Practical Tips For Buying and Selling Cattle For Profit

When it comes to buying and selling cattle for profit, margins fluctuate often. You need cattle that sell well and can be maintained relatively easily. Without the proper techniques, you could spend more money and not take your cattle to market at the right time. As any cattle rancher knows, every day counts. From adding weight to your calves to maintaining their health with veterinarian visits, costs for cattle can rise fast. That’s not even including the price of feed and ranch hands to help you. If you’re looking to become an overall better rancher then we’ve got the tools for you. Here are 5 effective tips for buying and selling cattle for profit.

1. Keep track of costs
2. Set definable goals
3. Effective marketing
4. Routine maintenance
5. Choose a better breed

Keep track of costs

One of the biggest struggles for any small business is keeping track of funding and business expenditures. Often, cattle ranchers may find themselves wondering where their money went as they retain cattle for longer. One of the best tips for buying and selling cattle for profit is to keep track of all your costs as you would any other business. For instance, you should keep track of costs per day on a spreadsheet. Common things to track would be:

• Feed
• Taxes
• Hay
• Supplements
• Utilities
• Insurance
• Veterinary Supplies
• Livestock Supplies
• Interest on Borrowed Money
• Number of Cows
• Cow Deaths
• Cow Births
• Marketing

You can find examples of these types of spreadsheets here. Importantly, tracking expenses is one of the best ways to find areas of improvement and areas where you can cut costs. This tracking also allows you to project for future years as well.

Set definable goals

Building upon tracking expenses, it is in your best interest to define some goals that you want to reach. This may be producing more calves, selling at better times, or even recuperating some losses. Most ranchers agree that writing a business plan can help. A business plan can help you define the direction of your business, your target market, and how you plan to get there. Business plans are valuable tools even if you don’t plan on taking on investors. Why? It’s a road map for the future and requires you to do an abundance of research about the type of cattle you plan to sell and turning a profit. It helps strengthen your ability to do market research which is vital to you buying and selling cattle for profit.

Effective marketing

While the beef market is projected to grow, that doesn’t mean that everyone is going to get a fair share of it. In order to take full effect of this growing market, you’ll want to implement some effective marketing. This doesn’t necessarily mean that you need to hire a full team of marketing managers. However, it does mean that you need to do research and develop a strategy to sell your brand. Think about ways you stand out from the crowd, and consider factors such as extrapolating your brand to include things like:

• Ranch Management Style
• The Quality of Beef
• Lineage
• Exclusivity
• Dependability
• And More!

This can help take your ranch to the next level and turn a greater profit when it comes to your cattle.

Routine maintenance

Cattle can be fickle creatures. Some can be docile, while others take on a personality all their own. Usually though, they all have one thing in common and that’s that they like to roam and will most likely try to get out of your ranch at some point. All joking aside, a worn-down fence line can end up hurting or damaging your bottom line in the long run. Cattle can get lost, taken by a predator, or even stolen if they escape your boundaries. There are significant upfront costs, but maintaining your ranch and security is highly important for buying and selling cattle for profit.

Choose a better breed

Not all breeds of cattle are made equal. Some breeds are better for maintenance and cost-effectiveness. They will yield a higher return on investment. Choosing the right seedstock operation though can be tricky, so do your research beforehand. Look at breeds of cattle that will only improve the status of your herd for years to come. If you’re looking for a breed that you can introduce to your herd, we’ve got you covered. Our selection of Beefmaster seedstock and Wagyu seedstock is not only better for your herd but your wallet as well!

Contact us today to find out how we can help you!