Is your Beef Worth More

[ValueChainFX]

I would like to know, how many Beef guys believe that their product is worth more, if yes why they believe that, a if they are doing anything to get the extra from their product or have plans to?

[cowman]

The fact of the matter is beef is a commodity. There are ways to get more for your beef I suppose and lots of people have. The fact remains that the majority of the beef has to go into a market that has to compete with other commodities(pork and chicken). The alternative to getting more for your beef is to become a low-cost producer, which for the majority of us is the only way we will survive. It takes a lot of work to get a branded product or break into a specialty market. Maybe better to concentrate on doing a good job of raising beef and watching the bottom line.

[ValueChainFX]

Cowman:
I totally agree with what you have to say. The simple fact is that beef although looked at as a commodity product, is not as much a commodity as we may think. When large packers talk of commodity products they are talking about the larger breaks, chucks, ribs, loins etc. The market for special beef products is not that hard to see, it is just more difficult to supply. But this is the market for those who raise a special product, be that natural, organic or just plain good beef. The large packers have a very hard time meeting the demands for many export products such as Digital muscle, boneless chuck short ribs, 2X2 lipons, chuckeye rolls, flat irons, super pastrami, steak ready strips, and chuck flaps to name a few. These products slow the line and are hard for the big guys to keep consistant and package the way a customer would like them.

I agree that as a producer you must concentrate on your product, but along with you there are many others up and down the supply chain that would love the opportunity to service this value added market. If anyone in the industry thinks that they will be able to do this all by themselves then no wonder they feel over whelmed. The market is there and the resources are there for the organization of just this type to be formed.

Cowman you have the potential to make it happen and yes, cut your costs, raise your margins and produce a product that challenges you only to remain consistant and continually raise the bar through the open communication of everyone in the supply chain.

Good luck

[cowman]

Value Chain:
I actually can see the potential of these specialty markets but it's just not for me. I have enough on my plate and I like how I raise beef. I have moved consistently to become a low cost producer but how far can a person go? Like I'm way to old to start feeding my cows with horses! As far as the natural or organic thing goes,it is, in my opinion, a bunch of B.S.! I like using anti-biotics, rumensin, implants etc. because they give me more calves and more pounds to sell in the fall. I do not like being continually gouged for fuel, fertilizer, chemicals and machinery. I can't really see how I can get a lot more for my feeder calves than the market pays unless I go to a specialty market.

[ValueChainFX]

cowman:

You answered your own question, you have to move to a specialty market, however, that does not mean that you have to change the way that you raise your product, but it does mean that you would have to ensure that your product has all the marketing potential possible used to move your product into the specialty market place. Most of it is done through documentation of what you are doing, the ability to trace back, and the product being produced the same way time and time and time again! Aligning yourself with the right partners in the industry. (partner being someone that has a steak in the same market) and being willing to stand behind your own product.

The world market is ready for some innovative change, but that does not mean that change turns your operation upside down. In fact it may mean just showing off the skills YOU have doing what you do best! It may take everyone in the supply chain to make that happen, but you are not the only one that feels gouged and betrayed by a disfunctional market place!