Most Recent
advertisement
Marketing TIPS from American Cowman
More Topics
Online Exclusives
- BEEF Daily Blog: NEW! Daily updates from editor Amanda Nolz
- Election 2008: Read our coverage and voice your opinions
- Natural Disaster Coverage: Hurricane Ike
- BEEFtv: Videos from around the industry
- The Briefing Room: BEEF Business Updates
- BEEF News Roundup: Industry news & blog feeds - Updated Daily!
- BEEF Cartoons: Need to brighten your day?
- South America Study Tour: Travelogue and photos
- The BEEF Mailbag: Share your Viewpoint!
Big Changes In The Bull, Female Replacement Markets
There's been a lot of talk about price-structure changes
in the feeder, fed and even wholesale beef markets. So it's probably not
surprising these differences are showing up in the bull and replacement
female market this fall, at an unprecedented level.
A $2,500 average in a bull sale used to mean the bulk of the bulls sold
in a range something like $1,800-$4,200, with the bulk selling between
$2,200 and $2,500. Today, a $3,500 average, more often than not, means
very few bulls sold between $3,000-$4,000, but rather they were either
$5,000-$6,500 bulls or $1,500-$3,000 bulls.
This fall, we've seen $500 price differences between bred females in the
same class on a daily business in sale barns across the country. While
bred heifers might average $1,150, it likely means they sold for a
$1,000 or $1,400, with not too many right at the average.
The message is quality matters like never before. As in other phases of
the business, buyers are doing a much better job of assessing value. It
has to be only a matter of time before the banking industry begins to
adjust to these changes as well, with more sophisticated and complex
means of assessing inventory values.
The days of assigning the same value to a producer's inventory that
consistently sells 10¢ back of the market, as the producer who
consistently sells 10¢ over the market, are numbered. Expect to
have to provide much more historical and documented information on your
marketing revenues rather than simple inventory numbers, or be relegated
to accepting the least common denominator.
Want to use this article? Click here for options!
© 2008 Penton Media Inc.






















