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Post by Sudsy on May 9, 2015 5:56:48 GMT -6
Just a quick overview of the Aust. industry. For a myriad of reasons it appears as if the bigger operations are either downsizing or dispersing, in all or most breeds. With the ever increasing acceptance of AI in the commercial world, decreased cow numbers as a result of the drought, bulls are more difficult to sell than ever before. So, just maybe the big boys are finding it more difficult than most to offload all their bulls. A few of the bigger players have dispersed over the last three years. Two of those players were angus, 1400 cows in one and 1100 in the other. Some of the bigger Hereford studs have dispersed with some others having reduction sales. With the cost of production at an all time high per bull, one has to be able to offload a high percentage in order to turn a profit. So just maybe the small to medium sized breeder is well placed to operate more efficiently. This appears to be somewhat antagonistic to the U.S. situation from what I read here.
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Post by bookcliff on May 9, 2015 10:51:57 GMT -6
I was reading an article recently that discussed the concerns and demands of a small herd (under 60). I couldn't find it before typing this so this is as close to as I can recall. It said that something like 70% of the worlds beef is produced in herds of less than 60 cows. The average cow size in the united states is considerably lower than that I believe. Maybe we should be less worried about what the big "range guy" wants and more concerned with who is producing most of the beef in this country, the small guy. I say that somewhat joking, so don't take it too seriously and rip me for it. your "big range guy AKA over 250 mother cows", while substantially fewer in terms of operations, run about 60% or 70% of the cowherd in the US the last I saw in Sterling's industry stats.
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Post by strojanherefords on May 9, 2015 15:38:18 GMT -6
With A.I. and E.T., there is no longer a scarcity of cutting edge genetics. A few years ago, a flush brother of Miles McKee sold for under $10,000. There is no longer place in the market for lower quality bulls. The result of this shift means that we small breeders have to survive on our merits of our commercial viability rather than riding the coattails of an owning an "elite" bull. If we want to keep raising registered cattle, we need to be able to make our profit selling feeder steers rather than bulls.
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Post by shumakerherefords on May 9, 2015 17:49:15 GMT -6
With A.I. and E.T., there is no longer a scarcity of cutting edge genetics. A few years ago, a flush brother of Miles McKee sold for under $10,000. There is no longer place in the market for lower quality bulls. The result of this shift means that we small breeders have to survive on our merits of our commercial viability rather than riding the coattails of an owning an "elite" bull. If we want to keep raising registered cattle, we need to be able to make our profit selling feeder steers rather than bulls. Agree but why sell the feeder steers? Retain ownership through the feedlot. If your cattle are any good they will make you money. I got tired of taking the 'Hereford discount' at the sale barn and started sending all the steers and cull heifers straight to the feedlot. They have made money 11 out of the last 15 years.
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Post by strojanherefords on May 10, 2015 17:45:54 GMT -6
My rational for selling feeder steers was to put the good genetics out into circulation. I firmly believe there is no better advertisement than people seeing your cattle in production. That being said the future is in retaining ownership through slaughter. Viability in the beef industry will become increasingly contingent upon producing load lots of feeder steers. Continuing on Shumaker's line of thinking excess replacement heifers have a value beyond the feedlot. Many small producers are not set up to raise heifers, so I would prefer to meet that demand by selling excess heifers as safe in calf or pairs.
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Post by Glenn on May 11, 2015 7:22:16 GMT -6
I am less optimistic for the "multipliers" and "bull of the month" breeders. A guy can get a "Revolution son" anywhere or a Sensation son anywhere, Just saw this ad: >>I have 2 young bulls left...12 & 14 months old. 1 out of MSU TCF REVOLUTION 4R, other out of STAR MONEYMAKER 63U ET. $2800.00 each. If interested respond here or please call 479 227-0881. Located in Waldron, AR<<<
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Post by fivestarherefords on May 11, 2015 7:55:46 GMT -6
I am less optimistic for the "multipliers" and "bull of the month" breeders. A guy can get a "Revolution son" anywhere or a Sensation son anywhere, Just saw this ad: >>I have 2 young bulls left...12 & 14 months old. 1 out of MSU TCF REVOLUTION 4R, other out of STAR MONEYMAKER 63U ET. $2800.00 each. If interested respond here or please call 479 227-0881. Located in Waldron, AR<<< Is your opinion of that ad good, bad or indifferent? I sold 3 yearling bulls of that same age this spring for 2500. A 4R, a Trust and a Masterpiece. I sold an 18 month old Wrangler 9001W son (pictured below) at our local PHA consignment sale for 2315 after commission last month. The bull market here sucks right now. I steered nearly all of my spring calves last weekend.
