Consider Beef Marketing Options

submitted by

Eileen A. Coite,, Extension Livestock Agent,

Wayne County

So, how do you market your beef?  There are so many options today, and lately beef prices have been high enough that everyone has benefitted, but will that trend continue?  Some say that prices have peaked and may not continue on this level.  Let’s take a look at many of the options available to producers today, and give thought to which might be the best choice for your situation. 

Many producers don’t give much thought into strategic marketing.  If its time to market a few calves or the bank account has dropped a bit, and its sale day at the weekly livestock auction, maybe its time to load up and head over there. This might not be a bad idea, but is it always the best choice?  That is a decision all producers have to make, and having this flexible option is great, especially when prices are high.  As I write this article, 5 weight steer calves brought on average 1.40 per pound this week.  Heifers brought 1.26.  Cull cows brought nearly 70 cents, and bulls brought 94 cents.  So if you are marketing cattle things are looking good right now.  What about when its not?

Marketing options increase for producers that follow a more stringent management system in their herd.  Things like having a designated breeding and calving season to increase uniformity in calves, a vaccination and de-worming program to keep everyone healthy, and a calf development program to have them “bunk broke” so they will be on feed earlier once they get to their backgrounding destination. 

The weekly livestock market is a great resource and probably the most used marketing option for beef producers. It gives flexibility of bringing small groups of cattle that might not be the same age, size or breed. There is also flexibility of being able to drop calves off on any given week.  The downside of this is that producers must pay a commission fee to the market for this service, which is a small percent of the animal’s sale value.  An understandable tradeoff for the convenient service the market provides.  If your calves are not uniform, or are not on a healthcare/vaccination program they will still be sold.  However, premium prices won’t be paid if your calves have been vaccinated.

Another option is marketing at one of the NC graded feeder calf sales.  These sales are coordinated by a combination of the North Carolina Department of Agriculture, the NC Cattlemen’s Association, NC Cooperative Extension, and participating livestock markets. Producers still have the option of bringing any number of calves, mixed sexes, sizes, and breeds, but the sales are on designated dates throughout the spring and the fall.  Calves are graded by a NCDA marketing specialist and sorted by sex, grade, and weight into pens of similar calves within 100 pounds of weight.  Graded sales most often ask for consigners to notify ahead of time how many calves they will be bringing, and sometimes have other requirements, such as vaccinations, dehorning, castration, etc.  The plus to the graded sale versus the weekly market is that calves often bring a few to several cents more per pound. 

Direct farm sales and tele-auctions are another option.  Producers with large numbers of like cattle most often benefit from this type of sale, as they must fill a semi-truck with calves from one location.  Video and tele-actions often also offer a way for the buyer to see the cattle ahead of time, as representatives from NCDA, Extension, or otherwise qualified and trusted verifier can assist with visiting the farm and confirm the number, size, health and quality of the cattle for the buyer. 

Another option that has grown attention more recently are cattle marketing alliances.  Many producers have increasingly become interested in learning more about these and deciding to participate.  In alliances, several producers work together to market their calves, by having similar breeding season, health and nutrition program, as well as similar genetics. There are stricter guidelines for each producer to follow to become an alliance member, but there are advantages that come with the requirements.  This is another appealing option to the buyer, knowing that the calves will be more uniform and knowing the history of these calves.  Because of this, the cattle bring a premium price over the weekly auction market and graded sales.

So, remember, things are looking great right now, but as in most years, prices that are high in the spring will drop off in the fall.  This has been very predictable over the years with the basic rule of supply and demand.  Studies have shown that cattle prices usually peak in the months of March to May, but then usually bottom out around October. As you enjoy the high cattle prices right now, keep in mind the many marketing options that might benefit you when prices drop off in the fall, because as well all know, history often repeats itself.