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Agricultural News

Focus on Beef Quality Can Help Ensure Long-Term Profit Potential

Tue, 14 Jul 2015 16:30:04 CDT

Focus on Beef Quality Can Help Ensure Long-Term Profit Potential
In the cattle business, most decisions impact more than the immediate year's profitability. Certified Angus Beef brand president John Stika gives some advice for long-term success.

"As producers look long-term, as they try to make sure they're positioned for profitability over the long haul. It's important to not only look at what's important to you and your business, but to also look what's important to your customer and ultimately the customer that we all serve is the customer," Stika said. "All new dollars that flow into the beef industry, that we all depend on, at some point originate from a consumer who is willing to invest their money in our business by buying beef at the meat case or on the menu."

Cattle feeders needing to fill pens create higher prices across the board, but many still recognize it pays to be discriminating, Stika says.

"Controlling risk on your investment, is never more important than it is today when you look at the total equity required to be invested in a steer from purchase at the salebarn to sale to the packer," Stika said. "Any animal that I have more predictability about his performance and carcass merit generates more value to me as a cattle feeder and someone further down the supply chain than a cow-calf producer."

For a better shot at profit, make genetic and management decisions that benefit the entire beef chain, and keep records to document them.

"Things aren't going to be this tight forever and as the market continues to grow and the supply of cattle continues to grow moving forward, having that identifying reputation for producing quality cattle that can gain and grade will be worth a lot more moving forward than it is even today," Stika said. "

They will also help attract some of those new dollars to the beef business.

This video news is provided by CAB and the American Angus Association. Visit www.CABpartners.com or www.angus.org for more information.



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