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Post by Glenn on May 11, 2015 8:15:20 GMT -6
I don't think the ad "reads bad", just that $2800 doesn't seem like much to get for a good yearling - to 14 month old bull. So I was (right or wrong) trying to say that the "sons of these AI bulls" are "a dime a dozen".
I feel for folks in a bad market.
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Post by Deleted on May 11, 2015 8:28:43 GMT -6
If the bull market in those areas are that bad would it almost be better to fatten them up and just sell them by the pound as slaughter? It is crazy how much bull prices vary in areas, some they are selling at crazy high prices then you hear stories like this where you can't even get a fair price.
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Post by fivestarherefords on May 11, 2015 11:29:05 GMT -6
If the bull market in those areas are that bad would it almost be better to fatten them up and just sell them by the pound as slaughter? It is crazy how much bull prices vary in areas, some they are selling at crazy high prices then you hear stories like this where you can't even get a fair price. I sold another 18 mo old a month prior, that failed his BSE, at the sale barn and got just under 2000 as a slaughter bull. I had the 18 mo olds priced at 3000 off the farm and yearlings at 2500. I sold out of yearlings and nobody would hardly look at the older bulls when I told them the price difference. A lot of folks don't care about quality, they want to get there cows bred as cheaply as possible.
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Post by Glenn on May 13, 2015 8:23:47 GMT -6
Today I believe that maybe a number like 200 or 250 cows would be better correct in considering if a herd is sustainable operation that can provide for all the needs of the ranch and the people that run it. How many head is Cooper running?
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Post by randy on May 13, 2015 18:44:19 GMT -6
Today I believe that maybe a number like 200 or 250 cows would be better correct in considering if a herd is sustainable operation that can provide for all the needs of the ranch and the people that run it. How many head is Cooper running? My guess is about 300 cows with the commercials plus they farm also..
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Post by Deleted on May 13, 2015 20:55:30 GMT -6
Just saw this ad: >>I have 2 young bulls left...12 & 14 months old. 1 out of MSU TCF REVOLUTION 4R, other out of STAR MONEYMAKER 63U ET. $2800.00 each. If interested respond here or please call 479 227-0881. Located in Waldron, AR<<< Is your opinion of that ad good, bad or indifferent? I sold 3 yearling bulls of that same age this spring for 2500. A 4R, a Trust and a Masterpiece. I sold an 18 month old Wrangler 9001W son (pictured below) at our local PHA consignment sale for 2315 after commission last month. The bull market here sucks right now. I steered nearly all of my spring calves last weekend. I'm guessing that is just net sale after commission right? Just curious but how did he sell compared to the sale average? You probably had fuel and meal expenses, maybe a hotel too and probably some supplies to get the bull ready on sale day too that ate into the bottom line. That's 1 thing about consignment sales, not only do you have to pay the commission but just the expenses with traveling and being there factors into if it's worth consigning plus the time and effort it takes to break the animal to lead. It's a great marketing tool for sure and you have to have the mindset that part of the expenses of consigning is for marketing your program. Someone with little name recognition could bring a really nice animal that sells for less than an animal from a well known name breeder that is not as good but the name associated with that animal sometimes will get someone more money because people will pay for something from a well known program or some of these guys already have a buyer lined up in advance that will help run the price up.
It sucks that your market is soft right now, private treaty is beneficial because you can control the price and not have someone else take a bite out of the sale but you also have to have the demand and buyers that know the market well enough to know what quality is worth. If you were selling those bulls in other markets you might get near twice that but that's another issue because you have transportation costs and the name recognition issues with that too to deal with.
It's amazing how based on where you are located in this great country how things can vary so much. My wife and I had our honeymoon in Hawaii, at the time she was an underwriter for mortgages and was pointing out how some of the run down looking shacks there were selling for more that what we could buy a nice house for. There are places in this country that you can rent an entire house for less than half of what you can rent a hole in the wall studio apartment in a major city.
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Post by fivestarherefords on May 13, 2015 21:34:11 GMT -6
There were 4 bulls in the sale. He brought 2500, another brought 2300 and the other two didn't get a bid.
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