Been watching a few online cattle sales (angus) and even been to a couple this spring. With the prices that some of these cows sell for, I have a difficult time understanding the reasoning behind this. One half interest at $100K or even higher??? But what I don't get is looking at cow A from one sale and cow B from another. Both cows have almost identical EPD's but price is not close to same price. How could one be $5,000 and the other be $50,000 or higher?? I understand that a well known ranch versus an unknown ranch would mean a lot to the cost but if the EPD's are the same, shouldn't the cattle be the same? One seems to wonder if the rancher may have negotiated with a buyer to run the bid up on the cow and only have to pay the cost of the auctioner which I understand is 1% of the sale price??? Once you get past the first several lots of the sale offering, then all sale prices drop to a more affordable level. Just wondering your thoughts.
Registered Cattle Sales
- Thread starter kilroy60
- Start date
Help Support CattleToday:
Ebenezer
Well-known member
Makes EPDs seem worthless, doesn't it?
Big money sales are for advertising purposes or ego boosts. The average Angus breeder lasts 7 years. He/she gets interested, reads a bit, buys a few local gets more info and Angus ads and catalogs. Soon some will think that if they buy a high dollar or special herd prefix bull, cow, semen, embryo or whatever it will set them into a new level of production or pricing. We are up to year 3 or 4 of 7. So they anty up, pay the big bucks and find out by year 5 and especially year 6 that they got snookered by the advertising. By year 7 they are out of money or reality has stomped on all hope and dreams. Another one bites the dust but in those 7 years they have fed new money into the high priced market to support the folks who perpetuate the scam. And low and behold another seeker comes along in the 7th year to start their first year and start an Angus herd with a new source of money.
kjonesel
Well-known member
Ebenezer I enjoy your analysis. I have gotten into the registered cattle for improving my herd. I buy above average heifers when I buy, I breed artificial so that I can improve using the top sires, and I am culling based on production. As far as profitability even with the record prices that the industry had the past couple of years there were no profits. That money was used to catch up on the decade before. I spent all the money I could on replacing the worst of the infrastructure I have (fences, gates, waterers, feeding pads, etc.) and I still wasn't able to do improvements.
I spend $25.00 per head per year for herd assessments and to me it is well worth it. What I receive for data management is priceless. Where I budget the money from is from selling by first bull each year, the premium received (usually around $1500.00) is enough to cover the annual cost. The additional proceeds do help with some minor improvements. I marketed my 15 month old bulls last fall at an average of $2,300.00 and sold 3 of them. I didn't make a lot of money but the people that purchased them were very satisfied to have purchased a Fullblood Gelbvieh to use in their crosses at price they could afford.
I spend $25.00 per head per year for herd assessments and to me it is well worth it. What I receive for data management is priceless. Where I budget the money from is from selling by first bull each year, the premium received (usually around $1500.00) is enough to cover the annual cost. The additional proceeds do help with some minor improvements. I marketed my 15 month old bulls last fall at an average of $2,300.00 and sold 3 of them. I didn't make a lot of money but the people that purchased them were very satisfied to have purchased a Fullblood Gelbvieh to use in their crosses at price they could afford.
Ky hills
Well-known member
I agree with each post, there is insight in each of them. I started out with registered cattle ( not Angus ), but have since entered into that world a bit. During my first venture, I was young and naïve, I bought into the hype and believed that someday I could be "there". I soon learned that it wasn't to be. My recent venture with a small group of Angus, is mostly to provide bulls for use in my commercial herd.
Several years ago, I was at an Angus dispersal sale, and an older man told me that if I bought the heifer that was selling at that very moment for $20,000 that it would make me more money than anything I could ever do. I just replied Mr. if I bought that heifer, I would have to sell several of mine, and then as soon as she was transferred to my name she wouldn't be worth much more than some of what I sold.
Several years ago, I was at an Angus dispersal sale, and an older man told me that if I bought the heifer that was selling at that very moment for $20,000 that it would make me more money than anything I could ever do. I just replied Mr. if I bought that heifer, I would have to sell several of mine, and then as soon as she was transferred to my name she wouldn't be worth much more than some of what I sold.
When we started out we had stars in our eyes about producing the next great Angus Bull. Now we just want to produce a bull that will make our customer profitable. A customer posted this on his face book page after purchasing a bull from us.
Gizmo Rito B90 A Sinclair Rito 9R9 son back to Rito Revolve OR5 - 7O7 out of a Wulff Ext - Bridget daughter! What a find!!!!! Most people think you have to get on a plane a travel thousands of miles to find the good ones,But if you keep an open mind and a good eye you can find them in your back yard! Thanks to Gizmo Angus for allowing me to purchase this great future sire for Cedar Creek Ranch!
That is the kind of thing you want to hear from your customers. We may never have a bull in an AI stud but we have customers that keep coming back because our bulls help them make a profit.
gizmom
Gizmo Rito B90 A Sinclair Rito 9R9 son back to Rito Revolve OR5 - 7O7 out of a Wulff Ext - Bridget daughter! What a find!!!!! Most people think you have to get on a plane a travel thousands of miles to find the good ones,But if you keep an open mind and a good eye you can find them in your back yard! Thanks to Gizmo Angus for allowing me to purchase this great future sire for Cedar Creek Ranch!
That is the kind of thing you want to hear from your customers. We may never have a bull in an AI stud but we have customers that keep coming back because our bulls help them make a profit.
gizmom
