Whining again!

[cowman]

Searching through some manifests yesterday for the brand of a cow who was taking the MacDonalds special, I came across an invoice from my local auction mart for 2000?
Steers calves-676 lbs.@$1.3950....$943
Hfr calves-635 lbs. @$1.32......$838

Now on Monday I'd stopped in at the mart to watch the presort? Didn't stay all that long. I saw a good group of about 40 head of steers(638 lbs) sell for 98 cents! Pretty dismal?
In 2000 I also bought a new 3/4 ton 4X4? Now it is getting a little long in the tooth and I've been shopping around a bit for a new one. If memory serves me correctly I paid $35,000 for that truck...I'm pretty sure I won't be buying one for that price in 2006?
Now I don't believe I run cows much cheaper than I did in 2000...but I ran them pretty tough then, and I still do! I suspect my cow costs are cheaper than most people?
Now the price I got for a steer in 2000 would be about $280 more than I get for one in 2006! HMMMM...Maybe I should be whining? Takes a lot more steers to buy that old pickup this year!

[coppertop]

cowman, cost for power, taxes, fuel, machinery, repairs, service services such as mechanics, plumbers. electricians etc., have all increased significantly. Not much wonder that many farmers are working off farm to bring in enough to keep the bills paid and the operation going. I just replaced the final stock waterer in the past two and a half years, the new one is the exact same model and brand as the other two, but the cost has increased by almost $50.00.

[blackjack]

...hey cowman...with the govt and the cattle associations promoting the back to the horse and buggy days for all of us cow- calf boys ...i wonder if the city of red deer will allow us to tie our team up at walmart...or better yet wheel get the govt to build a walmart every 6 miles like the good old days with the old elevator system...then we could all walk and everybody would save money on health care...doesn't it almost sound like heaven...

[whiteface]

I like your "whining" cowman! I'll miss it if/when this site goes bust. You going to leave me a way to contact you when I can't visit with you here? Leave your number with Barb at the auction mart or something cleaver like that? Let me know.
Have a good day all!

[coppertop]

blackjack, I bet if you researched the Red Deer city archives there is likely still a policy on the books regarding tying up horse and buggies in the city !!!!!

[cowman]

The whole point I was trying to make was this: No matter how cheap we can raise them...the fact is...WE JUST AREN"T GETTING ENOUGH FOR THESE CATTLE?
Now I know how the market works and I know there are ups and downs. But the fact is this: To stay in business...and for a meaningful progression of that business to continue...there just has to be a decent return?
You don't owe anything...great! You want to do "voodoo economics" so you can justify your life long dream to raise cows...great! But bottom line is someday...someone has to do the math and realize...Hey! This doesn't make one hell of a lot of sense?
You may be in it for the lifestyle....will your children? Well maybe...if they aren't too bright...like the old man?

[smcgrath76]

While I have some personal thoughts about the market at the moment, I think long term we have to realize that to play in the cattle commodity game in a perfectly competitive marketplace (from a primary producer perspective not a processing one), the law of diminishing returns prevails.
In commodity production, he with the lowest cost wins. Commodity production will tend to consistently drive down margins.
The question is probably how to get past the cattle thing and extract the value from the product. Easier said than done though.

[grassfarmer]

Cowman, to your original post I don't mind you whining or complaining about the price of calves. I do wish you would get past this navel gazing, look at the reasons and try and move ahead with some solutions.
As I've shown you many times the problems we face are caused by lack of competition, or monopolies, dominating every other link in the cattle production chain. The bankers, fuel and oil suppliers, machinery, transport, processing and retailing links are all dominated by a few huge corporations. This is the root cause of our problem. Yet you come on here saying calf prices are too low yet argue that Cargill or Tyson can do no wrong they are just good business men who are super efficient. That is total BS - when you are in a market dominant position you do not need to be terribly efficient to survive - unlike ranchers and farmers where it is critical to their survival. The other advantage these type of corporations have is they can externalise their costs - if they want a new or expanded packing plant the Government will use taxpayers money to fund it. Producers do not have this option - if they want a plant they have to build it, and pay for it - they have to internalise their costs.
Calves are a poor price now because grain prices have risen? well not really, by the time a fat steer hits the retail counter he is probably going to gross $2500. There is plenty money there to provide a viable return to all sectors of the production chain. Because of market domination and price fixing the packers can set the price at around 82 cents/lb meaning $1000-$1100 per animal is the total return for land costs, capital investment,labour,breeding, feeding and producing the beef. The price squeeze this produces has resulted in the feedlot industry working on $20 or less margins which they are now trying to pass onto the cow calf/producer. With the investment we have in land we can not operate on $20 margins. I don't blame the feedlot guys or the grain growers they operate under the same squeeze we do. The problem lies because the processor/retailer level are taking probably $500 an animal more than they need to make money.
Until you accept that fact and try and change things "whining" about low calf prices relative to new truck costs will be your lot.
If you understand the monopoly price squeeze concept you would also understand that your new truck or tractor isn't necessarily priced at a "fair" value either - they are artificially priced to reflect the lack of competition and price fixing in the machinery sector.

[ivbinconned]

No new trucks around here. Since grain and calf prices are about where they were in the 70's I drive an 1982 truck...mint condition mind you.

Around here in 72 a new truck and a quarter of land were about the same price...just like they are today.

But I would bet the value of a quarter in most of Alberta is far higher than that new truck!

[Horse]

I was seriously thinking of buying some cows again[must have fallen on my head again] I saw good older cows sell for app $35/# and run it through the calculator and decided the best I could hope for was a unpaid job so how do people figure when they pay 8/10,hundred for cows I must need a new calculator or something.