Sell more beef...

[Rob R]

...by not selling beef!

I've just been looking at the beef certification scheme list - there are 125 members, 14 of them have websites, no doubt some of them will have cutting rooms, market stalls etc. All of them will no doubt spend time and sometimes money promoting their Dexter beef many experiencing times when they have demand but no beef (and vice versa). Why are we doing this?

It seems to me that there must be an awful lot of needless duplication in the Dexter world that is adding to the cost of Dexter beef for the consumer unnecessarily that is to the deteriment of the producer. Couple that with times of inconsistency of supply, which is why customers choose supermarkets, rather than price, and any effort spent on marketing is wasted.

If everyone who has the facilities, be it a cutting room, website, etc. were to take in double the number of steers, buying them in at an agreed per kg price, fixed costs per an animal, the biggest costs in the breed, could be slashed dramatically for both parties. In exchange for the work spent distributing beef, producers could devote more of their time and effort driving customers to buy a consistent supply of Dexter beef from a single source, fully set up with convenient payment options.

Win-win, no?

Or maybe people are already doing this and I'm not aware of it?

[Jac]

Firstly, I know that all 125 members are not actively selling Dexter beef. Some are just offering live animals for others to beef, some are doing the aforementioned whilst selling cut beef without bringing it to the attention of the general public*, some as you say have cutting rooms, market stalls, web sites although the latter are in the minority.

There is a great deal of assumtion here that there is more demand for beef than supply but judging by the number of steers that are for sale, I would say that is not the case. Many people who I have spoken to tell me that despite their best efforts, there is a market for a very limited number but no more than that. It is certainly my personal experience. For some, margins are so tight it is not worth the effort in producing the type of stock that is really required (quality animals that are worthwhile killing) when they also have well-paid jobs and the cows are just a sideline.

* they have done their sums and there is not enough gain to make the required investment although unfortunately churning out beef and selling at a low price in this way is counterproductive as it does not raise the profile of the product.

An obvious solution would be to take the producer out of the market by purchasing the animals that they are intending to beef (assuming you had a market and the quality was comparable to your own which in many cases it is not) but if having to pay their 'retail' value of the meat plus the killing cost less their costs of cutting there is no margin as the public's expectation in terms of presentation is far in excess of a fast cut in a plastic bag with a hand written label.

However, despite what may seem a fairly negative view. I do try from time to time to get people to work together for the common good so if you have detailed plans Rob, then let's all hear them.

[Rob R]

* they have done their sums and there is not enough gain to make the required investment although unfortunately churning out beef and selling at a low price in this way is counterproductive as it does not raise the profile of the product.

An obvious solution would be to take the producer out of the market by purchasing the animals that they are intending to beef (assuming you had a market and the quality was comparable to your own which in many cases it is not) but if having to pay their 'retail' value of the meat plus the killing cost less their costs of cutting there is no margin as the public's expectation in terms of presentation is far in excess of a fast cut in a plastic bag with a hand written label.

That's exactly what I mean - the cost of a label printer is prohibitive if you only beef 3 animals a year. Many of these costs are only high because they are spread across few animals.

Demand for good quality beef is not saturated, but demand for beef sold ad hoc is always going to be severely limited because customers want to buy little and often from a convenient single source (hence the supermarkets sucess).

However, despite what may seem a fairly negative view. I do try from time to time to get people to work together for the common good so if you have detailed plans Rob, then let's all hear them.

I have no plans beyond my own business plans, which I don't tend to broadcast in case the people involved don't want me to but I'm just throwing out some food for thought if anyone is struggling to sell beef and/or steers.

I think, in general, we need to be more flexible & creative in how animals are sold & marketed, be that as beef or on the hoof, for mutual benefit. What form that takes depends upon the individuals involved and what they need/have to offer. This is a discussion board, I'm just discussing.

[Jac]

That's exactly what I mean - the cost of a label printer is prohibitive if you only beef 3 animals a year. Many of these costs are only high because they are spread across few animals.

Yes, economies of scale is tried and tested but you are producing beef from an animal that is not especially designed as a commercial beef breed so the numbers required to turn a profit are significant and they have to be produced/purchased at a very low cost and despite claims to the contrary well-finished animals haven't been raised on fresh air alone.

The alternative is to operate under the radar by beefing a few animals to sell to family and friends without the overheads which I suppose is where the majority of Dexter keepers are if they are totally honest.

