CenTRAl livesTOCk
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CenTRAl livesTOCk
Postmaster send address changes to: Central Livestock Marketings Central Livestock Association PO Box 419 South St. Paul, MN 55075 PRSRT STD U S Postage Paid Permit No 72 SHAWANO WI 4TH QUARTER – NOVEMBER 2009 To educate, inform and connect with members, patrons and supporters. 2 0 0 9 Marketings In this Issue From The Desk Of Jeff Reed 2— Central Livestock Zumbrota Market Improvements Completed ope you are having a safe and successful harvest. It has obviously been a challenging year to get crops put away, and fortunate for most, there is lots of feed available this year. 3— Micro PVP™ 3— Become a Central Livestock Member H 4— Central Livestock Photo Contest This Coupon good for $50 OFF Smidley Steer Stuffer & $100 OFF any livestock chute Zumbrota Stockman’s Supply Call (507) 732-7860 www.centrallivestock.com Conveniently located at Central Livestock’s market Our Central Livestock staff has the opportunity to interact with lots of farmers and ranchers 5 — A Dairy Industry Perspective: throughout the year at various functions, Featuring Albany Market Manager, and one of my favorite annual events is the Greg Supan, and Dairy Heifer Supplier, Minnesota Beef Expo. We are going through Rod Miller some trying, somewhat discouraging times 7— Special Feeder Cattle & Bred in the meat industry right now and yet the Cow Sales Schedule enthusiasm and optimism was infectious among the many young people and their Editor: Jena Swanson families that attended the Beef Expo this year. Contributing Writers: The classes were large, the cattle looked well Jeffrey Reed and Jena Swanson prepared, the booth spaces were full, and the Graphics Manager: Kay Kristof calf sale was large again. The price cycles Send comments or suggestions to: [email protected] will come and go, but it is the dedicated livestock families that really make the livestock business what it is. Take a look around your own community, and I’ll bet you will see some Bill Bertram, President Valley City, N.D. talented young people very interested in livestock careers. I encourage you to do what Brian Brix, 1st Vice President, Albany, Minn. you can to support these young people, and to Keith Johnson, 2nd Vice President, Sharon, N.D. help make sure the opportunities are there for them for many years to come. David Krueger, Secretary Hastings, Minn. Board of Directors Chief Operating Officer, Central Livestock The Central Livestock special feeder cattle sales are in high gear. We have had some large sales already, and we expect some very large sales after New Years. We continue to get a lot of questions about retained ownership options, and adding value to calves prior to the sale. Our marketing staff are here to help you with those decisions, and they really enjoy helping producers market their livestock in the best possible way. Each year, the standards seem to get raised for what “added value” means, and yet it often comes down to providing detailed, accurate information about the calves at sale time. We want to get as much information as possible into prospective bidder’s hands, to help you, the seller. In this issue of Marketings, you will find articles highlighting the recent improvements made to the Central Livestock Zumbrota facility, and a feature article highlighting dairy cattle marketing. Please remember, we will always market whatever livestock you bring to one of our markets, but we also see it as our job to help you maximize the value of your livestock by helping you add value to them at home, prior to sale day. Thank you for choosing Central Livestock! n Morris Carlson, Sandstone, Minn. Tim Sanborn, Mazeppa, Minn. Darrel Sogn, Hudson, S.D. Larry Traun, Durand, Wis. Harlin Hecht, Paynesville, Minn. Central Livestock • www.centrallivestock.com • Rock Creek (320) 629-1122 • South St. Paul (800) 733-1844 Albany (800) 733-6828 • Zumbrota (877) 732-7305 • West Fargo (800) 733-4620 8 1 ZUMBROTA MARKET Central Livestock Zumbrota Market Improvements Completed A fter two years of planning, engineering, permitting and construction, a major facility renovation has been completed at the Zumbrota Market location. These improvements were originally initiated in an effort to improve livestock handling, protect livestock from the weather, aid labor efficiency and to bring our facility into full compliance with Minnesota Pollution Control Agency requirements. All of these improvements have been carefully engineered to meet the needs specific to the Zumbrota location, with input from all of the regulators involved. Here are some of the improvements which were made: [3]35' X 116' roof, which covers the holding pens east of the 900 alley. [1] 100' X 133' roof, which begins on the south side of the load out, and extends north to cover all the open area, to auction ring two. [8]Concrete block