Commercial Cattlemen's Symposium: Tackling Market Challenges Through Strategic Cattle Marketing

The 71st Annual National Red Angus Convention wrapped up in Lincoln, Nebraska, with a packed Commercial Cattlemen’s Symposium. On Friday, Sept. 13, academic and industry leaders took the stage, offering invaluable insights on a range of critical topics, equipping attendees with essential knowledge to navigate the future of Red Angus cattle production.

Derrell Peel, Ph.D., from Oklahoma State University, discussed the challenges and opportunities in the cattle market, highlighting the historically low cattle numbers. Due to drought, U.S. cow herds have shrunk to their lowest since 1961, likely resulting in the smallest calf crop since 1941. Beef production surged temporarily due to drought-induced liquidation but has since decreased slightly.

Peel noted, "We’re smaller than the market wants us to be," suggesting a need to rebuild herds, though the timeline remains uncertain. He also emphasized the impact of rising feed costs on cattle, with feedlot inventory stable but fed cattle numbers not declining as expected.

A shift in feeding more heifers, now almost 40% of the fed cattle inventory, has led to increased days on feed and heavier carcass weights, contributing to only a 1% decline in total beef production. Despite these challenges, beef demand remains strong, though Peel stressed the urgency of rebuilding the cow-calf herd by incentivizing heifer retention.

He underscored the importance of risk management, "It’s crucial to protect your marketing windows," in an unpredictable market.

Matt Spangler, Ph.D., from the University of Nebraska-Lincoln, highlighted the benefits of investing in genomically tested commercial sires, emphasizing the significant boost in performance accuracy through genotyping, which helps identify traits in both the bull and his relatives.

“Genomics allows us to better estimate the true relationship between individuals and more accurately weight shared phenotypes, which improves the precision of our genetic predictions,” Spangler explained.

He pointed out that even a sire with a "low" accuracy EPD will lead to faster genetic progress than selecting based on raw phenotype alone.

Spangler also said that the study of genetics in the cattle industry is always evolving. "As EPD's become more accurate with genomics, the risk of not using them increases," he cautioned.

Addressing commercial producers, he stressed the financial benefits of increased accuracy, "For commercial producers, the value of a genomically tested bull lies in risk reduction. You have greater confidence in what you're purchasing."

Barrett Simon, the event emcee, introduced the highly anticipated Feeder Panel discussion, featuring industry experts: Abram Babcock, Adams Land & Cattle; Sara Cover, Greater Omaha; Joe Klute, Phelps County Feeders; Perry Harrison, Harrison Harvesting. The panel covered key topics such as technology use at the packer level, commercial cattle procurement priorities, buyer-producer relationships, and strategies for cattle producers to compete in the marketplace.

One of the central discussions was the growing use of EIDs in commercial cattle herds and their benefits to packer operations. The panelists unanimously agreed that more data collected on cattle leads to better outcomes. This data improves packer projection models, tracks animal health and ensures quality products, benefiting the entire supply chain. Sharing this data helps packers and buyers assist cattle raisers in identifying areas for improvement, enhancing value and supporting producers' livelihoods.

"We need ranchers to supply product and by sharing data through the supply chain, we’re able to encourage growth and help them remain profitable so future generations can carry on," said Klute.

The panelists also emphasized the importance of data, performance and risk mitigation in cattle procurement. "When buying feeder cattle, we have to identify value," Babcock explained. "We’re always looking at margin but also for quality that will meet and drive consumer demand."

Cover echoed this, stressing that quality at the packer level is a top priority, along with maintaining strong relationships with feeders. "Genetics only account for half of an animal's performance potential the feeder determines the rest."

The importance of relationships in cattle buying was a recurring theme. Harrison highlighted the advantages of networking and researching producers. "I’m fortunate to work on a scale that allows me to network closely and learn about potential producers just by picking up the phone," he said. "I can ask the right questions and understand the cattle we’re bringing in."

For commercial producers without established buyer relationships, the panel pointed to data collection and value-added programs as key competitive advantages. "I think commercial cattle producers do themselves a disservice by not exploring value-added programs," said Cover. "They are the future, and our goal is to put every product in a premium box. The best way to achieve that is by purchasing cattle marketed with value-added advantages and data."

Doug Stanton of IMI Global, who hosted a Cattle Conversations discussion earlier in the week, offered additional insights into value-added programs and the marketing opportunities tied to verification programs. He highlighted the range of services IMI Global provides, including source and age verification, non-hormone treated cattle (NHTC), breed verified and tags & traceability.

IMI Global helps beef cattle producers build trust with consumers by verifying the origin of their products and identifying key details. He emphasized the advantage of enrolling cattle in multiple programs before offering them in the marketplace. "By bundling all the claims, producers have the opportunity to attract multiple buyers," he said.

He also discussed how the Red Angus FCCP program complements IMI Global's services and stressed the importance of EID tags, echoing earlier panelists' points about the value of data in appealing to buyers. Stanton reiterated Dr. Peel’s warning about declining cattle numbers and the inevitable rise in prices, cautioning producers against staying stagnant in their marketing strategies.

"By not taking advantage of value-added and verified programs, you're going to miss out on capturing premium prices," he explained. "Enrolling cattle in these programs guarantees animal genetics, showcases sustainability and attracts buyers looking for specific attributes and willing to pay higher prices."

Fittingly, following these presentations, awards were given to the elite commercial producers of the year, recognizing their commitment to using Red Angus genetics to improve their herds and their success in leveraging value-added programs and marketing strategies to bring top-performing, Red Angus feeder cattle to the forefront of the commercial industry.

RAAA CEO Tom Brink and Kelly Smith, director of commercial marketing, provided an update on association marketing, focusing on supply chains and Red Angus’ role within them.

“Coordinated supply chains are coming to the Red Angus business and we’ll likely be involved in more than one,” Brink said. “They’ll require more data, but the financial rewards will justify the effort.” He stressed that participation in these opportunities is voluntary, with members free to choose whether to support a specific brand or beef program.

Brink also introduced BlockTrust Network, a blockchain platform designed to boost transparency and efficiency in the cattle supply chain. The software allows producers to share performance data with buyers while streamlining the process.

Smith highlighted the software’s ability to showcase animal health, a key concern for feeders. “Our goal is to help you fetch premiums and the industry thrives on transparency. The more information we share, the better off everyone will be,” he said.

Kenny Stauffer of Neogen highlighted the crucial role of health in the cattle industry.

Stauffer discussed Neogen's contributions and the extensive data they process for Red Angus producers and introduced two key tools: Igenity Beef and Igenity Feeder. These genetic testing solutions help producers identify essential traits related to health, performance and market readiness in cattle.

"Igenity Beef allows cow-calf producers to assess heifer retention value, verify parentage and produce feeder cattle that meet market demands," Stauffer explained. "For those targeting the feedlot sector, Igenity Feeder leverages DNA to predict performance and economic outcomes for cattle feeders."

By pinpointing growth and performance potential in feeder cattle before they hit the market, Stauffer explained how producers can enhance the value of their livestock, drawing in buyers and securing premium prices with data-backed genetic insights.

The 71st Annual National Red Angus Convention’s Commercial Cattleman’s Symposium addressed critical cattle market challenges, the need for herd rebuilding and the benefits of genomic advancements. The importance of data-driven decisions and strong buyer-producer relationships was highlighted along with value-added programs and genetic testing tools.

Overall, the symposium emphasized that proactive management and transparency are vital for Red Angus producers to succeed in a competitive market.