The rising price of fuel has made the cost of transporting cattle out of this world. We usually ship pairs about 5 and half hours north each spring to our northern ranch, then home again in the fall. About 10 years ago the price of a liner-load of pairs (41 or 42) was about $750. Last year the price was about $1,000.
This spring we only shipped 100 pairs up north instead of our normal 300 with grassers eating the rest of the grass. That was, including bulls, three liner loads at $1,300 each which I thought was high at the time. The yearlings we bought up there so transportation costs weren/t so bad and they were sold right off the pasture a while back.
But those 100 pairs, now with bigger calves equaling 4 liner loads to come home are going to cost about $2,300 each liner, for the return trip. That's an increase of $1,000 a load in less than half a year!!! And we have a good relationship with our truckers who I do not think are ripping us off.
There are a few ranchers in my area who, like us, ship cattle either to northern Alberta range or to Sask. I don't see how we can do this next year if fuel prices remain high. Consider that at $2,300 a liner load that is $56 up there and about $79 back per calf (given that another liner is required for the bigger calves on the return trip). That's a total of roughly $135 each calf just to get them to the pasture!!
I don't think that will work for too many ranchers even with the cheaper land prices in those areas. So this might call for a re-think.
Surely this problem must be felt by all sectors of the economy that depend on the transportation of goods???It's amazing to me that we aren't in a recession yet. How are these other areas of the economy operating?
kpb
This spring we only shipped 100 pairs up north instead of our normal 300 with grassers eating the rest of the grass. That was, including bulls, three liner loads at $1,300 each which I thought was high at the time. The yearlings we bought up there so transportation costs weren/t so bad and they were sold right off the pasture a while back.
But those 100 pairs, now with bigger calves equaling 4 liner loads to come home are going to cost about $2,300 each liner, for the return trip. That's an increase of $1,000 a load in less than half a year!!! And we have a good relationship with our truckers who I do not think are ripping us off.
There are a few ranchers in my area who, like us, ship cattle either to northern Alberta range or to Sask. I don't see how we can do this next year if fuel prices remain high. Consider that at $2,300 a liner load that is $56 up there and about $79 back per calf (given that another liner is required for the bigger calves on the return trip). That's a total of roughly $135 each calf just to get them to the pasture!!
I don't think that will work for too many ranchers even with the cheaper land prices in those areas. So this might call for a re-think.
Surely this problem must be felt by all sectors of the economy that depend on the transportation of goods???It's amazing to me that we aren't in a recession yet. How are these other areas of the economy operating?
kpb
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