firewalls have been installed on the north and east sides of the present buildings. These walls were required by local building code officials, and designed by fire control design consultants, specifically for this site. [4]Other smaller roofs, designed to cover smaller previously open cattle alleys. [5]36' X 42' roof over the manure bunker. [6]Complete rain gutter system and related improvements, to prevent clean rain water from mixing with manure and bedding. Roof water will be diverted as clean water, away for the market facility. [7]A fully-engineered brown water routing system and containment tank. [2]84' X 143' roof, which covers all of the open area north of the 900 alley. [9]New gating and penning in many parts of the market, additional water fountains and other improvements. Special Feeder Cattle & Bred Cow Sales Schedule ROCK CREEK Market ALBANY (320) 629-1122 (800) 733-6828 Special Feeder Cattle and Bred Cow Auctions Wednesdays at 10 A.M. November 18, December 2 & December 16 Feeder Cattle Auctions December 9, January 13 & February 10 Zumbrota Market West Fargo Market (877) 732-7305 (800) 733-4620 Special Feeder Cattle Auctions Thursdays at 10 A.M. November 19 & December 3 December 17 - Featuring the Northern WI Beef Producers January 7 & January 21 February 4 & February 18 March 4 & March 18 April 1 & April 15 Special Bred Beef Cow Auctions at 10 A.M. December 10 & February 25 November 18 - Annual Sandhills Feeder Calf Sale November 25 - Special Bred Cow/Heifer Sale December 2 - Special Feeder Calf Sale December 9 - Special Preconditioned Feeder Calf Sale December 16 - Special Preconditioned Feeder Calf Sale December 23 - Special Bred Cow/Heifer Sale December 30 - Special Feeder Calf Sale All of this construction should be viewed as an important commitment to improved livestock care, attention to the environment and ultimately to improved customer service, for the benefit of the users of the Zumbrota market. The Central Livestock and CRI Boards have committed resources to this investment, as another example of their long-term commitment to competitive livestock auction marketing in the region. Please watch for our open house date to be announced, or call any of the Zumbrota Market staff for a tour of the improvements. n Central Central Livestock Livestock • www.centrallivestock.com Association • •www.centrallivestock.com Rock Creek (320) 629-1122 • South • South St. Paul St. (800) Paul (800) 733-1844 733-1844 Albany (800) 733-6828 • Zumbrota (877) 732-7305 • West Fargo (800) 733-4620 2x 7 A Dairy Industry Perspective continued herd and want dairy cattle to offer for sale in one-two years. Demand is currently weak, but in the next year demand could regain strength, but it depends on milk prices. When milk prices were good, springers went for $1,800$2,000 and heifer calves went for $400-$500. Today, the same heifer calves are selling for $100-$200. Producers need to sell two-three head to get the same dollar figure when selling one head before. My advice is to sell older cows and keep your herd young, while holding out for better prices and better days. 500-800# Opens: Most are bought by suppliers, and growers that have intentions of selling directly to large dairies. Demand is currently moderate to weak, with the outlook again depending on milk prices and the dairy economy. However, with milk futures increasing, it is a step in the right direction. Springers: Most are bought by dairymen and heifer suppliers. Demand is currently very strong, but the economy is not allowing for strong purchases. Milking cows: Most are bought by dairymen for expansion or replacement of older cows with younger cows; however, some of these milking cows can go directly to slaughter. Demand is currently weak, with the demand returning when the economy turns around, with parlor cows bringing the largest premium. Q: How do you attract buyers to our dairy sales? A: The price and quality of our livestock bring in both local and out-of-state buyers, especially on springing heifers and opens. Many dealers come in from several states away for the strong reputation of the Albany market for quality. the yard or on the farm. The Albany market does an excellent job advertising the dispersal through newspapers, radio, flyers and many hours of phone work attracting buyers and gaining interest. Q: Milk prices dropped from over $20, to $10, and are now showing signs of a price rebound. What do you see as the opportunities for dairy producers in your area? A: The crop conditions in central Minnesota have been favorable this year with significant amounts of feed available. Over the past few years, input costs have been extremely high, specifically with feed playing a large factor. Many farmers have a good inventory this year, and that will help with the input costs of producing milk. Central Minnesota is a great place to dairy! Interview with