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The New Cattle Economy - Beef

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<strong>The</strong> <strong>New</strong> <strong>Cattle</strong> <strong>Economy</strong>...continued from page 1...condition scores on the herd isimperative.So, what is a cow/calfproducer to do? <strong>The</strong> temptationmany are succumbing to is sellcows and heifers, cut productioninputs (and in return cuttingreproduction and weaningweights) and cut back oninvestments in high qualitygenetics. In times like theseinventory and higher productionlevels are the keys to profitability.Yes, inputs are high, but we aregetting paid well for hitting highproduction targets. Feedyardswant big, heavy feeder steers andfor those producers with the rightcattle, opportunities abound forgreater return.Another critical factor isthe lack of replacement heifersbeing retained for rebuilding ofour nations cowherd. Valuesof bred females will top $1,500to $1,800 or more this year andthere will simply not be enoughof the right kind of replacementfemales to meet demand. <strong>The</strong>investment we make in thefactory will determine our longterm production efficiencyand again, genetics plays acrucial role.It is understandable tou.s. cattle producers to thinkthat we are still living in aworld of $2.00 corn and $500calves and wanting to stillpay $2,000 for bulls and $900for bred replacement heifers,April 29 th & 30 thbut that simply is not in the cardstoday. Old rules of thumb maystill come into play howeverwhen determining how much topay for seedstock. One of the oldrules with new numbers is that anaverage cost of a bull being worth5 times the value of a weanedcalf would mean that an averagebull from a purebred breedershould be $3,750.00. Anotherrule of thumb is the value of bredreplacement females being thevalue of her weaned calf plus hersalvage value. At that $750 plusanother $800 salvage value, thatmeans an average bred female isworth $1,550 as a starting point.Adjusting our sights will prepareus for the new realities in thecattle business.Have inputs costs gone up?You bet, but this time we shouldsee some nice returns due to alltime record high cattle prices in2011 and beyond. It is a <strong>New</strong><strong>Cattle</strong> <strong>Economy</strong>….are you readyto respond to the challenges?GENETRUST at Cavender’s Neches River Ranch • Jacksonville, TXSelling Friday @ 5:00 pm100 Registered FemalesHighly proven donor females plus an eliteoffering of young herd building females siredby the most highly sought after and provenherd sires in the breed and representing thebreeds most prestigious and highly proven female lines.Selling Saturday @ 1:00 pm500 Commercial FemalesBrangus, Brangus baldies, black F1’s and tigerstripes. Pairs, bred heifersand open heifers. Superior quality from the breed’s most proven sires.GENETRUSTPost Office Box 365Concord, AR 725231-877-GENETRS (436-3877)March 22Suhn <strong>Cattle</strong> CompanyEureka, KSBrangus, Angus & UB BullsJoe Cavender • (903) 571-1209Joe@Cavenders.com2011 SALE DATESApril 29-30Cavender RanchesJacksonville, TXReg. & Comm. FemalesNovember 4-5Chimney Rock <strong>Cattle</strong> Co.Concord, ARBulls, Reg. & Comm. FemalesDON’T MISS OUR FIELD DAY ON SATURDAY @ 9:00 AMDecember 3Cavender RanchesJacksonville, TXBulls & Comm. FemalesCatalogs mailed by request ONLY. Call orvisit our website to request yours today.Vernon Suhnvern@genetrustbrangus.com(620) 583-3706Craig Greencraig@genetrustbrangus.com(870) 834-1976Moving Forward...continued from page 1...the future. We firmly believe that a“more pounds” philosophy measuredsimply by increased weaning weightis not the best solution. In ourchallenge to change forage to proteinand with 70% of a cow’s intake usedfor maintenance what is our future?Do we need to step back and analyzeour unit cost of production andwhat we can do to reduce input costswhile still capitalizing on producingmore total pounds from the sameforageable acreage?Will every operation’s solutionand genetic needs be same? Certainlynot. We already are aware of that asthe genetic partners and cooperatorsthat we work with each face theirown challenges and advantages inthe diverse environmental locationsin which we operate. Feed resourceavailability, rainfall and the typeand quality of forage that yourenvironment provides will be atremendous factor in the degree ofgrowth and milk production you areable to sustain.As your genetic supplier we willcontinue to provide some variationin the genetic profiles of the bullsoffered. We do not feel that a “onesize fits all” philosophy works foreveryone. We endeavor though tosupply genetics that are packaged tobe as functionally efficient for ourcustomer base as possible. <strong>The</strong> GTpartners were some of the first in thisindustry to recognize the need forbiosecurity and offer bulls that weretested free of PIBVD, Leukosis, andJohnes to help protect you from theaddition of unwanted health issues.Disposition, the ease of handlinglivestock and reducing its cost tothis industry has been and willcontinue to be addressed in ourmating decisions. As always we willbreed today with a cautious ear andforethought for tomorrow’s futureneeds: a future that we have trendedtoward for several generations todefine and breed a productionfactory that will optimize productionfor our customers.For Sale...at all times we have for saleat either our Kansas, Texasor Arkansas base ranches thefollowing....• Bulls at private treaty• Embryos• Registered females• Commercial femalesCraig Green 870-834-1976Vernon Suhn 620-583-3706Kenneth Welch(903) 571-8716www.GENETRUSTBrangus.com2Justin Matejka(903)-521-1070GENETRUSTPerformance Genetics. Trusted <strong>Cattle</strong>men.GENETRUSTPerformance Genetics. Trusted <strong>Cattle</strong>men.

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