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Something to consider about cattle prices
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oldbob
Posted 7/31/2014 21:57 (#3995715 - in reply to #3995268)
Subject: RE: Something to consider about cattle prices


West Cental Arkansas
I raised chickens for the largest integrator in the US for 19 years. So I have first hand experience with this type of work. This was a job that was like being married, neither the integrator not I got everything we wanted. But along the way we both were profitable. Every 4 or 5 years we would have to do some type of update. Usually nothing extravagant or expensive. This was in the 80's and 90's. The amount we were making was probably more in line with the cost of building then than is today.

Fast forward to today and there is a major update every 3 or 4 years. These cost can be as much as $50k per house. If you as a grower refuse to do them you are dropped to a lower pay scale or told you will no longer have chicks placed until you do the updates.

The poultry company controls all aspects of the weights of feed and chickens that are processed. They control what baby chicks you will receive, and you can ask any grower and they will tell you they got good ones and not good ones. Just bear in mind you are not in control of anything in this situation but the labor. You don't go to bed at night without wondering if all of the equipment and generators are functioning properly. Have you ever saw a house of chickens that have smothered to death because of a malfunction. I have.

Lastly, when the houses are no linger in production they have very little use to a farmer. Can't put large equipment in them, to low to stack much hay in, and what is stored will rust because of the ammonia buildup.

Now why would you invest approximately $300k per house in and not have a vote in the business decisions.

I wrote this for everyone to at least think about the possibilities that are involved in this type o business venture. I was lucky enough to sell my farm before the renovations became so expensives. Also if you have an existing farm to sell it will be brought up to the latest specs before a new buyer is able to secure a contract. Best of luck.
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