Rod Miller, Dairy Heifer Supplier, Howard Lake, MN Q: As a heifer supplier, how have you seen your business change, and what do you see coming down the road? A: Currently, it seems every farmer has a computer, with recordkeeping tracking reproduction, production and cull rate. This recordkeeping matches with the cost of an animal, to determine if you (dairy heifer supplier) will be their next supplier. This is a trend that is here to stay. Another change is with the size of heifer orders, 20 years ago, many times farmers would buy one to ten head. Now the typical size of orders are very large, with some orders as large as 3,000 head. Furthermore, with heifers in larger groups, suppliers can travel more miles to do business. Often times, one doesn’t think anything about going out of state to sell or purchase heifers, and heifers travel across the nation frequently. Q: What is the dairymen’s future from a supplier standpoint? A: It seems smaller dairies will be gone and larger dairies will buy them. There may be less family farms. There are currently one quarter as many dealers, as when I started in 1969. If milk prices don’t change, or rise above the cost of production, younger generations won’t be able to stay on the farm. Q: What are the opportunities in the dairy industry in Central Minnesota? A: One of the main opportunities is putting in smaller heifers and doing a good job raising them. We are currently short of operations raising younger heifers. Another opportunity is for smaller farms to feed and grow heifers for larger producers. n Central Livestock-Albany Market has Special Dairy sales the first Wednesday and third Friday of each month at 10:30 AM. Central Livestock-Zumbrota Market has Special Dairy sales the second and fourth Tuesday each month at 12:00 PM. For more information, contact the Albany Market at 800-733-6828, or the Zumbrota Market at 877-732-7305. MICRO PVP ™ C entral Livestock and Genex are proud to offer you a service to increase your profitability. Central Livestock representatives in Minnesota, North Dakota and Wisconsin are certified as Micro PVP agents. Genex representatives in Washington, Oregon, Idaho and Nevada are certified as Micro PVP agents. Used by thousands of cattlemen, the MICRO PVP offers a simple and costeffective way to qualify cattle for age and source verification at all stages of the beef supply chain. The MICRO PVP is a USDA-approved Process Verified Program. The MICRO PVP may be used by ranchers, feedyards or other producers to qualify cattle for export programs. Become a Central Livestock Member C entral Livestock is an 88-year-old farmer-owned cooperative, marketing livestock for you. Become a member, and let your voice be heard in the cooperative. The MICRO PVP ranch program allows ranches to age-verify and enroll their cattle in a USDA-approved program prior to shipping cattle from the ranch. Audits are conducted via phone or on-site and ranches maintain full control over their cattle marketing options. What are the benefits of becoming a Central Livestock member? To enroll cattle for age verification, the rancher must follow these steps: • Have the opportunity to participate in member meetings. 1. Record age information in calving books, calendars or other formats, premises ID is optional. • Receive equity in the cooperative. 2. Tag the cattle with EID tags and record information on supplied worksheets. • Can become a Central Livestock delegate or a Central Livestock director. 3. Complete an Audit Request Form and send to Micro Beef. As a Central Livestock member, you … 5. Micro Beef reviews the audit and, if passed, generates an official Approval Letter. Cattle are now officially verified and enrolled in a USDA-approved program. –Each delegate represents his or her region at a fall input meeting and at the annual meeting each March. Delegate meetings provide a great environment for customer input, and discussion with management on key issues affecting the cooperative. To learn more about enrolling your cattle for age and source verification, contact your Central Livestock field representative, or call 800-733-1844, or Genex at 888-333-1783. n –Delegates gather as a region to elect their board member. Board members from six regions comprise the Central Livestock Board of Directors. 