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Friday, April 24, 2009

Beef Prices


Have been so low all winter that there has been little value in shipping cull cows and almost none in calves. For example, two weeks ago we sent a pair of bulls to the sale, 114 and 108 pounds. They were healthy, lively and real nice calves. We got $30 a piece for them. In a normal year the check would have been more like $250 for a pair of calves that nice. Despite this dairy cows have been culled in record numbers as farmers struggle to survive on milk prices that are many dollars below the cost of production.

Tuesday we sent a cow that has been dry all winter. She has been running out with the bred heifers and we didn't sell her sooner because of assorted logistical problems involving the truck not being available and the actual challenge of getting her in and loaded (which did turn out to be quite a job). Yesterday we got the check and it was the most we have gotten for a cow since prices started their precipitous slide. It is probably just a fluke, but I hope not. Sadly I think if either beef or milk prices climb much you are going to see a lot of farmers going out of business in a big hurry. Right now I think a lot of guys are holding on because if they sell their cows when prices are so bad they won't get even a fraction of their investment back.

13 comments:

  1. Anonymous7:33 AM

    i always hate that when you send a "perfect" calf or any animal for that fact and get back a lousy check, it makes you wonder if it was really your animal that was sold or something got switched...we certainly hope they're honest, but....it's so frustrating. you really depend on those incomes to help you out.

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  2. All this at a time when we are very low on numbers of cows!

    Oh well, they can always import from South America! Never mind about that Foot and Mouth. I'm sure it won't hurt anything!

    NOT!

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  3. EVERYONE needs to buy local. I don't know how to get this across to others, it is just so easy to buy whatever in the grocery, etc. store.

    My husband and I maintain that a day will come when people wakeup and find out that food prices are so high you can't buy them anymore because of the cost to bring them from lands far, far away. I guess until that happens farmers will suffer and public will just go on blithly down the primrose path.

    Nothing like a crisis to make people realize, but then it is too late.

    I think of you lots and send many prayers your way. My husband is a fourth generation Dairyman, although his Dad sold out to another dairy before we could make an offer.

    Still we milked for years our own cows and sold cream to creamery, raised pigs and people on the extra.

    Linda
    http://coloradofarmlife.wordpress.com/

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  4. We are at that place... I'm so stressed that I do believe I would welcome not milking them, but can't afford to sell them for nothing. Since most are dry. And then I would be heart broken if we sold them... I'm never happy so it seems. :)

    We had this posted in our milk barn for YEARS when we had an inspector that was... umm how should I say it... overly picky (I'm being REALLY nice there) Anyway...

    "We the willing, led by the unknowing, are doing the impossible for the ungrateful. We have done so much for so long, with so little, that we are now qualified to do anything with nothing."
    - Anonymous

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  5. Anonymous2:48 PM

    Amen Ladies I am with you. We tried to ship for one year. We lost money and that was when the milk price was high. But grain prices were high too. I sold most of my cows for a loss. Went back to a hobby and I sell raw cow and goat milk. I try to speak our about dairy farms. Speak out about buying local and hope and pray you can all make it. I hope to never have to buy cloned meat or gross imported food.
    I milk mornings on a organic farm, she is doing ok. But I dont get how a buck kid (goat) gets $20 and you are lucky to get that from a bull calf. Crazy not fair. I have a couple heifer calves to sell but was hoping to wait on better prices too.Teacupliz in NY

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  6. Anonymous4:10 PM

    sara's anonymous quote is so true about farming...maybe someday...

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  7. What a bummer-since I have no experience being a farmer-or having cows my only comment would be-wonder why the prices at the grocery don't reflect the lower prices?

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  8. I have to say that unfortunately people are not going to wake up anytime soon and then it will be to late. I do talk to a few people that don't like to buy from the store much, would rather get from a farmer and too bad that it wasn't that way with everyone. I hate to have to go to the store to buy anything at all, you get it home and it seems to never last. I am just glad for the growing season to be here to get the veggies in the garden so I can freeze and can my stuff for winter and I'm glad to beable to raise my meat.

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  9. Anonymous8:01 PM

    the middle man makes all the money~

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  10. stepping up on my soapbox for a moment, please pardon me...

    the situation we're in right now makes me NUTS. i firmly believe that one of the reasons we won WW2 was that we could make everything we needed here at home... and we fed not only ourselves, but the rest of the world as well. in a similar situation today, i don't think we could do it, and that scares the hell outta me.

    best damn farm land on the planet and it's sprouting condos and fugly sub-divisions - it makes me sick.

    and don't get me started on losing all of our manufacturing and steel making ability to overseas. we are blithely destroying ourselves - our enemies can just sit back and wait.

    right. *ahem* sorry they didn't sell well!

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  11. Anon, I hate sending anything to the sale any more, but there doesn't seem to be a viable alternative.

    JB, yeah, we were just talking about that yesterday. the boss heard that they are sending shiploads of cattle north, processing them on the boat and offloading them as boxed beef.
    No inspection involved. Dont' know if it is any way true, but.....

    Linda, we have retailed some premium pork we raised and although we only broke even on costs, that was a nice change from losing our....ahem....yeah that

    Sara, believe me I understand that place. We always figured we could sell the cows to pay off debt if it ever came to that. all of a sudden cows aren't worth anything so then what do you do? I hope it works out for you and for all of us in this sinking boat.
    I love your quote for the inspector!

    TCLiz, it is so frustrating! Because dairy pricing is so complicated it is almost impossible to even explain to someone not in the business what is happening. Add in the monopolies in both beef and dairy processing and you have a mess.

    Anon, we can only hope

    Tipper, as one of the commenters lower down said, the middleman is taking his bit and hanging on to it. Farm milk prices were rock bottom for at least three months before they began to drop even the least bit in the stores. Since milk is such a perishable product, you KNOW they were scooping up huge profits.

    Lisa, sad but true. It is still so muddy here that I can't do much in the garden. I am going to put fresh dirt in my barrels though and get some lettuce and carrots going.

    Anon, some coops made billions this year...in profits that is

    Ericka, you are so right. As a homesteading book I once had before I became a mainstream farm wife....."Buy land, Mary, they stopped making it."
    People don't value open, productive land enough...or even at all. It is sad and doesn't bode well for our future.

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  12. Anonymous11:52 PM

    We could give our milk away for nothing -- & the price would stay the same at the grocery........

    Our dairy has been in my husband's family for over 100 years -- but it won't be much longer!!!!

    signed...
    not sleeping much

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  13. Anon, it is truly discouraging and we don't sleep very well either. I think every farmer has long had to deal with creative bill paying to stay in business, but I have come to the point of being out of ideas...and very, very tired.
    But take care....we will all get by somehow I am thinking and hoping.

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