Department of Animal Science
Date of this Version
December 1995
Abstract
The discussion of strategic alliances in this setting at this time in the cattle numbers and price cycle is extremely appropriate. I am honored to have been selected to speak for commercial producers regarding what we expect of strategic alliances.
While some may have a fairly concise, narrowly defined idea of what a strategic alliance is, I would prefer a less structured view. A strategic alliance could be any long-term win/win relationship between two or more independent businesses. When this happens the businesses become inter-dependent. This makes the quality and structure of the alliance very important to all parties.
A strategic alliance for the purpose of producing, adding value to and marketing cattle or beef represents a huge investment of time, negotiation, emotion and money. Such investment requires long term benefit and commitment. To make such a commitment a commercial cattle producer is going to want reasonable assurance that certain expectations will be met.
I think there is some danger that in ten years or so, when the next down-turn in the price cycle comes, it may be difficult for those not involved in alliances to sell feeder cattle. I hope a sense of this kind of future market place doesn't cause us to rush into alliances without insuring that most of our expectations will be met.
Comments
Published for Proceedings, The Range Beef Cow Symposium XIV December 5, 6 and 7, 1995, Gering, Nebraska.