Beating a Dead Horse -- Hillcreek

[jscunn]

Guys I just wanted you to all know that someone named Frye Angus (Edinburgh, VA) bought lot 10 at Baldridge Bro for $57,500!!! I know he was a pain but at least there will be some cheap donor cattle in a few years when he swaps to Charolais!!



http://www.angusproductions.com/api_sal ... entID=8965

 

[Brandonm2]

That must have been SOME inheritance he got. For his sake I hope it was $25 million or more. I really hope that he is successful and in 40 years the name Matt Frye is up there with Doug Hoff and the Gardiners......I have got seriou doubts about that happening....but I honestly hope that it does and I really hope he didn't lay $57,000 of bank money on one donor cow.

 

[cfpinz]

Oh, great. Does this mean he'll be back on here yapping? I'll have to admit it though, he is quite entertaining, in a demented sort of way. Might liven things up a bit.

cfpinz

 

[RAWCJW]

How does anybody make any money buying cattle at those prices? :shock:

 

[polledbull]

well I did see where in the classified section on here he ( Frye Cattle) was wanting to buy or lease 300 recips and start a lease herd in the western part of the country.I wish him good luck , he is walking with some mighty big steps.

 

[kjones]

how many cattle were in that lot?

 

[la4angus]

how many cattle were in that lot?

This is all the report shows.
Lot 10–L C R Asbury Precision 124, 3-16-01 female by G A R Precision 1680. To Frye Angus, Edinburgh, VA, for $57,500.

 

[TheBullLady]

That looks like just one head to me.

Good thing he's young.. it will take quite a while to recoup that in production!

 

[Beef11]

I'm not really up on what all has happened. I do know one thing though, if a guy wants to get into the purebred gig and get some good cattle it is ET all the way. So the method of buying good donors and using lots of recips isn't really ridiculous it is sound as long as you flush good cattle to good bulls. The problem with alot of breeders that fallout and have good cattle is that they way overextend themselves and end up with huge cashflow issues. Remember that a 57,000 dollar cow if flushed on a regular basis can cost another 5-10k a year and then it will be another year till you have bulls (and Steers) to sell and you have significant money into properly developing them. The heifers would make an excellent group to build a herd on but they are another year out past the bulls. I wish everyone luck in their endeavours but even luck won't compensate for unrealistic planning.

 

[Brandonm2]

I believe in the donor route too; BUT as many Angus cows as there are out there I believe that with a little work $6000 CAN find a pretty good donor cow. $57,000 is WAAAYY too much for some kid just starting out. Heck for that amount of money in one wad, I know people with pretty good AI sired cows who would sell me their whole 2006 heifer crop. Grow em out, calve them for three or four years, let the cream rise too the top and you SHOULD be able too find a decent donor out of that group then.

 

[redfornow]

I believe in the donor route too; BUT as many Angus cows as there are out there I believe that with a little work $6000 CAN find a pretty good donor cow. $57,000 is WAAAYY too much for some kid just starting out. Heck for that amount of money in one wad, I know people with pretty good AI sired cows who would sell me their whole 2006 heifer crop. Grow em out, calve them for three or four years, let the cream rise too the top and you SHOULD be able too find a decent donor out of that group then.

Now that is the truth, but that takes time and patience.
Well and alittle planning.
Its easier just to raise your hand???

MD

 

[BA]

A $57,000 cow out of a well publicized herd with probably some $50,000 mother and grand mothers will always produce $10-100,000 progeny right? :lol: I think sometimes us no names forget that the $57,000 cow at a big money sale with a big name can become a $2,000 private treaty cow real quick if you don't have a reputation behind you. I think a person would be better off picking up 15-20 cows for $57,000 from a top program and not blow the whole wad on one cow. $3-4,000 out to pick up some top registered cows. I know a place in Colorado that would sell 23 Angus cows for that

 

[DOC HARRIS]

How does anybody make any money buying cattle at those prices? :shock:

This is. . . . really a. . . rhetorical question - - -right??

DOC HARRIS

 

[DOC HARRIS]

That looks like just one head to me

Yes - - that is (1) ONE (1) count 'em ONE cow! If he can flush ONLY 10 :shock: viable eggs from that cow over a period of a YEAR(!) :roll: and with judicial sire selection to match her quality - he should have her $57,500 cost recovered and be home free -in spades - within 3 years, and have her next two years production in recipients in the wings waiting patiently to enhance her value even further. DO THE MATH! Figure an average of only 5 eggs per flush x only 3 flushes per YEAR x 5 years x $3000 peer calf = $225,000! :shock: :shock: Hello! Then add the value of two or three live calves born naturally - either sold (?$) or kept as replacements - and then add the additional value of either live calves or additional flushes and you have - - - well, - - you get the idea! These are pretty conservative figures that I posted for your perusal - given the average that the quality animals from Baldridge sale brought - $16,000 per head.

DOC HARRIS

 

[Brandonm2]

That looks like just one head to me

Yes - - that is (1) ONE (1) count 'em ONE cow! If he can flush ONLY 10 :shock: viable eggs from that cow over a period of a YEAR(!) :roll: and with judicial sire selection to match her quality - he should have her $57,500 cost recovered and be home free -in spades - within 3 years, and have her next two years production in recipients in the wings waiting patiently to enhance her value even further. DO THE MATH! Figure an average of only 5 eggs per flush x only 3 flushes per YEAR x 5 years x $3000 peer calf = $225,000! :shock: :shock: Hello! Then add the value of two or three live calves born naturally - either sold (?$) or kept as replacements - and then add the additional value of either live calves or additional flushes and you have - - - well, - - you get the idea! These are pretty conservative figures that I posted for your perusal - given the average that the quality animals from Baldridge sale brought - $16,000 per head.

