Well with the cattle prices down its had me exploring different marketing options. Ive got some options in finishing some steer calves to sell to two different people who process a d resell. At this point im not quite ready to get into having beef processed myself and sell that way. One of the groups i can sell to is paying just under $3/lb hanging weight for the finished steers. Ive played around with some numbers and while it is appealing my gut says at the end of the day with all things considered it aint as good as it looks. I feel that time you factor in feed costs, labor, and the fact that the steers are utilizing pasture that something else could be using its not that profitable. Im kinda thinking that as cow-calf operation is better off to produce calves, wean, and sell in the long haul. While ill be the first to say ive still got alot to learn and im in no way advocating my thoughts are right, im just curious as to others thoughts. Am i totally off the mark here or in the grand scheme of things is it best to just sell weaned calves(5-7wts) and just ride the highs and lows of the cattle business.
Marketing options
- Thread starter Sd1030
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kenny thomas
Well-known member
By finished do you mean finished to Choice grade at 1100-1500lb. $3.00 a lb should make money there.
kenny thomas
Well-known member
It takes several months and is costly. Someone besides me will have to tell you but I think they are only getting less than $2.00 on the rail for finished choice grade steers now. Probably more like 1.80.
Yea im not sure about what cattle on the rail are bringing, but your prolly right. This deal is through a group that buys "pasture based" cattle to sell in high end grocery stores and places like that. Going back to the time aspect when you have 1.5 yr tied up in this steer and add other cost in are you really coming out ahead? My gut says no but then again what do i know, im just another poor ol farmer thats been bite by the cattle bug.
kenny thomas
Well-known member
Pasture based means different things in different places. If it is totally grass fed is one thing but if the calves are on grass and fed grain heavily each day is totally different. A friend went to Ireland this summer and there grass fed means they were on grass until the last few months when they were put in a feed lot and fed heavily with grain.
If you take your calves to 1350 lbs, and they yield 60%, that would leave you with 810 lbs hanging weight. Multiply that by around 3.00 a lb and you come up with around 2400 dollars per calf. That is 4 times what a 6 weight heifer is worth right now. Unless your cows are having three or four calves a year this would be a much better use of your pasture than cows.
I'd say a lot of choice cattle are in the 1.60s on the rail this week if I was guessing. Worth about .95-.99 live.
I'd say a lot of choice cattle are in the 1.60s on the rail this week if I was guessing. Worth about .95-.99 live.
Supa Dexta
Well-known member
Remembering that it will take atleast another yr to feed them to that weight though.
True Grit Farms
Well-known member
Every time the market goes down people want to, or think about changing their operation. We tweak the way we operate yearly, always looking for a better way to do something. I'm going to ride the highs and lows out and hope for the best myself.
skyhightree1
Well-known member
I'm operating cattle the same just expanded the animals I sell.
skyhightree1
Well-known member
SD couple things could help bottom line are alternative feeds not buy any commercial feeds the biggest help would be marketing them yourself and find folks who are willing to buy 1/4 or 1/2 talk to toad that's what he does does well on it.
WalnutCrest
Well-known member
We are trying to expand into some alternative marketing channels. It isn't easy, but we're hopeful.
Supa Dexta":34gz603g said:
One year to quadruple the value of your calves makes a lot of sense to me. They will not eat as much grass and hay as adding another cow would and would increase your profit margin more than adding another cow. Hire somebody else to custom raise them for you after weaning and it would still be well worth it. That $3 a lb hanging weight figures to about 1.80 live depending on yield. That is more than we saw when the market was at its highest from the big packers we sell fat cattle to.
In my opinion times like now are when you try something new. It's not like selling weaned calves for .90 cents is gonna make you much money. The chance to sell those same calves a year later weighing 1200-1500 for 1.80, is a risk I would have to take at least once.
Just my opinion though, if you aren't comfortable with owning them that long it's understandable.
kenny thomas
Well-known member
Tell u what, if you don't feel comfortable with doing it let me know and I will do it and sell them to you so you can still make a profit.
