Holding on to Your Advantage –
By Kit Pharo
In last week’s PCC Update, we discussed the need to have a competitive advantage – and how to obtain one. This article was written for the benefit of the many PCC subscribers who already have a competitive advantage.
NOTE: If you don’t have a competitive advantage, I suggest you re-read last week’s PCC Update. We believe having a competitive advantage will be the difference between mere survival and true success in the future of the cow-calf business.
You have a competitive advantage because you were willing to step out of the status quo herd and do a better job of running your business. However, you will only have a competitive advantage until the majority discover they can do what you are doing. Rest assured, this will take much longer than it should.
Eventually, though, yesterday’s Herd Quitters will become the new status quo. If you want to maintain your competitive edge, you must continue to change with the times. You must recognize when you are in danger of becoming the new status quo, and start looking for new advantages. This is a never-ending challenge that I love.
Henry Ford is an excellent example of a leader who fell behind. It has been said that Henry Ford was 20 years ahead of his competition for the first 20 years of his business – and 20 years behind the next 20 years. During the boom years of the Model T, over two-thirds of the cars in the U.S. were Fords.
Henry did what he had to do to become the leader in the early car business – but he failed to adapt and change with the times. For example, he thought every car should be black. He allowed his business to stagnate under its previous success. The same thing can happen to us if we’re not careful. Nothing stays the same! The key to staying ahead is to adapt to change as it is taking place.
Quote Worth Re-Quoting –
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” ~ Charles Darwin
“It is not necessary to change. Survival is not mandatory.” ~ W. Edwards Deming
Production Per Acre –
By Tim Goodnight
Shifting the focus from production per cow to production per acre has been shown to increase profitability. It’s no secret that smaller framed cows will produce more calves and more total pounds per acre. In addition, these lighter calves are worth more per pound.
More pounds that are worth more per pound is a win-win, right?
As simple as this concept is… status quo producers can’t seem to understand that by focusing on individual growth and weaning weights, they are limiting their profitability. Despite the emphasis placed on growth, the status quobeef industry has not been able to increase average weaning weights over the past 15 years. The only thing that has increased in the last 15 years is cow size. This has led to the increased use of expensive inputs, which has had a negative impact on profitability.
So how can producers increase production per acre? It begins with a paradigm shift. Shifting the focus to the production and performance of the entire operation instead of the individual animal is the most important first step. Next,you should align your operation with a program that has shown the ability to increase total production without expensive inputs. Pharo Cattle Company has been that program for 30 years. If you’re ready to increase your ranch’s total production and profitability, we can help.
Quote Worth Re-Quoting –
“In times of change, learners will inherit the earth – while the learned find themselves beautifully equipped to deal with a world that no longer exists.” ~ Eric Hoffer
“Those who cannot change their minds cannot change anything.” ~ George Bernard Shaw