Grid Marketing Continues to Gain Popularity in Cattle BusinessTue, 01 Jul 2014 15:58:32 CDT
Grid marketing and good cattle work hand in hand. Cattle feeder Sam Hands of Triangle H of Garden City, Kansas says they take on more risk because we retain that ownership through the packing plant.
"In our case we have found it be very beneficial and rewarding financially to capitalize on that quality," Hands said. "So, I think as the industry has worked to raise the quality of their cattle that has been there way to accomplish and realize the return."
Even as national quality grades have increased, the value difference between higher grading cattle and their select counterparts has widened.
"The economics of anything works on supply and demand and it continually shows us there is ongoing growing demand for high quality product," Hands said.
A prime carcass has been worth as much as $314 more than a select when marketed on a grid in the past year. Most cattle fed at Triangle H are sold through US Premium Beef, which gives Hands an extra incentive to know the history of those animals.
"We look a lot at the genetics of cattle that come into our feedyard," Hands said. "We don't buy very many cattle out of the sale barns in that we're very blessed in the fact we get to work with clientele of seed stock producers where their focus is on feedlot performance and carcass merit."
In light of that procurement strategy, Hands fully embraces this marketing and recommends it to others.
"There are those who prefer to stay with the cash market and that's their choice, but I think if you have better than average cattle its certainly rewarding on the quality side," Hands said.
This video news is provided by Certified Angus Beef LLC and the American Angus Association. Click Here to learn more about CAB.
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