There’s no doubt, cattle that earn the Certified Angus Beef ® (CAB®) brand or Prime grade also earn premiums. In 2017 alone, packers in a biannual survey reported paying cattle owners $75 million in grid premiums specifically for CAB.
In the heart of South Dakota—a state ranked fourth in yearly Angus registrations, where all cattle outnumber people four to one—there’s been a bit of a desert for marketers of high-quality fed cattle. Many finished animals are still shipped to neighboring states for processing, but DemKota Ranch Beef, a packing plant in Aberdeen, S.D., is looking to keep a higher percentage of them close to home.
A cowman’s response to the ebb and flow of the industry is entirely up to the individual – but a choice is imminent. That’s why Dusty Abney, cow-calf and stocker nutritionist for Cargill Animal Nutrition, called out a few of the areas where producers have had to adapt through the years: volatile markets and regulations for starters.
Could the Certified Angus Beef ® brand reach a billion pounds in sales? It was an audacious question back at the turn of the century when first considered. Some of the CAB team at the time were, candidly, more optimistic than me. We did the math and looked at so many of the trend lines that were in place from acceptance rates to certified head count.
If you’ve never eaten beef lips, you’re proof of this beef export truth: “It’s all about putting the right cut in the right market and maximizing what opportunity there is.”
Control what you can and deal with the rest. Cattlemen can’t stop drought or hurricanes, but they can set their herd up to be successful during “everyday” challenges. “We can manage their feed. We can manage their health protocol. We can’t manage their stress,” said Kelly Sanders, Westway Feed Products. “From my feed standpoint, how do I mitigate that problem the best I can?”
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