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  #1  
Old 11/16/13, 02:51 PM
 
Join Date: Jul 2011
Location: Michigan
Posts: 114
Black hide equals more money

I was just going through the rotational grazing thread. It was mentioned that black cattle can bring a premium $10 per cwt (have heard this elsewhere too). Is this generally true everywhere? How can you find out -- would you have to just go hang out at the sale barn and figure it out?
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  #2  
Old 11/16/13, 03:02 PM
Jennifer L.'s Avatar  
Join Date: May 2002
Location: New York bordering Ontario
Posts: 4,778
That's the result of Angus advertising. If it's black they can pretend it's an Angus, and Black Angus are what everyone wants to advertise they have now. And if it's got some odd white on it that might signal Holstein blood, so that's another reason to dock you. Cattle dealers use any excuse not to pay more. I raise a few red animals because I like a different look, but I'm aware I won't get the top price that the same animal in black is going to bring.
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  #3  
Old 11/16/13, 03:13 PM
 
Join Date: Jul 2013
Location: Central Florida
Posts: 3,281
I've had folks on this forum say it doesn't make a diff but I have seen elsewhere that black adds $$$.
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  #4  
Old 11/16/13, 03:33 PM
 
Join Date: Mar 2009
Location: Oklahoma
Posts: 305
I have a herd of black angus cattle and I'm not so sure that black cattle sell for that much more. When I look at the market reports, I don't see a big spread of prices that you would expect if red hides were being discounted, in other words, almost every 550 lb calf sells for about the same price.

Saying that, I've also had some heifers and steers that sold as "fancy" that sold at a pretty nice premium (still not sure what the buyers saw that made that group of cattle that much better than the others I was selling).

If I had a red angus herd, I personally think that they would sell for about the same as my average black angus calves, it might be harder to sell a group or red-hided calves as those elusive "fancy" calves (but not impossible). If I kept those calves as stockers and sold them heavier, I'd bet that the price difference (if there was a difference) would be even smaller.

The only way to really know if there is a difference in what black and red cattle sell for would be if someone raised both breeds under the same conditions and sold a large group of both type of cattle on the same day. I've never seen a study that did that and compared apples to apples.

I've always thought that if I was starting over, I might get some red angus cows and a black angus bull, so I could get those black calves and still have the option of getting a red angus bull to get red calves.
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  #5  
Old 11/16/13, 05:14 PM
 
Join Date: May 2003
Location: Zone 7
Posts: 10,539
I sell at the same auction throughout the year. I do have some calves that are essentially the same blood but just different colors. The herd has been closed since ~1997. I only change bulls and I do that infrequently. I spend some time reviewing the sale receipts following sale day. Color will make a 10 cents a lb difference on the bull or steers and 5 to 7 cents difference on the heifers. On a herd the size I have that makes a substantial difference. Remember the color premium is a net gain over input costs As a result of the price difference I am returning to all black. The non black animals are being phased out starting tomorrow.
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  #6  
Old 11/16/13, 05:35 PM
 
Join Date: Jul 2013
Location: Central Florida
Posts: 3,281
Agman - what is the approx avg, 1200 lbs? That means $60 - $120 more in your pocket for no additional cost. No matter how much one might think the reason for the premium is silly, it is hard to say no to the benefit vs cost.

If you are using the "Animal Welfare Approved" specs, I believe they do not approve of black cattle in Florida. Not sure about elsewhere. I like AWA as a marketing assist, but their rules seem to be very rigid and you have to open your farm to inspections. I must have gotten on their mailing list because of some magazine subscription.
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  #7  
Old 11/16/13, 06:11 PM
 
Join Date: Jun 2010
Location: W. Oregon
Posts: 8,693
Large groups of black calves bring more, if they are going to the feedlot. Backgrounded calves bring the premium prices....James
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  #8  
Old 11/16/13, 06:28 PM
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Join Date: Sep 2004
Location: East-Central Ontario
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Depends where you are. Black cattle here do well as fats, lots of guys who raise them from cow-calf right through breed them black. However, if you're selling them as stockers Charolais or Blonde appearing calves sell better here.
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  #9  
Old 11/16/13, 06:30 PM
 
Join Date: Jul 2011
Location: Michigan
Posts: 114
I like the look of Herefords, Devons, Red Poll. But even on our small farm, according to local prices, it could be an extra $1100 in our pocket just for the right color. We're still a long way off -- just now getting ready to transition to standard size cattle so we can market at the sale barn.
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  #10  
Old 11/16/13, 06:53 PM
CIW CIW is offline
 
Join Date: Oct 2007
Location: Utah
Posts: 936
Just a fun little story. May have some truth to it.
I had a set of twin steer calves that I held back from the truck. They were a bit lighter. They came out of a first calf heifer, so she didn't have quite the milk she needed for 2.
I was going out of the country for a few months and didn't have someone to feed them. I took them to the auction.
I weighed these calves before I left. black-618 red-625
I had them on seperate tickets. The red went through first and brought 1.91. The black brought 1.98. The same person bought them both.
Now that isn't a large enough sample to make any conclusions from. Take it for what its worth.
If you were color blind you couldn't tell any difference between them.
Black calves consistantly have made me a 3% premium over many years.
I don't think that inferior animals show as much difference. And as cattle are finished out the price will level out.
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  #11  
Old 11/16/13, 06:55 PM
 
Join Date: Dec 2012
Posts: 498
Refer to my posts on my "sale barn today" thread. I listed some prices. Short story is I had to pay more for black ones. The Black Angus breeders clearly have done a better job advertising. My understanding is that the meat of meat breeds is the same after the skin is off.

I'm in SC BTW.

COWS
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  #12  
Old 11/16/13, 08:30 PM
 
Join Date: Mar 2012
Posts: 627
If I'm taking them to the sale barn they need to be black and have no horns if I'm selling them as meat I keep the color and horns and get the better price. The price depends on the market.
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  #13  
Old 11/16/13, 08:35 PM
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Location: MO
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Sure, the black hided ones get a bit better price, but a lot of ranchers here
still choose red for their drought tolerance/breedability.
When it is wicked hot and humid, those black cows are not the best performers.

There is more to factor in than merely the salebarn price.
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  #14  
Old 11/16/13, 10:56 PM
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Join Date: Apr 2012
Location: sw virginia
Posts: 2,542
in my area angus beef brings a better price when beef prices are hig 10$ but when the market is flooded or prices are down it can be 50$ .its true that milkstock and longhorns will not make prime beef .charlais and many others take longer to mature and the bone to beef ratio is worse than angus . the big cattle buyers know what they are doing .I still hear people say that jerseys or hosteens make great beef .if I talk much to them I find out there taste is for stew meat and burger steaks well burnt . the cheapest way to get prime steaks and tender juicy beef is to feed an angus .
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  #15  
Old 11/17/13, 08:20 AM
 
Join Date: Dec 2002
Posts: 1,751
The CAB premium has nothing to do with the breed of cattle. It does require they be at least 51%black hided. The thing that makes it work is that the carcass has to achieve set quality standards to be sold under the label!
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  #16  
Old 11/18/13, 10:17 AM
 
Join Date: Aug 2008
Location: NW OK
Posts: 3,464
Here it seems like the smaller grazing size calves get hit harder for being non black then the bigger feeder calves do.
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  #17  
Old 11/19/13, 06:08 AM
 
Join Date: Dec 2012
Location: Ky
Posts: 83
locally..all black steers go 10-20c /lb higher and heifers go 5-15c/lb higher...(all other things being equal....and a lot of the time they are not...)
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