Modern method of saleing cattle

[Stepper]

I am very new to the cattle business. But i can not help feel that the method of auctioning off cattle is a poor method of saleing cattle and that the cattle farmer ends up the loser when saleing cattle this way.

For example, a friend told me that his dad sold two steers that weighed and looked identical. He said you cold not tell them appart and they were the exact same weight. They ran them through the auction one right after the other. They sold for almost $ 200 difference in price. Now how could something like that happen ? I watched cattle sale at the barn like that alot. And i dont mean just every now and then. I am sure everyone here knows what i mean. At every sale when the cattle are being auctioned off. very alot in the prices even though alot of the cattle are about the same type of animal (size,weight,sex,color etc....,)

It looks like to me like with very little effort there could be alot better system of buying/saleing cattle. Does anyone else agree with this ? Or have any of you bigger cattle producers ever felt that there could be a better way of buying/saleing cattle than the old auction sale barn way of saleing cattle ?

 

[Frankie]

I am very new to the cattle business. But i can not help feel that the method of auctioning off cattle is a poor method of saleing cattle and that the cattle farmer ends up the loser when saleing cattle this way.

For example, a friend told me that his dad sold two steers that weighed and looked identical. He said you cold not tell them appart and they were the exact same weight. They ran them through the auction one right after the other. They sold for almost $ 200 difference in price. Now how could something like that happen ? I watched cattle sale at the barn like that alot. And i dont mean just every now and then. I am sure everyone here knows what i mean. At every sale when the cattle are being auctioned off. very alot in the prices even though alot of the cattle are about the same type of animal (size,weight,sex,color etc....,)

It looks like to me like with very little effort there could be alot better system of buying/saleing cattle. Does anyone else agree with this ? Or have any of you bigger cattle producers ever felt that there could be a better way of buying/saleing cattle than the old auction sale barn way of saleing cattle ?

Not everyone sells at the sale barn. Retaining ownership on a few head might be a good way for you to find out the true "beef" value of your cattle.

If your bull is registered, see if the breed association has some sort of ear tag that would help identify them for buyers. I know Red Angus has a tag. I think the Limi Association does. And the Angus Association has the AngusSource tag.

Some people forward contract their calves at a young age. They agree on a price to sell the calves for at a certain age/weight. Those calves don't go through a sale barn.

But remember the buyers at the sale barn have a bill to fill. They're looking to buy cattle for the best price they can. They're looking for different weights, types, and always for a bargain. They discount for anything they can.

 

[Dave]

Just some questions to you. You stated that you are very new in cattle. Could it be that there are differences in those cattle that the buyers are seeing that you don't? You would be suprised at the little things an experienced buyer picks up on. More than I see good cattle selling cheap, I see poor cattle selling for more than they are worth. Lots of beginners buy sick, poor doing, badly built cattle, etc because they are cheaper than the real ones. If there happens to be two or more of these beginner at the auction those poor cattle will cost very nearly as much as the good ones. To them a 600 pound black steer is a 600 pound black steer and they don't see the differences which are there.

 

[john250]

I am very new to the cattle business. But i can not help feel that the method of auctioning off cattle is a poor method of saleing cattle and that the cattle farmer ends up the loser when saleing cattle this way.

For example, a friend told me that his dad sold two steers that weighed and looked identical. He said you cold not tell them appart and they were the exact same weight. They ran them through the auction one right after the other. They sold for almost $ 200 difference in price. Now how could something like that happen ? I watched cattle sale at the barn like that alot. And i dont mean just every now and then. I am sure everyone here knows what i mean. At every sale when the cattle are being auctioned off. very alot in the prices even though alot of the cattle are about the same type of animal (size,weight,sex,color etc....,)

It looks like to me like with very little effort there could be alot better system of buying/saleing cattle. Does anyone else agree with this ? Or have any of you bigger cattle producers ever felt that there could be a better way of buying/saleing cattle than the old auction sale barn way of saleing cattle ?

If you think cattle are selling cheap, put your hand in the air. That is really the only thing which counts.

 

[auctionboy]

I am very new to the cattle business. But i can not help feel that the method of auctioning off cattle is a poor method of saleing cattle and that the cattle farmer ends up the loser when saleing cattle this way.

