Feeding

[PPRM]

I am probably going to start looking around again.... The new lot has new owners.

Sometimes when my numbers are low, they will mix calves with others. I had a couple of steers in with the owners cattle. I also have some cows on a pasture outback....This lot gives me a lot of flexibility, but it is at a cost. So far it was worth it.... Well I got last months bill....


First the Pasture rent was off. Then I notice those two steers cost $2.06 per day..... I called and the son who is doing the billing agreed to meet. It took several trys for him to show me how he figured pasture rent, one try for me to get it right, LOL.....He agreed to credit me....

Then I told him $2.06 works out to 68 cents a pound if they gain 3 pounds per day. He said that 2.06 was what it came out to. Itold him that doesn't fly and he said they were working on getting cost down, but that is what it came to.....I said I wanted them out of that pen then and he said ok.......I told him if it was going to cost that to feed cattle, I couldn't stay..... He said he understood, but that's what it came to (Mind you these have been on feed and no vet charges).

I pass some of this off to the kids age and will talk to the dad, but my impression was that he is telling me, "If we get it wrong on our part, we can stick you with it).....

My question is, am I missing something???? This is about the last 30 days of feeding, but I still don't think it should be that high on any monthly bill.......The other pens were reasonable... Do any of you have clauses guarenteeing that it won't cost beyond a certain amount????

It is a small enough lot I can force some issues on which pens my cattle are mixed with and get the benefit, but I don't want to play that game. If it were my lot, I really don't think I would risk losing the business of one customer over two calves,

Any feedback is welcome,


Pat

 

[Soapweed]

I'd say you are in the driver's seat. The lot might "win the battle" but you are in a position to pull your cattle and "win the war". If they can't play by the rules, you can get out of their game and find another feedlot that is more user-friendly.

Supply and demand enters in. If they are outrageously too high, there are bound to be other places that are more competitive. If they are only a little bit too high, and there are no other lots available, it might be worth a bit of a premium to you. They seem to be abnormally expensive, and if you pull your cattle, others probably will, too. If the feedlot doesn't face reality, they will lose all their business and go broke. It's just a fact of life.

 

[sw]

Pat,
my experiences with feedlots have taken me to the point that the lot owner is going to own an interest in the cattle or I will not feed with them. anytime that we have retained 100% interest in the cattle, something like your situation always comes up, no matter if the lot was very big or a little one. I have had the best luck with 50%, I still profit from the genetics but I don't get screwed by the lot owner because he has a vested interest in making sure that the cattle are well taken care of. Start shopping, I don't know any of the lots in your area, sorry.

 

[PPRM]

sw,

The rest of the cattle in that pen were his, so the Corporation charged him the same.....

A few years ago, I had a partnership where I was getting screenings from a frozen Vegetable packaging plant. There were no husks, just kernels with some mix of pes and carrots at times. It was very small time. I had worked there and when noone else would take it, I started. When i left, the manager said I could have it as long as I would take it. They were that glad to not have to pay to have it hauled off.......We did well, but didn't realize the owners didn't feel the same until we were told we were out because they had a paying customer......

I only say that because I do have a couple other options. One is to do something similar to this again, but time is limited for me....The other is to try using a Purina Product a friend of mine used with Corn.....He was getting over 80% Choice and Primes on saleyard cattle, he figured his first closout cost of gain was 48 cents per pound..... I am sure he didn't figure yardage in there, LOL, but he still did well,


Thnks for the feedback,


Pat

 

[Andy]

2.06 seems high. Do you know how they figured it? By the head or by Wt?

 

[Manitoba_Rancher]

That seems high to me too. What we charge for cost of gain this year is around .50 per pound gained. That is finishing , and backgrounding is around .54 per pound.