Contract feeding cattle.

richie123

Anyone here know anything about contract feeding cattle for a specific factory?cheers for any info.

freedominacup

richie123 wrote: »

Anyone here know anything about contract feeding cattle for a specific factory?cheers for any info.

You haven't a hope of getting a reply. You'd have has a better chance of getting the exact bonus liquid milk suppliers get throughout the quota years.

yosemitesam1

richie123 wrote: »

Anyone here know anything about contract feeding cattle for a specific factory?cheers for any info.

From what I've heard its reliant on a lonterm relationship with buyer, eg if he's looking for cattle they're sent in whether they're ready or not. Probably have to be in the right circles too.

Bass Reeves

Interesting little article in this weeks journal about beef finishing. It was with regard to contracts. It said that at present larger feedlots that have a relationship with processors are being offered contracts 60c/kg for cattle post Christmas. It is interesting that they also note that these cattle will be used to suppress the price paid to other farmers. They questioned if farmers finishing 30-40 had any place in such a situation. However we have to remember that something like 70% of the cattle finished in this country come from lads finishing less than 20 cattle/year. The lad dropping off 3-4 cattle out of a 12X5 box is the backbone of the system.

However OP it is highly unlikely that processors will give any commitment on price to you or me for any longer than this week. I remember 3 years ago in September being told there would be no issue with bulls if they were under 24 months. That was when Larry bough all the Herefords bullocks in September off the store lads who were delighted. Most lads with bulls lost there shirts taking 3.3-3.6/kg for bulls in February instead of over 4/kg.

We still have not got producers groups in place why I do not know even though it is EU approved. Would producer groups tip the balance back a bit in our favour. I suspect so. However the IFA wants that producer groups can be set up with as low as 10 members. Would these small producer groups be the same fedlots that are being promised 60c/kg more

Cavanjack

Bass Reeves wrote: »

Interesting little article in this weeks journal about beef finishing. It was with regard to contracts. It said that at present larger feedlots that have a relationship with processors are being offered contracts 60c/kg for cattle post Christmas. It is interesting that they also note that these cattle will be used to suppress the price paid to other farmers. They questioned if farmers finishing 30-40 had any place in such a situation. However we have to remember that something like 70% of the cattle finished in this country come from lads finishing less than 20 cattle/year. The lad dropping off 3-4 cattle out of a 12X5 box is the backbone of the system.

However OP it is highly unlikely that processors will give any commitment on price to you or me for any longer than this week. I remember 3 years ago in September being told there would be no issue with bulls if they were under 24 months. That was when Larry bough all the Herefords bullocks in September off the store lads who were delighted. Most lads with bulls lost there shirts taking 3.3-3.6/kg for bulls in February instead of over 4/kg.

We still have not got producers groups in place why I do not know even though it is EU approved. Would producer groups tip the balance back a bit in our favour. I suspect so. However the IFA wants that producer groups can be set up with as low as 10 members. Would these small producer groups be the same fedlots that are being promised 60c/kg more

Wonder would the producer groups work. I'm sure lads would still be pricing around outside of the group and be willing to sell outside the group for a few cent extra. I

Bass Reeves

Cavanjack wrote: »

Wonder would the producer groups work. I'm sure lads would still be pricing around outside of the group and be willing to sell outside the group for a few cent extra. I

It would be very hard to work outside producer groups. You could be a member of 2-3 producer groups to my understanding if you were willing to pay there entry fee. However it would be like forward selling grain you would be committed when you took the price. So say a producer group got a base quote for cattle post Christmas at 4/kg and you committed to it then you would have to supply the cattle. Producer groups would have spot prices for different cattle at different times. You might get a spot price for Christmas, end of January, March and May as well as next weeks price. For most lads it would be a no brainer. The loses would be those that get preference at present

kk.man

I

yosemitesam1 wrote: »

From what I've heard its reliant on a lonterm relationship with buyer, eg if he's looking for cattle they're sent in whether they're ready or not. Probably have to be in the right circles too.

The right circles is very true. I know a man well in with Larry and ABP Feedlot buy the cattle and feed I think it was said the farmer gets 4 euro per head per week. No gamble but farmer pays for labour (if any) machinery and sheds etc. When a said number become fit for slaughter they are replaced by the same set number. Its a huge numbers game and cattle are in sheds 365.

Waffletraktor

Bass Reeves wrote: »

Interesting little article in this weeks journal about beef finishing. It was with regard to contracts. It said that at present larger feedlots that have a relationship with processors are being offered contracts 60c/kg for cattle post Christmas. It is interesting that they also note that these cattle will be used to suppress the price paid to other farmers. They questioned if farmers finishing 30-40 had any place in such a situation. However we have to remember that something like 70% of the cattle finished in this country come from lads finishing less than 20 cattle/year. The lad dropping off 3-4 cattle out of a 12X5 box is the backbone of the system.

However OP it is highly unlikely that processors will give any commitment on price to you or me for any longer than this week. I remember 3 years ago in September being told there would be no issue with bulls if they were under 24 months. That was when Larry bough all the Herefords bullocks in September off the store lads who were delighted. Most lads with bulls lost there shirts taking 3.3-3.6/kg for bulls in February instead of over 4/kg.

We still have not got producers groups in place why I do not know even though it is EU approved. Would producer groups tip the balance back a bit in our favour. I suspect so. However the IFA wants that producer groups can be set up with as low as 10 members. Would these small producer groups be the same fedlots that are being promised 60c/kg more

I imagine the factories have people working on supply curves from numbers of animals available in 16-30 months timeframes . From breed to sex and watching numbers of breeding stock being held back/ % of breeds that normally get squeezed , is there anywhere that supllies this info to farmers?

Bass Reeves

Waffletraktor wrote: »

I imagine the factories have people working on supply curves from numbers of animals available in 16-30 months timeframes . From breed to sex and watching numbers of breeding stock being held back/ % of breeds that normally get squeezed , is there anywhere that supllies this info to farmers?

You can look at cattle through put figures from FJ and Board Bia
http://www.bordbia.ie/industry/farmers/pricetracking/cattle/pages/supplies.aspx
Usually if you watch the FJ/FI a few thime a year they give the number of cattle in the 12-24 months bracket from this you can gauge whether there will be more or less cattle coming on stream. Producer groups would be able to deceminate thsi information as well....maybe. It all about how they are set up in law and whether they just become sales managers more interested in there relationship with processors procurement managers or are a gateway for farmers balance the power of processors and supermarkets.

blue5000

Thanks for the link Bass.
I reckon contract feeding is one of the best kept secrets in the beef industry, it suits a lot of larger finishers and processors. Finisher gets paid every month and processor gets a guaranteed supply at a fixed price. It's probably the main reason that the beef price is broadly the same all year round.