Market Closeout
Marketing and timing.
April 9, 2025
I saw a meme that pointed out 1916 and 1970 were as far apart as 1970 and 2024. For most of us, that doesn’t seem possible. We can look at the world and our industry and completely understand how much they changed from 1916 to 1970. Ironically, the rate of change has increased tenfold, yet the 50 most recent years don’t reflect the magnitude of change in our minds. It is much easier to understand the magnitude of change from a rearview, academic perspective; it’s more difficult to put it in context when we have lived through all or most of that change.
It’s hard to comprehend just how much the industry has changed since 1916. Most of that change has occurred since 1980. Technology, computers and the internet have transformed how we market our product. Compared to the early 1980s, seedstock marketing, fed-cattle marketing and marketing to consumers are barely recognizable, but we market feeder cattle almost the same as we did in 1916.
Once we have that perspective, it becomes intuitively obvious that feeder-cattle marketing will eventually join the value-based marketing revolution.
Once we have that perspective, it becomes intuitively obvious that feeder-cattle marketing will eventually join the value-based marketing revolution. Nobody argues if tools like the Genetic Merit ScorecardSM will become the standard. It’s a matter of when.
When is the right time?
Timing is everything, and it is understandable why most were not early adopters. It often makes sense to let others be pioneers and to wait to see if the premiums are real and sustainable. Those questions have now been answered, as well.
Still, that has not removed the issue of timing completely. We are at the peak of the current cattle cycle and experiencing historically high prices. The cow-calf sector has never been this profitable. Why should anyone change what they are doing when what they are doing is producing good results?
The logic is not entirely flawed, but I would argue it is based on two faulty premises, the first being that when all prices are high, premiums are lower. The actual data suggests otherwise. Not only were premiums historically high last year, but the value of genetics has also never been higher. In fact, many cattle feeders look at the premiums as their best insurance policy against volatile markets and their best avenue to mitigate overall price risk.
The second argument about timing is that even though this will be the best choice for the future, the cattle cycle and its corresponding higher prices and leverage advantages, allows me to wait. I’ll enroll in AngusLinkSM when we enter the next phase of the cattle cycle. Again, the essence of this argument is true, but it is based on a poor premise. Yes, technically you are only giving up the information, and the premiums in the short term, but it does not account for cost of not building those relationships and not using the benchmarking information of the GMS to better position oneself for the next turn of the cattle cycle.
There is technically no direct cost accrued to waiting to enroll in AngusLink, outside of some forgone potential revenue. However, the value of relationships, the value of genetics, and the value of marketing (brand/reputation) become very dependent upon timing, because of the value of compounding. Waiting in the context of the compounding effect, I would argue makes it almost prohibitive to wait.
Proof of concept
Every good idea goes through a similar evolution. You debate whether the idea itself is valid — whether it provides a solution to an actual problem? Then you must decide whether the idea can be implemented in the real world; does it have proof of concept? Then you determine whether the benefits justify the costs, and whether they are sustainable. Then you ask yourself, is there an even better solution available that will likely replace the one you are considering? When all of these questions are answered — and I think in the case of the AngusLink model those answers have been proven in the marketplace — then the question becomes when to act or enroll.
As with any new idea, there has been some bobbles along the way in terms of implementation, and widespread adoption always takes longer than the experts would predict. Yet eventually, we are confronted with the singular decision of acting. I would argue that the best time to enroll in AngusLink was two years ago. The second-best time is now.
Let us help you capture the value of your investment in superior Angus genetics. Call to enroll today.
Editor’s note: Troy Marshall is director for commercial and industry relations for the American Angus Association.
Angus Beef Bulletin EXTRA, Vol. 17, No. 4-A
Topics: Business , Marketing , Feeder-Calf Marketing Guide
Publication: Angus Beef Bulletin
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