6% SHRINK??

[bpwagner115]

We sold a load of fat cattle and they loaded out Wednesday. Sold them direct to a packer in Kansas (12 hour haul from where we are in South Dakota) at$1.25/lb. We and the packer agreed to weigh at a registered station about 10 miles from our farm and take 3% shrink. Fine. 40 head averaged 1450 pounds a piece. Get a phone call yesterday from our broker saying they are PISSED. Cattle shrunk 6% (ALMOST 90 pounds!?) so they want us to take another 1.5% to help cover their losses. Broker wants us too pay them also so they don't totally abondon him as a buyer. Has anyone ever heard of that kind of shrink?

 

[tom4018]

Is the 1450 weight taken at the scale ten miles from you? Saying the 6% shrink figured after the 12 hour haul?

 

[bpwagner115]

Yes, We took weight 10 miles from our place and they shrunk 6% from there to Kansas. I know it's a long haul and maybe it shouldn't surprise me, but then again why would they agree to 3%?

 

[Anonymous]

3% sounds way to low for a 12 hr haul. 6% sounds more accurate but they should know what average shrink rates are for various conditions.

 

[bpwagner115]

That was my thoughts as well. If we had agreed on 6% and they only shrunk 4% I'm sure they would have sent me a check for over-estimating. :bs:

 

[Alan]

There was just another thread on average shrink recently. But as far as trying to get an extra 1.5%, plus the broker wanting a peice of the pie is a bunch of crap. Do you have the original deal in writing, a written contract? If I did the math right, the packer wants you to give them an extra $1100. The broker ...... Well time for a new broker, very unprofessional.

To me the 6% shrink sounds reasonable, trying to change the contract doesn't.

 

[denvermartinfarms]

3% was not enough. but if they agreed to it then they just need to pay you.

 

[bpwagner115]

We gave them 1% back. Why? Good question. Maybe in hopes that they might not shy away from buying again.....but i think thats out of the question too. Leaves a bad taste in everyone's mouth.

 

[Howdyjabo]

Did you have a representative there when you loaded them? Have you sold them calves before without incident?

The issue in their mind is, did you send them packed full- trying to cheat them.

You have two options, stick to your guns and make them eat it(which you have every right to)
Or split the difference with them.

The decision on which one would be best for you long term-- is do you need a good reputation to be able to sell your calves(at the high end) in the future?

Never load calves without a third party representative if you are weighing calves on your end. Then it is on them to make both parties whole.

 

[bpwagner115]

We did not have a third party present....unless the truck driver counts, which he might. Another, and maybe more important issue, was that the packing company was not satisfied that the cattle cutting out at only 60%. So my question becomes, how do we look to increase cut-out percentage of our fat cattle? When I asked dad he pulled the "They always cut out low" attitude and acted like there was nothing we could look to change to improve it. I guess I can't help but to question that line of thinking.

 

[Howdyjabo]

Truck driver doesn't count most times.

Maybe you need to hire a consultant to nit pick your operation(ask your broker to recommend someone-- might go a long way to repairing reservations too).
My guess is that you are getting them too fat for their frame.

I only fed out calves for a few years- the best investment I made was to have a full time feeder come for a vacation(hunting) and pick his brain all weekend while we were looking at the cattle
He told us to sell some earlier than the rest or slow them down-- they were shorter framed
Others he told us that they were not going to finish with the rest-- they were bigger framed
And a gazillion other gems.

Implanting will also help you.

 

[cow pollinater]

We did not have a third party present....unless the truck driver counts, which he might. Another, and maybe more important issue, was that the packing company was not satisfied that the cattle cutting out at only 60%. So my question becomes, how do we look to increase cut-out percentage of our fat cattle? When I asked dad he pulled the "They always cut out low" attitude and acted like there was nothing we could look to change to improve it. I guess I can't help but to question that line of thinking.

You can breed in better carcass traits. Pay attention to yeild grade and fat epd's. You could also try adding in a little contenental breeding if you don't already have some in there.