Touchstone Angus News
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A Different Perspective
I have been reading recently about some views in the cattle industry press that are difficult to swallow. One such view goes like this: “The beef market is a totally separate market that has little-to-nothing to do with the profitability of cattle producers. (http://www.feedlotmagazine.com/inside.html Jan/Feb 2007)” Therefore we need not be concerned about the end-product or consumer preferences and trends. That is for retailers to worry about not producers because these things have no impact on profitability for producers. For most producers this is the sad truth and the writers are just telling it like it is. It is not necessarily sad for producers, or in any way their fault, but is a sad commentary on how our industry works.

How can any industry hope to survive in a national market place, let alone a global market place, when producers who are in control of the most critical qualities (i.e. consistent tenderness & marbling) of a consumer product need not be concerned with the satisfaction or desires of the consumer paying for it? If that consumer had no other choices it would be one matter but in the beef industry there are other choices with many more coming soon. If the industry continues to operate in such a dysfunctional manner it will be a greater danger to producers — especially in the long-term — than the problems presented with trade agreements, BSE or the ethanol industry.

An Accidental Business – Touchstone Brand Natural Beef
When we began in the registered Angus business in 1993 the primary income from our cattle wasn’t seedstock sales. We just weren’t big enough, well known enough but most significantly smart enough to have a successful bull/female sale. Looking back on it now we were fortunate to be within 40 miles of 2 million consumers in either Denver or Colorado Springs, Colorado, and within a mile of a USDA inspected and family run “natural meats” processing plant. This proved to be an invaluable training ground for us in what is most important about the cattle business and that is the beef.

In conversations about our “cows”, with friends and acquaintances not in the cattle business, often they would complain about being unable to buy “good” beef. After describing all the things they disliked about grocery store beef — that they “avoided buying” — would ask if we would sell them some “good” beef. Not having a lot of profitable options for our registered bulls and females at that time, I agreed to raise some for them. My guess is that any of you near a metro area have had the same kind of conversations.

After many years of raising and selling beef we’ve learned what our customers like and what they don’t like about beef. It was what we’ve learned (sometimes painfully) in the beef business that developed and refined our breeding philosophy for seedstock. Here are the most important benefits we found consumers are looking for.

1. Tenderness – Raising “Natural Beef” grew our branded beef business simply by word-of-mouth but selling someone even a slightly tough one could make an enemy. We’ve refunded more money and had more problems with this one issue than any of the other issues combined. We learned not all purebred Angus cattle finished optimally are tender.
2. Flavor – This benefit largely equates to marbling but it’s a fine line between finishing to Choice or better and getting too much fat in the seams and around the edges of the cuts. It is the marbling (fine flecks of fat), whether consumers like to admit it or not, that gives beef the amazing appeal most people seem to crave.
3. Consistency – This one has a somewhat surprising effect on beef customers and the power of it is greatly underestimated by the industry. For example the customer really liked your beef the first time they bought it. Then you sell them some that they feel was tougher, overly fat or not as tasty. It surprised us that with just one less than ideal experience, the trust and loyalty you gained with them is lost or at least damaged, even if you replace the beef. From then on every new order is carefully scrutinized to see if somehow you messed-up again. Two unsatisfactory orders, even if you make it right, will probably end your business with them.
4. Naturally Raised – Commonly it’s the hormones or steroids our customers are most concerned about followed by antibiotics in feed and a few wouldn’t buy from us because we used pour-ons which they specifically asked about. In a future letter I want to tell you about some significant changes happening right now in consumer preferences related to how cattle are raised and finished.

The Touchstone Difference
For those of you familiar with our breeding philosophy and program know we seem to put an unusual amount of emphasis on linebreeding for consistency, genetic tenderness, and marbling without excessive backfat. Look back at the top benefits I described consumers were looking for and I think you can see why our breeding program is designed the way it is.

April 5, 2007, Annual Bull Sale
You are cordially invited to our 6th Annual “DISCOVER THE DIFFERENCE” sale at the ranch. The sale will begin at 1:30 pm, April 5, 2007, at the ranch north of Lusk, Wyoming. This is a unique offering of 50 plus bulls produced from our linebred Emulous cow herd that we believe can position you for the future.