bgm":3fvppb82 said:
I'm fairly new to the cattle business and am wondering about prices at the sale barn.
I see, let's say for example the 600lb steers are going for $144.50 cwt. That's $867.00 per head
The slaughter cows are going for $60.00 cwt. Assuming a 1300lb animal that's $780.00 per head
How do the buyers of the 600lb animals make any money feeding them out?
Is there a way for me to turn this around so I can make a bigger profit on the larger animals?
Or an I better off selling the animals at around 600 lbs?
In looking at stock market reports here in OK, 600 lb feeder steers are selling in the $1.20+ range. So that changes your estimate considerably. There's not a lot of money, even at todays prices, to be made on one animal.
Buyers expect to make money on the cattle they buy, whether they're buying weaners at the sale barn or for the feedlot and will price them accordingly.
Give some thought to feeding some of your own cattle and see if you can collect the money that those buyers are making off your cattle. Most states have some sort of retained ownership program for small producers. Here in Oklahoma, it's called the OK Steer Feedout program; Texas calls it Ranch to Rail. In Oklahoma, they require a minimum of five animals, some states more, some states fewer. In Oklahoma, you pay a nomination fee, then get a check when the calves are sold, less feeding, transportation, etc. Your local extension folks will probably have information on the program. You also get carcass info in the OK Steer Feedout program. I don't know about others. It's a learning experience. But if your cattle do well, you might make more money by retaining ownership.
If you're using an Angus bull, you might look into the AnguSource program. You tag the calves at birth with an AnguSource tag so buyers know he's half Angus, not generic black. In some areas of the country, they're having special sales for calves tagged with AnguSource tags. The Red Angus people have a tagging program, too. Gelbvieh had some sort of program going. You might contact the breed association of whatever bull you're using and see if they offer marketing assistance.
In some states there are "Quality Assurance" sales. The calves sold at those special sales are fully weaned and vaccinated. The state cattlemen's assn handles that sale here in OK.
So there are options to help you make more money on your calves if you're willing to put more into them.
Good luck...
