MARKETING...
U.S. Cattle on Feed Down 2%
Cattle and calves on feed for harvest in the United States for feedlots with capacity of 1,000 or more head totaled 9.6 million head on Aug. 1, 2009. The inventory was 2% below Aug. 1, 2008 figures.
Placements in feedlots during July totaled 1.86 million, 13% above 2008 figures. Net placements were 1.82 million head.
Marketings of fed cattle during July totaled 1.93 million, 5% below 2008. This is the third-lowest marketings for the month of July since the series began in 1996.
Other disappearance totaled 43,000 during July, 4% below 2008. This is the lowest other disappearance for the month of July since the series began in 1996.
Darrell Mark
In the Cattle Markets
Distillers’ grains market offers buying opportunity
Prices for ethanol coproducts typically find their yearly low price in August or September, when cattle-on-feed numbers are seasonally smallest (consequently lowering demand for feed coproducts).
Last year, the seasonal drop in coproducts didn't materialize as cattle were pulled from drought-stressed pastures early and ethanol plants processed less product as corn reached $7 per bushel (bu.). This year, however, it appears the seasonal trend is back, and now may be a good time to consider purchasing or contracting distillers' grains. Read more.
Add Value to Your Cull Cows
As fall arrives, cattle producers are getting ready to wean and market their calves. At the same time, producers are deciding which cows met performance expectations and which cows they will cull. Many producers sell their culls immediately, but that might not be the most profitable marketing strategy, said a University of Missouri (MU) Extension livestock specialist.
"When deciding whether to sell cows when culled or at a later date, first consider the seasonality of cow prices," David Hoffman said. "Typically, cull cow prices are lowest during the fall and early winter and highest in late winter and early spring."
Hoffman recommends adding weight to thin cows. "With an abundance of high-quality fall forage, cull cows can rapidly replenish their muscle and body mass," he said.
Adding cheap weight gains with proper supplementation will result in a greater carcass grade. Higher-yielding cows typically earn a premium — currently $5-$8 per hundredweight (cwt.), Hoffman said.
You will want to sell cull cows before they become excessive in their body condition (BCS of 8 or higher), as they will be discounted. Plan to market cull cows at an optimum BCS 5-6.
When adding value to cull cows, select the best candidates to retain, he said. Heavy-conditioned, unhealthy or older cows are generally poor candidates for adding value.
Consider cull cows as a valuable asset to your operation, Hoffman said. Generally, adding weight or changing marketing time will increase the value of your cull cows and result in greater return for the cow-calf producer.
American Angus Association® Launches New Ad Campaign
The American Angus Association has launched its new advertising campaign this week, emphasizing the economic advantages of Angus and the services of the Association.
The multimedia campaign, which leverages opportunities in print, Internet and television, marks a departure from the Association's traditional print-based approach to breed promotions.
"By spreading our message across a number of opportunities, we believe our message will reach a wider audience of producers who should be using Angus genetics to improve their bottom lines," says Bryce Schumann, Association CEO. "In developing our campaign's message, we used information developed by Certified Angus Beef's Supply Development team, which has evaluated economic data on hundreds of thousands of cattle."
The campaign will expand in early October with a strong advertising presence in state, regional and national beef publications.
The Association's Internet presence will also be increased through its partnership with Cattlenetwork.com, a leading news web site for the U.S. cattle industry.
The first of several television commercials, which will be aired this fall on RFD-TV and by other satellite networks, can be viewed by clicking on the window below.
"This is a new approach for the Association, because we're inviting anyone who has a stake in the Angus business to help us spread the word about this great breed of cattle," Schumann adds. "Anyone who has a web site can incorporate the video into their own site. If you have questions on how to do so, we encourage you to talk to Rich Masoner, manager of API web services, who can provide you with assistance. We will release other Internet-based videos later this fall, and let the industry know they're available for widespread use."
You may also view the new commercial spot at www.angus.org.
For more information, contact Eric Grant at egrant@angus.org or 816-383-5118. To add this commercial spot to your web site, contact Rich Masoner at rmasoner@angusjournal.com or 816-383-5239.
U.S. Crop Yields Continue Climb
The U.S. Department of Agriculture National Agricultural Statistics Service (USDA-NASS) released the latest Crop Production report Friday, Sept. 11.
