Feedlots don't need more packers!

[ALICIA]

rowbott, I will be Devil's Advocate regarding bypassing Auction Markets. What about the farmer that wants to feed out a couple of hundred calves and doesn't want to travel around the country buying off farms. He now has the option of going to the Auction and picking out what he wants to feed, or getting an order buyer to do it for him. His calves are hauled in at the same time etc. Auction Markets have had their place overtime and I am sure will still play a role. I do not think they should be the dumping ground for every sick, skinny animal that the cattle producer wants to make that final buck out of though.

[cowman]

Is the auction mart system really all that bad? I wonder how the price would be set if we didn't have auction sales?
Now I will admit that some of the things that go on in the auction marts are not in the animals best interests. For example the selling of fresh weaned calves? I often wonder how they can possibly not get sick? Well I guess modern anti-biotics can solve that problem, right? But is that a good thing?
Now if you can find a buyer who will take your calves/yearlings right off the farm at a fair price then that is great, but what option do you have when you don't believe you have a fair price? One thing about an auction mart...you will find out real quick what the feedlots think your calves are worth? If you still believe you are not getting a fair price you do have the option of standing up and saying "No Sale"! Take them home and prove the feedlot buyer wrong!
Years ago pigs were sold by auction but today of course they aren't. The plant offers you a price and you can take it or leave it...around here that basically means you have no other option than to take it! Hmmm I wonder if that is why all the independent pig farmers have quit? Maybe they got tired of getting screwed so the mega barn could get a couple more cents per pound?

[magpie]

Look what happened to flax on the board at the Winnipeg commodity exchange when it wasn’t been used enough , became a dead horse and no price discovery. Same thing applies here, if you want to sell direct to feedlots fine or have buyer come to farm great, but at least you have the auction mart as one of the options for price discovery. Use it as a pricing tool and not think of the auction mart as a place to dump cattle.

[wd40]

robott - make sure you include all the checkoffs to the ABP.
PS. I had a buyer tell me that he had the commission from one group of calves 5 times.
I know cowman will say that's "free enterprise". But if I'm signing the check I'd dang sure find a way to find the right couple of ranches and cut a deal to buy the right calfe from the ranch. Those cost listed above are real plus death loss and grade redustions from treated calves. I believe the cost is much higher than listed above.

Those who aspire to be compdity marketers and "price takers" can use the auction mart.

Some of us that want to be "Price takers" will join Rusty's packing plant vertical chain.

[ALICIA]

If I had 50 plus calf every year to sell then I wouldn't feel giulty about calling a buyer in to buy my calfs. But soom times like in December I only had 3 steers left to go and I felt like it was a hassal for the buy to bring his trailer for just 3 calfs. Our sale barn was handy because I would of just took them to the barn myself, but even I don't want to drive 2 hours with just 3 steers.