contract grazing & feedlots

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Central Fl Cracker

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Central Florida
A new cattle friend of mine wants me to combine our calves and ship them to a contract grazer and then onto a feedlot. The Grazing will be in Oklahoma and feedlot in Armrillo, TX. about 200 miles away. He needs my 50 400 pounders to make up a full load. Afew questions?
1. When I sell my calves at the auction I net about $200 per calf. He claims we can make $ 350 dollars this way.
2. He says it will cost about $ 4,000 for freight from Fl. and $ 35 per head for contract grazing for about 2 months which should take them to 550 - 600 lbs.
3. Then we send them to the feedlot and retain ownership until they reach 1100 or 1200 lbs.
4. We pay for the grain and a 5 cent a head for penning cost
5. He said they should go for 98 cents a lb

one question is how long does it take for the feedlot to put on 700 lbs and what would the feed bill run per month?
 
Central Fl Cracker":10z1pu1c said:
A new cattle friend of mine wants me to combine our calves and ship them to a contract grazer and then onto a feedlot. The Grazing will be in Oklahoma and feedlot in Armrillo, TX. about 200 miles away. He needs my 50 400 pounders to make up a full load. Afew questions?
1. When I sell my calves at the auction I net about $200 per calf. He claims we can make $ 350 dollars this way.
2. He says it will cost about $ 4,000 for freight from Fl. and $ 35 per head for contract grazing for about 2 months which should take them to 550 - 600 lbs.
3. Then we send them to the feedlot and retain ownership until they reach 1100 or 1200 lbs.
4. We pay for the grain and a 5 cent a head for penning cost
5. He said they should go for 98 cents a lb

one question is how long does it take for the feedlot to put on 700 lbs and what would the feed bill run per month?
Click to expand...

Well...for only 50 head?

IMO I would keep them in Florida and sell them at a local barn. Hauling them 2/3 way across the USA with associated shrink from the hauling trauma, etc., I don't think you would come out all that much better (if any) by taking them to Texas.

There is NO guarantee what they would sell for by the pound at any point in time. Markets are extremely volatile.

You run the arithmetic youself and it should tell you the outcome. (E.g., $4000 shipping / 50 head = $80. a head for shipping, less possibly 10-20% shrink for that haul). Then, there are commissions, fees, yardage, etc., to think about.

There will also be Vet charges for Health Certificates for interstate shipment, plus any special vaccinations required. Note: Texas requires any imports to be TB and Brucellosis free: These tests will cost extra: TB requires innoculation by a Vet and then "reading" the animal within 72 hours of the innoculation (2 trips to pay for).

Bottomline: If you have a place to keep, feed them, I'd feed them there to reach the "best" price per pound category in your area. I think you would be money and effort ahead... ;-)
 
I agree with RAB that the picture you have been painted is much rosier than reality. However, cattle being sent to Texas for feeding and slaughter do not need to be TB tested or Brucellosis tested. Only cattle that are being imported to Texas for breeding purposes will need these tests.
 

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