The Business of Beef
After selling cattle on the hoof for decades, the Hertzog family now offers meat direct to customers, relying on Cat Power to protect their investment.
If you’re looking for Jim Hertzog on a Thursday morning, there’s no doubt where you’ll find him. He’ll be in the same place he’s been nearly every Thursday for the past 30 years — sitting in his auctioneer’s chair behind the sale ring at Mo-Kan Livestock Market in Butler, Missouri.Like a king holding court, Jim directs the action for the barn’s weekly feeder cattle sale. As a lot of animals enters the ring, the veteran auctioneer provides a bit of information on the cattle before he opens the bidding. His rhythmic cadence sends the bids higher until it inevitably crescendos as he declares “SOLD!” and the next lot enters the ring.
Since 1992, cattle producers in west-central Missouri and eastern Kansas have trusted the Hertzogs to get them top dollar for their heifers and steers. It’s a responsibility Jim doesn’t take lightly.
“I enjoy working for my customers, trying to get them every penny I can out of their cattle,” Jim says. “We run close to 60,000 head through the barn every year.”
Auctions & Agriculture
A native of Greenwood, Missouri, Jim grew up in the auction business. His father, Jerry, was an auctioneer who worked area farm sales, business liquidations and other auctions. Young Jim decided the vocation suited him, too.“In 1982, I went up to the World Wide College of Auctioneering in Mason City, Iowa, to really learn the craft,” he recalls. “Then, my dad and I were in the auction business together through the ’80s and into the early ’90s. For a few years, I also sold cattle at another livestock market.”
Then in 1991, after 120 years of business, the historic Kansas City Stockyards west of downtown closed. The loss was felt by cattle producers in the region who were left without a place to market their animals. Jim saw an opportunity.
“There was a void, so my wife, Kathi, and I decided to fill it by building the sale barn here north of Butler,” he says. “We opened in 1992 and have been selling cattle ever since.”
In addition to weekly feeder cattle sales, Mo-Kan Livestock Market also holds special auctions throughout the year. These include breed-specific sales for longhorn or Brahman cattle, along with a bison sale, special cow sales, bred cow sales and even a machinery sale.
Jim says the industry has changed tremendously during Mo-Kan’s 30 years of existence.
“These days, there’s a lot of competition and a lot of bidding for calves,” he explains. “But when it comes to selling your fat cattle, you’ve basically got four people to sell them to — the ‘Big Four’ of Tyson, JBS, Cargill and National Beef — and about 10 days to get them sold. Otherwise, you’re just throwing good money after bad if you keep feeding them once they’re fat.”
Creating a Meat Market
As Jim and Kathi’s sons, Todd and Brian, finished college, the Hertzogs expanded the family business by opening a “grow yard,” a step in the beef pipeline where calves are backgrounded before entering a feedlot for finishing. In the industry, grow yards are increasingly used to add value to cattle that might otherwise have been marginalized had they been marketed directly.
Jim says that they sold some beef direct from those animals, but when the global COVID-19 pandemic interrupted every aspect of the food supply chain, they couldn’t get beef processed how they wanted.
“At first, we were just going to quit selling beef, then we decided we’d just build our own plant,” Jim says. “We started planning in July 2020, and by June 2021, Hertzog Meat Co. was open just around the corner from the sale barn.”
The Hertzogs employ 22 workers at the 13,000-square-foot processing facility. Jim says they are currently equipped to process 25 head of cattle daily. All beef is hung and dry aged for 14 days before processing.
“That’s our secret, and man, it really works good,” he says with a laugh. “That aging room allows that beef to get tender, and the flavor is just phenomenal.”
Guaranteeing No Pauses in Power
To ensure they protected their investment in both equipment and beef, the Hertzogs decided to install a standby generator. After doing some research, they selected a Cat C15 generator set with a 450-kilowatt rating at 60hz and Cat Automatic Transfer Switch from Foley Power Solutions.
“We didn’t cut any corners when building the plant, so we weren’t going to cut one when making sure we’d always have power,” Jim says.
“Cat wasn’t the least expensive option, but I’ve had a lot of Cat equipment over the years, and it’s always been dependable. I was very pleased all the way around. Foley Power Solutions worked to find us the right generator to run our entire facility and they completed the installation.”
Jim says they’ve only lost power once while the plant has been in operation. “Within six to eight seconds of losing power, the generator was running,” he adds. “We never missed a beat.”
Building a Niche for Hertzog Beef
With the addition of the meat-processing facility, each member of the family now is responsible for one aspect of the overall business. Jim still runs the sale barn, while his son, Brian, procures the cattle that they feed out and butcher. The oldest son, Todd, is manager of the plant. Jim’s wife, Kathi, along with their daughters-in-law, Katie (Brian’s wife) and Ashley (Todd’s wife) all work in the offices and handle the bookkeeping.Developing key accounts has been one of Todd’s primary responsibilities, and today, you can find Hertzog beef in Hy-Vee grocery stores in the Kansas City area. Their products are also served in several K.C. restaurants as well as the many Bass Pro Shop-owned properties in the Branson area, including Big Cedar Lodge, Top of the Rock and Dogwood Canyon. Jim says it’s tough to break into some markets because of the influence of the large packers.
“It’s all about developing relationships,” Jim says. “And once people taste our beef, they keep coming back.”
To learn more about Mo-Kan Livestock, visit www.mo-kanlivestock.com or call 660-679-6535. For more information about Hertzog Meat Co., go to www.hertzogsmeatco.com or call 660-720-2333.