Information is increasingly important in marketing cattle of all types. Historically, selling ag commodities has involved moving raw farm products such as grains, livestock and dairy from production to consumption with ag producers acting as price takers. Because ag commodities have been largely interchangeable, individual farmers and ranchers have had little control over market prices.
In regard to the cattle business, documented information about genetic potential, vaccination protocols and backgrounding management have and are proving to be increasingly important to cattle producers interested in moving beyond the status of price takers. Actual marketing of cattle requires a willingness to invest the time and effort to differentiate your cattle and substantiate their distinct value to the next owner. This can be done whether your product marketed is weaned calves, bred commercial heifers, yearlings, registered seedstock, etc. The core goal is to escape commodity style competition by creating unique customer value. It permits your cattle business to influence prices based on the value of the product delivered and you to act as a price maker as opposed to surrendering pricing control to the broader market.
Some examples:
- Oklahoma Quality Beef Network sales (documenting vaccination and backgrounding status of weaned calves) saw an average premium of $65 per head on 500 pounds calves from 2011 – 2022, as compared to commodity price.
- At the time of this writing, there have been 1,000,000 head of feeder cattle sold through the AngusLink marketing program. Last year, those cattle sold at a $20.92 premium per cwt as compared to commodity price. This program is a simple enrollment process available to cow-calf operations using registered Angus bulls allowing producers to communicate the genetic value of their calves at marketing. Genetic Merit Scorecard, a component of AngusLink, documents the genetic potential for postweaning gain and carcass merit for the calf crop, relative to the industry average, allowing buyers to make a more informed decision. More details on AngusLink can be found at angus.org.
- The recent dispersal of the Express Ranches Angus female herd saw approximately 2,400 head of registered Angus females selling at an average value of over $13,000 per head. The volume of information provided included pedigrees, age, pregnancy status, service sires, individual performance information for multiple traits and documentation of genetic potential for over 30 reproductive, growth and carcass traits.
- Sales of commercial bred heifers across the country indicate a strong buyer preference and premiums paid for heifers documented to be AI bred, with known expected calving dates. Documentation of genetic potential of these bred heifers adds additional value.
