Unless you’ve been living under a rock recently, you’ll know that in most places, for most folks, times are tough. According to the national drought monitor as of Aug. 2, 2022, 43.16% of the U.S. and 51.39% of the lower 48 states are experiencing drought. Economic and political turmoil across the globe is driving up the cost of living and market stability.
Tyson Foods recently told CNN that the demand for chicken remains strong, while the demand for high-priced beef cuts has declined. Consumers are making concessions at the grocery store, opting for chicken instead of beef and store-brand products over name brands. So where does this leave beef producers? I don’t think consumer desire for beef will lessen – they know we make a good product – but the demand may fluctuate in shape and size, according to the restraints of the purse strings.
And speaking of purse strings, what about yours? Feed prices, fertilizer prices, fuel prices, oh my! Animals still get sick, the vet gets called, and bills still need to be paid. The list goes on, and since you know it better than I do, I won’t elaborate. Sometimes the answer to this quandary is bringing in an extra paycheck from a “town job” to pay the bills. In a recent reader poll, we asked producers if they or their spouses hold jobs off the ranch. A staggering 80% responded that one or both spouses have jobs away from the ranch.
Since each operation comes with its own set of circumstances, there is no one-size-fits-all approach to keeping yourself in the black, but it may be time to turn an open mind to other possibilities. Maybe a town job is the answer, or maybe some other adventure will fit the bill.
Former IBM executive Catherine DeVrye once said, “The seven most expensive words in business today are: ‘We have always done it that way.’” How many times have you heard something to the effect of “This is how things are done around here”? DeVrye continues, “Any organization – regardless of its past success – should always remain open to new ideas. It’s a recipe for disaster to continue to do things the same old way without at least occasionally assessing if that mode of operation is actually working or you simply think it’s working for you.”
This is as true in the cattle business as it is anywhere else. I am the least qualified person to tell you how to run your business, but maybe it’s time to take an unflinching look at your operation and see what can be improved.
I heard something at a conference once that has always stuck with me and is especially fitting today. “You can’t always do things the way Grandpa did, but you can always remember what Grandpa knew.” In essence, use the wisdom of the past and knowledge of the present to plan for the future.
