Adding value by sales to the consumer
John B. Hall, Ph.D.
Extension Beef Cattle Specialist
Delmarva Farmer
Last month’s article focused on adding value to feeder cattle. This month will finish the series with a discussion on adding value by selling directly to the consumer or being part of a group that is involved in direct marketing. Remember from last month that value-added beef production means different things to different people. Quite simply, value-added is a procedure or process that increases the value of your product to the customer for which they are willing to pay additional money. Also remember, that this series is written from my perspective as a Specialist in Cow/Calf Management, not as a marketing specialist.
There are numerous ways to market directly to the consumer, but for this article let’s discuss two broad categories: Pasture to Plate Alliances and Direct Marketing. Value is added in these programs by the cow-calf producer having an economic stake in the final product sold at the retail level. If the product sells well and acceptance is high then the cow-calf producer shares in the profits, which should result in greater income. If sales are poor then the cow-calf producer accepts a portion of the loss and income at the farm level is decreased compared to selling feeder calves.