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Food for thought on cattle breeding preferred by feedlots
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<blockquote data-quote="VLS_GUY" data-source="post: 733230" data-attributes="member: 13182"><p>Ok Farmwriter,</p><p></p><p>Go up to Alberta and less than 1% of the finished cattle go through a sale ring. The vast majority of fed cattle are either packer owned or sold by sealed bid. Packers have strategic alliances with some feedlots and that means you usually know where the cattle are going when finished and the time they are finished is determined by the forecasted needs of the packer. Many of these cattle have never seen a sales ring. It saves on auctioneers and trucking since only one trip has to be made. </p><p>By the way some packers are backgrounding calves. They supply the feed and hire a guy to feed and care for the calves with his own buildings and chutes etc. This is very similar to how the chicken business is ran. Basically the feeder is selling his labor and renting his buildings out. </p><p>For a guy feeding a few hundred head in such a market environment how does he know that market price is?</p></blockquote><p></p>
[QUOTE="VLS_GUY, post: 733230, member: 13182"] Ok Farmwriter, Go up to Alberta and less than 1% of the finished cattle go through a sale ring. The vast majority of fed cattle are either packer owned or sold by sealed bid. Packers have strategic alliances with some feedlots and that means you usually know where the cattle are going when finished and the time they are finished is determined by the forecasted needs of the packer. Many of these cattle have never seen a sales ring. It saves on auctioneers and trucking since only one trip has to be made. By the way some packers are backgrounding calves. They supply the feed and hire a guy to feed and care for the calves with his own buildings and chutes etc. This is very similar to how the chicken business is ran. Basically the feeder is selling his labor and renting his buildings out. For a guy feeding a few hundred head in such a market environment how does he know that market price is? [/QUOTE]
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Food for thought on cattle breeding preferred by feedlots
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