The Market Report

January 14, 2020

 

This morning it hit me; we have moved into 2020. Forty-four and a half years in the Livestock Marketing business and still going. Over the holidays we all have had time to reflect on our past and where we’re going in the future.

We don’t like to dwell on the past but when you look forward there are so many lessons from out of the past that can help direct the future. When we started in July of 1975, we had one thing in mind, it was to group and sort cattle so we could get more buyers and better prices for everything we sold. It was taking a small regional market and expanding it throughout the Central Coast. We have witnessed seven Livestock Markets go out of business on the Central Coast of California since we began. We have continued to build every year in the last forty-four years.  We drilled the post holes, welded the pipe and sucker rod ourselves. We built this place from the ground up one pen at a time. We have put everything right back into this business and consequently have the most progressive, quality market in the West.

It’s one thing to say we have a great facility but there is a lot that goes along with that. It’s the best water, and lots of it. It’s knowing what to feed and how much. It’s having quality feed even when it costs too much. It’s having pens for the cattle, that are the right size, feed available, and bunk delivery so in two days cattle leave here bunk broke. It would be hard to explain how important it is for your calves’ health when after 24 hours on the road they get up and go eat when the feed truck comes by.

You can have a great facility, the best feed, and water but it all boils down to the people. The right conscientious hard working people make the livestock market and it’s their effort on your behalf that sets 101 Livestock Market apart from all the rest. We are excited about 2020 for sure.

If we want to look back at some progressive changes, we have put in motion over the year’s here are just a few.

  • We started the first vaccination program designed to keep your cattle alive for the buyers and start to create repeat buyers for your cattle.
  • We started the first animal identification program so your cattle could access the best markets.
  • We brought in the best bulls for all of our customers ten years ago. These bulls eat less, gain more, grade higher, and put more net dollars in your pocket every year. That’s right, technology has taken a huge step up in bull selection and we have been able to bring the best in bulls right to your back door.

In those forty-four plus years we have owned three Livestock Markets. From 1981 to 1991 we owned 101 Santa Ynez Livestock Market. In the ten years we ran that market we generated over $100,000 in cash revenue that went directly into the Santa Barbara County Cattlemen’s Association. In 1980 we opened a closed Livestock Market in Monte Vista, Colorado that had $260,000 in outstanding checks that could not be paid. We joined with a bank in Colorado and put up the amount needed, and we made every bad check good and opened the doors on that market. We ran it for eighteen months got most of our money back and as a viable business the bank was able to sell it and recoup most of their money. The Colorado Cattlemen’s Association recognized us with the only award ever given to a Livestock Market for our efforts on behalf of Colorado Cattlemen.

So today, January 14, 2020, we can look back with some pride in all that we have done and all the people we have helped. Now I want to start this year with looking forward. In the past we have promoted Program Cattle because of the potential reward of higher prices. We have listened to the negative talk on vaccinations and tags for years, but we stuck to our belief that they add real value to your cattle.  There is a “new Sheriff in town” and his work on tariffs, market access and fair trade have set a new standard for beef prices worldwide. For example, in the past we shared a quota of 18,000,000 metric tons of NHTC beef exported to the European Union with Australia. This year the whole 18,000,000 metric tons is our quota alone. Just one place where we will be selling more high-quality beef worldwide. In the past Australia had a 12 percent competitive advantage selling beef to the Pacific Rim.  This year we are equal for the first time in a long time. It will create more access to the markets that the Pacific Rim has to offer.  They want quality and we’ve surely got the edge on beef quality worldwide. I don’t think we can expect things to change overnight but we are finally headed in the right direction. You can’t have a two percent tariff on Japanese cars coming to the US and pay thirty eight percent on our beef going to the Pacific Rim. It would not be fair to assume the President has done this all alone. The staff, Secretary of Agriculture, their staff and a host of others are making this happen. We want to thank you all for sticking to your guns to make fair free trade a reality.

Now about the market. It was surely on fire. Steers close to 700#s at $134, the light cattle even in small bunches over 400#s $170 and up. The heifers continue to be the best buy on the market but all in all the sale was great.

Cows and bulls were steady around $60 plus on good cows and $55 and up on the cutter cows. There was a bright spot in the bred cow market. We sold several bunches of younger cows that were bred out of season for here and they brought $15/hundred over butcher price. That’s about $150/head premium. Great sale on those cows also. They are still a value for the buyer if they have extra feed. The pairs this week brought $1400 to $1850 in pretty-active trading.

 

Jim Warren 831-320-3698

 

 

Special Sale

Tuesday, January 21, 2020

28-30 Bred Cows and Pairs

From the Hollister Area