Executive Edge

Josh St. Peters, Illinois Beef Association Executive Vice President

“I don’t sell beef. I sell cattle!”

The statement stopped all conversation during a recent teleconference I was a part of, as an out-of-state producer exclaimed his opinions on the topic of beef marketing. His view was that he did not have a role creating value in the marketplace because he was just a cattle feeder—in his mind, simply a middleman who was a price-taker with no influence in the supply chain he sold into.

It was a perspective that stuck with me throughout that Thursday, and as I hit the road for my drive home from the office that night, I pondered why you might want to run a cattle business without the end-product in mind. In our industry we commit a lot of resources to making improvements that benefit the carcass value of our animals; we spend a lot of time and money selecting for genetic traits and enhancing feed rations. We shop the marketplace in pursuit of stronger sires and select for better heifers. We manage against disease and strive for feeding efficiencies. Through all these efforts and investments, our businesses today are successfully producing significantly more pounds of beef per animal and locally, we are growing superior cattle in Illinois that yield a premium quality beef product in our processing facilities, when compared with industry averages.

By the time I hit the gravel of our driveway that night, I was certain that we cannot look back in this business and think we are solely selling cattle: we are all beef producers, and we all play a critical role in improving and marketing that beef product, regardless of what type of cattle operation you are running.

In recognition of this work, we celebrate May as Beef Month and this issue of Illinois Beef magazine if filled with great stories and informative articles highlighting the many fantastic aspects of beef production in this state. You will find information on how your state and national checkoff dollars are working harder to capture consumer attention, building demand for beef. It is work we need to keep striving to expand, as studies show consumers are more curious (and receptive) than perhaps we have seen in recent decades. NCBA just published a figure citing that less than one quarter of U.S. consumers claim to have knowledge of how beef is raised.

Through our partnership with the Illinois Farm Families coalition, Illinois Beef Association has invested in new survey data – seeking a deeper understanding of where our state’s population is at with their views of production agriculture, specifically looking in on their ideas and perceptions about the importance of farming, trust in our operations and how satisfied they are with how their food is grown. This study takes a close look at what people in Chicago and the suburbs think about Illinois farming operations, but also includes key insights from our non-farming neighbors in rural communities, too. The findings are positive but highlight that we have a great opportunity to grow our connection with Illinois’ beef-loving consumers. We will share more in-depth findings from this consumer pulse survey in our next issue, but it is this kind of critical information that has helped your IBA staff form and execute plans for marketing campaigns that connect consumers and producers during the month of May, and throughout the summer months ahead.

Speaking of surveys, please be on the lookout for e-mails and mailings from IBA regarding our questionnaire on cattle market issues; we all know that market dynamics are a critical topic right now, and we are seeking everyone’s input to understand how each producer is impacted. Your answers in this survey will help shape policy and direct the work of IBA staff and leaders in the weeks ahead. It only takes a few minutes to complete so please make sure you watch for it and get back to us with your thoughts.

Separate from this column, I have taken up some word count in this issue to highlight the latest information on cattle marketing discussions across the industry. Over the last year we have seen this topic percolating and with the rising cost of inputs along with the growing spread between what packers are making on a carcass versus fed cattle prices, it is a debate that is reaching fever pitch across the value chain. In the article on market topics, you will see that the industry has no clear answer. Everyone is searching for the best path forward; all indications are that we may be at a policy crossroad, and we have been driven there by several significant and varied influences in the market.

There is a lot of economics and emotions at play in this topic, and our leadership and staff are working to sort through the best means to help members and take action in a way that reflects the desires of our producers. I receive phone calls and e-mails regularly from cattlemen across the state seeking to understand what is being done to address market transparency; everyone has concern and input to share about the markets and the impact – and I really do value the perspective that each call or note provides, so please do keep reaching out. It is a priority for our team in the office, and for the leaders on the board as well. Please do make sure your thoughts are reflected in a response to the survey, because every member’s opinion matters to us. Many of you are likely caught up with the business of spring field work, and some of you are getting ready to start with first-cutting hay in some parts of the state. I have enjoyed the chance to get out on some farms in recent weeks to see the fruits of a successful winter calving season many cow-calf operators enjoyed, and I am hopeful that folks with a late spring and early summer calving window soon find

themselves in the same boat. We have seen most regions of the state steadily opening back up, and I’m optimistic that it is paving the way for a summer filled with great cattle shows, and perhaps even our county and state fairs back in full swing. This past week I had calls with a couple of event staff and volunteers regarding the pre-planning for state fair events in both Springfield and DuQuoin, and it feels good to have these familiar dates coming back onto our calendars for the balance of this calendar year.

As your local beef events get scheduled for the summer months, please make sure we know about them here at the IBA office. I personally would like the chance to be there, to meet those of your who are members and network with cattlemen across Illinois who we might recruit to be new members, too. We might also be able to provide support and resources, depending on what you have planned. Give us a call or drop us an e-mail, and we’ll do our best to promote your local events as best we can.

I will wrap up today with a shameless plug for one event that is currently highlighted on my calendar – and I’m anxiously awaiting its arrival next month. We are just a couple of weeks away from the 2021 Summer Conference and IBA Annual Meeting, and I would like to take one last opportunity to formally invite you to join us! We have planned a great meeting for Tuesday, June 8, at the Holiday Inn and Suites in East Peoria. This year’s conference features an insider’s perspective on the political climate in Washington, with a presentation by Ethan Lane, NCBA’s Vice President of Governmental Affairs. We will also hear about cattle markets from the expert economist, Dr. Scott Brown at the University of Missouri, providing his outlook on the volatility we’ve been seeing, and sharing his update on what might be in store through the second half of this year.

We will dive into some key on-farm topics, too, like nutrient management and developing markets for local beef sales with presentations from Illinois farmers putting tools to work on their operations to achieve success in both arenas. I’m excited to share with the conference about what we have been seeing from a government relations standpoint in our own state capitol and joining me will be some notable names from the policy scene in Springfield. You will not want to miss all the topics planned for this meeting.

Our group tours planned for Wednesday, June 9, are second-to-none, as well. This year’s agenda offers you a first-hand look at one of Illinois’ premier seedstock cattle operations, along with an up-close tour through some of the biggest machines manufactured in North America. There is a great meal planned, and a look inside the region’s newest state-of-the-art meat processing plant will also be a highlight of the day. You’ll want to bring comfortable shoes and great questions, because the tour day is jam-packed with great stuff.

Don’t miss out on the 2021 IBA Summer Conference. Hop on our website today and register for your spot; we are itching to save you a seat in the meeting. And it is not too late to call the hotel and book your discounted room in the conference block, so that you can stay overnight for the reception celebrating Dr. Buzz Iliff’s retirement as IBA president and partake in these great industry tours the next morning.

If you have questions, concerns or need help with an issue on your operation or in your community, please don’t hesitate to reach out. My contact at the office is josh@illinoisbeef.com or (217) 787-4280 and if I am on the road, you can call or text me via (217) 282-0250.