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Are the days of a small registered breeder over
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<blockquote data-quote="UG" data-source="post: 1248559" data-attributes="member: 714"><p>Unfortunately my perception is that the big are getting bigger and the small are becoming less relevant. This concerns me since I think of our operation as primarily a small, registered/seedstock operation. </p><p></p><p>In general, larger commercial producers (those who make their living raising cattle) recognize the value in good genetics (i.e. calving ease, heaving weaning weights, good carcass characteristics, etc.) and will pay premiums for bulls that are strong in these traits. In the past couple years it has been common at many bull sales across the country to see commercial producers paying $8000 or more for good bulls. However, these larger producers typically don't buy their bulls from smaller producers (like me). If they need 12 bulls, they aren't going to waste their time driving 2 hours to come to my place to look at 4 to 6 bulls. They want to go to a bull supplier or bull sale in which there is a large group to select from. Many of these larger commercial producers also want to select from large contemporary groups; they want to buy from the top 25% of 200 bulls not the top 25% of 5 to 20 bulls.</p><p></p><p>Consequently, small producers like me generally attract smaller, part-time cattle producers who don't rely on their cattle income as their primary income source. Unfortunately, a larger majority of part-time producers don't put as much value on cattle with good growth and/or carcass traits. Typically they are most concerned with birth weight/calving ease and don't want to give more than $3000 to $4000 for a bull, and some of them are still complaining about having to pay more than $1500 for a bull like they used to 5 years ago...ugh!!!</p><p></p><p>So, to get back to the original question, are the days of the small registered breeder over? No, not over, but we will capture less dollars on average for our cattle than the big boys. One way to combat this is to get involved with a program that allows you to market your bulls with others. A good way to do this is become a cooperator for a larger, higher-profile seedstock operation. Or, join a cooperative of sorts (i.e. GeneTrust, Seedstock Plus, etc.) in which several producers develop and sell their bulls together.</p></blockquote><p></p>
[QUOTE="UG, post: 1248559, member: 714"] Unfortunately my perception is that the big are getting bigger and the small are becoming less relevant. This concerns me since I think of our operation as primarily a small, registered/seedstock operation. In general, larger commercial producers (those who make their living raising cattle) recognize the value in good genetics (i.e. calving ease, heaving weaning weights, good carcass characteristics, etc.) and will pay premiums for bulls that are strong in these traits. In the past couple years it has been common at many bull sales across the country to see commercial producers paying $8000 or more for good bulls. However, these larger producers typically don't buy their bulls from smaller producers (like me). If they need 12 bulls, they aren't going to waste their time driving 2 hours to come to my place to look at 4 to 6 bulls. They want to go to a bull supplier or bull sale in which there is a large group to select from. Many of these larger commercial producers also want to select from large contemporary groups; they want to buy from the top 25% of 200 bulls not the top 25% of 5 to 20 bulls. Consequently, small producers like me generally attract smaller, part-time cattle producers who don't rely on their cattle income as their primary income source. Unfortunately, a larger majority of part-time producers don't put as much value on cattle with good growth and/or carcass traits. Typically they are most concerned with birth weight/calving ease and don't want to give more than $3000 to $4000 for a bull, and some of them are still complaining about having to pay more than $1500 for a bull like they used to 5 years ago...ugh!!! So, to get back to the original question, are the days of the small registered breeder over? No, not over, but we will capture less dollars on average for our cattle than the big boys. One way to combat this is to get involved with a program that allows you to market your bulls with others. A good way to do this is become a cooperator for a larger, higher-profile seedstock operation. Or, join a cooperative of sorts (i.e. GeneTrust, Seedstock Plus, etc.) in which several producers develop and sell their bulls together. [/QUOTE]
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