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Big Muddy rancher
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Joined: 10 Feb 2005
Posts: 15240
Location: Big Muddy valley
PostPosted: Sat Mar 13, 2010 9:33 pm    Post subject: PC/GF/DB? Reply with quote
I was wondering since geographically your not really that far apart have you ever considered working together? All three of you are selling grass fed beef, could you not gain a bit of economy of scale and help fill in the highs and lows of each other production.
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Grassfarmer
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Joined: 21 Aug 2005
Posts: 1002
Location: Central Alberta, Canada
PostPosted: Sat Mar 13, 2010 10:47 pm    Post subject: Re: PC/GF/DB? Reply with quote
Big Muddy rancher wrote:
I was wondering since geographically your not really that far apart have you ever considered working together? All three of you are selling grass fed beef, could you not gain a bit of economy of scale and help fill in the highs and lows of each other production.


I'm all for co-operation if it can move us ahead but Dylan's family and their program is so far ahead of almost everybody else in the marketplace I'm not sure there would be much to be gained with partnering with the likes of me. PCs operation is maybe at a similar stage of development as mine but he is selling different things and rearing his cattle a little different.
I've been thinking a lot about the next stage of development for us and other direct marketers this winter and here are my conclusions. We are on the crest of a wave of demand - a very good chance that the existing suppliers can't meet the demand. That's a great place to be but it's also critical that we increase production to capture this market or they will go elsewhere for product. I think it is critical that more producers step up to fill this demand.
The worst outcome for me and all producers is if Walmart or Superstore start selling "industrial grass-fed". We don't need a grass-fed "industry" we need producers rearing and marketing grass-fed. To put money in producers pockets we must do the work ourselves. If some of the Thousand Hills type groups like they have in the US start up here primary producers are reduced again to being margin players - maybe $50 maybe $80 premium over conventional.
Same goes with co-operation to an extent, there has been talk in my area of a number of us joining up to market different products, combine deliveries etc and although it sounds good I fear that it is driven more by quest for an easy life rather than ambition to do better. Too many people want to reap the benefits without altering their current practises. Same with all the packing plant proposals - most wanted to be part of them but only because they could drop fats off at a plant like they drop calves off at the auction now yet expected to get most of the retail beef price for the finished product. It doesn't work like that in this life - if you want the reward you'd better expect to do the work. If you want someone else to do the marketing, organise the logistics, the transport etc realise that you have just voted to become a margin player again. The beauty of direct marketing is that you can be a price setter again instead of a price taker and I wouldn't give that up for anything.
I really like the fact that direct marketing works for producers because it is high margin, low volume - the opposite of industrial agriculture. If I can net $500 per animal over commodity price that's the margin off 10 animals at $50. Producers can win the game being high margin, price setters where I don't think they can win being low margin, price takers. I think there is huge potential for numerous different products/types/styles of marketing by all sorts of producers and each can be unique and tailored to the strengths of the family involved. Smaller scale fits the perception of our customers too - they want to buy from and support family farms and ranches. I really think direct market is the "get out of jail" card for primary producers if they can realise the potential and seize the opportunity.
I'd better quit now before this turns into a book Embarassed
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Northern Rancher
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Joined: 10 Feb 2005
Posts: 12235
Location: saskatchewan
PostPosted: Sat Mar 13, 2010 10:52 pm    Post subject: Reply with quote
Books are ok if they're interesting-the interesting thing is most of the people that are endeavouring to be price setters is that they are very cognizant of cost of production-a win/win combination. A good old brainstorm amongst eveybody might not be all that bad either!!
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Grassfarmer
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Joined: 21 Aug 2005
Posts: 1002
Location: Central Alberta, Canada
PostPosted: Sat Mar 13, 2010 11:02 pm    Post subject: Reply with quote
So you're not "interested" in buying my book? I'm devastated Wink
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per
Rancher
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Joined: 22 Dec 2007
Posts: 6090
Location: SW Alberta
PostPosted: Sun Mar 14, 2010 7:05 am    Post subject: Reply with quote
Joel Salatin took a few things he knew and put it in a few books and people buy them left, right and centre. I think GF that you have a book in you and the margins on a book could be very good. I promise to buy a copy. As far as BMRs good idea, we have tried to cooperate with a couple of direct marketers down here and they both said the same thing you have that this is a little different and that is a little different. I suggested we discuss and use the same protocols but still they wanted to keep it the way it is. We have sent each other customers when we couldn't fulfil demand but that was the extent of it. That is why I have gone the Canada Gold route because several of us can get on the same page and go in the same direction. There is a danger though of commoditising a good thing as GF mentioned.
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Grassfarmer
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Rancher


Joined: 21 Aug 2005
Posts: 1002
Location: Central Alberta, Canada
PostPosted: Sun Mar 14, 2010 7:50 am    Post subject: Reply with quote
per wrote:
I think GF that you have a book in you and the margins on a book could be very good.


If I ever write a book per i'll make sure the margins are huge - less words to write that way Wink Laughing Laughing
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cowboyup
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Joined: 08 May 2005
Posts: 426
Location: where i am
PostPosted: Sun Mar 14, 2010 7:52 am    Post subject: Reply with quote
all the extra pages are going to cut into your profit! Wink Very Happy Very Happy
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Northern Rancher
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Joined: 10 Feb 2005
Posts: 12235
Location: saskatchewan
PostPosted: Sun Mar 14, 2010 9:18 am    Post subject: Reply with quote
oCH MON i WAS GIVIN' YE A WEE COMPLIMENT!!!
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Grassfarmer
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Joined: 21 Aug 2005
Posts: 1002
Location: Central Alberta, Canada
PostPosted: Sun Mar 14, 2010 4:06 pm    Post subject: Reply with quote
I thought it was your usual witty sarcasm at work NR - I apologize.
Mind you with that sorry impersonation of a Scottish accent you followed up with I think you should be apologizing too Wink Laughing
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Ben H
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Joined: 20 Mar 2006
Posts: 1729
Location: Gorham, ME
PostPosted: Sun Mar 14, 2010 4:44 pm    Post subject: Reply with quote
I'm worried about not meeting the demand as well, there are rumors that Tall Grass would like to start something in the North East. I had a restaurant call the other day asking if they could get a discount if they bought enough. They want local grassfed on their menu. I knew the problem before I talked to them. They wanted about 10lbs per week per cut of ribeye, tbone and ny strip. That's a lot of animals for me that I would have to find another market for the rest of the cow. Especially where I'm currently not processing year round. Makes it pretty tempting for some people to start producing grassfed beef with a feed bunk.
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RobertMac
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Joined: 10 Feb 2005
Posts: 3725
Location: Mississippi, USA
PostPosted: Sun Mar 14, 2010 8:39 pm    Post subject: Reply with quote
The reason for a USDA Grassfed label is to open the door for "industrial grassfed" and the other avenue is imports...and who knows the story behind that. 100% forage beef from conception to consumer is ranch specific...we have to keep buy local/buy from the producer attached to grassfed.
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Ben H
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Joined: 20 Mar 2006
Posts: 1729
Location: Gorham, ME
PostPosted: Sun Mar 14, 2010 9:18 pm    Post subject: Reply with quote
I Agree
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