The Market Report

April 16, 2019

Every week I like to take this report beyond just the cattle market. I do that because it’s more than just a Livestock Market. It’s a place where others come to take pictures and watch the cattle as they move through this facility from start to finish. It has been built by cattlemen that understand real animal husbandry. As a matter of fact, we were selected number one out of 750,000 other producers for this and our work on beef quality and food safety. Because the technology is moving so fast and we were making so many changes on the book keeping side of things we decided to take another big step out front.  101 Livestock and two other partners purchased the IT Company that keeps all the records, balanced every sale and made the software for all the computers that make the Livestock Markets run in sixty-four markets throughout the west.  The purchase of Sale Time Systems was more than being able to make major improvements to the system, it was insurance for years to come. Today any interruption is handled by five different employees and they are also in the process of building a new system that will set the standard for Livestock Market software. The company had been reduced over the years to a one-man company which made it difficult to cover the needs of all sixty-four markets in a timely fashion. Also, in order to be the leaders in selling program cattle we needed to make changes to the record keeping so this information could be kept on our own internet site and transferred to those buyers immediately after the sale.  That purchase was not only futuristic it was a necessity to insure all sixty-four markets could continue operating right now and on into the future.

This week I want to talk about help. That’s right the word help, because as we move through life everyone gets help and most can never be repaid.  Here at the yard it was Bill Hamby and Jim Rodrigues. We learned valuable lessons from both in the operation of this yard and we could never repay them for everything they taught us.  We appreciate Harold Wells for the chance. He had faith in us and that helped us to understand we could do more than we thought. My Mom and Dad were instrumental in helping us get a start and worked week after week with advice and labor that could never be repaid. My Uncle from Iowa, Thelm Warren had spent a lot of time in sales all his life and he helped so much. We never dreamed we would still be here forty-four years later. It’s hard to thank everyone but George Hearst, Jack Cookie, and Dick McDonald all did so much.  Dick and George were influential in giving us the idea for this new market, something we would have never tackled if it wasn’t for their support. I think the lesson here is you may never get the chance to help those that have helped you in the past but helping others that cross your path is a really good way to repay them. So that has been one of our life goals to help others when we can in any way we can.

I have been looking at the loss of markets here on the central coast trying to make sense of it. First the cattle numbers are shrinking due to the development of land. More has been turned into farming, more continues to go to grapes, some has gone to houses and other developments.  Some is purchased by individuals that only want to hunt or use it privately without cattle.   The state and federal agencies have purchased land and they won’t lease it for cattle. Then there is the fact that the land has gotten so high priced that the demand for other uses exceeds the real value of the market. So, this morning I was thinking about the future and this hit me. You have a ranch or other business and have one or more great employees. They are in demand every day from others in this business and other companies. If you don’t pay them what they’re worth to you and your business, then those good people are gone and replacing them is a nightmare. Your Livestock Market is no different.  To keep it in business it will need to sell more cattle not less. This morning Cole hit the nail on the head when he said no one will miss their local market until it’s gone. This has been the case in the loss of all seven markets here on the central coast.

Now let’s talk vaccines.   We have a 2-V program that has special vaccination requirements. The first requirement is one vaccination of an upper respiratory vaccine called Vista Once. We recommend that vaccine because it has the best coverage for Pasteurella on the market. Keep in mind when your cattle get to the feed lot and get sick for any reason most of the time it’s the Pasteurella bacteria that kills them. We spend a lot of time following your cattle in feed lots and letting them know we are seriously interested in keeping the cattle they buy alive after the sale. The vaccines we recommend are the best. Some might recommend other vaccines for a lot of reasons, but we know what works and it works year after year.  We make no money on any vaccine sold we only recommend the vaccines, because it’s insurance for all producers that understand the real value in repeat business. We have the best buyers in the country, and they are willing to pay for quality and a good vaccination program. Now think back when we were the first to start a vaccination program. All our competitors said send us your cattle you don’t need to spend your money on vaccines. They also said don’t spend money on EID tags save the $3.25 and send your cattle to us. The EID tag and vaccinations are the standard for quality and animal health in the entire industry today. I’ll be the first to admit some markets for program cattle have been spotty and sometimes never paid the premiums we expected. However, the last couple of years these markets have become more stable and the future of these markets have been and continues to make a big move up.

Now let’s talk about the market. All winter we have been looking at several things that made us feel we weren’t going to have the big drop in prices some were predicting. We have had a little up and down in the market, but we have gone higher and continue to climb. Great news as we start to sell calves and yearlings from this week on. Cows and bulls have also made a jump up again this week just as we have expected. Our smaller users have forced the market and that is surely exciting. We sell to about forty people each week and it’s their support that drives the market.  Some markets have driven those buyers away for whatever reason, but we will always cater to them. When we started here, they were all we had and were not going to cut them out for any reason now.

Jim Warren 83l 320-3698

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Topline Leachman Sired Calves

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