Value-based Marketing of Cattle: More Than Just Carcass Quality

Value-based Marketing of Cattle: More Than Just Carcass Quality

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An increasing number of beef producers want the price they receive for their cattle to reflect their use of above average genetics in their cowherds. This is more commonplace as producers, feedlot operators and meat processors become more aware of the importance of genetics and good management practices.

Genetics not only relate to fertility and performance, but also to carcass qualities and the ability to meet the high to premium specifications for beef, as set by retailers and consumers.

A Marketing Tool

Value-based marketing (VBM) is a management and marketing tool that rewards or penalizes cattle, based on carcass merits. It provides an opportunity for producers to capture greater economic rewards for using above average genetics. If a producer raises a superior calf that yields a superior carcass, he receives a premium price. Producers who want to capitalize on premium markets need to evaluate the performance of their cattle, both in the feedlot and on the hook. To do this, producers require more information concerning the entire production process, from conception to consumption.

Producers must know their costs of production to be successful using VBM. Many VBM programs involve leaving cattle on feed longer; sometimes to the point where performance and feed efficiency cost more than what is received from carcass premiums.


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