PRESIDENT’S PERSPECTIVE

Endeavor to Persevere

by Jeremy Jackson, President, International Brangus Breeders Association (IBBA) president

Most of you will remember the title to this article as the Chief Dan George line from The Outlaw Josey Wales. I thought this title was pretty fitting for what we are all seeing with our bottom line. Much of BRANGUS Country is in drought. Corn, diesel, fertilizer, labor and basically every other cost we have are sky high. Fat steers are selling for around $1.40 and feeders are trading at around $1.60 on the board. Those steer prices would be great if our input costs were in line. Unfortunately, they are not.

I’ve never been accused of being a purveyor of sunshine and rose water. But, there is a bright spot or two in this deal. The packers have plenty of fats now, but, that’s not going to be the case much longer. The feedlots have been full because the wheat was a wreck in most of the country this winter. Killer cow prices have been great and that has caused people to clean up their herds. The stage is set for super high calf prices in the near future. God willing, our input costs will get better and help our bottom line when this happens. In the meantime, we all have to find profitability in any place that we can. Let’s talk about a couple of these.

First, the farm to table market is thru the roof. Most of the time, when we send the steer mates of our bulls to the sale barn or video auction, we are price takers. For those of us that choose to feed out our own steers for butcher calves at custom lockers or USDA inspected facilities, we are price makers and not price takers. If you choose to take this route, make sure that you know your input costs and make your final pricing once you know your total cost. Also, make sure you have a market for the steers prior to putting them on feed. We have a vastly superior product when compared to most of the industry. If you feed our cattle properly and verify the results through ultrasound, you can assure your customers that you are providing them with top quality beef when you sell it to them.

Second, if you choose to sell your steers at auction, BRANGUS has a better deal for you. The BRANGUS VIGOR Project has been showing great results. The commercial marketing committee has done an excellent job of putting together a program that’ll work for large and small producers alike. If you can put pots of cattle together, then just contact the office and we’ll send you the guidelines and help you get hooked up with the feedlots or backgrounders that can add value to your calves. If you are a smaller producer, give us a call and we’ll try to get you hooked up with your state association to model what some Arkansas producers did this spring. A group of Arkansas members pooled their cattle using the BRANGUS VIGOR guidelines and added bidders and value to their cattle when they sold them.

In the face of adversity, our cattle are holding their own. Registered female sales this spring have been excellent while our bull sales have been respectable. Keep your head up and remember why we are doing this. I’m reminded of it every day as my children work by my side. My wife and I know we are not only raising cattle but raising the next generation of BRANGUS producers. Endeavor to persevere and GO BRANGUS!