Hereford eNews
Hereford Highlights | Market Update | Industry Insight Volume 4, Issue 18
Welcome{IF ISEMPTY [Name] THEN "" ELSE ", " END IF} {IF ISEMPTY [Name] THEN "" ELSE [Name] END IF}{IF NOT ISEMPTY [Name] THEN ", " ELSE " " END IF} to Hereford eNews, your source of the most current news affecting Hereford breeders. We aim to focus on newsworthy events pertaining to the Hereford seedstock industry. Sponsored by the American Hereford Association (AHA). Information sent to subscribers comes from material available on Hereford.org or authored by AHA, Hereford World and Certified Hereford Beef (CHB) LLC staff.
JWR Land & Cattle Co. Ad
Hereford Highlights

Advertising Deadline for July Hereford World – May 14

The final deadline for advertising in July’s Hereford World is near. All ad copy information (including photos) has to be in the Kansas City office by May 14.

The third edition of the Hereford Register will be published as a special section in this issue. These “yellow pages” include basic listings of July advertisers with a quarter page or larger ad, as well as July seedstock advertisements. Listings can also be purchased for $50.

The Hereford Register form can be filled out on the Hereford World Web site. Listings are organized by state, then in alphabetical order by ranch or farm name. They include the advertiser’s name, address, phone, e-mail and Web site.

Seedstock advertisements are added at the end of the section, available for $350 per inch per year.

The yellow pages will be printed on special paper and bound in the magazine. Reprints will be available upon request. For more information, contact your field representative, Joe Rickabaugh or Kelly Hale at (816) 842-3757.


Plan To Attend BIF Meeting

The 2007 Beef Improvement Federation (BIF) Annual Research Symposium and Annual Meeting is scheduled for June 6-9 in Ft. Collins, Colo. Early registration discounts are available through May 15. Visit the BIF Web site for complete schedule and registration information.


Register Early

Take advantage of the cost savings when registering calves early (up to 4 months of age). Registering all calves will give you the opportunity to receive expected progeny differences (EPDs) on the entire calf crop. Remember there is also a cost savings for electronic registration versus regular.


Summer Analysis Cutoff – May 31

Remember that May 31 is the deadline to have data submitted for the summer analysis. Questions, contact Jack Ward at jward@hereford.org or (816) 842-3757.

Star Lake Cattle Ranch Ad
Market Update
Downloads:

Cattle Outlook
Glenn Grimes and Ron Plain, University of Missouri-Columbia

Grimes and Plain offer market updates for the week past each Friday afternoon. To view this information, visit the University of Missouri AgEBB Web site.

DeShazer Cattle Co.
Industry Insight

Planning to Control Costs
John Hall, Virginia Tech Department of Animal & Poultry Science

Generally cow-calf and seedstock producers make limited use of risk management strategies or forward pricing to control input costs and reduce risks from volatile markets. The recent wild increase in corn and feed grain prices, as well as fertilizer and fuel costs, make it apparent that producers need to consider measures to control costs.

Although cost control is often thought of as purchasing inputs for the lowest possible price, producers must remember that the emphasis is on control. The principle concept is to lock-in prices of inputs at a level that allows the operation to be profitable. Hopefully the lowest price is obtained. However, producers need to remember if they lock-in feed prices, for example, and they go down the next week, they still controlled the purchase price of the feed. More important than paying the absolute lowest price, they avoided a huge surge in prices.

For example, some of your neighbors may have questioned your wisdom if you locked in feed prices for backgrounding diets in late July or early August 2006. “Why? Feed prices are always lowest at harvest,” they said. However, by mid-November 2006, you would have been the genius of the community!

In order to control costs and make decisions on forward pricing inputs, producers need to:
  1. Know the current cost of production and the source of those costs. Sources include feed, fuel, fertilizer, labor, etc.
  2. Anticipate or lock-in sales or income including a reasonable return to family labor and profit.
  3. Have access to funds to purchase inputs or lock-in prices in advance of majority of the operations cattle sales. For example, locking in feed prices in mid-summer for early fall delivery with backgrounded calves to be sold in December. Remember interest on operating loans is a cost to be controlled also.
  4. Invest in on-farm storage. For small operations, an investment in a 3-5 ton feed bin can significantly reduce feed costs. Similarly, for large operations, building a commodity shed or new all-purpose storage building may be profitable in the long run.
  5. Create a long-term business relationship with suppliers.

Right now concerns with planting crops, branding and beginning the breeding season take precedence over cost control. When things slow down in early summer, take a minute to consider methods to reduce costs and improve the long-term stability of the operation.

A note from John:
Following the tragedy at Virginia Tech the outpouring of support, concern and prayers from across the nation and the world has been overwhelming. The faculty, staff and students of Virginia Tech would like to thank everyone for their support — spoken and unspoken. Your support has helped the healing process greatly.


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