Test Price of calves need to double! Test

Beef Production

Tools

Price of calves need to double!

Test
Aug 9, 2022 | 07:00 61 Although that article is old 2008 it speaks a truth that Canadian cattle Association has not recognized till this day.
There was an article written recently (in the Producer(?)) the article stated that "according to Can -Fax" cow calf producers have been making good money all along. That there was a $700 profit in 2015.
It stated that the average profit for the last 5 years was $269.00 for a 1200 pound cow / calf and $305.00 for a 1500 pound cow / calf. It was only in this last year where the trend turned negative and the producer will lose $27 for a 1200 pound cow and $43 for the 1500 pound cow. The article stated this was the first time there has been a loss since 2010.
The author of that article (D'arce McMillan) must not own any cattle and is comfortable restating the Can Fax propaganda.
The article gave a price for good quality hay in Alberta as $253 / ton in May. Just a couple of numbers... $253 /2000= .1265 call that 13 cents a pound for hay. That 1500 pound cow will consume 3.5 % of her body weight a day or 52.5 pounds a day 52.5 x .13 = $6.825 / day x 365= $2491.13 to feed that animal. $2491.13 / 600 pound calf = $4.15 a pound. Current sale price for that calf is $225 / hundred. $225 x 6 = $1350 Therefore $2491.13 COG - $1350 Gross Income = ($1141.13) Profit. Yes that's a negative number and where's the $43?
Yes the number is deeply flawed ; you don't feed high quality hay on a year round basis. But this does not consider any other cost to the producer. All prices including income will change... just spit ballin'
Perhaps D'arcy can explain how to get to a $43 dollar loss per head for 2022 calf crop.
Perhaps he could look at the number of producers that have left the business because they have lost a lot of money. I'm not the only producer that sold cattle at a loss in 2021. Those kind of numbers are not considered in the article but they are real.
The statistics from StatsCan (though inaccurate) hold a truth about the dwindling number of producers and profitability. That truth is something Canadian Cattle Association and Can Fax is not talking about. That's my opinion. Reply With Quote
  • 1 Like


  • Aug 17, 2022 | 11:04 62 Are we all just kulaks after all?

    https://www.canadiancattlemen.ca/fea...eid=0f0a8c54de Reply With Quote
  • 1 Like


  • Aug 25, 2022 | 10:18 63 Just looking at hay prices here. Buying ditch or roadside grass hay for $50 / bale and transporting it 30 miles. That becomes expensive grass with some hardware / plastic. Thinking around .07 to .08/ lb?
    Better quality hay landed in the yard around .11 / lb. That's not far off the .13 /lb Alberta price.
    Calf prices have not really moved up from last year. If anything they have softened. It appears that the plan is to have the cow calf sector pay for the Canadian Beef Industry again.
    I listened to a pod cast University of Nebraska they used $1050 US to feed a cow in Nebraska and south. Using winter wheat and stover grazing supplemented with cheap DDG's and other feed by products. They are lining up on the first cut of hay while I'm still pushing snow in the yard.
    Check out Greg Judy feeding cows where he feeds a quarter of a bale a year. His need to wear a lined jacket for a couple of weeks vs a Manitoba winter.
    The $1050 US translates to $1312.50 Canadian. So I'm sorta surprised when Canadian Cattle Association shows in their cost of production figures a price to keep a cow in Manitoba at $830 Canadian. Almost $500 less to keep a cow. You are keeping that cow in a place where you have to feed it extra for 227 days a year.
    The numbers make no sense to me! I think CCA needs to start over and use some real numbers. I would like to see a proper "budget price" developed , one that a legitimate accounting firm could stand behind and make an opinion. Actual , factual and true. Not the nonsense that they are promoting now.
    There is a difference between misinformation and disinformation.
    My opinion is the CCA promotes disinformation!
    Your thoughts? Reply With Quote
    Aug 26, 2022 | 22:10 64 All the org. big wigs collect a paycheck no matter what happens to the grassroots. Always been that way and always been a large group of suckers that hang on to their every word.

    Time is catching up with the industry and BSE ended a lot of transition plans for cattle operations. The generation that came in as young bucks in the 70s are starting to die off and very few places will be kept in cattle as the grain boys keep looking for economy of scale, until of course the government screws them over too, likely with fertilizer reductions and environmental water runoff testing. Reply With Quote
    Aug 27, 2022 | 11:47 65 The CCA should be able to post, lets say 20 income tax filings to CRA. That will provide evidence to the claims that the average Canadian cow calf producer made the money they claim that we have made over the years.
    They can redact names, addresses and personal data for privacy. But they must be able to provide information to back up their statements.
    Let that be a challenge to them. They can post it on the web sites for the national and provincial associations.
    Show me the money! Reply With Quote
  • 1 Like


  • Aug 31, 2022 | 18:00 66 Yesterday Tyler Fulton was on CBC Radio the noon show. He said that the prices might go up! As much as 20 or even 30 percent from last year! This year expenses are up 50%.
    So... Tyler the price of cattle needs to double! Reply With Quote
    Sep 1, 2022 | 13:27 67 Think of this as a business case study.
    You are operating a business with sales at or below the cost of production.
    Your last year was particularly bad. Weather impacts drought and extreme winter and spring weather events impacted both costs and revenue streams in a business negative way.
    The net impact is you are carrying forward debt and the current interest rate increases are now adding to the burden.
    The resultant costs have a net 50% addition to your expenses.
    The market is offering a 20 to 30% rise in prices.
    Not a great story and certainly nothing to celebrate.
    Consider that your sunk costs will be eaten up in roughly 3 to 5 years.
    Is this good money after bad?
    Manitoba Beef Producers and Canadian Cattle Association think this is a good business model and are pushing to have this expanded.
    They are not looking at the correct statistical model. They keep looking at the Statcan numbers believing they show an increase in the number of producers. Wrong idea. Reply With Quote
    Sep 15, 2022 | 22:17 68
    Quote Originally Posted by The Don View Post
    Think of this as a business case study.
    You are operating a business with sales at or below the cost of production.
    Your last year was particularly bad. Weather impacts drought and extreme winter and spring weather events impacted both costs and revenue streams in a business negative way.
    The net impact is you are carrying forward debt and the current interest rate increases are now adding to the burden.
    The resultant costs have a net 50% addition to your expenses.
    The market is offering a 20 to 30% rise in prices.
    Not a great story and certainly nothing to celebrate.
    Consider that your sunk costs will be eaten up in roughly 3 to 5 years.
    Is this good money after bad?
    Manitoba Beef Producers and Canadian Cattle Association think this is a good business model and are pushing to have this expanded.
    They are not looking at the correct statistical model. They keep looking at the Statcan numbers believing they show an increase in the number of producers. Wrong idea.
    Think these industry groups fudge the truth to sustain the industry otherwise the truth torpedos the industry. Cow calf sector has been dying a slow death since 2003. Feedlots have been feeding to weights unprecedented because of less calves. Smaller framed breeds are going out of style. See some Speckle Park herds being sold off cause of this. Beef in the store is high but market signals at the gate don’t encourage to increase production. Reply With Quote
  • 1 Like