Demand for good quality beef is not saturated

The market for good quality beef is not saturated but there needs to be awareness that Dexter beef exists. At present, the majority of people have never heard of it because all marketing so far has been directed at the farmer and he is not the one buying the beef.

[Rob R]

Most Dexter keepers acknowledge that they do not keep them to make a profit, that doesn't mean that you can't aim to minimise the loss.

[Rob R]

Anyhow Jac, if this were Dragon's Den you'd say "I'm out" at this point.

[Jac]

Anyhow Jac, if this were Dragon's Den you'd say "I'm out" at this point.

Would I heck. I'm made of sterner stuff or I would have given up long ago. Why do people go into the Den?

[Rob R]

Demand for good quality beef is not saturated

The market for good quality beef is not saturated but there needs to be awareness that Dexter beef exists. At present, the majority of people have never heard of it because all marketing so far has been directed at the farmer and he is not the one buying the beef.

Why?

The farmer is the one who buys Dexters, the consumer buys beef. The breed may be a good selling point for some but it's not the most important one to the majority of the market, as I've said above (and as you found in the supermarket).

[Rob R]

Anyhow Jac, if this were Dragon's Den you'd say "I'm out" at this point.

Would I heck. I'm made of sterner stuff or I would have given up long ago. Why do people go into the Den?

Sorry, I meant from my idea of engaging in co-marketing to better fill the market, not necessarily Dexters.

At the end of the day I buy steers in to finish, because I don't have enough of my own cows. If someone wants to not go to the bother of selling meat & just want cash up front then that's fine, but it'll depend upon how much I can manage to sell, and if there are more steers around than I need or I don't have the cashflow available to buy then, I won't.

BUT, if someone else is driving business my way I will sell out of my own stock, I will then go to the open market to buy stock. If those people who drive business my way also produce Dexter steers (or heifers), and I know about it, then I'm going to go to them first in the event of needing to buy extra stock, so they will sell out too.

Cashflow is important to any business too and lack of it kills off more businesses than lack of profit. The same applies to Dexters - I didn't go to Melton this year because I didn't have enough cash to hand over, but I'm still buying breeding stock as & when I can.

As to why people go on the DD programme - because they have more confidence (in their own ideas) than money, I guess.

I think there is a lot of scope out there for other people to do the same, all over the country, & to raise the profile of the Dexter breed by better meeting the market that is already there (as opposed to trying to increase the market of those who will buy beef as we choose to sell it - ie in large quantities as & when we have it available).

[Jac]

it'll depend upon how much I can manage to sell

That is crux of the matter.

If you had confidence in your ability to quickly sell the beef then you wouldn't need money because people would be offering you animals for payment at a later date. After all, that is what Crossgar did and everyone rushed in to take a punt.

[Jac]

As to why people go on the DD programme - because they have more confidence (in their own ideas) than money, I guess.

I guess, it is not just about the money. The dragons have a team behind them, experts that know how to market and brand a product and a track record of getting products on the shelves.

What have we got?

[Mkay]

We have a great product... Unfortunately that is sold to cheaply and to lazily to do it justice and thus no hope.

Rob on your point of buying up all surplus stock and beefing it.. how many animals do you think there are in the country?

[Rob R]

Rob on your point of buying up all surplus stock and beefing it.. how many animals do you think there are in the country?

It doesn't really matter how many there are exactly.

[Rob R]

it'll depend upon how much I can manage to sell

That is crux of the matter.

If you had confidence in your ability to quickly sell the beef then you wouldn't need money because people would be offering you animals for payment at a later date. After all, that is what Crossgar did and everyone rushed in to take a punt.

I did address that - the selling is a limiting factor and I'm not going to sell more than I can either pack or produce, as that's a quick way to annoy customers if you can't deliver. If someone else is putting some effort into the promotion then more people can be reached than if one were to do it alone & more time can be devoted to doing the job of making sure the customer gets what they want, when they want it (so they'll come back for more).

Crossgar are, essentially, butchers, whereas I'm a farmer so the timescales are longer but yes, people do do exactly that. You do still need money though - there are other costs involved beyond livestock.

[Jac]

I'm not going to sell more than I can either pack or produce

Crossgar are, essentially, butchers, whereas I'm a farmer

We have a great product... Unfortunately that is sold to cheaply and to lazily to do it justice and thus no hope.

Is it laziness or like the dual-purpose animals we keep, one can do neither efficiently?

Perhaps we should pack up the idea of trying to be superman/woman and focus on finding outlets for the majority of breeders.