Agmates

From the Kondinin Group.

The latest research by the Kondinin farming group has found that by viewing livestock selling as a marketing decision producers stand to boost returns, reduce selling costs and improve animal welfare.

Kondinin Group’s latest research from their web site looks at the variety of selling options available to farmers including on-farm, on-line, over-the-hooks and through the saleyards and the pros and cons of each.

Results from the Group’s 2007 National Agricultural Survey revealed the majority of respondents sold 50 per cent of their sheep and 58% of their cattle trough the saleyards despite it being one of the most costly methods.

The research found during 2007 1.2 million sheep Australian sheep and 149,000 cattle sold were on-line through computer-based auctions. That number is forecast to increase as producers uncover the cost cutting opportunities of on-line selling.

Report author, Pamela Lawson said what selling method farmers chose needed to reflect the type of stock they were offering and the associated costs as well as any animal welfare considerations.

“It really is about tailoring your livestock marketing to suit your needs.

Different selling methods are suited to certain types of stock.

For producers living a long distance from a saleyard complex transport costs and the toll the journey will have on the stock’s presentation are considerations.

The degree of market competition is also important. Saleyard selling and on-line methods give the largest amounts of competition but there is the ability to negotiate with buyers when using other selling options”, Ms Lawson said.

Kondinin Group’s livestock marketing research report is featured in the June edition of the Group’s flagship publication Farming Ahead and on-line at www.farmingahead.com.au.

Established during 1955, Kondinin Group is committed to helping farmers. With a large and diverse membership across Australia, Kondinin Group continues to invest in agriculture by providing members with independent, reliable and practical information.

For more information, please contact Debbie Boxall Kondinin Group marketing officer on 08 9478 8328.

Victorian Cattle Producer & Morgan Horse Breeder Jenny Bird writes:

Well, things got serious a few days after submitting my last article to Agmates “boasting” my cattle were sold at $1:85.

Not long after I got a call telling me that the Japs had pulled the pin on the job ……. after 35 years. My B - Double’s worth of steers weren’t going anywhere!……nor the 400 we had waiting to cover the 5 months forward order…all needled twice with ‘Pestigard’ at a cost of $8 a head.

Do you value your up bringing? I certainly do and often recall all those adages that were instilled into me like:

If at first you don’t succeed…
Don’t count your chickens…
Never look back….
Know when to be serious - all of which applied to me right then!

Photo #1: I have to tell you after I got the call I felt a bit this horse ……hemmed in with no way out.

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After a great flurry of frantic activity on the phone I finally got them and 3 other loads sold at $1:88 per kg for Angus milk and two tooth steers, and $1:75 for Black baldy steers….provided they met the target grid with a price down grade applying to those that didn’t comply, a curfew of 12 hours plus and compliance that no more than 10% were NOT Life Time traceable.

Photo #2: Below is the steer grid that I did manage to sell the steers on. For those of you who aren’t familiar with such grids, the curfewed liveweight in Kilos is the top line and underneath each is the cents per kilo of that weight range.

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Steers lose 10% minimum over 10 hours and my steers certainly lost that and more. eg the steers left here at 4 :30 pm and were processed individually next morning at 7:41 AM over a few hours. A full weight 504KG Black baldy near fat steer off silage melted to 450 KG and a similar one of 486 KG melted to 434.

Knowing the current daily weight gain of cattle you can expect if the delivery date is in 7 to 21 days time helps too when you are selecting. Cattle off dry feed and supplementary fed on hay or silage makes a huge difference to cattle and their ability to hold together.

Photo2: We have some heifers going tomorrow afternoon.
The adjustment downward to $1:55 was unfortunate. $1:65 was a “printing error”!!! This made the window very narrow for the best dollar 300KG to 359KG….of $1:65 EMPTY WEIGHT!!!!

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A discount applies of 5 cents per kg on every beast delivered in a day if there are more than 10% NON LIFE TIME TRACEABLE CATTLE.

Photo #3: Price grids are here to stay, get used to them.
These days when selling cattle, it is a matter of getting into bed with anyone who will have you! Just don’t go to sleep on the job!”

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So the Angus steers averaged $1:85 across the various loads (got a few wrong!!!) and the Black baldy steers averaged $1:75..and they were paid for within the 7 days of trucking. Other companies can take up to 3 weeks!

I don’t know if heifers stand up better or not but if they are off dry feed or hay they hold together better than soft green feed cattle. You need to be a magician to keep well with in the EMPTY WEIGHT range to avoid disappointment on a grid as specific as this one. We’ll weigh before loading to get a better idea as we don’t handle many and it will be interesting to know

Photo #4: There are some over weight and underweight steers left to find markets for but at least there are 330 head fewer looking for a feed on the “sheep feed” post 6 ml of rain in the paddocks and hay feeders.

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A little issue that caused some heart ache is worth relating.

One property is river bound by the “Mighty Murray” which has been reduced to a mere creek with cut backs in release from the Hume Weir with the view to saving water for the next irrigation flow (and save the frog wet lands inundations).

Two B Doubles were due at 5 pm. A muster of two paddocks began at 4. A quick count found 102 from one paddock and no amount of re counting turned it into 135 that should have been there. On dusk we returned to find them all across on the far river bank…stuck under a ledge.

Photo #5: This is the Murray River after they stop the irrigation flow releases.
The cut back of flow has reduced it to only a few feet across in places. All too easy for steers to walk across. The absconding steers just made the mistake of picking a place with a high bank on the other side.”

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Our ‘helpful dogs’ forced them up the 12 foot embankment on the Victorian side from where we retrieved them the next day. A B Double load was reduced to a Double only and the balance went out the next day. Fencing is currently in progress of the river frontage!!!

Photo #6: The oat crop on Bungowannah Park is growing slowly.
It enjoyed 6 ml of rain last week but has mainly survived on the heavy dews and foggy mornings followed by bright sunny days with temperatures in the high teens. It was dry sown before we got any rain at all so it is well ahead of crops being sown now. We are dependent on it for grazing in the winter as the crop hay from last season (that refused to burn) has all gone.

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The autumn colours have been drab this year due to the dry. Normally the place is a photographer’s delight.

So there you have it, I found a way round the cattle marketing issue and now I better get on with the next obstacle to staying viable. I’m so lucky really. There’s no shortage of choice…. fuel costs, the fertiliser hike, the lack of rain, the restocking quandary, the over draft.

Another of those life driving sayings just came to mind. “If you don’t weaken….”.

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Say G’day to Jenny. Leave Jenny your message / comment or question.