Tag Archives: cattle marketing

Alliances…

The Ivy League Basketball championship team gets an automatic conference championship berth in the NCAA tournament.  It is likely that many years no Ivy team would qualify for the trek to March Madness without the conference affiliation as larger schools with athletic scholarship possibilities tend to dominate the college basketball circuit.

Conference alliances of college teams are common place with membership bringing the schools recognition, monetary compensation, and the ability to bring the product of athletic entertainment to a broader audience.  The teams continue to maintain their own independent identities while also attaining the expansive status of conference membership.

Enjoying a little spring time afternoon sun...

Enjoying a little spring time afternoon sun…

My father-in-law and Archie built our feed yard in the late 1960’s and early 1970’s on the land that Archie’s family homesteaded on a generation before.  The feed yard is literally a combination of a dream and a tremendous amount of hard work.  We have the ability to house up to 3000 cattle at one time—this size was fairly average thirty years ago, but falls much closer to the small end of the scale in 2014.

The truth is that I love the small scale of my cattle farm.  Although I assume all of the responsibilities that come with being the owner/manager, I am still able to be very “hands on” with my animals working alongside my crew of three.  Exercising/acclimating calves, leading the processing crew, reading bunks and periodically checking daily cattle health are all things that I love to do.  I know that if I expanded the size of my farm that a lack of time would necessitate that I give up some of those “hands on” things.

a

There are 4 X as many cattle as people in Nebraska…

The down side of a small farm in rural Nebraska is having a large enough supply of cattle to be able to build the brand and marketing program that I need to bring a responsibly raised and quality beef product to those customers that desire it.  I recognized many years ago that something was going to have to change for my small cattle farm to remain sustainable in the ever evolving industry of beef production.

I needed an alliance — I was the small Ivy League school that wanted a chance at the the big dance…I went looking for cattle feed yard conference to join in order to reach my goal of long term sustainability while still remaining true to my personal daily commitment to animal welfare and high quality beef.

He is good for all of us...

My oldest daughter is a lot like me, he is good for both of us…

My husband often looks at me with a patient smile on his face and says, “Anne, there are few people in this world that can live up to your standards.”

It is no secret to anyone who knows me that I am an incredibly particular person.  I set the bar high in a constant search for excellence.  I don’t settle, and I spend each day trying to inspire my daughters to share that same passion.

She's got a little of me in her too...

My volleyball playing cowgirl has a little of me in her too…

More than a year ago, my feed yard became a part of the Progressive Beef team, and joined the cooperative called the Beef Marketing Group.  Progressive Beef and BMG gave me the conference affiliation that I needed while still allowing the independent identity that I desire for my farm.  The alliance is a strong one, and I am proud to be a part of such an innovative and quality minded group of cattlemen.  Honestly, I view this affiliation as one of the greatest successes in my professional career.  I recognized what challenged my cattle business, and single-handedly found a way to fix it while still remaining true to the standards that make me uniquely Anne.BMG.jpg

My alma mater has never been able to make their Ivy League conference affiliation result in a win in the final game of March Madness, but Will Feed Inc. made the winning slam dunk with their conference alliance with the Beef Marketing Group.

3 Comments

Filed under A Farmer's View on Foodie Thoughts..., CAFO, General, Progressive Beef QSA Program

Learning From the Best…

Author’s note: In The Meat Racket, Chris Leonard argued that the cattle industry was quickly becoming “chickenized” with a vertically integrated business system.  I believe that this is inaccurate.  The next group of posts will explain how cattle are marketed throughout their life-cycle with their beef eventually ending up on your dinner table!

CAB steer picture

The majority of cattle in the United States are marketed (sold) multiple times during their lives.  They begin their life-cycle on a cow/calf ranch where they spend 6-18 months.  About 1/3 of all heifer calves born each year in the United States remain on the home ranch to become mama cows and are not sold with the remainder of the calf crop.  Depending on the size and diversity of resources on the home ranch, the remaining calves can be sold at a variety of times throughout the year.

  • Some calves are sold at 6-8 months of age right after being weaned from the mama cow.
  • Some calves are weaned on the home ranch and either graze grass or are fed a supplemental diet of corn products and forage until they are sold at 10-12 months of age.
  • Some calves are weaned and remain on the ranch receiving supplemental feed and grazing grass pastures until approximately 18 months of age when they are sold to a feed yard.
  • A very small percentage of calves are kept approximately 24 months of age and harvested as grass fed beef.

    A bovine's life begin on a ranch...