DOC HARRIS

IF Gardiner, Ohlde, or Sydenstricker bought her at $57,000 they could make money off of her. Now if "I" bought her and posted an ad in the 'Angus Journal' or 'Alabama Cattlemen's Mag." or 'Alabama Farmer's Bulletin' for the very same ET calves I think "I" would STRUGGLE to get $3000 per calf.

 

[cypressfarms]

IF Gardiner, Ohlde, or Sydenstricker bought her at $57,000 they could make money off of her. Now if "I" bought her and posted an ad in the 'Angus Journal' or 'Alabama Cattlemen's Mag." or 'Alabama Farmer's Bulletin' for the very same ET calves I think "I" would STRUGGLE to get $3000 per calf.

Extremely good point. You would have to somehow attach the offspring to one of the big dollar sales. Eitther way, seems kind of risky. I would think that with a animal of this value one would have mortality insurance on it??? Not that I would buy a $57,000 cow, but my luck would be that she would keel over after a few months of some weird disease.

 

[SEC]

WHO CARES!

USUALLY THE ONLY PEOPLE WHO DO THE MOST AMOUNT OF YAPPING ARE THE ONES THAT ARE JEALOUS.

AM I STUPID IF I BUY A TRUCK FOR $60,000 WHEN I COULD BUY 10 TRUCKS FOR THE SAME MONEY!

I do agree with DOC, if done right there should be money to be made. If not, bet he wouldn't do it again!

 

[DOC HARRIS]

IF Gardiner, Ohlde, or Sydenstricker bought her at $57,000 they could make money off of her. Now if "I" bought her and posted an ad in the 'Angus Journal' or 'Alabama Cattlemen's Mag." or 'Alabama Farmer's Bulletin' for the very same ET calves I think "I" would STRUGGLE to get $3000 per calf.

Extremely good point. You would have to somehow attach the offspring to one of the big dollar sales. Eitther way, seems kind of risky. I would think that with a animal of this value one would have mortality insurance on it??? Not that I would buy a $57,000 cow, but my luck would be that she would keel over after a few months of some weird disease.

Brandon - Cypress - and all others -

Number ONE: To alleviate the ". . .some weird disease. . " syndrome??!! INSURANCE! Too expensive? Damn right! Necessary? Damn right!

The beef business is comprised of many types and phases of business technics, just as any other business. Some of the more important sales skills are - Networking - "Attention-Getting" advertising such as eye-popping Ranch signs, business cards and logo(s), truck signs, magazine advertising over a period of months and months - ALL with the same basic "Format" in unified recognition by your potential customers. One ad dropped in a magazine or 'parked' on a bulletin board somewhere at a sale ring won't cut the mustard. It takes money to make money, and advertising is an absolute MUST. Why do you think that Coca Cola, Bayer Aspirin, Ford, Walgreen Drugs, Sears and other instantly-recognized companies continue to place ads EVERYWHERE - over and over and over and over?? Everybody knows those companies. So why do they continue to advertise?? Because it WORKS. There are hundreds of reasons that you can use to talk yourself out of placing your name before the public - however if you DON'T let EVERYBODY know that you are here - NOW - they won't have a clue about you or what you have to sell. Like it - or not - for whatever collections of reasons - to make your business really function - you must advertise - all the time. Costs too much money?? Damn right!! But that is the name of the game. Believe ME - I have been there - DONE that!

Sorry to bust your bubble.

DOC HARRIS

 

[Brandonm2]

Doc, the OVERWHELMING majority of seedstock operations in this country LOSE money! The average life expectancy for a seedstock operation is SEVEN years. Those that make money do a large part of their business selling high $$$ stock too those getting in the business that are doomed too failure. Granted, you are correct about advertising. Most farms you never hear of.....until they have their inevitable dispersal sale. But also by the same token you have to have enough volume too justify running an ad every month. IF you spend $45,000 on advertising and marketing you had better be moving AT LEAST ten times that in volume to swallow the advertising expense. I stand by my original point: seedstock do NOT have any intrinsic value above the price of commodity beef. The rest of it is ALL promotion. In college, I had a friend who had a reg. Charolais cow they paid ~$2000 for at a dispersal who earlier in her life had once sold for $110,000 cow. The hundrend thousand cow was a running joke. Nice cow (if awfully BIG), but nothing I couldn't purchase from a dozen Char breeders (at the time) for $2500 (OR LESS). Especially in the world of AI, today's $57,000 cow is tomorrow's old news. I don't doubt for ten seconds that some people CAN make money off of their $57,000 cow purchase; but I have a hunch that for every one that sells $400,000++ worth of progeny ten end up LOSING money. I think a lot of our skepticism is also based on who this is. IF LA4Angus or Jake or McGinley or SEC or Frankie or even Mntman had just bought a $57,000 Angus cow we would say congratulations and GOOD LUCK and assume that they have a plan. Hill on the other hand just went in and out of the Hereford business faster than most of us change boots.

 

[1848]

I believe in the donor route too; BUT as many Angus cows as there are out there I believe that with a little work $6000 CAN find a pretty good donor cow.

Amen