Value Added Marketing

[Stocker Steve]

Last fall I backgrounded some light calves and then resold them. They were started and double vaccinated, but not as slick or shiny as calves just weaned on the truck. The backgrounded calves sold for a bit less per cwt. than the unweaned calves so I don't plan to do that again for my local market.

This year I called ahead and asked for the price premium on spayed and TB tested heifers. The honest answer was we don't see many so we are not sure if there is one...

All this makes me think I need to find a better market to sell into. Any suggestions for a central Minnesota based operation?

 

[bigbull338]

that shows you that no matter what you do to your calves.that there isnt any price differance tween weaned an preconned calves.thats the reason that we have always weaned the calves on the trailer.it doesnt pay to get the calves on feed.i really dont think it pays to dehorn or cut the calves.but thats just me.bottomline is the pounds you put on the calves that counts.

 

[Frankie]

Last fall I backgrounded some light calves and then resold them. They were started and double vaccinated, but not as slick or shiny as calves just weaned on the truck. The backgrounded calves sold for a bit less per cwt. than the unweaned calves so I don't plan to do that again for my local market.

This year I called ahead and asked for the price premium on spayed and TB tested heifers. The honest answer was we don't see many so we are not sure if there is one...

All this makes me think I need to find a better market to sell into. Any suggestions for a central Minnesota based operation?

Have you checked with your Extension people? Our state cattlemen's group works with the extension office to put on several sales a year. It's called Beef Quality Assurance program (BQA). To get calves into the sale, you must verify that they are weaned, bunk broke, vaccinated, casterated, etc. It's been a while since I've heard anything about the sales, but they were getting a pretty good premium over regular sale barn calves.

Many breed associations offer an ear tag you can put on the calves if you use their breed of bull. AngusSource is one., Red Angus has a yellow tag for certified calves. Some associations even sponsor sales of those calves or help you market them. I know the Angus Assn has held some across the country. IMO, you're doing the right thing. I hope you can figure out a way to get paid for it.

 

[dieselbeef]

ive beat this to death here..check out wean em on the trialer thread i started waaay back...theres no money in it unless yer sendin a load to the lot yerself. skippin the market altogether. backgroundin/vac/weanin..just load em

 

[somn]

theres no money in it unless yer sendin a load

There in lies the answer. There is money to be made by backgrounding but to see the money you need to be sending a load not 2 or 3 head. People buying 2 and 3 head at a time are buying them because they are at a discount compared to a full potload. Most of the time people buying 2 and 3 head at a time could care less if they are backgrounded or not most of the time they don't care if they are steers or bulls they don't even care if they are sick or not. Why? Because they are bought cheap enough they have already figured the extra work and inputs into the lower price paid.

 

[BC]

theres no money in it unless yer sendin a load

There in lies the answer. There is money to be made by backgrounding but to see the money you need to be sending a load not 2 or 3 head. People buying 2 and 3 head at a time are buying them because they are at a discount compared to a full potload. Most of the time people buying 2 and 3 head at a time could care less if they are backgrounded or not most of the time they don't care if they are steers or bulls they don't even care if they are sick or not. Why? Because they are bought cheap enough they have already figured the extra work and inputs into the lower price paid.

Somn is right about the small groups. Exception would be to sell at a co-mingled precondition sale like the NETBIO sale in Sulphur Springs, TX. Cattle have to have been weaned and two rounds of shots. They will have a sale this Wednsday. You can watch it on LMAauctions - http://www.lmaauctions.com/MySale.aspx Then click on Sulphur Springs Livestock Auction.
These calves typically bring $5 to $7 per cwt. more than singles of the same weight and quality.

Producer gets paid for the lbs of calf he has in each lot. They try to get truckload lots or at least a half a load so loads can be combined to save on freight.

 

[Jogeephus]

I typically get a fifteen cent premium on preconditioned calves compared to the salebarn. Takes a little more work but I like the idea of weighing them on the farm and getting my check before they pull off. Took a little work to arrange it all but it works nice. Also don't have to pay as much commission, no yardage, no insurance, no feed cost(never understood that one). Of course, the only way they will buy them this way is that you must promise that they are weaned and vaccinated for at least 45 days.

