16 NEBRASKA CATTLEMAN January 2024 ‘LET’S NOT BE LOBSTER’ CONTINUED FROM PAGE 15 “Growth means more risk when markets fall, for sure,” Uden said. “Cooperation and communication are so important. Vertical cooperation with different packing facilities across the country to market those cattle, regardless of color. You just have to think outside the box and spend more time on marketing and positioning yourself.” Uden also emphasized that there are no quick fixes. “It’ll pass eventually, but there are a lot of important pieces that need to come together so that level of production will clear,” he said. “Political systems, the value of the dollar … but we’ve increased beef production with fewer cows, and we’ll continue to do that. The industry of the future will have fewer players because of the cost of entry in this business.” Revitalizing Undervalued Cuts Vertical cooperation is a critical strategy for long-term success in the export markets as well. Creekstone Farms credits a substantial portion of their growth in Europe to a 2004 decision to be on the leading edge of exporting there. “Over the years we’ve grown to a significant amount of product,” Meyer said. “We’ve worked with a lot of the same producers for more than 15 years in this program – ranches that know and understand how it works and maintain the certifications. It’s a very coordinated supply chain, and very successful.” Meyer reported a less dramatic demand deterioration due to higher prices and remains confident in the ability of certain export markets to maintain demand. The key is keeping up to speed with which markets are best primed for U.S. products and identifying opportunities to create success stories out of underutilized cuts. In China today, those are short ribs and outside skirts. “Outside skirt is a great story … like the chicken wing,” Meyer said. “It used to be something of low value; now we sell it to China for $16 to $17 per pound. That’s an underutilized cut upgraded to a staple, with a customer base willing to pay for it.” “We are constantly looking for ways to make sure we have a product for just about anybody’s budget. It’s difficult right now, no doubt.” — Adam Wegner
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