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Cattle Boards
Beef Butchering
Taking matters into their own hands
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<blockquote data-quote="SBMF 2015" data-source="post: 1708728" data-attributes="member: 39695"><p>We've both seen it on CT time and time again; " wean them in the morning sell them in the afternoon ". A lot of producers either don't have the space or just don't want the risk of back grounding their calves. Green yearling strs always bring a premium. </p><p>If a 800lber brings $2 =$1,600. Figure a $1 a pound for another 600lbs = $600. If you want to " build in " $100 profit you would need $1.64/lb for a 1,400lb finished str. The bid last week was $1.24. $0.40 different. 1,400lbs * $0.40 = $560. You take that away and the packers are making $140-$240/hd. That's fine. They should be able to make a go of it with that profit margin.</p><p>Just remember, if the cattle feeders are making another $560 a head that doesn't mean they will be willing to pass it all along to the cow calf guys. If I'm making $100/hd profit it's time to start thinking about upgrades to equipment and facilities. If I invest profits into maintenance and improvements I'm passing the profit on, just not all to the next wrung down the cattle producing ladder.</p></blockquote><p></p>
[QUOTE="SBMF 2015, post: 1708728, member: 39695"] We've both seen it on CT time and time again; " wean them in the morning sell them in the afternoon ". A lot of producers either don't have the space or just don't want the risk of back grounding their calves. Green yearling strs always bring a premium. If a 800lber brings $2 =$1,600. Figure a $1 a pound for another 600lbs = $600. If you want to " build in " $100 profit you would need $1.64/lb for a 1,400lb finished str. The bid last week was $1.24. $0.40 different. 1,400lbs * $0.40 = $560. You take that away and the packers are making $140-$240/hd. That's fine. They should be able to make a go of it with that profit margin. Just remember, if the cattle feeders are making another $560 a head that doesn't mean they will be willing to pass it all along to the cow calf guys. If I'm making $100/hd profit it's time to start thinking about upgrades to equipment and facilities. If I invest profits into maintenance and improvements I'm passing the profit on, just not all to the next wrung down the cattle producing ladder. [/QUOTE]
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Taking matters into their own hands
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