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Why do we market cattle?

We found it necessary to create a process to streamline data collections to help producers reap the rewards of their improvements. Proper cattle marketing is not focused on just receiving the highest price. It involves the production of the animal to create something the market desires and moving the animal through the best marketing channels at opportune times. Unfortunately, many cow-calf producers simply sell their animals. They produce whatever can be raised, sell at the most convenient market and time with an end result of taking whatever price they are given. Yet, often they complain it is someone else’s fault if it does not meet their expectation.

Marketing means making informed decisions about how or what product to produce, where to market your product and when to price. This is done by creating a formal plan and tracking performance criteria along the way in order to achieve the desired results. As a result, marketers have some control over the price they receive. The first step in becoming an effective cattle marketer is to recognize all your alternatives and evaluate each in light of potential cost and returns, selecting the most profitable rather than the most convenient alternative.

A key item to remember in any successful marketing plan is the unit cost of production (UCOP). _DSC0163-2In fact, for many small or medium-size cowherds, the cost of production is a larger profit determinant than the marketing method. Regardless of the size of the herd, for cow-calf producers this means knowing the cost per pound of calf sold

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. The best way to make this determination is to begin with a budget. The emphasis is generally placed on $/cwt when an animal is sold. However, the cost per hundredweight sold should be considered because it captures not only total herd costs but also calf crop percentage and weaning weights.

To optimize your marketing ability data should be collected in order to represent the potential value of your cattle to the end user. Total Cattle Solutions offers a direct marketing program so that you can evaluate the performance of your animals through a network of potential buyers and feedlots in order to make the most profitable marketing decisions. Considering the things mentioned above we can forward contract the delivery of your cattle during optimal marketing times in order to take advantage of anticipation in the marketplace. However, the best marketing scenarios are created on a per herd basis to meet your individual needs and risk tolerance and should be discussed one-on-one.

If you have questions or would like to discuss your marketing needs further, please contact us at (931) 996-2253 or