4. Audit completed via phone or on-site, verifying the calving dates. How do I become a member? To become a member, simply: Q: Talk about the benefits of having a dairy dispersal at the Albany Market vs. an on-farm dairy sale. • Market livestock through Central Livestock. • Complete a membership form, which can be found on www.centrallivestock.com or at all markets. A: In most cases, having a dairy dispersal at the market makes it much easier for the seller. The seller doesn’t have to deal with people in • Have your social security number or tax identification number on file at Central Livestock. n Central Livestock • www.centrallivestock.com • Rock Creek (320) 629-1122 • South St. Paul (800) 733-1844 Albany (800) 733-6828 • Zumbrota (877) 732-7305 • West Fargo (800) 733-4620 6 3 Central Livestock Photo Contest First Place A Dairy Industry Perspective: Featuring Albany Market Manager, Greg Supan, and Dairy Heifer Supplier, Rod Miller Greg Supan and Rod Miller lent their dairy industry expertise for current dairy trends and opportunities, specifically relating to central Minnesota in a question and answer format. Livestock Scenes Winner – “Curious Cow” Elizabeth Johnson, Edgerton, Wis. Interview with Greg Supan, Albany Market Manager Runner Up – “Our Favorite Spot” Melissa Schutz, Boyceville, Wis. Q: How has the dairy industry changed in Central Minnesota in the last ten years? Runner Up Thank you to everyone who participated in the fifth annual Central Livestock photo contest. We had several excellent photographs entered again this year. Kids &Livestock Runner Up Winner – “Future Herdsman” Melissa Schutz, Boyceville, Wis. A: From an auction market perspective, the last ten years have seen growth in numbers, followed by a plateau, and currently a decline. From 2000-2003, the Albany market sold 1,800 head of dairy cattle each month, currently that number has dropped to roughly 500-600 head of dairy cattle sold each month. Many of the 40- to 50-head dairy producers have been retiring. There was a significant number of herd dispersals from 2000-2004, and now, there seem to be almost no young stock being sold. This trend is not isolated to central Minnesota; other portions of the Midwest have seen the same trend. There are still some 40- to 50-head dairymen in central Minnesota, but there are a lot more 80-head producers. These 80-head producers typically market young stock with the Albany market. Other dairies have expanded to 300to 1,200-head operations, with most of the young stock kept on the operation. Q: How has the dairy industry changed in Central Minnesota in the last 24 months? A: Most recently, we have seen three CWT Buyouts which removed 226,000 cows from the nation’s herd. Here in central Minnesota, there was an estimated 40-50 herds removed in the CWT Buyout, with most of the herds ranging from 30- to 125-head operations. Other changes would be the vast expansion of technology, and the important role it plays on the farm. The level of information and technical First Place Runner Up – “Best Friends” Jill Armstrong, Amery, Wis. First Place Runner Up By Jena Swanson, TEAM Marketing and Administration Manager support is changing rapidly. With more accurate recordkeeping and testing, and more advanced milking equipment, technology has helped make many dairy farms more efficient. Genetics and dairy quality continue to be very strong and important as well. Q: What range of producers do you work with in Albany? A: Currently, most of our customers are family farmers with operations ranging in size from 40- to 1,200-head in the five county area. Most of the dairies have several generations on the farm, with some of the larger operations utilizing hired labor. Many of the younger producers on the farm would like to make upgrades in facility and machinery, but have put plans on hold due to economic feasibility. Q: How do commercial heifer raisers fit into our business? A: For large dairies, commercial heifer raisers allow dairymen to lessen the work load at the dairy site, permitting the dairymen the concentrate on milking, and grow the heifers elsewhere. Many dairymen also try to stay under the 1,000 animal unit threshold, to avoid permit issues and requirements. Furthermore, it is also a nutrient management and feed availability issue. Utilizing commercial heifer raisers allows the dairymen to raise heifers at a site with the appropriate feed and facility, instead of purchasing feed and having the needed facility. A majority of these heifers are retained, and typically do not go to market. It also seems there are more heifer raisers now, as opposed to ten years ago. Permit issues and requirements play a key part in this situation. Country Scenery Winner – “Old Horse Cart in the Snow” Vickie Anderson, Karlstad, Minn. Q: Tell us about the demand and who buys: Heifer calves, 500-800# opens, springers and milking cows. Runner Up – “Old Time Memories” Adam Hoernemann, Albert Lea, Minn. A: Heifer calves: Most are bought by growers, dairymen or dairymen that have sold their Central Central Livestock Livestock • www.centrallivestock.com Association • •www.centrallivestock.com Rock Creek (320) 629-1122 • South • South St. Paul St. (800) Paul (800) 733-1844 733-1844 Albany (800) 733-6828 Albany (800) • Zumbrota 733-6828(877) • Zumbrota 732-7305 (877) • Sioux 732-7305 Falls (800) • West 733-3640 Fargo • (800) West 733-4620 Fargo (800) 733-4620 4x 5x
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