aj... here are the facts ... at least around my place. I make over 90 % of my total income from my cows. Therefore I have to produce a product that I can sell. Maybe it is different where you live, but I happen to live in an area where there are probably 500 Angus bulls, 500 Red Angus bulls, 250 Simmental bulls, and 250 Charolais bulls and probably another few hundred of Polled Hereford, Gelbvieh, Maine etc. These bulls all sell within a 70 mile radius of where I live. There are lots of options for the commercial man's dollars, and some of these bulls are produced by some of leading breeders in their breeds. There were some bulls sales with averages around $5000 or more and there were at least 10 bulls in the $20,000 or more category in these sales this spring. I keep hearing that commercial producers won't pay for good bulls, but I would say that most commercial producers are willing to pay more than most purebred breeders. I have seen many commercial producers paying over $5000 for bulls this spring. A neighbor sold 70 Charolais bulls for an average of $4900. Lots of guys I know that live close to here, paid $5000-$7500 for bulls for their commercial cows. As one guy said," when it will cost me over $1 Million for crop inputs to plant my crop this year, a few thousand for a good bull doesn't look too bad".
I have several bull buyers who have purchased over 10 bulls from me in the past 5 years. Two commercial men each purchased their 14th bull in the last decade at this years sale. Most of these producers know there stuff and this is not a hobby to them. So, for me to survive, I have to be constantly looking into the future and trying to see what type of bulls these guys will be looking for in 3 years time. I just don't chase these cows around for something to do. I do it because it is the only thing I have ever wanted to do, and I feel very fortunate to be able to say that I have kept cows, but my cows have also kept me. I have lots of discussions with commercial producers about this business, but I like to listen as well. I don't hesitate to give my views but I certainly don't dictate to them what they should do. They are smart people, they know their business, and they are quite capable in making their own breeding choices. I also try to do as much or more advertising as my competition, as I believe visibility is a key component to making sales. Here in Canada, I am greatful that our Shorthorn Association has spent over $100,000 in the last 10 years running great promotional ads in our National beef magazines. I think it is paying dividends.
When I say we should be careful to not lose performance when we downsize our frame, that is exactly what I mean. Where I live, smaller framed cattle have started to be discounted and the discounts are getting larger every year. The commercial producer wants pounds to sell in the fall when the calves go to town. The feedlots want cattle that gain well and are efficient at doing it. We sell quite a few bulls to commercial producers who have decided they want to have some Shorthorn in their replacement females. Most of them come back a year later and tell us that they were also really pleased with their steer calves and how they were accepted at the market.
So basically, what I am saying is I have to compete with some pretty big players to make a living. How many bulls do you think I would sell as breeding bulls, if they weighed 450 at 205 days and 900 at 365 days? The answer is a few... providing they had low birth weights and could be used on heifers. These guys could give a rat's ass as to how many pounds of beef they produced over a 15 year period, if their calves are discounted each year for being smaller framed.When I get a phone call from a new potential buyer, what I usually hear goes like this.... " I have been thinking of using a Shorthorn bull but I can't justify it if I lose weaning weight from what my Angus bulls are giving me. What kind of weaning weights can I expect if I purchase a Shorthorn bull from you?" I have never had anyone ask me how many pounds of beef can I expect over the next 15 years off my pastures? I agree that feed efficiency is extremely important and any cattle feeder worth his salt, knows exactly how many pounds of feed went into a pen and how many pounds of beef came out. That is another reason some feedlots are liking these Shorthorn and Shorthorn cross cattle. They are proving to reach higher grades and produce more pounds of beef from less pounds of feed.
I am not saying we want huge framed cattle either. They are discounted as well, but occasionally sell well if they have thickness and volume. I keep hearing from some on SP that the consumer is wanting smaller carcass size. I see no evidence here of that, and it is almost the reverse. The top end for carcass size, before there are discounts, has been steadily increasing. I spoke to a large cattle buyer who lives near me yesterday and he said he sees more 1500-1600 fats than ever before. I don't expect many of these cattle were frame 3.5 - 4.
The 29th bull just left my yard this morning that was sold for breeding.The last two years we had lopsided calf crops with over 75% heifers. I have a few left, but June is usually a pretty good month for selling some bulls as there are injuries and there are getting to be more and more who do not turn a bull out until mid July. I am pleased with sales this spring, considering that we are down over 500,000 cows in Western Canada alone. I take it from what you are telling me aj, that I am doing something wrong. Maybe enlighten me with your figures and tell me how your bull sales have been. In our 2008 calf crop, only two bulls were not sold as breeding bulls, and these bulls averaged $2898. We have averaged $2911 on 29 bulls so far this year. In the past 3 years we have sold 112 females off the farm by private treaty. I have sold embryos to 6 countries in the past three years and have sold over 200 to Britain alone.And I do this without chasing purple banners.... imagine that! I obviously must be doing something wrong, Please enlighten me!!