Curious if the members of this forum could offer value to each other through fair business dealings with a willingness to have open conversations.

[11L Cattle]

I am curious if the solution to what some of us may be struggling with could be found within a group of likeminded individuals who support growth and knowledge in our industries.

For example, I operate a preconditioning yard in SE TX. Where I live I have a unique ability to be able to obtain and start flyweight 200-400# calves year round. Getting these small calves started right and straightened out is what we excel in. I practice sell/buy year round and end up with a wide range of weights sexes and breeds that we sort into weight classes to move out around 5-600#. I struggle with getting buyers interest in these calves without feeling like being a new face is costing me more serious bids. So much to the point that I watch high risk cutter bulls sell for much more money at the barn, meaning their bids are much higher for their loads. Commissions are higher than I am comfortable with and prefer to sell private treaty.

So my question is that where I have a problem selling cattle I wonder if someone else may have a problem finding affordable stocker cattle? I have roughly 100-125 hd ready per month to sell. If you are a load buyer maybe we could discuss how to change my sorts or my offerings that would make a load more valuable to the buyer. I feel there has to be enough of us here buying and selling to discuss values without having to risk freight and prices having to send to a barn sell in a different region or trust that a broker is working your interest. There is a lot of money lost in trying to find the connections that you can trust in your business and are willing to help more than themselves in their business practices.

Thanks in advance.

 

[kodyjustus]

I am curious if the solution to what some of us may be struggling with could be found within a group of likeminded individuals who support growth and knowledge in our industries.

For example, I operate a preconditioning yard in SE TX. Where I live I have a unique ability to be able to obtain and start flyweight 200-400# calves year round. Getting these small calves started right and straightened out is what we excel in. I practice sell/buy year round and end up with a wide range of weights sexes and breeds that we sort into weight classes to move out around 5-600#. I struggle with getting buyers interest in these calves without feeling like being a new face is costing me more serious bids. So much to the point that I watch high risk cutter bulls sell for much more money at the barn, meaning their bids are much higher for their loads. Commissions are higher than I am comfortable with and prefer to sell private treaty.

So my question is that where I have a problem selling cattle I wonder if someone else may have a problem finding affordable stocker cattle? I have roughly 100-125 hd ready per month to sell. If you are a load buyer maybe we could discuss how to change my sorts or my offerings that would make a load more valuable to the buyer. I feel there has to be enough of us here buying and selling to discuss values without having to risk freight and prices having to send to a barn sell in a different region or trust that a broker is working your interest. There is a lot of money lost in trying to find the connections that you can trust in your business and are willing to help more than themselves in their business practices.

Thanks in advance.

Have you considered using a video sale company? I am willing to discuss your sorts, I might be able to identify some things that make a group more appealing. I’m a long way from your region. I have shipped loads as a rep. I’ve shipped loads from my ranch sold on video and through a buyer.

 

[11L Cattle]

Have you considered using a video sale company? I am willing to discuss your sorts, I might be able to identify some things that make a group more appealing. I’m a long way from your region. I have shipped loads as a rep. I’ve shipped loads from my ranch sold on video and through a buyer.

I've spoke to one rep with a video sale and wasn't impressed with much that I heard. I will also be speaking to a different rep who specializes in private treaty as a broker for less of a commission than a video sale. I would be happy to discuss how to sort and offer.
An example and question.
On a truck load of mixed calves lets say 70 hd for example. 30 hd 1/2 or more ear. 10 of those are braford. 40 hd are 1/3 ear or less good brangus and charlois type calves. 40 hfr 30 steer. This is a pretty far spread for an example but all within 100#.

How would you recommend offering video all together, video steers and hfrs seperate and sold seperate, or split by commercial or exotic. When I watch video sales trying to match the sorts I am seeing I would need 5000 hd to get them that close. I also know that on a commercial level loads are key. If a buyer offers Brahmer prices for the load I lose the value of all the really good calves. Which leads me to want to pull the goods from the load but commissions as high as they are I can still profit better at Brahmer prices so I take the deal allowing the good cattle to be stolen. I may get top of market at barn but I hate gambling.

 

[kodyjustus]

That’s a lot of questions you’re correct that is like a five way sort with a mixed load and two classes of steers. So the video’s biggest advantage is, it’s designed as a forward contract but you’re actually selling basically immediate delivery.
Personally I don’t mind paying commission, I’m paying for a Rolodex I don’t have. My main concerns are transportation and shrink. You are right you just about have to have a load to sell private treaty. The advantage at the sale barn is you only have to have enough to create a pen lot. Talk to the barn and try to hit a week when there are similar cattle as yours. Go a day early and pay the feed. It will reduce your shrink and secure a better place in the sale order. Most of the “wrecks” I see at the sale barn are calves that show up sale day with no prior communication.
I think my best advice would be to scrutinize harder when you’re buying. Sort them when you buy them. Let the cow calf producers with smaller herds try to market split loads.

 

[kodyjustus]

So if the commission is 3% on a $1500 calf that’s $45. Let’s say when you take to the sale barn he shrinks 9% because you gather load and haul him the same day and he stands and waits till close to the end of the sale. 9% on a 500lb calf is 45 pounds. At $3/lb that’s $135. That shrink is why a lot of those calve bring a high price per pound but actually less per head. You can easily offer cattle $10/cwt less than sell barn and give a 2% pencil shrink and be money ahead with no transportation cost.

 

[kodyjustus]

You can also sort by weight and manage them differently to get them to be more uniform. When they are all together in a feed pen the big ones get bigger and the little ones stay little. You can help the little ones catch up and keep the bigger ones on more of a maintenance diet.

 

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