Build a Smarter Marketing Plan for Beef Producers

By Andi Anderson

Beef producers spend a great deal of time managing production risk. Careful decisions are made about genetics, nutrition, herd health, feed supplies, and daily management to produce quality cattle at the lowest possible cost.

After all this effort, one important question remains how much time is spent planning how those cattle will be marketed and how financial risk will be managed.

Cattle markets have been highly variable during the past year. While strong prices have created profit opportunities they have also increased financial risk.

Many producers rely on marketing systems that have worked well in the past but changing market conditions may require a more detailed approach. A written marketing plan can help producers stay organized focused and prepared.

A marketing plan should be a flexible working document not a rigid set of rules. It begins by clearly understanding production numbers.

Producers should estimate calf numbers expected weaning weights cull cows and replacement needs based on historical averages. Knowing these numbers provides a foundation for all future decisions.

The next step is understanding the full cost of production. Variable costs such as feed and health are often well known, but fixed costs are sometimes overlooked.

These include labor machinery buildings and family living expenses. Budget tools and enterprise calculators can help producers account for all expenses accurately. 

A marketing plan should also include a written market outlook. This helps move decisions beyond informal discussions and emotions.

Producers should outline expectations for the market and consider different selling options such as fall sales spring sales freezer beef or retained ownership. Each option should include estimated costs and potential returns.

Once this information is assembled, producers can decide when and where cattle will be sold. The plan should outline specific sale timing locations and any price risk tools such as insurance policies.

It should also explain what conditions might cause a change in the plan. As sales occur producers should record results and reasons for any adjustments.

At the end of the marketing year, the plan should be reviewed. Comparing results to market averages and past performance helps identify strengths and areas for improvement.

A well-prepared marketing plan supports better decisions, reduces stress and helps producers manage risk while capturing opportunities in today’s cattle markets.

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