Shanghai":3tw6wkqf said:
Margins are tighter than that for lots of cattle but the volume of cattle is how they make it work
I disagree. If you are losing money on cattle then having more volume simply means you are losing more money. This is what runs many out of the stocker business in one bad cycle.
I think what you mean to say is its the repetition of volume that makes it work. If you sell on a reduced market you are able to buy more cattle at a cheaper price so you have replaced less cattle with more and essentially what you are doing is using the number of cattle as a measure of wealth rather than using the dollar. These down turns scare many off but its these dips that set the stage for the best profit for those who stay in the game.