feedlots

[rusty1]

rsomer - here is some summary numbers. When things are good every feedlot would be tickled to death to net $20 per head day in day out/ year around. Currently thery have lost litterly millions in equity (if you don't know what that is ) it's their ability to buy your calves next time around. Old established feedlot opperators (3 generations) have stuck their RRSP's back into their opperations to stay affloat. You're dogmatizm is industry divisionary, something we don't need and if you're going to continue in that vane then put you're name pubically to you're thoughts and I guarantee you'll have to feed out all you're own calves from now on. Then amybe you'll get youre numbers straight.

[rsomer]

I am aware that the feedlots claim to make only $20 per profit. I suspect that is a pure profit over all costs, something the cow calf sector only sees once in 10 years if they are lucky. And of course the feedlots lost millions after May 20 but they received millions in BSE support. I think they were covered. If you disagree please show me the numbers.
If the feedlots have so much market power that they, as you suggest, can economically punish producers who voice an opinion that the feedlots are making more money they let on then that is a problem.
I am aware that some feedlots are struggling to stay in business, I am aware that a few small lots have decided to quit. I am also aware that some feedlots have an income tax problem and that some are poised to increase their share of the Alberta feedlot industry. I am aware that the feedlots are making money on the calves bought after May 20. Quite a lot of money in fact. This is backed up by Alberta Ag numbers which you may dispute but have not backed up with any numbers of your own. Alberta Ag suggests the feedlots are making $300 per head, not $20 per head. I would welcome your breakdown of feedlot costs and revenues to show the level of profitability of the calves being sold by the feedlots right now. Because I am not believing the $20 per head story anymore.

[cowman]

In the Feb. issue of the Canadian Cattleman they have the breakeven on a fat set at $76.96 for May slaughter. They have the price of the feeder in early Jan. set at $92.96! Which I find rather amazing...do you know anyone who got $92.96 for 850 lb. steers in January??
Barley at $2.80/bu.-again a little high I would think...the neighbor recently sold barley at $2.40 and thought he did very well? Silage $35/ton...again I would think a little high? Total cost of gain(including yardage, wages, taxes etc.) $62.84/lb.!
So looking at these numbers I would suspect the feedlots indeed will make pretty decent money on the calves they have in the lots right now? Or is something not quite right here?