1. How do you forecast the factors that will
be driving the cattle industry 24-36 months from now when planning this
year's breeding program?
|
Whether we like it or not, every breeding program is a
forecast of the cattle industry 24 to 36 months out. The
cattle market operates within two major cycles or trends.
The traditional 7 to 10 year cattle cycle of expansion and
liquidation and the broader long term trend of consumer
preference. It is this long term trend that seedstock
producers must address when planning a breeding program.
Consumers preference for branded products is extending
from the grocery shelves to the meat counter. Packers are
offering premiums for carcass qualities they want in their
particular branded product. As value based marketing
continues to grow in the beef industry, size and color of
the animals will diminish as factors earning premiums.
The genetics of the animal and the management programs of
the producers will become more important. To be prepared
for branded beef, we base our breeding program on actual
carcass data from our feedlot steers, ultra sound data on
our bulls and the production and carcass EPDs.
|
| 2. What primary sources of industry
information (government, industry, personal, etc.) do you use and value
when projecting the future trends of your customers' needs and desires? |
Our state land grant University, through its extension
education programs, does a good job stating the current
trend and how it may influence the future of the cattle
industry. Industry publications such as Beef, Feedstuffs,
etc. and breed publications often have articles with
insight into changing industry trends. Probably the most
valuable information comes from our experience selling
finished cattle on a carcass bases and seeing the premiums
and discounts cattle earn from different sire groups. As a
seedstock producer it is necessary to stay current if we
are going to be of value to our customers. With current
information we have an opportunity to share in the
value-added returns offered in a changing beef market.
Otherwise, we will be increasingly limited by marketing an
undistinguished commodity.
|
3. What steps do you take to incorporate your
customers in
your breeding decisions?
|
We are always seeking feed back from our customers. Very
few operations can stay in business without repeat customers and good word
of mouth. We call or visit each
customer at least once a year to get their thoughts on our
bulls. We also try to keep track of our customers calves
once in the feed lot. Without this information it is
impossible to know if we are achieving the goals of our
program.
|
| 4. What steps are you taking to create value for your
cattle your customers will be marketing in the future? |
We encourage customers to market their calves either by
retained ownership or by participating in one of our
feeder calf sales. We finish the steer mates to the bulls
we offer customers and sell them on a carcass basis. The
carcass information gathered and the extra profits
available by value based selling is shared with our
customers. For those using a custom feeder we can arrange
financing to handle cash flow requirements. We offer the
carcass data from our feeding programs to cattle feeders
who buy our bull customers' calves. By making information
regarding genetics, management programs, vaccinations and
past carcass data available, feeder calf buyers are
willing to pay a premium for these calves. Over the years
the sales have grown in popularity with both our customers
and feeders.
|
| 5. What is the most challenging part of creating a
successful and long term breeding program? |
Creating a breeding program is easy. Everyone from your
spouse, employees, neighbors and even your old maid aunt
in Chicago will tell you what you should do. The
challenge is to develop a breeding program that relates to
your production facility and marketing ability and then
follow the program in spite of friends advice and good
intentions. The goals of a breeding program aren't
achieved by simply stating them. Just as you can't drive
from Chicago to Denver by simply pointing the car west and
pressing the accelerator, you must allow for traffic,
turns in the road and the necessity to rest. A breeding
program is no different. It requires constant evaluation
of its progress, the willingness to make change when
necessary and at the same time not lose focus of the
program's long term goals. |
|
|
a few thoughts