Monday, February 16, 2009

The Obvious is Not Always Obvious

I was lucky enough to jump on board with Steve Bennett to take a look at the Carcoar, NSW Store Cattle Sale last Friday.
There we saw the exact example Jim Lindsay spoke about on last weeks KLR Telecall where you can pick up kilos of beef below Cost of Gain.
Here we have 2 examples in the photo's below where we could have purchased the lighter ones or as the agent put it "Buy these little guys, you can put them away and forget about them"
Check out the figure to see which one's you might have purchased ?

Above 2 photos are same Steers
Weight estimate : 190 kg
Price :$475

Above 2 photos are Same Steers
Weight Estimate : 290kg
Price : $505

Let's assume you have a Cost of Gain in this area of $1.30/kg so cost of moving the 190kg steers to 290 kg is $130/hd.

Now you do not have to go past 3rd class maths to see 100 kg of beef is only costing you $30, let aside the fact you may only need to keep them a short while before they become overpriced.
Now those $505 steers 1 month ago were according to another KLR Marketer over $605 in the store sale.Amazing how a few hot days and the weaner sale excitment can change the sentiment in the market.

I took my video camera but forgot battery's so I only managed 1.3o minutes on the Carcoar selling centre - certainly a magnificent venue.

If video stop/starts press pause to let it load.
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