    A bovine’s life begin on a ranch…

Depending on the age of the animal at the time of sale, it may be purchased by another ranch to continue its growth on grass/wheat/a variety of forage pastures or transported to a feed yard like mine.  Cattle can be sold at a Livestock Market Auction or through a private treaty deal direct to a purchaser.

More than ¾ of the cattle at my feed yard ship directly from the home ranch in a private treaty arrangement.  Over the years, I have learned to be my own cattle buyer as I searched for ways to improve the quality and efficiency of my farm.  I like to establish relationships and do business with the same ranchers year after year.  Together we can share animal performance and health information, limit stress (improve welfare) for our animals, and collaborate to ensure continual improvement in the beef that we grow.

Cattle gathered in corrals ready to ship from the home ranch to my feed yard...

8 month old cattle gathered in corrals ready to ship from the home ranch to my feed yard…

I learned how to be a cattle buyer from a gentleman named Willard Wilson.  I met Willard shortly after I went to work at the feed yard because he worked as a cattle buyer for my father-in-law.  Willard is a man of tremendous integrity and introduced me to the concept of doing business with the bond of a handshake.

Willard with my favorite teenager a few years before she grew to be several inches taller than her Mama!

Willard with my favorite teenager who is now several inches taller than her Mama!

Willard mentored me for almost five years before I began to act as my own cattle buyer looking for native Nebraska cattle to purchase from ranches that were closer to my farm.  While I lack Willard’s naturally outgoing personality and people savvy, I have been successful in slowly building up a group of ranchers who want to work with me tracing their animals from birth to harvest.

With each handshake deal that purchases cattle to ship to my farm, I smile as I think of Willard and his natural ability to bring people together for a common goal.  My goal of collaboration with ranchers in procuring cattle for my feed yard started with this savvy retired Wyoming state senator who introduced me to the art of cattle buying.

The combination of private treaty sales and Livestock Market Auctions provides a vibrant market for these feeder cattle as they are sold off of the home ranch to another farm in the journey of beef production.

Cattle buying is an important component as we put together the pieces of the puzzle in raising high quality and great tasting beef.

2 Comments

Filed under A Farmer's View on Foodie Thoughts..., General

Marketing the Fruits Of Our Labor…

As a result of the article in Business Week, I have received a couple of good questions / requests from readers that I would like to take a couple of blog posts to answer.

One reader asked “Could you please share your experience whether or not you have faced any difficulty in selling your produce or livestock?”

An animal resting in his home pen just a few days prior to harvest…

My farm is the “last stop prior to harvest” for the cattle that I raise.  Therefore, selling my animals is a very important part of my job as Boss Lady.  Over the years, I have learned to recognize when my animals are ready to become beef by using a combination of data and visual appraisal of the animals to determine a harvest date.

This great tasting and highly nutritious steak is why I raise cattle…

When I determine that a group of animals is ready for harvest, I contact my packing plant partner to arrange the logistics of transporting the animals to the packing plant and the subsequent harvest process.

My packing plant partner…

I market the majority of my animals on a quality merit basis to the same packing plant.  I made the decision to do this many years ago when I decided that I wanted to be more involved in following the performance of my animals after they left my farm.  I also wanted to receive a premium over the commodity market for my animals since I knew that they were of higher than average quality.

Calf #718 and one of his herd-mates…

While the partnership that I have with my packing plant is not perfect, we have developed a working business relationship that is beneficial to both of us.  I spent a long time last year tracing a calf from birth to harvest (those posts are archived under the Topic Beef Life Cycle-Calf #718), so I invite anyone that missed that series of posts to take a look at them to gain a better idea of what the life cycle of a calf is, along with the logistics of harvest.  The posts toward the end of the series explain how I market my animals.

The bottom line is that “No”, I do not have difficulties marketing my animals.  The combination of the high quality of my cattle and the partnership that I have with a packing plant allows for relative liquidity related to marketing.  That being said, I do not always get the price that I desire for my animals.

The economics of supply and demand, in addition to outside interests “investing” in the livestock future’s board affects the base price of my animals.  I have little or no control over this, so sometimes the amount of money that I receive for my animals at harvest is smaller than the cost that I have in the animals…

While good care ensures that my animals make high quality beef, it does not guarantee that I will make a profit from their sale…

That leads me to the second reader’s question, “Is it true that cattle make only $20 per animal? That just doesn’t sound right to me. When I buy a New York steak from the market I typically paid around $6 – $7. That is one piece of steak. Where did the money go?” which I will attempt to answer in the next post…

2 Comments

Filed under Feed Yard Foodie "In The News", General