Something to think about

[MikeC]

"Standardized Performance Analysis (SPA) has shown the economic disadvantage
of owning less than 100 cows. Data consisting of 200,000 cows from 20
different states has shown a net return of a negative $38.02/cow in herds with less than 50 cows and a net return of only $28.21/cow in herds of 50 to 99 cows. These returns could be greatly improved with better marketing
alternatives. Of course there are exceptions, but in general, small-scale
producers are hurting."

 

[3MR]

I think the problem with that is they could very well be including the hobby guy who isnt interested in profit in with the small producer who is.

I think there is no doubt a larger operation has lower input per unit, but I also think it is possible to make a profit on even one animal if your are business oriented and pay attention to your actual margins.

 

[Aubracusa]

Mike, that's precisely why small to mid-size producers must be aggressive in differentiating themselves and their products from the marketplace, and to adding value to what they do.

To play the "same ole, same ole" commodity game is to commit economic suicide.

aubracusa

 

[Andrew]

Do you have any ideas how we can get away from the commodity market?

Andrew

 

[Herefords.US]

A problem that I'm wrestling now - trying to get BIG enough that breeding and raising cattle is economically rewarding as well as personally rewarding.

But the only way I can see anyone actually making a "profit" on only one animal is to have it on someone else's property with someone else caring for it. All you do is collect the check.

But then I guess that would depend on what your definition of "profit" is.

George

 

[MikeC]

The easiest way I see for small breeders to reap some of the larger piece of the pie is to band together and sell like quality calves together in truckload lots. It could be like one large ranch, just in different locations.

Have a board sale.

That would also create some competition between owners to raise a higher quality animal.


The salebarn buyers of course don't want to see this happen because he is picking them out one by one at the salebarn and sorting them for his orders.

He is the one making a monkey out of the small producer and the small producer is asking him to.

 

[3MR]

The easiest way I see for small breeders to reap some of the larger piece of the pie is to band together and sell like quality calves together in truckload lots. It could be like one large ranch, just in different locations.


The salebarn buyers of course don't want to see this happen because he is picking them out one by one at the salebarn and sorting them for his orders.

Exactly, you woul dhave to participate in one of the many programs aimed at equalizing the gap between the small and large producers.

Here in Oklahoma we have QBN which does a great job for the smaller producer.

 

[oakcreekfarms]

Is it possible that there are a lot more 1-50 herds then those of 50 or more. Around here most herds consist of about 20-30 cows, not many 100's in the state in comparison.

 

[Cattle Rack Rancher]

You guys are forgetting about what I call 'my third cheque'. I get one check when I cull my replacements in September. A 2nd cheque when I sell my calves in November and my third cheque comes from the government sometime in April. It comes from all the write offs that I get on my income tax for owning cows. If it wasn't for that third cheque, I'd have a hard time justifying having cows at all.

 

[Herefords.US]

You guys are forgetting about what I call 'my third cheque'. I get one check when I cull my replacements in September. A 2nd cheque when I sell my calves in November and my third cheque comes from the government sometime in April. It comes from all the write offs that I get on my income tax for owning cows. If it wasn't for that third cheque, I'd have a hard time justifying having cows at all.

Actually, I think Mike's original post covers your "third cheque" premise. At a negative $38 a head, fewer cattle owners of less than 50 cows could own them if they weren't getting that "third cheque" in the form of an income tax return on money made off the farm/ranch.

George

 

[Cattle Rack Rancher]

You guys are forgetting about what I call 'my third cheque'. I get one check when I cull my replacements in September. A 2nd cheque when I sell my calves in November and my third cheque comes from the government sometime in April. It comes from all the write offs that I get on my income tax for owning cows. If it wasn't for that third cheque, I'd have a hard time justifying having cows at all.

Actually, I think Mike's original post covers your "third cheque" premise. At a negative $38 a head, fewer cattle owners of less than 50 cows could own them if they weren't getting that "third cheque" in the form of an income tax return on money made off the farm/ranch.
George

I think another part of the equation is what you spend. My tractor is a 1968 1850 Cockshutt that I bought at auction for $3500.00 and I drive a 1990 Chev 3/4 ton extended cab. I haul my cattle in a cattle rack unless I'm moving a bunch and then I borrow a trailer. If I was making payments on a newer tractor, a newer truck and a trailer, it would eat away at my net profit. Its not how much you make. Its how much you spend to make it.

 

[Herefords.US]

Generally speaking, if you've got 40 head, you'd better have an off-farm job or retirement check, OR a spouse that works off the farm, OR a couple of producing oil/gas wells on your place. And it's better if you have all four! :lol:

George (who currently has around 40 cows and heifers)

 

[ga. prime]

From where does that quote originate, Mike?

 

[MikeC]

From where does that quote originate, Mike?

An article titled:" The future of the Beef Industry"

http://www.ibiblio.org/london/permacult ... 00024.html

 

[ga. prime]

Mike, thanks for the info.

 

[andybob]

Direct marketing is an option if you have access to facilities to process and pack for private customers. At present I am building a network of customers for specific products for expatriots I have contacted on a website, at present I am building up my market using purchased beef untill I can produce enough steers to meet the growing demand.
I have had enquiries from Canada for some of the dried sausage and jerky like meat,but need to find out the import regulations to find out if it would be possible to send parcels direct to customers,who are willing to cover the postage.