Running stockers

[Sd1030]

I possibly have a chance to pick up some 4 wt calves to run as some stockers. The plan with this calves is to combine them with a friends group of calves to put a truck load together to sell through a video auction. Id be taking this calves up to around the 6wt mark, as it stands right now. I know its many thoughts on this process and some would argue it may not be a profitable adventure. That very well may be the case, as ive never done this before, so it is a learning adventure for me. This calves im looking at are in the process of being weaned already, went to look at them yesterday and they are corraled up and they seemed to be past the bawling stage. They appeared to be healthy and considering their past the bawling stage, i think thats a plus for me. Is this a crazy idea? I have plenty of hay and feed to put the weight on the cattle, also green up isnt to far out. Putting the truck loads together seems to be bringing about a 10-20 cent more/lb premuim compared to just selling through the barn. To me considering i have the chance to put a load together with someone else and the fact that i have the feed, i dont see where i could go wrong if the price is right on the calves. Dont get me wrong i know there is some risk here, and im not saying its easy money, it just seems like something worth trying. Thoughts?

 

[JMJ Farms]

Bump.

 

[Bigfoot]

I run a few every year. It's like everything. You win some, and you lose some. You've mentioned having the feed. The feed is not free, even if you already have it. Your also going to experience a certain amount of sickness. Possibly death. Not to scare you, it's just inevitable.

I will background some this year. I haven't bought any yet. Me, nor anyone else can tell you what the market is going to do. 1st reason I haven't bought in yet, I don't have the extra hay. 2nd reason is I'm not sure if the market is through falling.

You may have good luck with a video auction, and I hope you do. There is just a lot of things to consider if you go that route.

Also, if your going to have a partner. The partner needs to bring something to party that you don't already have. Otherwise, there is no need for a partner.

 

[JMJ Farms]

I run a few every year. It's like everything. You win some, and you lose some. You've mentioned having the feed. The feed is not free, even if you already have it. Your also going to experience a certain amount of sickness. Possibly death. Not to scare you, it's just inevitable.

I will background some this year. I haven't bought any yet. Me, nor anyone else can tell you what the market is going to do. 1st reason I haven't bought in yet, I don't have the extra hay. 2nd reason is I'm not sure if the market is through falling.

You may have good luck with a video auction, and I hope you do. There is just a lot of things to consider if you go that route.

Also, if your going to have a partner. The partner needs to bring something to party that you don't already have. Otherwise, there is no need for a partner.

I've always wanted to venture into this area but the market makes me nervous. Can make a little money or lose a lot in a hurry. I'm assuming that he wants to supply half of a truckload while his friend supplies the other half.

 

[Sd1030]

Bf jmj is correct me and my friend would be putting the load together by both bringing calves to the table. I do agree with you that even though i have the feed its still a cost, just looking at it from the standpoint of using it for something. I agree the market scares me, so my plan is to try to get the cattle a good price to leave a little wiggle room. I feel i have a good chance at doing that because the people with these calves dont like fooling with them, so if i make a decent offer and save them the headache of hauling them off i can get them. Thanks for the input, i still got more to figure and think about before i dive in.

 

[Bigfoot]

It's a volume business. $70 profit a piece, is what I consider a good lick. I have made more, we had some good years when the price was rising I have like wise lost to. Sickness will kills gains even if they live. Death will just sink you.

 

[Sd1030]

Yea i agree with that on the sickness and death. In this situation where the calves are already in the weaning process past the bawling phase and eating good, shouldnt that help reduce the risk of sickness? Dont get me wrong i know i still need to vaccinate and manage properly but shouldnt that fact be to my advantage?

 

[JMJ Farms]

It's a volume business. $70 profit a piece, is what I consider a good lick. I have made more, we had some good years when the price was rising I have like wise lost to. Sickness will kills gains even if they live. Death will just sink you.

Your words reflect wisdom Bigfoot :tiphat: And your post is exactly the reason I've always shied away from stockers. Too much investment for too little return (FOR ME). I feel I would be better preconditioning local calves. But I may have fell off my rocker, because my husbandry skills would definitely be tested as most producers hear don't even wean or castrate, let alone vaccinate. Off the cow and to the barn they go :hide:

 

[Sd1030]

Jmj maybe i used the term stocker to losely, these cattle would be of a local farm. The farmer is a friend of a friend type deal, my friend actually sold the bull to these people so they kinda know the genetics in a sense. Like i said the corraled up, past the bawling stage, eating feed, and it appears drinking from a water.

 

[Bigfoot]

Every step closer they are to weaned, is a step in the right direction. IMHO, everybody should wean a calf before they sell it. In all honesty though, the money to be made is in weaning. You make off of the discount, and you make off of the shrink. The risk is in loosing one.

 

[JMJ Farms]

Jmj maybe i used the term stocker to losely, these cattle would be of a local farm. The farmer is a friend of a friend type deal, my friend actually sold the bull to these people so they kinda know the genetics in a sense. Like i said the corraled up, past the bawling stage, eating feed, and it appears drinking from a water.

