Market Closeout
The good dog effect.
Growing up, I had the opportunity to ride good, solid, ranch horses. At the time, we thought they were special. They were dead broke and we could do just about anything we needed to get done on them. We roped off of them, played cowboy polo, and did everything from gymkhanas (pattern racing/timed games) to horse shows. Truth be known, we were pretty proud of them.
Like every ranch, we had a few dogs. They were more pets than cowhands, but they didn’t create any problems and were more help than harm most of the time when we were moving cows.
My hometown had one of the neatest Western stores you could imagine. It was called Cactus Jack’s, and we bought our boots and cowboy hats off the rack for as little as possible. It made sense. We were young, we were still growing, and our budget constraints limited the quality we could buy.
Quality matters, especially when the good ones increase profits while mitigating risks.
I was plumb satisfied with my horse, my dog, my boots and my hat; but something happened along the way that changed all of that. I think it started with the horse I purchased shortly after I turned 16. This horse was a different kind of horse. He cost a lot more, but he had been ridden by some very good hands, and he was bred to be an athlete.
Those of you who ride understand when I say this horse was light, he was supple, and he was an entirely different kind of athlete. You didn’t guide him when working cattle, you let him work the cattle.
Not long after, we got a Border Collie bred to be special. She was. I have no idea on the proper way to train a cow dog. Nevertheless, this dog was smart and “cowy” enough that she ended up becoming a great hand despite our lack of knowledge.
A similar story could be told with the pure beaver custom-fit cowboy hat, and that first pair of well-made exotic boots. They not only made life more enjoyable, they helped get the job done in a far more comfortable way than we had ever experienced.
I’m telling you these stories because they illustrate a very important concept. Once you own a good horse, a good dog, a good hat or a good pair of boots — there is no going back. If choosing to walk or to ride those old ranch horses I used to admire, I would rather walk. The good ones kind of ruin you.
Owning cattle is not much different. You don’t mind that waspy, old, sale barn cow, until you have owned a really good one.
We are even seeing this in the feeding industry. Many a feedlot manager looked at our business as a commodity business. They considered any set of calves to be a good set if they made money on them or vice versa. Then comes along record quality spreads and $8-per-bushel corn. Suddenly quality matters, especially when the good ones increase profits while mitigating risks.
I can’t imagine saddling up an average horse every day anymore. Similarly, cattle feeders who have fed AngusLinkSM-enrolled calves are finding it harder and harder to return to purchasing commodity (average) calves.
Capturing premiums is more addictive than owning a good dog. That is why it is not surprising to see the record growth that we are experiencing with the AngusLink program. I call it the good dog effect. Once you have a good dog, it is really hard to own a bad one.
Editor’s note: Troy Marshall is the director of commercial industry relations for the American Angus Association.