The report raised the national average corn yield 1.5% [2.4 bushels (bu.)] above a month ago. If realized, the national average corn yield for 2009 will be record-large at 162 bu. per acre (prior record was just more than 160 bushels per acre in 2004). U.S. corn production in 2009 is now expected to be just below 13 billion bu., the second-largest ever. Expectations compared to a month ago also were increased for U.S. soybean yield (up 1.4% from August).
Based on evaluation of the corn production numbers, the USDA World Agricultural Outlook Board (WAOB) has lowered its corn 2009-2010 crop marketing year price by 15¢ per bu. in the last month. For the 2009-2010 crop marketing year, USDA-WAOB now has corn prices posting a year-to-year decline of more than 70¢ per bu. (decline of 18%). If realized, that annual corn price will be the lowest since 2006-2007.
For soybeans and soybean meal, USDA-WAOB reduced its 2009-2010 marketing year price forecasts slightly compared to those made a month ago. Like corn, the forecasts would be the lowest annual average prices in three years.
Give Consumers What They Want
When you walk into a grocery store, you're surrounded by choices of several branded beef lines. That's a relatively new development, promising better beef, and it's been most apparent in just the past 10 years.
Certified Angus Beef LLC (CAB) Beef Cattle Specialist Gary Fike is excited about the opportunities beef branding brings to the ranch. He shared that with cow-calf producers at the Oklahoma State University (OSU) Master Cattleman Summit in Stillwater, Okla., last month.
"Consumers have gone from a choice of just a commodity program offering retail cuts to a range of branded beef products that offer a more consistent, high-quality alternative," he said.
The good news for consumers is also a rewarding prospect for producers.
"There is a great opportunity for producers to get into these branded programs," Fike said. "Most of them offer some type of premium, whether that's for breed influence, high quality, lean yield, natural, organic or a combination thereof."
Producers who target the 10 science-based specifications required to hit the CAB brand target can share in the market premiums that add $500 million to the cattle business each year, he said. Even if the economy suffers, cattle producers can take advantage of a stable premium market.
"Targeting a specific market will improve producer income, and it should also give them pride, knowing when they go to the store their cattle are supplying that brand," Fike said.
The first step for producers moving toward a branded program is to look at their herd genetics and target a program, he said. Next, look at how the cattle are managed and where those practices will fit within a brand. With these adjustments, a producer can market more value-added cattle to receive premiums.
"Producers who can target the genetics and production practices of branded beef can get the premiums in the marketplace," Fike said.
There is room for growth in the branded beef market, he said, as long as consumers demand consistent, high-quality satisfaction from their beef products.
Sara Snider
The Source
Weighing the costs and benefits
Enrolling your calves in a U.S. Department of Agriculture (USDA) Process Verified Program (PVP) like AngusSource® or Gateway costs money and takes time, but the benefits can far outweigh this investment. Read more.
Word-of-Mouth Marketing is Effective
Marketing a business is one of the most important tasks for the business owner. The best person to market the business is the owner.
Glenn Muske, Oklahoma State University (OSU) Cooperative Extension interim associate dean, assistant director, family and consumer sciences, said part of that marketing should use a very effective marketing method: word-of-mouth.
This type of marketing is often overlooked, but having your customers, employees and community tell your business' story is a great marketing tool, Muske said.
"Today, when business marketing is discussed the terms 'buzz' or 'social networking' are often used. These terms arose from today's technology for old-school word-of-mouth marketing," Muske said. "Think about it, who can better tell your story than a satisfied customer? Word-of-mouth marketing is the most effective means to advertise a brand."
As an owner, Muske suggests the following to maintain a word-of-mouth marketing campaign. Read more.
Miranda Reiman
CAB Corner
Give calves a clue.
A little advance planning on your part can go a long way toward the dawn of a weaning day that is less stressful, and thus more successful. The preparation needs to start well ahead of separation day.
And if you're selling shortly after weaning, it still makes good sense to get the most gain and most pounds to sell. Read more.
USDA Market News
Click here for Livestock Cattle Reports, including Slaughter and Feeder and Replacement Cattle Reports.
Resources for Niche Markets
Click here to learn more about producing natural and organic beef
and/or grass-fed beef.
To view the Angus Almanac, a complete list of Angus sales, click here.