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Consumers are demanding a more
consistent and higher quality beef product. Creating a system
that maintains the identity of a beef animal from birth to
slaughter while allowing information feedback to the genetic decision
maker is paramount to delivering a product of higher and more
consistent quality.
There has been growth in
value-added, identity preserved businesses in the beef industry which
facilitate marketing systems of this type. Unfortunately, small
and medium sized beef farms have difficulty in attracting buyers from
these alternative marketing systems when only small numbers of animals
can be offered for sale at a given time.
The
Commercial Agriculture
Beef Focus Team has developed the Premier Beef Marketing Program with the goal of educating producers
in adding value to the feeder side of the beef production and marketing system.
This program is intended to help producers coordinate with the objective of
gaining market power by producing uniform, quality animals that can be
traced from birth through slaughter.
As cattle producers approach the time to make a decision on whether to keep or sell
their cattle this fall, they should be aware of the options, advantages and
disadvantages of group marketing alliances.
These type of groups offer advantages on several levels:
1.
Reduced Transportation costs: Marketing animals together in truck
load size lots allows fewer stops for the buyer
2.
Improved Market Power: A single producer with 1000 calves or
several producers that have worked together to develop 1000 calves with similar
production practices can attract a larger number of buyers, which in turn
increase the chances of a greater price paid for the extra additional value of
the calves
3.
Fewer Transactions: Buyers
are more willing to pay a higher price if they can fill their orders in large
quantities. For example, every time a calf is sold there are commissions,
trucking charges and some health costs associated with the transaction. These
costs are paid for by the producer. If producers own the calf from the cow to
the slaughter plant, they'll save the marketing costs of two transactions.
4.
Better information: Buyers will be provided with substantially
more information about the husbandry practices of these animals than they would
normally receive. In addition, in
subsequent years carcass data from the previous years siblings may be available
if the alliance chooses some form of retained ownership
This
website has more information on the following subjects:
Premier
Beef PowerPoint Presentation
This presentation gives detailed information about the economics and opportunities of
the Premier Beef Program
Premier
Beef Forms
This page contains information for use by Premier Beef Marketing Groups and their members
in the collection of information, soliciting backgrounders, and bids from
value-added buyers
Premier
Beef Documents
This page contains general information about
backgrounding and retained ownership intended to help producers analyze
information they gather from participation in the Premier Beef program and
help others decide the benefits and costs of participation in this program
or others
Premier
Beef Educational
This page contains general information about backgrounding and retained ownership
intended to help producers analyze information they gather from participation in
the Premier Beef program and help others decide the benefits and costs of
participation in this program or others.
Premier
Beef Marketing Groups
This page contains contact information for individual groups that are participating in the
Premier Beef Program
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