The Link
A little bit can go a long way.
“Adding value” is a term I feel is used more frequently today than ever. Maybe it isn’t used any more than it was in the past, but we see it more often while scrolling the internet. Michael Boland, an adjunct faculty member at Kansas State University’s Department of Agricultural Economics, explained value-added agriculture well in an article written for the Agricultural Marketing Resource Center: “In general, adding value is the process of changing or transforming a product from its original state to a more valuable state.”
“The bottom line is profitability. If you’re not paying attention to the metrics that affect it, you don’t know if you are, in fact, accomplishing it.”
Change and transformation can cost money, but they don’t necessarily require it. A lot of producers today will take steps to add value to their calves in hopes of being able to sell them for more. However, one question is important to ask: “What is the cost?” Selling price doesn’t pay the bills — profitability does.
Dusty Abney, a nutritionist at Cargill, while speaking at the 26th Cattlemen’s College® in New Orleans, La., said: “The bottom line is profitability. If you’re not paying attention to the metrics that affect it, you don’t know if you are, in fact, accomplishing it.”
At the end of the day, if what you receive on sale day for your calves is less than what it cost you to raise them, you don’t break even. That is not sustainable. Likewise, if you receive the same price for your cattle as someone with significantly lower input costs — sale day, sale location and market status the same — it begs the question: “Is it worth it?”
There is a long list of things you can do to add value to your calves. Some of them cost more than others, and some don’t cost a thing. There are a multitude of resources out there that discuss in detail such opportunities that I won’t rehash here. Whether you take several steps to add value to your calves or just a couple, make sure you are doing all you can to get a positive return on your investment.
Enhancing (or creating) your marketing plan (see the March "The Link" column on marketing instead of selling) to differentiate your cattle from others’ may be all you need to get differentiated price. Just a little time and effort can aid in increasing buyer awareness to increase interest in your cattle that can lead to more participating bids on sale day. In turn, more bids lead to more dollars for your cattle. If you can gain one additional bid on your calves, the math favors your effort.
The American Angus Association®’s feeder-cattle program, Angus LinkSM was created to help you capture the value you have added to your calves — and it works across all beef breeds, not just Angus. In addition to communicating to buyers the genetic merit of your calves, you can also define the other steps you have taken to add value. It is more than just another tag program. When you enroll in Angus Link, the Association will provide you marketing support (if you choose to make your enrollment public) to help give calves exposure to a larger audience of prospective buyers.
Angus Link has a dedicated field staff that has been actively working within the fed-cattle segment to increase program understanding and demand for enrolled cattle. They will work closely with you and the sale barn or video sale company you are marketing through to draw added buyer interest for your calves. In addition, your enrollment will be posted on the “Find Cattle” page of the Angus Link website — which is the second most viewed page on the site — as well as include your calves’ marketing certificate in an email that is sent out weekly to more than 800 cattle feeders and buyers.
Let us help you get what you deserve on sale day. To learn more, go to www.anguslink.com or call 816-383-5100.
Editor’s note: Chris Engel is the director of Angus Link for the American Angus Association.
