Working Together
There’s an old adage that suggests there is “strength in numbers.” Cattle producers with small herds seem to have figured that out. An article by Alaina Burt in the January issue of BEEF magazine spotlights a group of Kentucky producers who have found success in marketing by working together. Click Here
If you’ve got a marketing strategy that has worked for your small cattle operation, American Cowman readers would enjoy hearing about your ideas. Just click on the comments button below to share your thoughts.
Related Topics: Marketing Success Stories
February 14th, 2007 at 12:49 pm
I’m interested in the strategy of small cattle owners coming together to market their cattle. i would like to know how they got started and what they are doing to market their cattle. i would like to know the full details of their “battle plan.” thank you
February 16th, 2007 at 1:33 pm
I to am very interested in this. As a very small producer I cannot and probably will not stay in the black fighting by my self. I am looking very closely and shirt tailing on another operation and selling my calves back through them and use thier genetics fairly heavily. Only other option I really see for my self is to feed the calves on out and sell them to the public. Not overly excited on that option either.
February 16th, 2007 at 2:29 pm
Pam and Phil, thanks for your points…are there any small producers out there who could share with us examples of how you’ve maybe worked together with another small producer or as a cooperator with a large seedstock breeder. What have been the pros and cons of these arrangements?
February 17th, 2007 at 8:18 pm
I’m in my second year of working with a local Angus breeder in an arrangement that benefits us both. I’ve got Hereford cows, but we synchronize them and put his embryos in my cows… looks kind of funny to see a purebred Hereford mama raising a purebred Angus baby, but you get used to it. In exchange, he lets me use one of his very good Angus bulls to clean up my cows that we don’t use as recips, and he pays me market price + $100 at weaning time for the Angus bull and heifer calves that come from his embryos. My cows that are bred to his bull have F1 black baldie calves that are in high demand with local cattle feeders. I’m helped by getting a better price for my calves and using his bull for free, and he’s helped by getting more embryo calves than he would in a given year. Everybody wins!
February 26th, 2007 at 10:04 am
One of the biggest challenges to “pooling resources” is the willingness to cooperate to acheive a common goal. As cattlemen, we often like to do things our own way and do not take the time to “align” ourselves with others’ vision, goals and opportunities - or be the ones to create those ideas. Rob, in your example, you had to shift your current production scheme on those Hereford cows. To do that, you had to take risk - because as soon as you start working with others the production is out of your control.
In our beef operation we are currently exploring opportunities to market similar cattle genetics from various smaller producers. The most common response we get is: it’s a good idea, but I want to see how it works out first. In other words, no one is willing to step up to the plate for the first go-around. As a result, these ideas are put on-hold, or are not implemented.
If you’re interested in these types of group-orientated production systems, I would recommend being proactive. Talk to your neighbors; talk to the people you purchase bulls/females from and express your interest in creating better cattle — ones that are more profitable for everyone involved.
February 28th, 2007 at 10:42 pm
Alaina- I feel it actually lessens my risk, because I don’t have to own a bull, and then buy a new one every 2 years because I keep my own replacements. It’s a hassle to feed the MGA and then work the cows 3 times, not to mention the stress on the cattle from being worked. But, you take the good with the bad. I’m set to begin calving March 23… looking forward to it.
March 9th, 2007 at 9:23 am
Rob - I can see how that would lessen your risk, good point. How’s is the preparation for calving going? We’ve been calving since President’s day and despite 2 ft. of snow and some ’bouts of -40 weather, we’ve managed to keep all the ears and tails and only lost 1 calf. All and all, it’s shaping up to be a good start.
March 14th, 2007 at 11:46 am
I have been developing a direct to consumer beef business. I have have tried to put together a branded label. I sell quarters and sides to consumers and am slowly getting into the high end restaurant sales. I am also getting a retail line together. By selling this way you name your price for hanging weight, you capitalize on the rapidly growing number of people who strongly perfer to buy local. The retail aspect commands substantial prices ie $6.00/pound for fresh burger. I think a producer who can handle cutting out the middleman and keep up with the demand can punch their ticket. I find making hay a waste of time, growing corn ( if I could) a waste of time…Let the big growers do that work and focus only on selling your product. I look forward to comments!
March 14th, 2007 at 8:46 pm
Alaina- Good news and bad. Our first two calves were born today. One healthy and spunky out of a cow… but the bad news is we had a heifer prolapse and we lost both her and the calf she was trying to give birth to. A major bummer about the heifer and her calf. Does anybody know what causes this or what can be done to prevent it? On a humorous note, my Angus breeder friend came out to weigh the calf, and brought two of his young daughters with him. The oldest (7) took one look at my cow and one look at the calf and asked “How can a brown and white cow have a black baby?” I looked at her dad and we both laughed. He told her “That’s a long story… we’ll talk about it later.” I’d say they’re having an interesting conversation about now, lol.
March 15th, 2007 at 8:18 pm
Bill- That’s really interesting! I’ve thought a lot about that, but I don’t know if I would be able to carry enough cows to do what you do on a large scale. How many cows do you run? What breeds do you own?
March 16th, 2007 at 7:46 am
Bill Peternet: What are the steps in “put together a branded label” Thanks, Ken
March 17th, 2007 at 7:58 pm
Rob, Ken…This is my second commercial year and I will sell between 20-30 head of cattle direct to consumer.On a wholesale level the return is 25% on the investment. ON a retail level it approaches 50%. I also have been working on selling the secondary products such as fresh dog bones and Raw dog food made from the livers hearts and toungues. My wife is developing a all natural soap line which at $4.50 a bar is nothing to sneeze at. I only wish I could figure out how to make money on the hides. I find agriculture is a hot potatoe game. I do not own cows. I only buy black angus steers accompanied with the required all natural affidavit. If I was to have cows, calves and the risk and time involved it would be at best a breakeven buisness. The stats show cow calf operations only produce a marginal profit. And given the increasing corn prices it is predicted that the cow calf segment will be hit very hard by buyers discounting the calves so they can pay for corn. As far as the brand I buy black angus because the fact is no matter what, the consumer immediately connects with the words “black angus” thanks to the CAB program. I chose my label specs based on the concept of security. I put forth: source and age verified, all natural from birth to death (no antibiotics and no hormones) maturity grade A, corn fed, dry aged, vacuum sealed, locally grown. The discerning consumer is willing to pay any premium for fresh beef from what I can tell. You may weed a few on tighter budgets but thats not your market. As far as advertising, I have paid nothing. There are local email lists, farmers markets, and the very powerful word of mouth. One person buys a quarter and feeds it over 6 mo to numerous friends and relatives and it goes from there. I roll all of my profits right back into more cattle with each cycle. There seem to be certain things in life people will pay for regardless of the price, good cigars, fine wines and fresh beef. The critical point to success is the beef MUST be well marbled and very tender with a 100% money back guarantee.
March 25th, 2007 at 7:22 pm
That 100% money back guarantee kind of spooks me… do you have to be careful who you sell to to avoid some jerk trying to call you on it?
April 23rd, 2007 at 7:37 am
bill i am running a red angus / limousine outfit here. i am going to be advertising my beef as all natural without hormones or antibiotics and being stictly grass fed beef. are you doing your own slaughtering?
March 16th, 2008 at 2:50 am
natural soap is the best soap. It’s good for the environment as well as being better for your skin. It’s hypoallergenic too as it’s all natural.
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