For example, a friend told me that his dad sold two steers that weighed and looked identical. He said you cold not tell them appart and they were the exact same weight. They ran them through the auction one right after the other. They sold for almost $ 200 difference in price. Now how could something like that happen ? I watched cattle sale at the barn like that alot. And i dont mean just every now and then. I am sure everyone here knows what i mean. At every sale when the cattle are being auctioned off. very alot in the prices even though alot of the cattle are about the same type of animal (size,weight,sex,color etc....,)

It looks like to me like with very little effort there could be alot better system of buying/saleing cattle. Does anyone else agree with this ? Or have any of you bigger cattle producers ever felt that there could be a better way of buying/saleing cattle than the old auction sale barn way of saleing cattle ?

better system of buying/saleing cattle. Never say that about the auction again! Saying you are new to cattle then making a comment like that is very egotistical! You really think all of them farmers are very dumb don't you? I would like to hear your idea on how to sell the millions of cattle that go through the auction every week. You shouldn't buy any cows untill you figure out why a $200 markdown happens. Cattle auctions are just about the best places on earth, it is where I take money from people like you that don't know anything. Before you decide to change the whole system maybe you should research it a little more.

 

[jw]

Auction Boy -

I think if you will re-read his post with a little less egotistical attitude you might get a different picture of what he was asking.

I also think the other answers were very enlightening for the beginner, which we all were, except perhaps you.

 

[MikeC]

Cattle auctions are just about the best places on earth, it is where I take money from people like you that don't know anything.

So YOU'RE the kind of guy that gives auctions a bad name?

You enjoy taking advantage of others?

Best place on earth? :lol: :lol:

 

[auctionboy]

Cattle auctions are just about the best places on earth, it is where I take money from people like you that don't know anything.

So YOU'RE the kind of guy that gives auctions a bad name?

You enjoy taking advantage of others?

Best place on earth? :lol: :lol:

Not really I take advantage of the market, no sense in letting some buyer get all of the good deals.

JW- I wasn't arrogant enough the first time I went to a sale barn to think it was all run incorrectly and I new better.

Stepper- imagine two guys went to the auction on there day of and both really wanted one steer. Your friends dads steers get maybe $450 at the auction, but the two unfamiliar with the auction people start bidding on the first on and drive the price up to $650. After the winner got the one steer he wanted the other guy pays the market price of $450 or a few bucks above because they bid each other up. Or a million other reasons why the steers price differed. The point is that is the thrill of the auction, and I don't think it is ripping people off. Anyone that has a problem with that should go buy cattlefrom a breader for double the price, and they say auctions rip people off!

 

[jw]

I went to a private auction on one occasion and the people were auctioning several lots of 3-5 year old black angus. The bidding started on lots of 7 and soon got up to $950.00 a cow. A little too rich for my blood. The next lot of 7 went for $900.00 a cow. So I sat there wallering in the sorrow that I could not and would not pay that much for each girl. However, by the fourth group the big spenders quit bidding and I got them for $750.00.

Just another example of how and why prices may vary.

 

[jw]

Auction Boy wrote:

JW- I wasn't arrogant enough the first time I went to a sale barn to think it was all run incorrectly and I new better.

Once again I say - no I won't....

Just re-read what I wrote earlier....

You aren't reading with a clear mind.

Try it and even you, at age 14, might be enlightened.

 

[auctionboy]

Auction Boy wrote:

JW- I wasn't arrogant enough the first time I went to a sale barn to think it was all run incorrectly and I new better.

Once again I say - no I won't....

Just re-read what I wrote earlier....

You aren't reading with a clear mind.

Try it and even you, at age 14, might be enlightened.

Maybe you should develop your writing skills!

 

[jw]

cowboyup216 -

Yea, some 40 or so years ago when I was 14 I was pretty intelligent and sassy, until my dad knocked it out of me!!!!

But I still have no writing skills. I lost them when I was in college.

 

[auctionboy]

cowboyup216 -

Yea, some 40 or so years ago when I was 14 I was pretty intelligent and sassy, until my dad knocked it out of me!!!!

But I still have no writing skills. I lost them when I was in college.

Congratulations you are older then me.

 

[Case IH]

Maybe, Ebay?

 

[Stepper]

auctionboy

Yes i am new to the cattle bussiness but i am not quite as new as a 14 year old boy. And i dont really see you taking anything away from me or anyone else at a auction or any other place as far as that goes.

