Monopoly On Sale Barn

[blk mule]

Cattle Sales has just become a little more depressing in Central Ky. One Stockyard in this area has bought out most other yards in a 75+ mile area. It seems as though their will soon be a Monopoly on Sale Bill and Cattle Price Paid at Sale Barn.

Everyone in cattle business around here is scared the price of cattle will be just whatever this Auction Barn WANTS to pay.

It seems to have started about 1 yr. ago. When Bluegrass Stockyards. had a sale price increase. (almost double) They then ask compitation sales yards to follow their increase (some declined) others did not. After pressure a few jumped on the wagon others Refused 100%.

To make their point ( Bluegrass) a New Sale Barn is being constructed in another county (South) with a very high posibility of another Sale Barn being built (North) very soon.

All this is to take place in early spring 2007. They just simply bought all the sale Barns that was a compation to them.

Seems as though we will accept their price or STOP raising cattle. Sad but true

blk mule

 

[Frankie]

Does Kentucky have a retained ownership program? Oklahoma has one called "OK Steer Feedout." Texas calls theirs "Ranch to Rail." Many states have them. It might be an alternative.

 

[bigbull338]

Does Kentucky have a retained ownership program? Oklahoma has one called "OK Steer Feedout." Texas calls theirs "Ranch to Rail." Many states have them. It might be an alternative.

to me the sale barn owners cant control the price of cattle.an here is why.every state has packer buyers an order buyers for all classes of cattle.an those buyers control the cattle prices.now the sale controls the commission that they charge to sale cattle .but thats it.if they ran all the order buyers off.the sellers would quit taking cattle to those sales.an find another way of saling their cattle.wich would force that sale barn out sooner or lateer.

 

[tulsagreenhorn]

What is this OK Steer feedout program about? Buyers buy from the producer directly? Is there a website with details, thanks[/quote]

 

[Frankie]

What is this OK Steer feedout program about? Buyers buy from the producer directly? Is there a website with details, thanks

[/quote]

You deliver steers at a certain weight to the load out point. Pay a per head fee. They feed them and deliver to slaughter. You get a check for the value of the animals, less expenses. We haven't done it in several years, but they also collected feedlot performance and carcass info back then.

Contact the OSU extension people. They're the ones who run it.

 

[BC]

Everyone in cattle business around here is scared the price of cattle will be just whatever this Auction Barn WANTS to pay.

Seems as though we will accept their price or STOP raising cattle. Sad but true

blk mule

Buyers determine prices paid to sellers. Sale barns collect a commission for holding, selling the animals, loading him out to the buyer and then making sure the check is good.

 

[3MR]

What is this OK Steer feedout program about? Buyers buy from the producer directly? Is there a website with details, thanks

You deliver steers at a certain weight to the load out point. Pay a per head fee. They feed them and deliver to slaughter. You get a check for the value of the animals, less expenses. We haven't done it in several years, but they also collected feedlot performance and carcass info back then.

Contact the OSU extension people. They're the ones who run it.[/quote]

Its a real good deal when you are looking for herd performance statistics.

 

[Shorthornguy]

A certain large statewide salebarn coop in Wisconsin has a feeder program. They finance. They set you up with feeders and you finish them and sell them for slaughter at their salebarn. They deduct comission, cost of the feeders and interest. Problem is they buy the feeders for you. That means that if you are at the sale to buy feeders you are competing with the salebarn. Never seemed right to me.

 

[Stocker Steve]

A certain large statewide salebarn coop in Wisconsin has a feeder program. They finance. They set you up with feeders and you finish them and sell them for slaughter at their salebarn. They deduct comission, cost of the feeders and interest. Problem is they buy the feeders for you. That means that if you are at the sale to buy feeders you are competing with the salebarn. Never seemed right to me.

I think almost everyone who works in, trucks to, or owns a portion of the sales barn has some side deals going. I usually buy my own. I did have someone doing some buying for me if I could not make the sale - - but found out he would never bid against certain guys regardless of the price...

 

[blk mule]

The talk you here at sale barn is this, They (meaning buyers) are controlled by Sale Barn (the ones in charge) that they send the buyers to which ever sale barn and tell them what to buy and how much to pay.

Stories told me from recent shareholders,(ones forced to sale)
At one sale buyers attended but, where told Not To Bid. It was Noticed that they did not.

At another sale the now new owners, forbid a cattle buyer (well known in area) from attending. FACT!!

Also in this area there is one Auction Sale they did not buy, When I ask why they did not, A well respected gentleman of sales said Quote: We won`t send any buyers there and they will have to shut their doors.

As i have said everyone with the exception of new owners 13. feel local people are being taken advantage of.

Time will tell.


blk mule

 

[Stocker Steve]

I realize in general that there are some people who stay in business by taking advantage of thier neighbors. I get concerned when I am told that xxxx "will decide how much you need for your cattle if you sell in that sales barn." A monopoly is illegal... but I doubt that the Feds will come after someone who owns 4 or 5 sales barns. The thing I can not understand is why you would buy up all the sales barns in an area with the growth of video and internet sales?

Certainly there are local guys who always sell at the same place and take what they get -- but isn't there some guys in your area who can raise, or pool together, a pot belly load?

 

[backhoeboogie]

Does Kentucky have a retained ownership program? Oklahoma has one called "OK Steer Feedout." Texas calls theirs "Ranch to Rail." Many states have them. It might be an alternative.

to me the sale barn owners cant control the price of cattle.an here is why.every state has packer buyers an order buyers for all classes of cattle.an those buyers control the cattle prices.now the sale controls the commission that they charge to sale cattle .but thats it.if they ran all the order buyers off.the sellers would quit taking cattle to those sales.an find another way of saling their cattle.wich would force that sale barn out sooner or lateer.

