CenTRAl livesTOCk

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Central Livestock Marketings
Central Livestock Association
PO Box 419
South St. Paul, MN 55075
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Permit No 72
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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: jswanson@crinet.com
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