The ongoing drought conditions add to the challenges faced on Mississippi beef cattle operations. Two categories of questions from beef producers make up the majority of questions coming in to Extension offices in recent years: marketing questions and nutrition questions. Both of these topics have a major impact on beef cattle operational profitability. Some key points are offered to help Mississippians keep the cattle business going through challenging production conditions.
Marketing
Cattle producers must market to stay in business. Breeders who take the approach that they do not wish to sell any good animals and only wish to sell a few culls will have difficulty marketing for profitability. Livestock marketing columnist Keith Evans once stated that, “The quickest way to kill a poor quality product is to advertise it heavily.” In other words, it is important to develop a reputation for good quality cattle. A quality product is something worth marketing.
There are many different perceptions of “quality.” Ultimately, a commitment to quality is needed in the cattle business. A cow-calf producer affects the marketability of calves when breeding stock is selected. It has been said that, “Any type of cattle can be sold at a price.” However, the goal is to produce cattle that can be marketed profitably. Breeders have the option to produce cattle to meet their own desires and preferences. Yet it is important from a marketing standpoint to produce cattle to meet the desires of potential buyers. Auction market studies in Kansas and Arkansas have shown that a “good” feeder calf that is rewarded by top of the market prices has the following characteristics: 1) medium or large frame; 2) muscle score 1 or 2; 3) weaned and healthy; 4) moderate flesh and fill; 5) dehorned, castrated, and vaccinated; 6) desirable breed composition; and 7) ready to eat and gain weight.
Producers who work to achieve an industry reputation for quality cattle will be in a position to attract more potential buyers to their product. For instance, a producer whose calves perform very well in a feedlot and on the rail may create opportunities where feedlots familiar with the producer’s calf performance history and potential will bid on or offer to partner on the producer’s feeder calves. With an increasing number of cattle being marketed on value-based carcass grids, the cattle that have documented potential for added value on the rail are worth more as feeder calves when marketed to capture that added value.
Information is worth money in the cattle industry today. Useful information for marketing purposes may include: 1) cattle identification/ registration number; 2) pedigree, breed composition; 3) individual or group birth date; 4) weaning date; 5) performance information or herd history such as actual and adjusted weights, ratios, feedlot performance, carcass data, and ultrasound body composition scan results; 6) expected progeny differences of calf or sire; 7) management practice specifics concerning creep feeding, nutrition, weaning/ preconditioning, and herd health programs; and 8) reproductive performance information such as bull breeding soundness evaluation results, pregnancy diagnosis results, and breeding dates. With information gathering and sharing opportunities seemingly endless in the beef industry at present, why leave money on the table by not collecting and marketing valuable cattle information?
Source: Jane Parish, MSU Extension Beef Cattle Specialist