Bud and Eunice, inspired by real marketing stories and a post from January 2, 2010 here is my 2010 for review.
Starting in November 2009 and through April 2010 I purchased broken mouth and short solid bred Cows for an average of $514. The value to me was much higher using my costs and the market at the time of purchase to amount to a built in profit on day of purchase of generally $200-300/head.
These old cows were sold on September 2, 2010 for $658 average direct to the packer and their 390# calves for $487 for a total of $1145.
I then turned around a couple weeks later and started buying back. I was able to buy some young to solid mouth Cows for an average of $762 over the course of a month or so.
My costs to run Cows for a year is around $275. So I had sold old Cows and their calves and now had some young cows and up to $108 after my cost to carry.
In November I bought short solid and older bred Cows for .50 and .52/lb or around $650. Here I had Cows and $220 after my cost to carry.
At the end of year I still have money, no debt, and now have replaced my sold Cows with young to old Cows and have money left over. Achieving positive cash flow is not always the easiest to do in an up market but at the last sale there were still nice old cows to buy at significant built in cash flow on today’s market, maybe everyone is out of money and feed after scrambling to buy $1300 young Cows.
Thanks so much Bud and Eunice, Merry Christmas and best wishes in 2011!