Feeder cattle supplies are tight and getting tighter. Producers who have been able to maintain or even build female numbers over the past few years should be well-positioned to take advantage of this shift in the price cycle. However, taking full advantage requires that producers look at developing a sound marketing strategy. There are already many alliances out there, but most producers still have not participated in them. These alliances vary greatly, but most center around enhancing market opportunity.
Alliances offer many potential benefits to producers, particularly small producers.
To capture a better share of the market, numbers are the name of the game, and numbers are increased by joining together in an alliance effort. This includes producers from both the commercial and seedstock segments, as well as cattle feeders. We will see more partnering between purebred producers and their commercial customers, coupled with participation by feedyards. Such alliances can facilitate flow of vital information or data to all segments of the industry. This, in turn, can help us learn more about the product we produce and lead to sound economic decisions.