Page 42 - MWC 2-2-2023s

The Midwest Cattleman · February 2, 2023 · P42
Product-Market Fit and Taking the Random

Out of Production By Dr. Les Anderson, Beef Extension Professor, University of Kentucky
“Now, after 25 years, I un- don’t think of their opera- time to help assemble bigger the costs of production by
derstand a little better.” tions as a small business. marketing groups. Limiting implementing quality forage
I received an email last Successful small businesses the calving season also im- and grazing programs.
week about receiving an plan and analyze their busi- proves labor and production The last tool to use to re-
award for 25 years of ser- ness to control as many vari- efficiency. Second, control duce “randomness” of pro-
vice to Extension. It seems ables as possible. They avoid genetics. The best method duction is record keeping and
like yesterday when I rolled “random” because random to control genetics is to AI using the data to help drive
down to Lexington to start is the opposite of predict- because of its flexibility. Es- production decisions. Beef
this new career. One of my able. Small businesses need trus synchronization and AI cattle producers are great
most vivid memories was the a predictable product to help requires planning and a lit- note takers but not very good
first UK Beef IRM Commit- achieve product-market fit. tle labor but the short- and at producing reports and
tee meeting. The IRM com- The phrase “product-mar- long-term impact on profit- using this data to drive de-
mittee had just finished the ket fit” is used routinely in ability are well established. cisions. Collecting and using
analysis of a huge survey the business world and it Use of this technology also production data clinches the
of beef producers. The only indicates when a business’s enables producers to control nail on predictability and,
question that stuck in my product addresses and solves the gender of the calf. Steers with these other tools, can re-
mind was “Why do you own the needs of its buyers or the typically are $150-200 more duce the randomness of pro-
beef cows?”. I thought the an- market. Perhaps in the beef valuable at marketing than duction as much as possible.
swer would be easy; to make industry, we can redefine this heifers so removing the ran- Managing a cattle opera-
money. But the number one as “Does our product match domness of gender can help tion for profit is a challenge.
response was “because I like how we are marketing our improve profitability. Imag- One cooperator I had in the
cows”. “To make money” was cattle?” ine managing a 30-cow herd UK IRM Farm Program made
the number three reason of Random is the norm for and having 24 steers born a statement that really reso-
those surveyed. production in the beef cattle within a 30-day period. Not nates with me. This producer
At the time, honestly, I was industry. More than half of only is this possible but beef went from a 340-day calv-
stunned. Now, after 25 years, beef operations simply turn producers in Kentucky are al- ing season with no plan to a
I understand a little better. a bull out with a set of cows ready doing this. One of them well-oiled machine that prof-
The beef business may be and let them calve whenever said “If I am going to stick a its even in difficult markets
one of the few where profit they want. These operations straw in them, I may as well and/or high input costs. He
is likely not the driving fac- sell cattle a few at a time and stick a straw in that will said, “My time is worth more
tor of ownership. A roman- normally sell singles. Selling make me money!”. Very true. than money. Now I make
ticism exists in agriculture singles can help pay some Reducing “random” suddenly twice as much and spend half
about beef production and/or bills but it is not a marketing makes marketing easier and the time!”. How did he do it?
ranching. But can’t we make plan, and it does not help pro- profit more attainable. He removed randomness and
money and “like cows” at the ducers maximize the value to Controlling the calving improved his product-market
same time? Profit is possible their product. It doesn’t help season and genetics sets the fit. One last comment. This
in the beef industry if pro- you profit. table. Profitable beef cattle producer had cows because
ducers reorganize the way How can we decrease the small business owners also he liked cows. Now he likes
they think about their beef “randomness” of production? control the quality of the them quite a bit more!
cattle operation. First, control the calving sea- product (health and nutri-
The IRM survey suggests son. Limit your cows to calv- tion programs) and minimize
that most beef producers ing over shorter periods of

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