Market Closeout
Formulate answers and execute the plan.
I was talking to an industry veteran the other day who had seen his share of cattle cycles and industry battles. We were listing off the challenges we face that ranged from drought to Biden and everything in between. He didn’t commiserate with me, or tell me not to worry about those things that I can’t change. He responded with an interesting way to look at things.
He began by saying nearly every day of my life and for every day of my father’s and grandfather’s lives, we have been facing the same problems — market prices lower than we would like, politicians instead of statesmen, demagogues, activists, an uninformed electorate and a biased media. Of course, that is just on the political side. A similar list could be developed for everything from the weather to beef demand.
As he saw it, the positive thing was that despite the fact that even though there was a plethora of people running from God, common sense and the laws of the universe that lead to success, there was a silent majority that not only avoided destruction but, in the end, also kept us moving forward. His point was there had to be a better way to deal with the threats, but we should recognize the current system has kept us out of the ditches — at least to this point.
He went on to say that he had gone from being all-in, volunteering for everything he could on behalf of the industry, to getting burned out and deciding to focus on nothing but his business, his customers and his family — assuming someone else would carry the burden. Eventually, he found a happy medium, paying back to the industry and taking care of his own business. He found that he felt he owed the industry, and serving it was gratifying and necessary, but that it paid off by exposing him to new ideas and thought processes.
His next point was the one that really resonated with me. He said we talk too much about time management and working hard in this business. Nearly everyone does that. It is about being intentional about what we do. Are we investing our time and resources on the things that really position our ranches for success?
He made the point there were three main focuses of any operation — marketing, genetics and management. Management can be divided into several key buckets: health, nutrition, cost management and day-to-day. His point was that he sat down and tried to quantify the effect of these areas and then compared that to how his time was being spent. When he did that, he discovered the two were almost inversely related. When he aligned his time with the activities that had the most effect, his operation took a quantum leap.
Many of you are going into the fall calving season, which also means that breeding season is just around the corner. This gentleman told me before each calf crop hits the ground he asks himself, “How can I maximize the profit from this calf crop?” and then executes the plan. Prior to breeding, he asks himself what genetics will be necessary to move his operation forward. Those questions sound pretty straightforward, but they are more complicated than they seem. If we can help you formulate the answers or execute the plan, please don’t hesitate to give us a call.
Editor’s note: Troy Marshall is the director of commercial industry relations for the American Angus Association.
