Summer 2012 Newsletter - the Missouri Hereford Association

From the AHA
By Joe Rickabaugh
Hereford Sales Strong—What’s Next ?
To say the Hereford market is strong and getting stronger would
be an understatement. Often heard when talking with breeders from
across the country is the bull pen is sold out or just a few of the
young ones are left. Hasn’t always been that way but the last couple
of years has brought many from the commercial industry to the Hereford
marketplace.
Going right along with this upward trend are the female sales
following suit. With the overall cattle industry inventory of females
at historic lows this trend is probably more intense in the Hereford
trade. People are hunting good registered and commercial females.
At the recent AHA board meetings some compelling comparisons
for Hereford sale averages was presented. The comparison
was for Hereford production and consignment sales from January
through April 15 for both 2011 and 2012. Bull sales in 2011 tallied
2,931.13 lots grossing $12,494, 604 to average $3,776—in
2012 3391.07 lots grossed $17,343,200 to average $5,114.37. Female
sales in 2011 totaled 1,024 lots grossing $2,440,673 to average
$2,383---in 2012 1,088.5 lots grossed $3,331,888 to average
$3,061.
To put this in perspective 459.94 more bulls sold in 2012 with
the gross being up $4,848,596 and the average was up $851. There
were 64.5 more lots of females which grossed $891,215 more and
pushed the average up $678 in comparison to the previous years.
Overall lots in 2012 were up 524, grossing $5,739,811 more and the
average increased $839.
Above are some powerful numbers that should make many feel
pretty good. Yes the Hereford industry, right along with the beef
cattle industry is surging upward at a historical pace—but what
does the next few years portray? Even more importantly what does
this mean for Hereford breeders both large and small?
For some it means they will do very well because they have a
marketing plan and they will continually search for new markets.
Just as important they will also take care of past clients and realize
more dollars for both bulls and females due to the competition for
their product. On the other side of the coin there will be breeders
who will continually hope the market comes to them and yes they
will enjoy the upsurge due to the overall cattle market. But sitting
and hoping will also leave potential sales on the table.
Hopefully the message gleaned from these paragraphs is, the
market is there for those who are willing to market their program.
We are continually getting calls asking where to find Hereford
breeders in their local states. If you are not telling and promoting
your program they will never find it. Always has been that way but
with the state of the industry now may be the time to really make
hay.
The very first step to marketing is getting a handle on your sale
inventory. This means making a list of animals you have for sale.
The list should include pedigree, performance information, epds,
breeding status, service sires, projected calving dates, etc. Don’t
forget a price for each animal. Get it down in a list so you have the
information readily available for the potential buyer when they call
or ask you to send it to them. Oh, you don’t have this information
you say---just remember other breeders do and buyers like information.
If it takes you a week to round up the information after the
buyer calls you have given that potential client plenty of time to
look elsewhere. Get your marketing plan ready.
In the state of Missouri there are numerous ways to get involved
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and market your program. The chance to consign to the Missouri
Opportunity is now—contact Matt Reynolds if you would like to
consign. There are other sales that are also looking for Hereford
consignments—make a few calls. Get your name out there where
people can find it. The Missouri Hereford News is a good place to
start--Sue Hand is a great person to work with and does a superior
job with the Missouri Hereford News. Advertise your cattle and
program—the market is on your side and your competitor is making
sure they have their name out there.
Personal follow-up and calls are powerful tools in a seedstock
operation. Calls to potential clients letting them know of an upcoming
sale or a group you have for sale can lead to sales. Have you
called your past bull customers to check on how good the calves are
by the bull you sold him? He might want to buy another one or two
or more. Have you called that young person who bought a show
heifer or steer from you? Just to see how they are getting along.
While you are on the phone with them might be an opportune time
to inform them of that new calf that might work for them this year.
Prime example just received a call yesterday from a smaller
breeder. He told me he had just got off the phone with a breeder
about his upcoming sale. This smaller breeder was totally impressed
that the gentleman had taken time to call and invite him
to his sale. The breeder said he would be proud if he would come
down and take a look at the cattle and enjoy himself at the sale. As
we ended our conversation the smaller breeder told me he had not
planned on going to the sale and now was considering working it
into his schedule. Even more powerful, he told me when he was
ready to buy some more cattle he would be visiting this ranch—he
said he was humbled and honored the gentleman had called him.
Marketing lesson number one—this is a people business first.
If I can ever be of assistance with your Hereford operation,
please give me a call—785-633-3188.
History story continued from page 4
Lawrence Renn’s lengthy service as manager of the sale, Robert
Schulen of Belle, Mo became the secretary and sale manager in
2003. The other officers at that time were President, Glenn Muenks
of Bonnots Mill, MO and Vice President, Frank Flaspohler of
Boonville, MO. At the 2007 sale there were 93 lots sold, 15 bulls,
and 78 females, By this time Jack Lowderman was the auctioneer
of the sale.
That brings us to the present day and the spring sale that was
held on March 10th, 2012 with 24 consigners supplying 60 lots.
One thing that stands out immediately as we look back over the last
59 years is how the price of the animals has increased. At the sale of
February 1, 1955 nearly all the cattle were sold for under $500.00
and the few that were not weren’t very much above $500.00. By
comparison, the average of all lots at the 2012 spring sale was
$1,970.00. Gary Mistler’s bull, Butch, brought $4,750.00 and a
nice cow/calf pair consigned by Tim Cavanaugh sold separately for
a total of $3,675.00. I think it is fair to say that the quality of the
animals has improved as well. The herds represented in this sale
have been continually upgraded by bringing in high quality bulls
and replacement females that have added significant quality.
As the early sale manager, Don Bowman, wrote in the catalog
for the 10th sale in 1962, “Little did a small group of 5 or 6 men
realize, as they met one evening around the dinner table, that
they were writing history. Little did they realize the lives and
herds of many breeders and farmers that would be affected by the
organization that was formed that evening over 10 1/2 years ago.”
I wonder what he would say now, 59 years later as we look to the
100th consecutive sale. They did, indeed, write history!