Commercial Marketing: Fall Sale Season – FRONTLINE Beef Producer Fall 2016

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Fall Sale Season: Keep On Truckin,’ by Commercial Marketing Coordinator Kyle Dykes

Fall sale season is approaching fast, and it’s time to start thinking about buying bulls and replacement females. Having quality replacement females is crucial in order to maintain quality cattle in future years. With cattle prices finally reaching a floor for the summer, I hope that we can gradually see the market take a turn for the best in the coming months. I hope you have received some of the recent rain, and that your stock-pile of hay is still plentiful, and even increasing in some parts of the country. I hope to provide some insight for you as we enter this year’s fall sale season.

When looking to buy bulls and females, it is important to consider all of the available information for each animal. For instance, when you attend a sale this fall, get the catalog and sort through the animals on paper. Determine which traits you are looking pursuing, and then go through those selections on the hoof.

Now, personally, I tend to work the other way around. I like to give every animal a chance to impress me from a physical standpoint. Then I choose my favorites and sort them on paper after I make sure they fit my eye. Regardless of the process you choose, just make sure you put the effort in to get it done. After all, you are paying a premium price in today’s market so you want the best bang for your buck.

It is extremely important to know where the quality is and to attend the sale with a solid budget in mind. Buying bulls is expensive but I have been told on many ranch visits: “the fastest way to turn a cowherd around is with a good bull.” I am not discounting a good cow by any means, but you have to have a good bull that can handle the work-load you give to him. We all have heard the saying, “you get what you pay for,” and that proves true in the cattle business. It is especially important now, because of the market decrease and the astronomical prices we experienced in the past two years. Just as quality brings top dollar in any market, whether that premium is ten dollars one year or five the next, you want to be on the high end when selling. In my opinion, money is made on the buying side of the cattle business.

Just like the stock market, you either buy low and sell high or ride it out if you happened to make the late and expensive purchases, and hope to bounce back in the next go round. In other words, as a cattleman, you need to become an expert in hedging the market. The beauty of the business, and the saving grace for those cattlemen, who were able to stay in the business, before we hit record highs, is that hopefully you own your cattle outright. When you own your cattle outright, you own the opportunity to claim the money sitting on the table, and to now move forward with a bit of an advantage during the latest price drop. As for those who bought in during the high times, you still own the cattle so it’s time to take the returns you can get and reach that breakeven point as fast as possible. Both of these strategies should take place without the sacrifice of buying quality bulls for your herd. This is where you are going to make the next best calf crop to demand top dollar from the market.
Lastly, have confidence when you approach the sorting pen. Go to the sale knowing the type of cattle you need to make your operation run successfully, and stick with that plan. Don’t hesitate to ask breeders and ranch managers about their cattle. They are happy to help and proud of the product they raise, and no one knows their product better than they do.

Overall, I hope that you are as excited as I am to see some of the great cattle that will be offered this sale season. Brangus cattle have improved tremendously over the years, and have been molded to fit the commercial stockman’s needs. They have what it takes to deliver quality and consistency in all sectors of the business, and ultimately aim to send you smiling all the way to the bank. Do some homework this sale season, and cash in on money-making cattle that are out there. And as always, Build with Brangus!

Download PDF version: FBP_Fall2016 dykes_MarketingReport

 

ABOUT THE AUTHOR: KYLE DYKES

A native of Killeen, Texas, Kyle Dykes grew up on a small farm raising commercial crossbred cattle. Agriculture has always been a passion of his, and he has been actively trying to help make a difference and be a part of the growth of agriculture in Texas. Previously, Dykes worked as the Natural Resources County Extension Agent for McLennan County. This allowed him the opportunity to work with some of the finest 4-H youth in Texas, as well as producers in the Central Texas region. His educational background helped him build a strong network within the industry that he is now able to apply to his current position as the IBBA Commercial Marketing Coordinator. Dykes received his bachelor’s degree in animal science from Texas A&M University in 2013, and has also been a licensed auctioneer in Texas since 2011. Dykes believes it is truly an honor to have the opportunity to promote Brangus and play a role in the cattle business on a national level. Contact Dykes to see how you can get involved, too.