I would say your biggest hurdle is the market. Health should be ok. I'm weaning and preconditioning my own calves rather than sending them straight to the sale barn. Trying to make a little extra money. My biggest problem is I don't have enough to put together a pot load. Trying to get some of my neighbors to join forces with me. It would benefit us all, but that means everyone has to have the same calving season, similar breeds, and similar, if not the same, vaccination protocols in order to be able to ship healthy, uniform calves. Tough to get everyone on the same page.

 

[Bigfoot]

If you do buy some calves, put them in a small area, with the best smelling hay you can find. Vaccinate em, and booster on time. They will get off feed, and water, and then walk themselves to the grave looking for mommas tit. I wouldn't feed a bite of grain for about 3 days.

 

[JMJ Farms]

If you do buy some calves, put them in a small area, with the best smelling hay you can find. Vaccinate em, and booster on time. They will get off feed, and water, and then walk themselves to the grave looking for mommas tit. I wouldn't feed a bite of grain for about 3 days.

Bigfoot, you ever tried putting an old cow in with them? Kinda like a "nanny". I've read this somewhere. Just wondered if it helps.

 

[Bigfoot]

I'll go ahead and say it. I figured it start an arguemnet, is the only reason I didn't earlier. You will do just as good, or better selling 50,000 pounds of calves at a reputable sale as you will a video auction. I feel better now. I got that off my chest......Now, let the arguing begin.

 

[Bigfoot]

If you do buy some calves, put them in a small area, with the best smelling hay you can find. Vaccinate em, and booster on time. They will get off feed, and water, and then walk themselves to the grave looking for mommas tit. I wouldn't feed a bite of grain for about 3 days.

Bigfoot, you ever tried putting an old cow in with them? Kinda like a "nanny". I've read this somewhere. Just wondered if it helps.

Naw, I haven't. The stress, dehydration, loss of calories, and wasted energy is what gets em. Everything about the new place is different. I wouldn't think one old cow in a pen with 70 calves would be much of a change in the equation.

 

[Sd1030]

Jmj i think you just explained my plans better than me. My friend has enough to make little over half a load, i have a couple i can throw in at this point, and im looking for local cattle to buy to make up the rest. Were just trying to go this route to get the premium, instead of taking the hit at the barn, considering theyd be weaned and vaccinated either way. Comparing barn report to truck load report on similar cattle there was a $.20/lb difference between the two, i done the math and thats $150 dollar a head difference. I know some will say time you factor in the time and extra cost to put another 1-200 lbs on them before selling than you aint come out ahead vs sending at 500/lb. i agree with that if you dont have the resources to do it, but if you do why not background your own cattle?

 

[Sd1030]

Bf let me clarify here the route im looking at going is actually through a barn here in nc, but they do it via a video sale. Maybe i didnt clarify real well in my intial post.

 

[Bigfoot]

Bf let me clarify here the route im looking at going is actually through a barn here in nc, but they do it via a video sale. Maybe i didnt clarify real well in my intial post.

Sounds good, go for it.

 

[js1234]

Pretty decent advice you've gotten here. My family runs some stocker cattle like these other fellows. I'd more or less echo what they've said. One thing that we are firm on in our program is that we don't want cattle with the weaning process "started". I want them at least 30, if not 45 days weaned or I want them sorted off the cow that morning with 2 rounds of shots prior and I'll wean them. It's the cattle that have been off the cow for 10 days that scare me.
There is an undeniable advantage to selling in semi-load(s) lots. Could be on a video auction, or on the internet or out of the country or at a big, well advertised sale at a good auction house. While anyone who's read my posts knows I'm a big proponent of sale barns, I will say that the other avenues I mentioned won't have the freight cost assuming you have a suitable place to ship from and TYPICALLY video/internet commission is around a percent cheaper. Doesn't mean a barn can't and doesn't many times prove itself as the best route, it just means that in a LOAD LOT situation they are starting the price discovery process a couple bucks a cwt. behind the other marketing methods.
One other thing to remember is that simply having 50,000lbs. of steers doesn't make a load lot. There has to be less than the acceptable amount of variance to fit the description "uneven" or "very uneven" etc. if your 50,000lbs. of beef weigh from 450-750 and are AngusX, RomagnolaX, CharolaisX, SalerX, BrahmanX, filling out the load 8 paint calves and 5 longhorns, 2 late cut stags and one that appears to be half Jersey, you don't have a load of steers.
All the advice aside, I encourage you to try it. It can be a very good business especially once you get a feel for the nuances and scale to a size where you can generate more dollars of revenue and hopefully profit with the same amount of labor/effort.
Goodluck.

 

[Sd1030]

Js question for you why do the ones that are partially weaned scare you? Im assuming its because that halfway through the process is when theyre at a higher risk to get sick but maybe im wrong. I do agree that just having 50k lb of cattle dont make a load, and that its got to be a uniform load. Thats poses a question for me, in general how much of a weight difference between calves is acceptable?