I agree. The sale barn can start the prices low, but the bidding will get them right. If they are only 50 cents, buyers will be trucking them out like hotcakes.

Heck, I'd want in on some of that action. :lol: it wouldn't last long. Word would get out.

 

[Stocker Steve]

Does Kentucky have a retained ownership program? Oklahoma has one called "OK Steer Feedout." Texas calls theirs "Ranch to Rail." Many states have them. It might be an alternative.

to me the sale barn owners cant control the price of cattle.an here is why.every state has packer buyers an order buyers for all classes of cattle.an those buyers control the cattle prices.now the sale controls the commission that they charge to sale cattle .but thats it.if they ran all the order buyers off.the sellers would quit taking cattle to those sales.an find another way of saling their cattle.wich would force that sale barn out sooner or lateer.

I agree. The sale barn can start the prices low, but the bidding will get them right. If they are only 50 cents, buyers will be trucking them out like hotcakes

Have you ever tried to bid against a buyer who is using someone else's money to run you out? It makes for an interesting day, and no the bidding does not get the prices right. Maybe - maybe - they average out for the year.

I have gone to a certain sales barn a couple times, where I bought little or nothing but I did run the price up to my max. My max was about $5 to $10 a cwt. over what the regular order buyers were paying before I started bidding. I am small operator and I should not be able to move prices that much if they were "right."

 

[Jake]

well the owners aren't going to be able to control that long as if you were smart you and yoru neighbors would ship yoru cattle out of area to other barns. Not tough to get around that kind of deal if they really think they can do it. You have many many options. It wouldn't be hard to make this group go bankrupt by simply not selling cattle at their barns.

 

[Stocker Steve]

Not tough to get around that kind of deal if they really think they can do it. You have many many options. It wouldn't be hard to make this group go bankrupt by simply not selling cattle at their barns.

I think part of the issue is there are not many sales barns or many order buyers in some marginal beef areas - - so the smaller cow/calf guys are not aware of their options unless they join the Cattlemans Association.

 

[MikeC]

Not tough to get around that kind of deal if they really think they can do it. You have many many options. It wouldn't be hard to make this group go bankrupt by simply not selling cattle at their barns.

I think part of the issue is there are not many sales barns or many order buyers in some marginal beef areas - - so the smaller cow/calf guys are not aware of their options unless they join the Cattlemans Association.

All the more reason for smaller producers to get together and start pooling calves and have a board sale.

Takes a little leadership is all.

 

[Jake]

Not tough to get around that kind of deal if they really think they can do it. You have many many options. It wouldn't be hard to make this group go bankrupt by simply not selling cattle at their barns.

I think part of the issue is there are not many sales barns or many order buyers in some marginal beef areas - - so the smaller cow/calf guys are not aware of their options unless they join the Cattlemans Association.

All the more reason for smaller producers to get together and start pooling calves and have a board sale.

Takes a little leadership is all.

man alive Mike you and I just must be on the same page today. I was going to say the same thing.

 

[MikeC]

man alive Mike you and I just must be on the same page today. I was going to say the same thing.

Same "CattleToday" page! :lol:

Some guys around here pool calves and have gotten up to around 2000 calves per year at their sale. Even some big packers send buyers down now.

It's the ONLY way a small producer can get a bigger piece of the pie.

 

[Beef11]

In my part of the country sale barns are on their way broke anyways. Most of the outfits with any scale (300+) do some kind of post weaning activities such as owning to the rail or marketing through superior. ID programs are going to hurt them some more.

 

[somn]

Does Kentucky have a retained ownership program? Oklahoma has one called "OK Steer Feedout." Texas calls theirs "Ranch to Rail." Many states have them. It might be an alternative.

to me the sale barn owners cant control the price of cattle.an here is why.every state has packer buyers an order buyers for all classes of cattle.an those buyers control the cattle prices.now the sale controls the commission that they charge to sale cattle .but thats it.if they ran all the order buyers off.the sellers would quit taking cattle to those sales.an find another way of saling their cattle.wich would force that sale barn out sooner or lateer.

I agree. The sale barn can start the prices low, but the bidding will get them right. If they are only 50 cents, buyers will be trucking them out like hotcakes

Have you ever tried to bid against a buyer who is using someone else's money to run you out? It makes for an interesting day, and no the bidding does not get the prices right. Maybe - maybe - they average out for the year.

I have gone to a certain sales barn a couple times, where I bought little or nothing but I did run the price up to my max. My max was about $5 to $10 a cwt. over what the regular order buyers were paying before I started bidding. I am small operator and I should not be able to move prices that much if they were "right."

There is nothing illlegal about that they are making you buy your seat. Happens everywhere. If there are 200 head of cattle at the sale and 2 buyers both wanting 100 head each simple math there. So now you walk in and you need 100 head also. 200 head of cattle and a demand for 300 head. Price just went up at your expense and at the expense of the people the order buyers are buying for.

People selling cattle at the auction can do the same thing. They can bid their own cattle up. You wouldn't advertise you car for sale in the paper and then take the first offer you get even if it is thousands of dollars below value. Cattle are no different they are yours until the auctioneer says sold. Protect your investment. If you get less than market value and you watched them sell thats not the sale barns fault. The blame then needs to be directed towards the ranch management.