The Sky Won’t Fall on Everyone
by Mike John, Director of Health Track
Cattlemen all have some Chicken Little in them, price drops tend to trigger emotional responses might not be
Leverage always shifts between these segments:
1. The Purebred Breeder,
2. The Commercial Producer,
3. Stocker or Backgrounding Operations,
4. The Cattle Feeder,
5. The Beef Packer, and
6. The Retailer.
The cow/calf segment has traditionally carried the least leverage. Until 2013 & 2014. This is because we are all VERY independent and don’t build critical mass with which to negotiate. However, there is hope for profit in the cow/calf segment, as long as we differentiate.
Technology has given us the ability to identify herd genotypes
through DNA testing and to choose the best sires to improve
them. Document practices like pre-conditioning and weaning,
and then communicate those properties to potential buyers.
That provides accurate predictability to feeder buyers who wonder if they should keep bidding on your calves.
At this part of the cycle, being a cow/calf producer of commodity cattle will keep you at the bottom of the price
spread. Talk to your MFA Feed Representative about PowerCalf and how we can help you rise above average.
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