Cattleman’s Chronicle Flying H Genetics
Fall Newsletter
2014
Vol.16
At the beef seedstock level, cooperative marketing is already beginning to take shape. A handful of new ventures that allow “like-minded” breeders to function as a large network or web of breeders full of interconnecting relationships and marketing opportunities are quickly developing. The macro or “big picture” benefits of these co-ops include all of the competitive advantages that come with the ability to leverage SIZE and SCOPE: greater control of highly valuable genetics, enhanced ability to offer superior customer service, and the capacity to offer a variety of premium based products in large, consistent numbers. Allied Genetic Resources, a cooperative based company designed and founded by tenured cattle industry professional Marty Ropp, is a prime example of these new ventures. Allied represents a network of over 50 elite seedstock producers from coast to coast. This group of forward thinking breeders produce and market over 5000 bulls selling annually across the U.S. It is the mission of Allied members and its founder to work with a coordinated efficiency to increase focus on extensive customer service options. These services will be essential to the success of the customers of “tomorrow”, such as offering quality in great volume, increasing profits through captured premiums, and adequate ong-term collaboration with multiple part- ly servicing new, dynamic beef herd needs.
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ners, a.k.a. cooperative marketing, has yet to gain a good foothold in the cow/calf sector of Beef Production Agriculture. In fact, it remains a bit taboo. Most producers have yet to see the benefits of implementing a business strategy utilizing size and cooperation to achieve premiums and efficiencies. At some point, a cooperative style of production and marketing will cease being an innovative strategy and become a prerequisite for survival.
Some of you may think that there are seedstock suppliers already doing some of these things very successfully on their own. And, you would be right. Most of the producers that belong to Allied currently service their customers at the highest level. However, they are still serious advocates of creating additional market stability through a collaborative system. Collectively, they understand the changing landscape in the beef industry and know it is in their best interest to be part of a larger, symbiotic unit that can offer even greater service and benefits in years to come. The advantage in competition and long term stability that exists in this type of collective marketing group is very similar to a large corporation.
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