By JACOB ADELMAN
The Associated Press
Thursday, August 3, 2006; 3:08 AM
SANTA MARGARITA, Calif. -- Fred Nick has always served his cows a pretty bland menu: grass, grass and more grass.
Then, a few years ago, he learned that meat from exclusively grass-fed animals was gaining popularity among consumers for its reported health benefits. Now his steaks and burgers are showing up for sale at a health food store near his 1,300-acre ranch along California's central coast.
"We didn't even know we had a health product," the 72-year-old Nick said.
Nick is one of a small but growing number of ranchers who are bucking convention, letting their animals graze on grassy pastures until slaughter.
About 45,000 grass-fed head of cattle were produced in the United States in 2005, livestock marketing consultant Allen Williams said. That's a pittance next to the roughly 30 million animals that spend their final months in feedlots, getting big and juicy on a diet of grain.
Still, the current number of grass-fed cattle represents a huge increase over the roughly 5,000 produced 10 years ago, Williams said. He expects the nation's yield of grass-fed beef to more than double, to about 100,000 head, in 2006.
The growth comes as more consumers buy into the belief that grass-fed beef is better for consumers' health, ranchers' financial well-being, and even the cows themselves. And producers are picking up on the demand, said Matt Byrne, executive vice president of the California Cattlemen's Association.
The niche grass-fed beef market is showing signs of growing into something bigger.
The U.S. Department of Agriculture is due to issue regulations for labeling beef as grass-fed after a public comment period on its proposed rule ends Aug. 11, agency spokesman Scott Cox said.
The Whole Foods Market chain, which has been selling pasture-raised beef from Australia and New Zealand for several years, could soon start buying from U.S. ranchers as part of an initiative to promote local farmers and ranchers, spokeswoman Amy Schaefer said.
Much of the growing interest in grass-fed beef follows research showing potential health benefits.
Meat from animals raised on grass is generally lower in fat and often contains higher levels of omega-3 and other fatty acids that could reduce the risk of cancer, heart disease and other illnesses, said Dr. Kate Clancy, a nutritionist with the Union of Concerned Scientists.
Some ranchers say raising grass-fed animals benefits them economically because they sell meat directly to consumers, markets and restaurants, instead of selling live animals to feedlots and letting those operations pocket the final markup.
Pasture-raising cows is also said to be better for the animals, since they're permitted to eat the grass that their multichambered stomachs have developed to digest.
Yet, demand for grass-fed still remains limited to a core of shoppers willing to pay a premium for pasture-raised meat. Grass-fed beef costs more because it takes longer for the cows to reach a slaughter weight, and they typically have less meat per animal than grain-finished cattle.
A pound of standard sirloin at the Vons supermarket chain costs $5.99 per pound, for example, while Nick Ranch's grass-fed sirloin costs $16.50 per pound.
Grass-fed beef producers, generally small operators, are also hindered by their limited access to established distribution chains and, sometimes, their limited marketing savvy.
Alice Waters, founder of restaurant Chez Panisse in Berkeley, said she stopped serving beef that wasn't grass-fed about two years ago when she learned about its health and environmental benefits. Since then, her chefs have been struggling to tap into a consistent supply.
"It's a little bit like going backwards for us," she said. "But considering all the health issues, I can't go in any other direction."
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One the Net:
Nick Ranch: http://www.enjoygrassfedbeef.com/
California Cattlemen's Association: http://www.calcattlemen.org/
American Grassfed Association: http://www.americangrassfed.org/
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CHAMPAIGN, Ill. (AP) _ The federal government is planning to spend $250 million to help create two research centers that will focus on finding more efficient ways to produce cellulosic ethanol and other biofuels, Energy Secretary Samuel W. Bodman has announced.
Universities, laboratories, nonprofit organizations and private companies around the nation can compete for the money by submitting proposals to establish and operate a center, the department said. The proposals are due by Feb. 1, 2007, and the choices will be announced next summer.
The two winning organizations each will receive $25 million per year for five years, beginning in the 2008 federal fiscal year, to develop and operate the research centers, which are expected to be fully operational by 2009, said Raymond L. Orbach, undersecretary of energy for science.
While corn and soybeans are widely used to produce ethanol and biodiesel for fuel, the new research centers will be charged with looking to efficiently break down other natural materials, or biomass _ such as grasses, crop residue and animal byproducts _ to help make fuel.
Plants and plant wastes can be turned into fuel by using an enzyme to convert cellulose, the primary structural component of green plants, into sugar. The sugar is then fermented and distilled into ethyl alcohol, or ethanol.