The phrase “niche market” conjures up different images and feelings for different people.

Some embrace the term, thinking it’s ultimately synonymous with value-added. Their business plan, their identity, is tied to being a niche-marketer. Others say niche markets are too small to worry about. They pop up and then fade with the change of the seasons, offering no real stable target to shoot for.

Whatever you think about niche markets, there is one false assumption held by folks on both sides of the aisle:

Myth—All branded beef programs are small, niche programs.

Fact—While all branded beef programs started out that way, some have grown to be the shining examples for nationwide, large-scale opportunities to add value to cattle by differentiating beef.

The Certified Angus Beef ^® brand, for example, started as the original, niche branded beef program in 1978. As a matter of fact,when I interviewed founding CEO Mick Colvin a few years ago for a story on CAB’s 30^th anniversary he told about celebrating the first million pounds sold:

“We went out to a CAB–licensed restaurant. There were four of us,” he said. “We used to have a party after we increased by a million pounds — two and then three million — but we kind of got away from them because today we’re marketing a million pounds every five or six hours.”

Last year our licensed partners sold 777 million pounds. As industry-wide quality has increased, nearly one in four Angus-type cattle qualifies for our brand. One in seven beef carcasses makes CAB. That’s a mainstream premium market.

We access more than 85% of the United States packing base. That means almost any major packer you sell your cattle to will evaluate them for this brand. Continue reading “Niche or not?”

We may have just celebrated Mother’s Day, but I know one maternal figure many farmers and ranchers have a love/hate relationship with. You know, the one that can determine profit or loss in an instant, the one who changes her mind at a whim: Mother Nature.

My heart breaks for those in constant fear of fire, having to leave their life’s work on moment’s notice not sure if it will be ashes when they return.

As I read stories about the deliberate levee break in Illinois that flooded Missouri farms, I wept. You know as well as I do how invested producers are in their land—and I’m not just talking monetarily.

At my family’s farm in Minnesota, they just recently got in the field, because it was too wet and around here (although this pales in comparison) it’s been too cold to get much planted in my garden. Although it warmed up this weekend, it even froze yet last week.

All of these weather-related challenges remind me of a myth that I hear at many places around the nation, it doesn’t matter if they’re far north, far south, in high country or low country. I hear this “excuse” a lot:

Myth—High quality cattle aren’t suitable for my region.

Fact—There are plenty of challenging situations across the country that call for an individual approach. The ability to adapt is one of the great strengths of the beef industry. Folks say,“Those high marbling cattle can’t survive our _______. (Insert: harsh winters,high altitude, heat, dry conditions, fescue, and the list goes on and on.) Continue reading “High-marbling cattle can’t survive our ________.”

….so your messages don’t apply.

Mythbuster Monday says, “Not so fast!”

Everybody knows that the cattle industry has historically been segmented, with each link (from cow-calf producer to stocker to feeder) most concerned with how they can make the most money for themselves. But in the past few decades, much progress has been made toward building relationships and making cattle that work for every segment.

That’s why it kills me to hear people talking about how weight is the only thing that matters in this business. (I know it will always be a top profit driver.) And it really gets me when I hear folks utter this misconception:

Myth–I sell my calves at weaning, so it doesn’t matter if I focus on quality.

Fact–Cattle buyers and feeders pay attention to cattle history, and they’ll only get burned once.

At Wilke Cattle Co.,  near Columbus, Neb., they say records help dictate procurement.

“There are groups that we used to get that we just don’t anymore because of performance and health problems,” Paul Wilke says.

Of course he and his brother, David,also care about quality, because they own nearly half the cattle in their yard and sell almost all of them on the grid.

Like many feeders, if cattle don’t measure up to expectations—both gain and grade—they won’t buy them from the same producer again. Going beyond your immediate next customer in line, think about the consumer. They continue to demand higher-quality beef and if we as an industry don’t deliver, we’ll lose them to competing proteins.

Sit in on a cattle sale for a day and you’ll notice a big difference in the cattle that top the market and which ones don’t. Those buyers keep records, and if you’ve been building your reputation that’s a good thing.

Continue reading “Who me? I sell at weaning….”

Mythbuster Monday addresses funding

Did you know Certified Angus Beef LLC is a non-profit company?

It’s not volunteer run nor do we make desperate fundraising calls, like others that might come to mind in that category. (I can assure you that I make salary. As much as I love my job, I do have to make a living, too.)

So that leads us to several myths that all go back to one big ‘ole fact:

Myth–Cattle producers must pay to have their cattle marketed as CAB. How else does the brand make money?

Myth–American Angus Association membership dues are diverted to support its branded beef subsidiary.

Myth–CAB pays restaurants and retailers to sell their product. Continue reading “Show me the money!”