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Central Texas | Been buying old bred cows for a few years and in the last 6 months or so has become quite difficult to buy them at prices that will generate a decent profit. While pondering what other options there could be, remembered dad saying that if something is too high to buy, probably need to be selling it. As most any age bred cow will now bring a nice premium to her kill value seems there should be profit opportunities in this area. With this different perspective have started buying a few middle aged open cows, putting them with a bull and plan to sell as breds next year. If can't make a profit buying breds will try to make a buck selling them. Am the world's worst at getting stuck in a rut but some times gotta think outside of the box.
This different perspective got me to wondering if feeders are too high to buy/feed, possibly there are profit opportunities in backgrounding and growing calves for SALE to others as high priced feeders. Let the packer/corp feeders beat each other senseless chasing the scarce feeders. Haven't had time to do any significant number crunching but last time I did value of gain analysis on light calves the value of gain was in the $1.40-$1.50/lb range. As low as feed prices have gotten, cost of gain on light calves has to be significantly below the value of gain.
Just trying to keep focused on converting my feed resources into the most net $$. Sometimes just need to take a few steps back and look at things from a different perspective. | |
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Cattle too high to buy? Am I looking at it all wrong.
