Some givers are even known for their ability to dodge traditional wrapping by handing over a shopping bag with the present inside.

I rode shotgun through a lot of drought-stricken pastures this summer and fall where producers weighed their options. Some folks had a few stores of hay saved up from good years. Some were going to cull a little deeper, while still others were making plans to rent some grass in the few places that were doing all right on moisture.

“We spend about 7 percent of our disposable income to feed our families,” he said. “In Europe they spend anywhere from 13 percent to 28 percent of their income. What am I getting at? One, we take food for granted. Two, it’s cheap. And three, we always expect it to be there.