Fall Beef Cattle Marketing Alternatives. 2002 has been difficult for many beef producers. Drought, volatile prices, and uncertainty have taken their toll on Georgia's beef industry this year. This fall many cow-calf producers must make decisions about marketing their calves now, stockering their calves until the spring, or having their calves custom finished in a feedlot. Other producers may be considering purchasing stocker calves to carry through the winter and sell in the spring.

Profits from stockering are most affected by the buy-sell margin (BSM) and the cost of gain. The BSM is the purchase price minus the sale price. For the past 10 years the BSM for 400-500 pound October calves to 700-800 pound April calves has been about -$12.25/cwt., or about 85% of their purchase price. This means that 450 pound calves bought in October for $80/cwt. will bring an average about $67.75/cwt. in April as 750 pound calves.

An analysis of several marketing alternatives reveals that at current prices most producers would probably be better off to market their calves now as opposed to stockering them until Spring. Custom feeding may also be a profitable alternative for producers with calves weighing more than 550 pounds. With current fed cattle futures around $75, producers have the opportunity to at least lock in a breakeven selling price.

As with any decision, producers should use their own cost and production figures. Producers wishing to have more information about making stockering or other beef cattle economic decisions should contact their local extension office. (Curt Lacy)

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