 

[dcara]

I went to the Sulphur Springs NETBIO sale on the 23rd. I'm not sure I saw a premium. Below are some the prices I wrote down which were typical that day.

Qty, type, sex, wt, price

2 BBaldies, H 632, 1.02
8 BBrangus, H, 483, 1.15
10 BBrangus, H, 670, 1.05
1 Brindle, H, 730, 1.10
5, B, S, 370, 1.21
11, Mix, H, 360, 1.07
20, B, H, 479, 1.10
84, B&R Brangus, H, 483, 1.08
20 Char, H, 574, 1.05
7 Hols, S, 427, 0.73
80, mix, H, 571, 0.995
24, B, H, 560, 1.04
32, Mix, S, 469, 1.11

 

[grannysoo]

I don't see where you can make any money at all taking 2 - 3 cows to the salebarn. The people around here that are making money in cows have the buyers come to them, back the semi-trailers up to the corral in the field, and ship truckloads. They are getting paid 10 - 15 cent per pound more than most of the salebarns are paying.

Now the salebarn is another issue. I could buy a load here at our local barn and take them to a barn 100 miles away and make money. Only 2 buyers now at the local barn, and they are constantly 10 - 20 cents per pound under what they other barns are paying.

 

[somn]

Now the salebarn is another issue. I could buy a load here at our local barn and take them to a barn 100 miles away and make money. Only 2 buyers now at the local barn, and they are constantly 10 - 20 cents per pound under what they other barns are paying.

I mentioned once how a guy could haul his cattle out of state to a different auction and sell them for alot more even after paying trucking. I got jumped on about how stupid I was. Hope that statement works better for you than it did me.

 

[mitch2]

Last fall I backgrounded some light calves and then resold them. They were started and double vaccinated, but not as slick or shiny as calves just weaned on the truck. The backgrounded calves sold for a bit less per cwt. than the unweaned calves so I don't plan to do that again for my local market.

This year I called ahead and asked for the price premium on spayed and TB tested heifers. The honest answer was we don't see many so we are not sure if there is one...

All this makes me think I need to find a better market to sell into. Any suggestions for a central Minnesota based operation?

I sat next to a buyer at the Zumbrota barn, he was out of Iowa, pretty fair sized feedlot operation and he only buys heifers. Sorry, I can't remember his name or exact location, but if you called Zumbrota I bet they would help fill you in on some info.

Michele

 

[BC]

I went to the Sulphur Springs NETBIO sale on the 23rd. I'm not sure I saw a premium. Below are some the prices I wrote down which were typical that day.

Qty, type, sex, wt, price

2 BBaldies, H 632, 1.02
8 BBrangus, H, 483, 1.15
10 BBrangus, H, 670, 1.05
1 Brindle, H, 730, 1.10
5, B, S, 370, 1.21
11, Mix, H, 360, 1.07
20, B, H, 479, 1.10
84, B&R Brangus, H, 483, 1.08
20 Char, H, 574, 1.05
7 Hols, S, 427, 0.73
80, mix, H, 571, 0.995
24, B, H, 560, 1.04
32, Mix, S, 469, 1.11

You will see more of a premium when you get to truckload lots or at least a half of a truckload (48,000 lbs of same sex, weight and quality). From the quotes you gave the 8 BBrangus heifers @ $1.15 were about $5 to $7 per cwt higher than Saturdays market. The 84 head lot was $6 to $8 more than what I saw Brangus X feeder heifers sell for. One at a time they were bringing $95 to $101 per cwt. The Holsteins would have brought about $65 - $67.

I had an order for 510 to 550 lb #1 and 1 ½ okie heifers for $90.00 or less per cwt. Those class of heifers were bringing $95 to $96. Needless to say I was blown out. Same thing on some 600 lb heifers. My man wanted to buy them for $85 or less and they cost $90. Those 20 head of Charolais heifers weighing 574 @$105 sounds like a good selling to me.