Prices !!!

Discussion in 'Cattle' started by sisterpine, May 22, 2005.

  1. sisterpine

    sisterpine Goshen Farm Supporter

    Messages:
    7,273
    Joined:
    May 9, 2004
    Location:
    Zone 8a, AZ
    I was watching a cow auction on RFD television the other day and I just dont understand the "why" of the prices. For instance - 1/2 embryo interest in a herford cow went for $44,000.00. Why? Also a cow calf pair with the calf lineage described went for $15,000.00 Why? I had no idea that cows and calves were so very expensive. If this is the norm then how do ranchers and farmers ever make a profit selling their stock to the burger king? These were touted as special animals but still....
     
  2. evermoor

    evermoor Well-Known Member

    Messages:
    256
    Joined:
    Nov 20, 2004
    These prices reflect the genetic merit of the animal. Higher genetic potential or appeal allows the animal to be more merchandisable. Meaning the high priced animal can sell high priced bulls, embryos, ect. For instance, buy the cow at 50,000. Sell 25 emberyos @1000 a piece, A couple of 10,000 bulls, and a couple of 20,000 heifers and viola a handsome profit! Yeah it's that easy!! Are you interested in a 10,000 jersey calf???? Actually a lot of the time it is all hype and no money exchanges. It is I buy yours you buy mine, or the syndicate contains the owners as a majority of shareholders so its only 10,000 instead of 50000. Sometimes this money does exchange for the previous reasons.
     

  3. sisterpine

    sisterpine Goshen Farm Supporter

    Messages:
    7,273
    Joined:
    May 9, 2004
    Location:
    Zone 8a, AZ
    evermore- thanks that helps a great deal! i just sat there and watched the auction with my mouth hanging open LOL
     
  4. SmokedCow

    SmokedCow Well-Known Member

    Messages:
    429
    Joined:
    Sep 24, 2004
    Location:
    The Great State of South Dakota
    Well and you have to realize that these animals have been bread for many years to get what the producer wants. Most of these farms go to hugh livestock shows( like the Denver Stock show, or the Black Hills Stock Show here in SD)
    But reg. cows (like our stock cows, cross breds) cost much less. i went to a club pig sale (the hogs by this guy are known nation wide) and hogs that were what we woudl call butcher hog, went for 2,000 bucks! people buy club STEERS for 10-11 grand! Some people are crzy!
    AJ
     
  5. JeffNY

    JeffNY Seeking Type

    Messages:
    2,102
    Joined:
    Dec 13, 2004
    Location:
    New York
    Pedigree. Asked someone the other day "why did you want a 10k calf?". He said, "I can sell each embryo if a heifer for the same and make 4 times as much". Makes sence if it works well. Our swiss cost 2250, not a lot considering some go for 40k+.


    Some dairy heifer calves will go for 10k+ because the animal is backed by 4-5 generations of excellents.


    Jeff
     
  6. myersfarm

    myersfarm Dariy Calf Raiser

    Messages:
    2,004
    Joined:
    Dec 23, 2004
    Location:
    missouri
    well to me after seeing 5 of my friends go under truying to sell reg stuff i relalized its not the bull you buy but who you are buying it from one guy bought a $9000 cow at a sell and bred to the best bull in the land semen straw was $350 sold his bull for $1900..because nobody knew him ....made me realize that alot ppl want to say i bought the HIGHEST PRICED BULL AT THE XYZ sell the other day and his mother sold for $50000 and his father sold for $90000 half interest as a yearling.........but with AI thats about it bulls come and bulls go according to how big the seller buys a ad in the angus journal just look how many ads are in there or the beedmaster journal or what ever journal his breed is in........i have reg bulls but thats it...when that high priced bulls sons sell at the sale barn since all them do not pass the bull test what do you think they bring same as my calfs i bet..also at the feed lot would be hard to tell his from mine...not the fact that it is the best bull....but with all the ads and the seller selling a bull for $50000 makes ppl think his bull is better.............in closing in the reg buisness its not how good a bull you have but how good ppl think your bull is...so you better take out a big ad and have a big fancy show ring to sell them in...also have alot rich friends......john
     
  7. OD

    OD Well-Known Member

    Messages:
    1,523
    Joined:
    May 25, 2004
    There is your answer.
    Doctor A has a big sale with free BBQ, & his buddy, Doctor B, buys a bull & a couple of cows & spends 60 or 70 thousand.
    Next month, Doctor B has his sale with free BBQ, & Doctor A spends 60 or 70 thousand.
    Great advertisement for the cost of a little BBQ.
     
  8. willow_girl

    willow_girl Very Dairy

    Messages:
    14,609
    Joined:
    Dec 7, 2002
    Location:
    Dysfunction Junction
    On the farm where I work, there was a cow who lost 2 teats to mastitis in her first lactation. To be honest, I can't remember EVER milking her into the tank ... it was always the bucket. And she never gave much, either ... maybe a quarter of a pail.

    I once asked my boss whether he planned to cull her ... to my surprise, he replied no, because she was valuable as a breeding animal ... guess her dam was a top producer! He even tried to flush her (for embryos for ET) but to top it off, she kept going cystic. I don't know whether he ever even got any embryos out of her ...

    Personally I think there is an awful lot of speculation going on here! Especially when the average commercial dairy cow only produces for about 2-3 lactations, it doesn't really make sense to pay $5,000 for a heifer ... she most likely isn't going to produce long enough to recoup the investment, and even with ET, it's a roll of the dice as to whether she'll produce a bunch of heifer calves and THEN whether they'll be worth a tinker's damn!

    :confused:
     
  9. sisterpine

    sisterpine Goshen Farm Supporter

    Messages:
    7,273
    Joined:
    May 9, 2004
    Location:
    Zone 8a, AZ
    WOW you folks have educated my head! many thanks! KC