Commercial Marketing: Connecting the Cow-Calf and Feeding Sectors - by Nate Smith

As we pass the halfway point of my �rst year with Top Dollar Angus, it seems an appropriate time to analyze and discuss what those actively involved in the marketing of commercial cattle are sharing with us and how helping them connect buyers and sellers is still the key to adding value for everyone involved.

The industry sectors I’m referencing are primarily the cow-calf and feeding sectors, two parts of the industry that rely upon each other for success, but that continue to struggle to connect and communicate with each other. As a company that strives to bring value to both sides of this relationship, it has been rewarding to hear from each side about what they feel adds value and use those discussions to help connect the two, while bringing value to both. With that in mind, let me share what we are hearing from both sides with a focus on what we are learning from the feeding sector.

Since joining the Top Dollar team in January, I have had the pleasure of meeting with many feedyard managers. Some operate smaller, privately owned yards. Others represent large corporate feeders with multiple locations. While the operations may vary in capacity, what weights and type of cattle are preferred, they do have similar thoughts to share with the people who produce the cattle

they feed. Several managers have shared that while quality has improved over the years, now more than ever, no one phenotypic trait can guarantee above-average performance. For example, in the past hide color could be an indicator of performance, but today scienti�cally backed data is the only way to truly have a glimpse into the potential of a particular set of animals. That data can come in multiple forms, with past close-out and carcass data being one example. While such data can be helpful, it does have limitations. It can only be used after harvest, is never 100% repeatable due to unique environmental in�uences and can be dif�cult for the cow-calf producer to obtain.

Feedyard mangers consistently agree that genetics do matter and any time they can obtain genetic data on a set of cattle, it is helpful to their decision making. They regularly communicate knowing the genetic potential of a set of animals carries tremendous added value as a risk management tool.

If the genetic potential is known, a manager now can make informed decisions that affect hedging and pro�tability. One manager recently shared that knowing a group is Top Dollar Angus quali�ed allows him to keep the animals hormone free, while still getting the gains and performance he needs. It also gives the feedyard manager the

con�dence provided by scienti�cally backed data to make the marketing decisions on animals with otherwise limited information.

During these discussions, the topic does come up around the emphasis on genetic selection for terminal traits. While managers do �nd these traits important, they were quick to express an understanding that maternal and balanced traits are critical to rancher success.

With this input from the feeding sector, it has been exciting to go back to cow-calf producers and share these thoughts and comments to help them improve. Bridging the gap between the cow-calf sector and the feeding industry sometimes requires an open mind. Some of our commercial cow-calf customers are surprised to hear those cattle feeders do want veri�ed genetic information and have already been leveraging available genomic data into their programs. After conversations with commercial producers about interactions with feedyards, it is exciting to see how those producers start to plan their future marketings by using what we do as a Top Dollar Angus team. Yes, we’ve learned a lot from our feeding partners!

And while there is still a gap between cow-calf producers and the feeding industry, it’s promising to have both sectors share ideas and observations that we as your Top Dollar Angus team can help communicate and add value for all parties involved. I look forward to continuing to

learn and help connect producers and all sectors of our industry, helping to bring value to all. •