Last month at the ITLA Convention, during one of the educational presentations, it was stated, "If 10 of the lowest sale priced Texas Longhorn consignment sales would terminate, the value of all TL cattle would increase by 20%." Not a single person disagreed.
Not only are the low-price-sales hurting all producers, that is not the worst part -- when the really bad prices are published minutes after the sale for the world to know, it reduces the value of all TL cattle even more. We had guests from Australia last week and they also watch the USA on-line sales with published sale prices. It also affects people in other countries from facebook and internet publication. Results published of a low dollar auction hurts the value of the breed world wide! That hurts every producer.
It is easy to know when a new, or continued TL sale is needed.
Here is how you can tell? If there are more people wanting to
buy cattle than the local producers can supply, then a sale
can be fertile, and loads of cattle can be brought into the
area to fill that need. That is the true test.
Sale promoters say, "We will have a sale to promote the breed." This can be true, and will be positive if the sale prices are in the upper 10% of industry values. That makes a bold statement -- really strong. Yet, if the prices are around local "spit-bucket" generic auction, liquidation, salvage values, that is not anywhere close to good breed promotion in any sense. If a sale is not triple or more above the local generic auction, then we encourage all sale managers to follow the lead of Silverado. Be strong and do something good for the TL breed.
Angus people are having the same problem. Read livestock publications and never before have so many Angus sales been scheduled, including record dispersals. The ADT government increased costs, cheap imported beef, taxes and droughts have caused a profit pinch on all cattle producers. Sometimes we all have to wait out the storms.
Sale managers often make several thousand dollars on a sale, even though the consignors may take a financial blood-bath. It is not the sale managers fault that they want to make some nice bucks. It is the consignors who keep tossing away their profits to flawed-sale planners. Wise up!! Quit consigning to the low dollar sales! You are pouring fuel on the problem -- your flames are burning every producer.
At Dickinson Cattle Co we have some low value cattle. Most are consumed through our LHTT beef store. However, when DCC has to liquidate critters, our bad results won't be published on facebook and no one will be tricked into paying us consignment fees or sponsorships for our problems. We will work to multiply the top end and continue to strive for thick, correct cattle that bring rewarding prices.
Thank you, Stan Searle, from the entire industry. Thank you for leading the way, and now, perhaps others will follow you, for the good of all.
Read Stan's letter below about suspending a beautiful event, during perfect Colorado climate, at a modern clean facility, with wonderful food and great people -- held for over 20 years. DD