Can Calf Prices Go Any Lower?

[Drawbar]

I am not sure if anyone is interested in raising their own beef, but with milk prices still in the mid-to-high range, dairy farmers are kind of in a boom. This means more calfs from all those producing cows.

Today I talked with my Aunt and she said that after paying for the transportation charges and a few other fees to a cattle dealer, she basically got rid of two Holstein bull calfs (useless for a dairy farm) for nothing. She sold me a Pure Breed Jersey Bull calf for just what she had in it...26 dollars for the artificial insemination costs (this was a first year heifer).

I bring this up because if people are considering raising their own grass fed beef cows, your local dairy farm might be the place to start. Calfs are unbelievably low in price right now. Dairy breeds are different in that their meat has Omega #3 fat in it which is also good for you, and while you get less overall meat with dairy breeds, you get more higher quality cuts (more steaks and less hamburg) which is ideal for smaller farms or homesteaders. You really can't go wrong financially.

[Drawbar]

Apparently they can. Now they have to pay the cattle dealers to take them off their hands. Wow, never thought I would see the day when this happened. Farmers paying to get rid of their calfs!!

[Drawbar]

As a side note, yesterday we were at the Northeast Livestock Expo and I could not believe the prices these animals were getting.

Black Angus cattle, live weights of over a ton getting $1.05 per pound. Herefords of excellent quality getting 94 cents a pound live weight. Some cattle went as low as 80cents a pound live weight and they were not terrible looking cattle either.

As I mingled the murmurs were apparent,the bottom has dropped out on the beef industry.

[sbemt456]

Drawbar I think it is due in part to a feed issue. In some states the drought and others the flooding, all means a bad year for hay. Here in our area of Eastern Kentucky people are nearly giving away horses, or that is the buzz. We dont have livestock to feed so a neighbor buys and cuts the hay on our farm, and he is thinking of get rid of his cattle. He says he may have to sell them locally for beef because "the bottom has dropped out of the market" Goats are the going thing in this area. It would be hard to even find hogs. Cant even imagine what the price of meat in the stores will cost come fall. I foresee a lot of hunting on this farm this year.

stella

[Drawbar]

Yeah pretty much the same here except goats have tanked too. We had a huge surge of ethnic people move in 4-5 years ago and a lot of people thought being primarily goat-eaters goats would be a good market. Well they found goat meat outside of Maine to start with, then with the glutton of goat in this state...well the price has just tanked.

I had some friends from away that moved in and they sold their goats just at what it cost them to raise them a few months ago.

Just last week a guy at work was saying how he was going to get into goats and I told him he better do a bit more checking because the goat market has changed a lot in the past 6 months.

In some ways its a shame, but in others it will be good too to get the prices down to reality. I'm actually sitting in a good position right now because if I get into livestock I can do so at favorable costs and hopefully see some profit in 4-5 years when the market starts to cycle back around? Hopefully...

[Drawbar]

Now what really gets me is the price of milk.

We are dairy farmers so I should be used to this, but last year we were getting 26 dollars for 100 pounds. (2.08 per gallon) The stores were getting $4.80 a gallon.

Now they cut the price back by 10 bucks a hundred weight, so we are getting 16 dollars per 100 pounds, or 1.28 per gallon. The stores are getting $4.50 per gallon, or 30 cents less.

In other words we are getting 1/3 less for our milk, which reduces their operating costs by a whole lot, and yet the creameries are keeping their prices up pretty high still. Its sounds like whinning, but how would you like to go to a job where your fuel went up, your grain went up and yet you are getting your paycheck cut by 1/3? Its just crazy,and this has happened all in the past month.

Its a crazy world we live in...and a greedy one at that.

[WileyCoyote]

Patience, brother Drawbar... you are about to see things climb exponentially, IMHO.
This is only the beginning of the recession, and prices will be low for as long as the government can keep them that way - but when the costs finally hit home to the big farmers - and they will - the prices will have to rise. The only problem with that is that a lot of smaller farmers will go under because they cannot afford the disparity for six months or more.

I was in the recession for the Jimmy Carter presidency, and I saw choice hamburger at $4.00 a lb - and it was GREEN! - and milk was $5.00 a gallon in the 80's. As the gubbermint steadfastly maintains that we are all ok, ok, ok! - people are losing income and jobs, homes and possessions.

The only problem is - who will buy the higher priced meat and milk when everyone is financially strapped? As long as you have access to those people who can continue to afford such things, you wil soon be able to command decent prces again. This is a normal but very painful process.

[Nicole]

Cant even imagine what the price of meat in the stores will cost come fall.

My husband and I worry about this. Where can we find ads for a slaughter calf?

[Drawbar]

Cant even imagine what the price of meat in the stores will cost come fall.

My husband and I worry about this. Where can we find ads for a slaughter calf?

Just try you local dairy farm. Bull calfs are worthless to them and are thus sold just as soon as they are born. This time of year is the best time as they are in calving mode really. There is no advertising, they either have a bull calf or two, or they don't, but you can at least let them know that you are interested in one when a bull calf is born.

Unfortunately it takes more then a summer for calfs to grow into something slaughterable. They don't really bulk up much during the first summer, but by the end of NEXT summer they will be big enough to eat. (1½ years old).

Just keep in mind raising a bull is not for the faint of heart. Oh its doable for anyone, but they are big animals and eat plenty of grass and even more hay in the winter months. I figure 1 acre per cow for pasture, and 100 bales of hay per year per cow too. Also be sure to factor in some salt blocks, water (12-15 gallons per day) and transporting and butchering fees.

I was told that you can buy a half a side of beef for less money then it costs to raise one yourself. That may be true? I don't know. I can raise one pretty cheaply, but I got a few benefits most homesteaders don't (equipment, tractors, a grandfather with a dairy farm, etc). Its something to carefully think about before getting into though for sure.

[Nicole]

Thank you, there is a dairy farm about 30 miles away, we will take your advice. You are very kind and gave us a lot to think about.

[walls0stone]

today I'd sell a black angus/Semmi Cross for beef at $1.25 live weaght (800 Lbs)...the butcher is next door, family outfit. they charge .45 LB (500lbs) wraped, frozen and ready to go... No cemicals, no crazy shots or growth drugs... just a great animal.
what do you pay at the store?