In the ever-changing environment of the beef industry, the question of how to market cattle is on the forefront of many producer conversations. The manner in which producers sell their cattle is the driving force of their income and deciding which avenue best fits the needs of the operation is critical. 

Among other options, some producers may choose to put on a production sale. While this option can work for some, the overhead and labor involved with this type of marketing can be a turnoff for others. 

Making the shift

Adam Redland of Redland Redbank Ranch in Ten Sleep, Wyoming, only recently began having a production sale and has found great success following years of both bull test and private treaty sales.

The Redlands have dabbled in a variety of different marketing options for their cattle and feel as though the roads they have taken have led them to their current model of utilizing a production sale.

When they first started developing bulls for the public, they sought out bull tests as a way of marketing their bulls. Redland notes they quickly realized with the number of bulls they were sending to the test, the overhead cost was racking up quickly. 

“Our bulls were performing and selling well,” he says. “The issue was: It was not feasible to continue to do this with the amount of overhead involved in these tests.”

“Even though this would not work for us long term, this is still a good option for producers who are selling a lower quantity.”

With a reputation established from their bull test customers, Redland moved to exclusively private treaty sales and found a lot of success with a loyal customer base.

“In the seedstock world, trust is everything, and when we first got started developing these bulls a lot of these guys were older than me and put a lot of trust in me,” he explains. “They trust me enough to send them what they need, and that is not something I take lightly.” 

That trust translated well when the Redlands shifted in favor of a production sale versus exclusively private treaties. Redland is an auctioneer himself and saw the potential a sale could have for his own cattle.

Changing markets

ShayLe Stewart is no stranger to cattle markets and production sales. Since 2019, Stewart has maintained a position as the live, feeder and hog market analyst at DTN. Her ability to understand markets and make that information accessible to everyday producers has been invaluable not only in her full-time analyst position, but also as she and her husband, Jimmy, put on their annual bull sale in Cody, Wyoming. 

“It seems like there is a production sale on every corner these days,” she says. “And the way we market these has changed a lot over the years.” 

“Cattle marketing is changing as fast as any other aspect of the business. Even newer avenues like social media marketing are changing every day,” according to Stewart. 

Redland notes for up-and-coming producers, a production sale may not be the best option. 

“For these sales to work well, you need an established reputation,” Redland says. “There is a lot of overhead associated with doing a production sale well."

In terms of the types of businesses that thrive with production sales, Stewart notes any producer can do well, but the effort involved with these sales is much higher than other options. 

“When we look at these sales, there is a huge market of producers who want to know exactly where their stock is coming from, and having a production sale like we do gives us the opportunity to build relationships with our buyers and they know exactly what they are getting.”

“If you want to have a production sale, you really have to work on building up your name and working on keeping relationships. We make ourselves available to our buyers as much as we can. They have the option to come see the cows these bulls are coming out of and the quality of our genetics for themselves.”

Pros and cons 

When looking at the pros and cons of having production sales versus other types of sales such as cooperatives, consignments or bull tests, Stewart notes they have found success marketing their own name and good reputation to their buyers. 

“While a sale, cooperative or test may work for some sellers, we really wanted to be able to offer the full story on our cattle, and you just don’t have that opportunity when you run through someone else’s sale,” Stewart says.

“Some people may just not want to put the effort in that is necessary to build a production sale from the ground up, especially if they are already tied into a reputable sale,” she says. “It costs money to market and there is a lot of effort involved with modern cattle marketing and producers need to sit down and figure out what works best for them.”

Redland also believes the overhead and effort involved with a production sale is not for everyone. 

“There is a lot that goes into a production sale if you are going to do it right,” he says. “Between videoing, marketing and other advertisements, the overhead is a lot to risk for someone who may be just getting started and does not have a foundation laid with existing customers or just doesn’t have the time to get those things done.”

The Red Angus Association of America has collected data from their own producers in regards to the success of different types of sales. Katie Martin, assistant director of communications, notes for smaller producers, a consignment or bull test sale may be the better option.

“Our data shows the larger the offering at a sale, the higher the average of the sale will be. More buyers tend to show up when they have more cattle to choose from.”

“Smaller producers can also benefit from bull test sales as the data associated with the test can be a selling point for those just getting started,” she says. “An added bonus to these sales is: They are doing their own marketing, which adds to any existing marketing a producer is doing on their own."

Martin notes for producers who have the facilities on-site to do so, a production sale can add a personal touch. If the cow herd is close by, it can give buyers some peace of mind to see the operation and feel connected to the producer.

Across the board, a production sale has many pros, most notably the ability to make individual connections with the buyers. However, the overhead cost and labor involved may make other options such as consignments more appealing. As producers begin making plans for the future, determining what is best for their individual operations is critical in remaining profitable.