CAB Mythbusters
What they thought they knew that just ain't true.
This industry isn't just David and Goliath. We have farms and ranches of all shapes and sizes, and we celebrate that diversity.
I've said it before: When it comes to feedlots, it's not about the size. I'd echo that statement today. Yet some people still think we're just for the "big guy" or the "corporate farms." But at Certified Angus Beef LLC (CAB), we're an equal opportunity market signal. Find out what I mean by that as I bust this one:
Myth: I have to be a big producer to participate in CAB premiums.
Fact: Any producer of any size can aim for quality and reap rewards.
You've probably heard me say this before: CAB was founded in 1978 to increase demand for Angus cattle by creating pull-through demand for consistently high-quality branded beef. Through market price signals, CAB creates premiums for fed cattle, feeder cattle and all Angus cattle with predictable and documented genetics.
(Look back to this past Mythbuster post if you want a refresher on how cattle earn CAB premiums.)
Imogene Latimer inspired Missouri producers to cooperate to send load lots to feedyards.
That's not to say that being smaller presents no challenges. The good news is that many folks have gone before you and have drafted several "how-to" plans.
Take the NEMO (Northeast Missouri) group, which was spearheaded by veterinarian Imogene Latimer. Here's an excerpt from the story that then-intern Chelsea Good wrote a few years back:
The group commingles its calves for backgrounding, then sells to feedlots in uniform lots while negotiating to get information feedback. It also sends some calves to Iowa's Tri-County Steer Carcass Futurity.
"We wanted to see the data and look at how we could improve," she says. "Really, we just wanted to learn, and if we make some money in the process, that's great."
A more recent example is The Beef Connection, a company started by Bob Sand where all stakeholders pay a membership fee. Then they have access to information, networks and marketing outlets.
Bob Sand, founder of The Beef Connection, helps smaller producers create and capture more value.
"This system is built for these smaller guys," he explains. "When we pool together, it gives them just as much power as the big guy. When I have all the data on their cattle, I can help them pool like cattle to fill a truck, then organize them to send to the right feedlot."
Others we have written about, like a handful of friends commingling cattle in West Virginia, are less formal. Some feedlots have special programs for smaller producers or offer a variety of pen sizes.
If that's not your style, many state universities have small-scale value-discovery programs that accept as few as five head, so anyone can learn how their cattle will feed and perform on a grid.
Oh, that "big guy?" I didn't mention him because it seems I only hear this myth from those who classify themselves as "small producers." If you disagree, let me know, and I'll write about all the ways CAB works for those larger farms and ranches, too.
May your bottom line be filled with black ink.
Editor's Note:To get a regular dose of this feature, visit the Black Ink Blog at www.blackinkwithcab.com.
