Producers encouraged to plan ahead for marketing cattle

Source: Saskatchewan Agriculture and Food

Cattle feeders and cow-calf producers were hurt by the rapid increase in feed grain prices during the final quarter of 2006. Price volatility and market uncertainty are prevailing conditions in 2007, and Saskatchewan Agriculture and Food (SAF) is encouraging beef producers to start planning their cattle marketing now.

"Canadian dollar appreciation, potential interest rate increases, seasonal fluctuations in beef demand and continued volatility in feed grain prices are some of the factors that will influence the market prices producers receive for feeder and finished cattle in 2007," said Grant Zalinko, SAF Beef Consultant for Feedlots.

Zalinko says cow-calf producers should start talking with cattle buyers now, and focus their marketing plans on selling the right animals at the right time. "The market is always correct with respect to price, despite what we might think," he stated. "Prudent marketing is essentially learning what is in demand and when."

Vaccination programs and verified beef production, including age verification, are positive attributes that can add value to your beef cattle. "It will be the marketplace that determines how much of a price premium you might receive, but producers should realize that value and price are not necessarily the same," Zalinko added.

Cow-calf producers who have surplus forage and adequate feeding equipment and facilities may want to feed their smaller calves to generate more income. Producers are encouraged to contact their local SAF livestock development specialist or call the SAF Agriculture Knowledge Centre at 1-866-457-2377 to evaluate marketing alternatives and to obtain production advice.

Retaining ownership of calves through custom feeding agreements is another option available to producers. However, producers who are considering retaining ownership of their animals should contact custom feedlots early, as pen space is expected to be fully utilized.

The Saskatchewan Cattle Feeders Association maintains a listing of custom feedlots. They can be contacted at (306) 382-2333.

Zalinko says the best advice producers can follow is to plan ahead. "Develop a written cattle marketing plan in accordance with your cash flow projections and available feed resources, and then stick to it," he stated.

"If a market rally develops, you can always sell into it."


For more information, contact:

Grant Zalinko, Beef Consultant-Feedlots
Saskatchewan Agriculture and Food
Phone: (306) 787-6607
E-mail: gzalinko@agr.gov.sk.ca
Website: www.agr.gov.sk.ca