Emily posted on December 05, 2011 13:14
As published in the December 2011 issue of the SG USA...
As reported in last month’s column, the recent SGBI survey indicated membership is committed to taking the steps necessary for increasing the Santa Gertrudis footprint in the commercial sector of the beef industry. All agree that capturing a greater portion of the commercial market is essential to the long term growth and continued success of our breed. However, with the abundance of branded beef programs, breed specific marketing avenues, and countless other marketing alliances targeting the commercial producer, what can we offer that sets us apart from the crowd and encourages the use of Santa Gertrudis genetics in commercially oriented programs? To me the answer is clear, “PULL-THROUGH” Marketing combined with superior customer service.
What is “PULL-THROUGH” Marketing? Pull-through marketing is a trendy buzzword term currently being used in the industry to describe systems and strategies that enhance value and demand for the commercial cattleman’s product. Simply put, breeders of Santa Gertrudis cattle must develop marketing programs that will place more dollars into the pockets of cattlemen utilizing Santa Gertrudis bulls and Santa Gertrudis influenced females in their commercial operations. There is no doubt that increasing the value of our commercial customer’s calf crop will result in greater demand for Santa Gertrudis genetics. With that in mind SGBI recently introduced a cooperative calf marketing program that is designed to enhance the value of our commercial customer’s calf crop; it is a pull-through program.
We often get lost in the numbers, convincing ourselves that SGBI’s impact on the commercial cattle market is minimal because we are not moving semi-loads of animals in one transaction or hosting seasonal production sales that offer 400 bulls for purchase at one location. However, the most recent USDA published report, indicated 90% of all farms with beef cattle had fewer than 100 cows and 79% had fewer than 50 cows. The report went on to state that the 79% with 50 or fewer cows are responsible for flowing 46% of the cattle needed into the production pipeline on an annual basis. Small herd owners are an integral part of the total U.S. beef industry and this is a market that should not be overlooked. Sure, we all realize that as an organization SGBI must work much harder on marketing to the 21% of commercial cattlemen that put 54% of the cattle into the production pipeline; but lets’ play to our strengthens and target the small operator. The majority of SGBI’s membership maintains herds of less than 100 head; therefore, selling bulls and replacement females to the small producer is a market that SGBI members are well equipped to service. These smaller commercial operators are our friends and neighbors. They are the people just down the road or on the other side of the fence. The newly developed SGBI cooperative marketing program combined with a good measure of customer service is an ideal fit for our customers operating on a smaller scale.
Follow-up with customers that have made bull and female purchases over the years. Familiarize yourself with customer’s marketing programs and management practices. Not only is this follow-up and familiarization good customer service, it allows for you to facilitate the packaging of customer’s cattle into a cooperative truckload lot that can be marketed by SGBI to one of the firms that is interested in placing bids on Santa Gertrudis influenced cattle.
Additionally, SGBI has acquired the capability to provide age and source verification through Micro Beef Technologies. Offering our customers with a pull-through marketing option and the ability to have their cattle receive age and source verification has the potential to enhance the value of Santa Gertrudis Cattle and sends a message to our commercial customers that we are committed to superior customer service. There is no doubt that SGBI can increase it’s footprint in the commercial segment of the beef industry. We must worker harder on marketing to the 21% while intensifying our focus on the 79%.
I am always amazed how quickly a year can pass. I was told one time by an elderly neighbor that you reach a point in life were the year is comprised of basically 2 days – New Year’s Day and New Year’s Eve, everything else is just a blur. I am quickly reaching that point in life. My Christmas wish is that all SGBI members are blessed with timely rains, abundant grass, and outstanding calf crops. Merry Christmas and God Bless.