Introduction

In the present production and marketing structure, about half the value of beef is added after cattle leave the farm, and net returns to the cow-calf producer tend to be low. At the sale barn, the rancher's profit is trimmed by wholesale price fluctuations, "middle-man" fees, and the grading process. Producers who sell in this highly competitive market can be described as "price-takers," competing with many other producers of relatively homogeneous commodity products.

Working within the conventional market, the rancher can significantly increase profit per head of cattle — by retaining ownership past the weaning stage, by producing higher-grade and heavier animals, by carefully managing the culling process, and by minimizing the costs of production. Small producers can further empower themselves by forming marketing cooperatives or other types of alliances.

Some ranchers, however, judging the conventional market as unresponsive both to their needs and to the changing desires of consumers, choose to develop markets outside the conventional system. They add value to their beef by differentiating it from the supermarket fare that is the end product of the commodity market. Alternative marketing of beef primarily means niche marketing and direct marketing. The "niche" is simply a segment of the buying public unsatisfied with conventional beef, and willing to pay a premium for a leaner, tastier, or more "natural" product. The most likely way for the producer to connect with these consumers is by marketing directly to them. In the words of researchers at the University of Wyoming:

"This approach can add value to cattle…[by allowing] producers to capture much of the margin otherwise going to middlemen in the marketing chain. Of course, the producer also 'captures' much of the work and associated costs, as the producer must identify and attract customers, perhaps provide added feed, arrange for slaughter, distribute the product to customers, and secure payment."

Differentiating your beef from the conventional product entails changes in production as well as marketing. If your customer is a meat packer, your production will have to conform to industry standards for everything from breed selection to use of antibiotics to yield and quality grades. But if your customer is an individual looking for lean beef raised and finished on a local family farm, or raised organically, you will be working with a very different production model. Integrating meat production and marketing may radically alter the whole enterprise. For instance, to improve efficiency within the conventional live-sale market, many ranchers have consolidated their calving schedules. Some alternative marketing strategies, however, may require year-round production to meet year-round demand.

Beef that is slaughtered off pasture and sold locally is generally considered more sustainable than feedlot-finished, mass-marketed meat. Sustainability means that the best interests of the farm family, the community, and the environment are being taken care of. For some consumers, sustainability is already a strong selling point. Many others can be educated about the values they are fostering when they choose an alternative beef product over the supermarket cut. Pasture finishing combined with direct marketing can substantially benefit the farm family, the rural community, and the environment by:

• keeping ranch families on the land and independent,
• protecting land from development,
• reducing pollution of surface and ground waters,
• building soil and plant diversity,
• rebuilding local rural economies,
• passing down traditional farming and animal husbandry skills.

Alternative marketing strategies can turn price-takers into price-makers, but "the added time, labor and resources needed to perform these added functions beyond producing a calf or yearling" should not be underestimated. "Marketing management expertise also is required, along with the traditional knowledge of the production side of the business". The more you learn and prepare before entering a new market, the less surprising, expensive, and frustrating your "learning curve" will be.