Wes Tiemann
Association Perspective
Selling cattle by the pound or a price per pound?
"I don't get paid for carcass traits," is a quote I often hear traveling the country. This is really no shock when most cow-calf producers sell weaned calves and get paid for the weight of the animal across the scale. This is a practice that has been done for several generations. It has certainly served a great purpose in price discovery in cattle and still does today. At the same time, it has perhaps propagated a disconnect in the beef industry between the cow-calf producer and the consumer.
On the surface it certainly seems we get paid for what's pushing the scales down, and we do. However, this is only the beginning of the beef chain. It's easy to say, "It is not my problem" after they go through the ring, leaving the responsibility for end product acceptability up to someone else. Unfortunately, we give ourselves too little credit on the impact our operation has on the entire beef chain.
What we produce is what the feedyard has to grow. What we raise is what the packer has to harvest and what the consumer has the choice to eat. Cow-calf producers, along with the consumer, are the only ones who can directly affect the entire beef chain. The consumer drives the currency, and the cow-calf producer drives the quality of the product.
The fact that Certified Angus Beef LLC (CAB) has been able to sell record volumes of product at historic prices certainly paints a descriptive message that the true value is in a superior-tasting product. Generating a product that is efficient for the producer and satisfying to the customer is our ultimate goal.
Breeders who utilize progressive genetic selection have allowed a lot of cattle to ride the coattails of a rising beef market. Brands like the Certified Angus Beef® (CAB®) brand and many others will not be novelties, but will become the norm in the near future. So position yourself to capitalize on these markets and reap the rewards that are out there, because somebody else will.
Many have taken this opportunity to attempt to diminish the need for higher-quality products because the Choice-Select spread is so tight. That shouldn't mean that we make a lower-quality product because of it. Markets fluctuate, the spread opens and closes, and the beef cycle is too long to try to react to any market moves. The chance to move more high-quality meat at lower prices has got to be a positive impact on consumers. We will be rewarded when economies allow.
Let me use an analogy to summarize the big picture of this message. As a regional manager for the Angus Association, I don't directly get paid for breeders' success in Iowa and Missouri — just like many of us don't directly get paid for carcass traits in our cattle. However, it is in my best interest that I do the best job possible for my region to help ensure their future and livelihood, which in return secures mine. The same can be said for cattle producers whose best interest lies in creating a product that is satisfactory and consistent to consumer demands. This is the only way to secure long-term existence in the beef business. So we need to ask ourselves, are we really selling cattle by the pound or a price per pound?
Editor's Note: Regional Manager Wes Tiemann covers Region 2, including the states of Iowa and Missouri. Click here to find the regional manager for your state.
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