Market Closeout

The priceless ingredient.

Commentary by Troy Marshall, American Angus Association

Ranching is one of the most challenging of all professions. There is no other profession that requires one to deal with so many outside risks — from the markets to the weather. Neither is there one that requires more total commitment to merely survive, let alone thrive. Nor is there another that allows one to feed the world and do so while leaving one’s environment and community a better place. Ranching forces one to work daily with all of Mother Nature, bringing us closer to our Maker.

Ranching requires the best from ranchers; it inspires them to live up to a code that is wholly unique. Of course, risk and danger are the inseparable companions of reward and honor. With all the hardships and frustrations that accompany ranching, I firmly believe ranching is the noblest career anyone can choose.

Wearing so many hats and facing so many challenges — it is universally understood that in this business we must constantly be students, willing to learn and change. In the small Wyoming town where I grew up, there was a savvy veteran rancher. Many people went to him for counsel, which he always gave freely. There was a young cattlewoman who had a particularly bad run of luck. She wasn’t getting what she paid for — the bred heifers were wild and terrible mothers, the ranch’s well was shallow and poor, and the bull was usually sore and laying down. She went to the rancher and said, “Tell me, sir, what shall I do to get the most value for what I purchase?”

The Savvy One answered, “A thing that is bought or sold has no value unless it contains that which cannot be bought or sold. Always look for this priceless ingredient.”

“But what is this priceless ingredient?” asked the young cattlewoman.

“The priceless ingredient of every product in the marketplace is the honor, integrity and commitment of the one who makes it,” Savvy One answered. “Consider his or her name before you buy.”

I appreciate the moral of that story because it reflects one of the primary goals of the AngusLink^SM program, validating the commitment and value of the efforts and inputs that you have put into your cattle. Reputation has always meant everything when it comes to marketing cattle. AngusLink is a way of creating a reputation for a much broader audience.

In addition to providing the documentation and validation of the value, AngusLink is also committed to helping producers capture value. Historically, ranchers don’t have a lot of time to invest in marketing their product. Producing it takes just about all the time we have. Yet, we all know about the myth of building a better mousetrap and having the world flock to your door to buy it. They must know about it, and they must be confident that it really will do what you claim it will.

Finally, there is a healthy and not unjustified cynicism about the whole concept of getting paid on value. However, I no longer share those concerns, as every segment of our business sells their product on a value-added basis. Seedstock producers sell their cattle based on genetic merit, feedlots sell on grids and formulas that differentiate their product, and of course restaurants and retail are differentiating their product more and more.

The feeding industry, obviously, has been hesitant to give away this competitive advantage. As was the case with other segments, once the genie was let out of the bottle, there was no way to put her back. In the long run, selling on value reduces risk, while increasing margins. Expected progeny differences (EPDs), grids and branded programs revolutionized the way cattle were marketed in the other segments. Now, programs like AngusLink will do the same for the cow-calf segment.

Editor’s note: Troy Marshall is the director of commercial industry relations for the American Angus Association.