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GROUPING SIMILAR CATTLE IS A WINNER FOR BUYERS, SELLERS

For immediate release THURSDAY, MAY 13, 2004

Contact: Ted Sloan
(502) 564-4696 ted.sloan@ky.gov

 

 

By TIM DIETRICH, Kentucky Department of Agriculture Beef Marketing Specialist

For many years now, through the CPH-45 program, we have seen the advantages of grading and commingling cattle into large groups when it comes to marketing. There are those who will argue that the grading and grouping of cattle is just as important as the health and preconditioning program for calves when it relates to the price advantages.

A group of commingled cattle is sold at the Kentucky-Tennessee Livestock Market in Guthrie. ( Click here for a high-resolution image.)

Mark Barnett, managing partner of the Kentucky-Tennessee Livestock Market at Guthrie, Ky., has been grouping and packaging cattle for the market's weekly sales since becoming involved with the stockyard in 1979. “The buyers like it, and it makes the sellers money,” Barnett said.

The goal is to start the sale each Thursday at 1 p.m., but in reality the sale will start when all the cattle are sorted and every pen counted to ensure accurate bookkeeping for buyers, sellers, and office management at the yards. In the fall of the year, with runs of 2,500 to 3,000 head, it may actually be 5 or 6 p.m. before everything is in place to start the sale.   The sale ends quickly because the cattle are in large groups. On sale days sorting begins early and is accomplished by sorting steers and bulls at one scale and heifers at another scale.

“As long as there is only one person doing the grouping on a sex, we can keep uniformity on the groups, and that is what the buyers want,” Barnett said.

In the spring and summer of the year, when stockyards can have runs of 1,200 to 1,400 head, the grouping is done across one set of scales and usually the sale starts near the scheduled time.   

“We do this as a service for both the buyers and the sellers,” Barnett said. “The buyers don't have to sit through a long, drawn-out sale of small groups to get the numbers they need, and the sellers have the marketing power of load lots or large groups.”

Generally speaking, cattle in the 250- to 800-pound weight range are grouped together; they are then sorted by hide color, type, and sex. Steers, heifers, and bulls are grouped and when a group has a load (about 50,000 pounds), a new group is started.

The week before I visited the stockyard there was a total of 1,300 head.   Out of that total, 828 head were grouped and sold as commingled cattle. Only 50 head, which should have been grouped because of their size and type, were sold as singles because they didn't fit, for one reason or another, in a specific category.

When the numbers warrant, cull cows are packaged together. “Cows that are in good flesh and slick can be put together, and it works the same on them as it does the calves,” Barnett said.

Barnett is fair to both the seller and the buyer and believes this is the reason for the long-running success of their program.

In 1994, with a bit of apprehension among the office personnel, a computer system was installed, which, of course, proved to be extremely reliable, efficient, and a time-saver. The office staff has been reduced as a result of the computer installation, but with the efficiency of the new system, checks are available almost immediately following sale of a producer's cattle. The system also allows for the ability and flexibility to move cattle to a different pen should the need arise.   There is no question that the decision made 10 years ago to move into the modern technology era has proven to be a good one.

I can speak from experience with CPH-45 sales.   This type of commingled sale is not necessarily easier from the stockyards' standpoint. The workload prior to the sale requires a crew of reliable workers to ensure all cattle get in the appropriate pens. It also demands accuracy in counting the pens after the sort and before the sale. Once the sale starts, the actual selling time is relatively quick due to more cattle per sale.

Barnett said many times with large groups of cattle, half the pen goes through the ring, but if the buyers want to see the remaining animals, they have that option to request to see the entire group.  

Sales of this type truly are a win-win situation. Producers have the marketing power of large groups and buyers have the opportunity to purchase large groups of cattle in a short amount of time. These sales are possible only with a weigh-in situation and take a dedicated, capable crew to make them work, but they can be very rewarding for everyone involved.

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