One thing that i have learned in life is if you live long enough i think you will learn the same thing that i have. And that is you have to be opened minded enough to learn new things. And not have a one track mind.

Alot of the things that you suggested are right. I am sure that more experienced cattle buyers know what to look for and come out better at a sale barn. But i know people who buy 4 and 500 head a year who has told me themselfs that buying cattle through an auction is not a real good way to buy and sale cattle.

It is easy for even the most experienced buyer to miss something when buying at a auction when that cow/calf what ever is being run through and they only have 30 seconds to maybe a minute to look the animal over before biding on it.

On the average there are only 8 to 1200(cows, calfs, bulls the whole shooting match) head run through our local sale barn. The calfs start selling at about 10 a.m. and the cows sell last and the auction usually is over with by 12 a.m. So it last about 14 hours.

Just right off of the top of my head i think that if there was a sale barn that was more geared up like a private sale. Say a barn with pens( like a auction barn) With the cows calfs bulls sorted out where there are maybe 10 animals to each pen that have been numbered just like they would be going through an auction. That would be a better method of buying saleing cattle. Instead of having a 14 hour sale make it run for 24 hours straight. Start from 8 a.m. to 8 a.m. the next day. They could have say a drop box at each pen where the buyer could drop his sealed bid in the box.

Also the cattle should be weighed and their weight either taged on them or on a clip board at the holding pen so that the buyer could tell how big the animal is. Also if it was done that way the seller could put a bottom dollar price that he would take and that way if he was not there to PO it like a seller can at a sale barn. He would not have to sale the animal.

Buying and saleing cattle this way looks to me like it would be a more win win sitution for both the buyer and saler. You would not be having people running the bids up against one another. You would have time to inspect what you are buying and be more satisfied with what you bought.

It would be harder for people to peddle their problem animals off to someone else. Which they shoudnt do that anyway. A sale barn is a ideal place for animals like that. That is where the old saying that not all cows at the sale barn are bad cows but that is where all bad cows go to be sold.

I think the day will come where the old days of auctioning off cattle will be a thing of the past.

And autionboy your badly mistaken if you think that i think that cattle farmers are dumb and dont know what that are doing. That is the last thing that i think of them. And i have the utmost respect for any farmer weather it be cattle, row crops, chickens etc....., And some of my best friends are farmers. I consider myself to be a farmer, not as big as i would like to be, but still yet a farmer.

 

[Stepper]

cowboyup216

Well thanks for the information. I am diffinately going to see if i can locate one near me. I have never herd of anyone talking about one right arround this area. I am in North West Arkansas. But i would really like to check one out.

Have you ever bought and sold any cattle at one before ?

 

[jw]

Stepper,

Not sure if this is what you are refering to, but have you looked at the Cattle Today Sales Calender?

 

[auctionboy]

If you had enough cattle to sell the auction would let you market them like that, you may have to gather many sellers together to get the numbers. I don't think you could do much as a small buyer. Auctions are set up as they are for time constraints. People come on this cite all the time that want to make auctions into private treaty sales, but they are not and wont be replaced. There are private treaty sales, classified ads, and going to farms and trying to make a deal and buy some stock. As for selling these amount of cattle I think auction system can't be beat, but it isn't the only option on where to buy cattle.

 

[Stepper]

jw,

That might be sort of what i am talking about. But from just glancing at it. That seems to be comparible to the sale barn with the only difference holding the acution at someones farm or ranch and only selling the owner of the racnch/farms cattle. Maybe open to public buyers. I will have to check that out closer. But thanks for bringing that to my attention.

 

[Frankie]

cowboyup216

Well thanks for the information. I am diffinately going to see if i can locate one near me. I have never herd of anyone talking about one right arround this area. I am in North West Arkansas. But i would really like to check one out.

Have you ever bought and sold any cattle at one before ?

Are you looking for purebred? There's a Beefmaster sale on March 10th at Muskogee, OK. A Brangus sale on March 10th at Ada, OK. Sugar Hill is having an Angus sale on March 25th at Roseville, AR. CMC is having an Angus sale at Miami, OK on Feb 24th. They'll also be selling 100 commercial Angus two year old pairs. Try to get out to some sales and just look around. They usually provide lunch at the Angus sales.