I am off to attend a Livestock Marketing Conference today Conducted by our friends at KLR Marketing.
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Providing the technology does not let us down I will be posting live from the conference from about 11 am onwards.
KLR Marketing have a terrific livestock marketing system that is allowing progressive livestock producers to turn their operation into profitable business enterprises, regardless of the state of the physical market.
Rod Knight [pictured] a grazier from Tamworth in NSW is doing the KLR presentation.
Tim Scott Director and General Manager of The Beef Stock Market [pictured] is running the course for a number of his company’s clients.
Tim and his partners are some of the most innovative graziers in Australia. He very kindly invited Agmates down to cover the conference.
If the technology works? please feel free to post a comment of ask a question while the conference is in progress. See you soon.
G’day Guys – Yes the technology works. I’m here seated at the Conference and Rod Knight is right into it, going through the work book explaining the cost of gain of buying and selling a beast.
(Note Photos of people below taken during the lunch break and added after I got back to the office)
Interesting fact – Tim Scott tells the meeting that average weight gain for cattle year round across Australia is 0.65 kgs per day.
Brad Jones from the Gold Coast was one of the attendees. Brad owns a farm at Ingelwood southern Queensland.
He works on the Gold Coast as a property manager and he invests with the Beef Stockmarket as it is a form of investment that he is interested in and understands. He was attending the KLR Marketing day to gain more knowledge for his Buy / Sell Trades with his Beef Stockmarket investment.
Principle #2 Everyday we don’t sell we buy. When buy livestock We buy animals & Time. We sell Money & Grass.
The time to sell cattle is when you can replace them at the right price. Stay away from emotion, have a system (KLR Marketing System), trade for cashflow and profit.
Wayne Ward is from Wahroonga in Sydney. He was attending the training on behalf of his son, who he helps out with his investments.
Wayne owns and operates a Plastic Componets import and wholesale business, but said that he was finding the information that Rod was presenting as very helpful. It was helping clarify what was involved in the Buy / Sell decisions that needed to be made with the BSM investment.
Principle #3 Know the price relationship between what we have to sell & what we can buy today.
“The decision to sell is governed by whether we can replace at a Profit or Buy Grass.”
Knowing what animals are overpriced or underpriced in the market at any given time regardless of it the market is rising or falling.
Sell & Replace Formula.
When we sell Livestock we liquidate and create cashflow.
When you buy you create Profit.
Knowing the cost of gain when you sell you know a what price you can replace that animal for a profit.
Now doing a worksheet – Clled the Sell and Replace Formula.
Brilliant, the formula actually shows you what cents a kilo you can afford to pay to break even on the new animals. Therefore you know what you break even is. You actually work it right through on the spread sheet to see at certain prices what your return on capital will be at that price on the trade. In the example Rod has just show the return on your capital invested in those cattle when you bought them was 56%. Now that is a trade you’d probaly want to do.
Geoff Hunter owns and operates a farm at Boggabri in Northern NSW. It is an incredibly small world, as a boy growing up in Moree in the 1970’s my family was friendly with his grandfather, Dr Geoff Hunter.
Geoff was finding the KLR Marketing information very informative and was looking to use that info to assist completing some cattle trades.
Principle #4 – Sell the overpriced – Buy the underpriced.
This obvious – but it is not Cheap or a good buy. This is knowing what is overpriced and what is underpriced in the market on any given day.
“If we going along selling the overpriced & and buying the underpriced, Then it is just so simple, so easy and so relaxing, Its unbelievable.”
Just show us how buying cattle at $2.65 a kg in some cases is more profitable that buying cattle at $0.70 a kg. The great thing with the KLR Marketing system is that you can calculate all of that before you purchase not after.
All you are doing is Trading a Margin.
Robert Shestanovich had travelled from Cesula at liverpool in NSW for the conference. Robert is the local Cesula Weeds Control Officer and has been investing with BSM for the last couple of years.
He said he works out doors and had always wanted to have an involvement with the rural industry and own some cattle. BSM gives him that ability without owning a farm. He said:
“Its great, Tim and the BSM people are really nice, I’ve been involved with them now for a couple of years. I’ve been out to a couple of the properties and seen the cattle. I’ve come to the course to learn more about whats involved in the marketing.”
Principle #5 – Know and Understand Yourself.
The have a template that you work through that will show you how you personality traits influence your buying and selling decisions. Once you know these you can work around them to get the best results in your livestock business.
Philip Tomlinson lives in Ferny Hills in Brisbane. Like a lot of city folk Philip was raised on a farm out near Roma. Whilst his work as a production manager takes him to the city, his heart is still in the bush. He has found that his BSM investment has allowed him to reconnect with rural origins.
Philip said:
“Investing with BSM was pretty easy for me as I know the places that they run the cattle on out at Roma and I grew up with BSM Director Charlie Frith. I’m here today to learn more about the Buy / Sell decisions involved with my investment”
Dhugal Cowan (sorry about the goofy photo mate) operates the Beef wholesaling company Barcoo Beef. Dhugal is based at Bangalow in Northern NSW and they kill about 200 cattle a week at the Casino abattoir.
Dhugal was a guest speaker straight after lunch, unfortunately I could not stay to hear his presentation.
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All in all a great day. After a quarter of a century working in 3 states as a livestock agent and Auctioneer, I can tell you that if you are a livestock producer and you are not utilizing the KLR Marketing strategy in your business – you are leaving $1,000’s of dollars on the table.
Note – BSM uses and promotes the KLR Marketing System.
Footnote – What is the Beef Stock Market?
The Beef Stock Market is a buying and selling service allowing you to own and trade beef cattle over the Internet. Coupled with this is a beef cattle fattening service providing a hassle-free environment for running YOUR stock. Put simply, you buy the stock, we fatten them for you, and if you wish, we sell them on your behalf.
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