The Link
IMI partnership: Looking back, moving forward.
February 21, 2024
In January 2023, the AngusLinkSM program underwent a major transformation by joining forces with IMI Global. The new partnership was a major milestone in the history of the program.
As with any major change, there were a few bumps along the way. However, as we look back at the first year, it is hard not to celebrate. We saw more than 210,000 head of cattle enroll in the program, which was the best 12-month period in AngusLink’s history.
The growth in the number of cattle enrolled in AngusVerifiedSM and/or receiving the Genetic Merit ScorecardSM (GMS) was up by more than 400% on a month-to-month basis from June 2023 onward.
AngusLink is experiencing tremendous momentum, as the awareness and acceptance of the program is undergoing exponential growth. The cattle-feeding industry is more aware of the value of genetics today than at any time in history. As a result, we saw record premiums paid for AngusVerified cattle and cattle receiving the GMS.
Putting it together
Not only has the value of genetics been increasing, but the relationships between genetics, profitability and reducing risk is more widely known. As a result, the industry continues to move toward more value-based marketing and the need to revolutionize the way we market feeder cattle to better align pricing signals with value created.
Just like EPDs (expected progeny differences), which have become a requirement to give buyers the information they need, the GMS provides buyers with the information they need to allocate value, reduce risk and increase the profitability of their operations.
The ramifications of grid pricing and branded programs like Certified Angus Beef have changed our business, and the result has been that we have been able to make quantum leaps in the quality of our product and the overall eating experience of our consumers.
Filling pockets
The primary goal of AngusLink has always been to put more dollars into the pockets of commercial cattlemen by rewarding them for the value they create through superior genetics and management. Between those earned on the grid at the end stages of cattle production and those paid to producers with cattle enrolled in AngusLink value-added programs, we now see collective premiums that exceed $200 million dollars per year.
[Photo courtesy American Angus Association.]
That is significant value creation, but it pales in comparison to the increase in dollars entering our industry as a result of increased demand for the product. The consumer has spoken loud and clear. The result: The future for high-quality cattle — cattle that perform in the feedyard, on the rail and on the plate — has never been brighter.
The partnership with IMI was a catalyst to the growth the program has been experiencing. IMI enjoys a dominant market share in the verification side of our business, and Angus was uniquely qualified to characterize and verify the genetic merit of cattle.
The most exciting thing for me is there is still incredible room for growth. We are just now approaching the point where cattle enrolled in AngusLink are a critical mass that will lead to a true revolution in how feeder cattle are marketed.
A fundamental difference
AngusLink is unique in the marketplace because it is fundamentally different than most programs that create value in our industry. The model has been to create programs that take advantage of niche markets. It is exclusivity and lack of supply that help to generate the premiums received. This has been and will continue to be a great model; but, as supplies increase, premiums decrease.
AngusLink is different in that it offers a “network effect.” Compare it to social media platforms like Facebook, where when more people participate it increases the influence and value of the system. As more cattle are enrolled, the program will continue to deliver added value back to producers in the form of premiums.
Today, as IMI and AngusLink look forward to our second year of working side by side with commercial cattlemen, we see one main complaint from buyers. They cannot get their hands on enough of these cattle. The supply of calves enrolled in AngusLink is too small for demand, and they are not affordable.
We look forward to an exciting year, as the influence of AngusLink continues to grow along with the number of cattle enrolled. It is an exciting time in our industry — a time driven by the need for accurate and timely application of information.
Stay tuned this spring, as we announce several additions to the program that will continue to add more value to the AngusVerified and GMS programs.
Editor’s note: Troy Marshall is director of commercial industry relations for the American Angus Association. For more information about AngusLink, click here.
Topics: Marketing
Publication: Angus Beef Bulletin
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