The Link
A good reputation provides upside opportunity even in a down market.
Sit in on any calf sale — either at a local sale barn or on a national video broadcast — and you will see that the majority of cattle bring relatively the same price compared to similar sex, weight and conditioned cattle selling that day. While it’s easy to think this “average” sale price is picked out of thin air, in most cases it is determined using a multitude of different variables, all of which impact a buyer’s potential to profit when they ultimately sell the cattle either to a feeder or a packer.
A cow-calf producer’s calves’ ability to perform well for the next segment of the beef chain plays a significant role in their ability to build a good reputation.
If you pay attention throughout the course of the sale, you will also probably notice a handful of cattle selling that “Ring the Bell,” simply meaning they bring significantly more money than similar-type cattle selling that day. Often, these sets of feeder calves come from producers who have successfully earned good rapport with buyers who have purchased their cattle in the past because they performed well. There is less risk in purchasing reputation cattle because more of the variables affecting the buyer’s profitability potential are known. This results in less speculation and higher confidence. Buyer confidence can translate to their willingness to give more money on sale day (if they have to).
A cow-calf producer’s calves’ ability to perform well for the next segment of the beef chain plays a significant role in their ability to build a good reputation. A good reputation in the cattle business is something that is earned over time, and it isn’t as easy as just raising good calves. There are a lot of cow-calf producers who manage their calves in a way that consistently sets them up to perform well throughout the course of their lifetimes that can’t seem to establish — and benefit from — a good reputation. Regardless of if a group of calves end up making a feeder $200 or losing them $200, if they all look about the same on sale day and buyers have an equal amount of information on them (or lack thereof), they’ll typically go for that same “average” sale price.
For cattle producers who are doing all the right things — using a complete health protocol, providing good nutrition, using quality genetics and preconditioning their calves — a good first step in building a good reputation is making sure buyers are aware of who you are and the things you have done to add value to your calves. So, when they do perform well, the buyer knows to keep an eye out for them next year and for years to come.
The American Angus Association’s commercial programs Angus LinkSM and AngusSource® can help you supply buyers with more information on your calves so they stand out on sale day. These programs provide you marketing support to get your cattle in front of a larger audience of prospective buyers to help you begin building that good reputation.
If you’re not raising average commodity-type cattle, don’t allow them to be marketed that way, unless you're satisfied with getting commodity-type prices.
Editor’s note: Chris Engel is the director of Angus Link for the American Angus Association.
