Beef Is Not a Commodity

Beef is not a commodity??  This statement may confuse those with the knowledge that live cattle futures have been traded on the Chicago Mercantile Exchange (CME) for nearly 50 years.  But alas, a true commodity requires fungibility, which simply means the product is the same no matter who produces it.  While this characteristic can be made applicable to real commodities such as gold and oil, it certainly doesn’t apply to cattle.

Sure, there are those who believe that a cow is a cow.  But my taste-buds tell me otherwise, and I’d sooner eat my muddy leather boots than my neighbor’s lanky, sharp-shouldered Brahman cross.  In fact, it’s a pretty damning statement about our society when we allow the industrial food complex to completely ignore taste or tenderness as a parameter for pricing over 95% of the cattle we eat.

While I’ll admit that it’s easy to get all worked up about the injustice of having to constantly buck the industrial trend that focuses on quantity over quality, it has allowed us enlightened Devon breeders to benefit from lower entry costs and the opportunity for huge market differentiation via taste and tenderness.  As the numerous benefits of the Devon breed are rediscovered, we will no longer own the Red-Hided Stepchild of the cattle world.  In fact, Devon beef vs. Commodity beef is a lot like comparing store-bought tomatoes to garden grown.

Most of us are aware of the fact that the Devon breed wasn’t acceptable to feedlot operators due to their ability to fatten so quickly.  You may say that Devon cattle were “overqualified” for the feedlot.  This strange phenomenon helped save Devon genetics, and those of us blessed with the opportunity to re-establish gourmet meat to its rightful place can thank King Corn.  How weird is that?!

It’s no coincidence that cattle “commoditization” occurred during the same period that feedlots were exploding across the country.  From a monetary standpoint, it makes perfect sense to build a profit stream based on the only metric the feedlots can control…weight.  And it really doesn’t matter if they feed the lanky cow-like creatures a diet complete with goodies such as grain, chicken poop, or animal bi-products.  I beg to differ! It makes me think that if “we are what we eat”, most people must be full of crap (sorry, but I couldn’t resist).

Devon breeders understand that we own an elite breed of cattle.  Savvy breeders have been able to buy a “Tiffany’s” product at “Wal-Mart” prices, but the tide is changing.  The proof is in the escalating prices of Devon cattle, such as cows that averaged $6200 at our recent NADA conference and sale in Texas.  We understand that all cattle are not created equal, and that the Devon breed’s inherent taste, tenderness, and thrift is getting noticed.

To understand how the attempted commoditization of cattle has ruined American cattle quality, one merely needs to understand Gresham’s Law (bad money drives out good).  Cattle prices trading on weight alone will naturally drive weight up and quality down.  This is neither practical nor healthy, and we’ve all suffered as a result.

As Devon breeders, our solution to this issue is easy.  Have family, friends, and neighbors over for a Devon steak.  Sit down and discuss what makes Devon different as they enjoy a tender, tasty, and healthy meal.  There is really nothing to it!

Greg Hickl
Fourche River Farm & Cattle Co.
Harvey, Arkansas