“Match the cow with the environment and the bull with the market”.
This simple guideline addresses the cattle industries’ paradox: Ranchers and Feeders are economically incentivized to select for different cattle traits, yet the two rely on each other for supply and demand. Ranchers’ “cash cows” must safely calve, rebred, nurse this year’s calf and gestitate next year’s all while maintaining her own energy needs given the local environmental resources and conditions. Feeders need growth and conversion performance within an intensively managed environment that may be two climate zones away from calving pastures. In some cases, the traits that drive profitability on the ranch are negatively correlated with traits that drive profitability in the lot.
Moreover, Feeders, and in turn Ranchers, must at least consider, if not strongly prefer, traits that fetch market premiums, which are determined downstream. The growing power of fewer packers, larger retailers and influential direct-to-consumer campaigns create market pressures that entice Ranchers and Feeders with the opportunity for more revenue. However, Ranchers are limited when it comes to their ability to quickly respond to changes in demand, and Feeders can find themselves between a supply side rock and a hard line marketplace.
