A corporate CEO can increase the
production of his business
by 10-15% without an increase in costs! Should he do it?
If you were that corporate CEO, how would you explain it if
you refused? How would you explain to your board of directors
that you refused to increase production by 10-15% with no increase
in costs? As the CEO of a business that manufactured coats,
for example, you might explain:
"I know this idea could make us more money in the future.
I know it could have made us more money in the past. But we've
usually only produced black coats. If we do this, we'll also have
to make some red coats. I know the red coats are just as good
and don't cost any more to produce, but I've just always preferred
the black ones."
Would you still be the CEO of the company?
As we weighed calves this fall, a Hereford x Red Angus cross, red-baldy
heifer calf came across the scales. She was 70 pounds heavier than
the heaviest straight-bred heifer calf. She didn't cost any more to
produce, but her value based on payweight was approximately 15% higher
than her mates. Good Hereford cattle will always be in demand in this
industry. Unlike the terminal cross where the females are disposed
of at a commodity price, the Hereford cross produces both a higher
performing steer and a superior, more productive, more valuable, more
fertile female. The baldy female speaks for herself wherever she grazes
the planet. The baldy steer is king in the grower yard, feedlot and
packing plant. It's only in the ranching business through heterosis,
however, that such an unusual opportunity exists. In the face of rising
costs and smaller margins, this business opportunity becomes that
much more valuable when seized and ever more unprofitable if ignored.
The beauty is this: when you increase production without an increase
in costs, it goes straight to the bottom line. Nothing could be more
valuable to any business.
A rancher can increase the production
of his business by 10-15% without increasing his costs. He
should do it.
Herefords….the
REAL business breed.
