Discount risk avoidance is a compelling way to consider the economics of the beef industry and its value programs. Jared Wareham shares a perspective that can help veterinarians and salespersons maintain preventative programs while helping producers avoid costly discounts.
Value-added programs don’t necessarily add value to a set baseline price. Rather, they begin by removing some of the discount (risk) that they assume exists.
Source: Drovers, October 15, 2018. Link.
Program cattle have the extra layers of value and pull-through demand to make them highly sought after.
INSIGHTS: Share this article liberally on social media, e-newsletters, during VFD visits and as part of face-to-face meetings.