What preparations should cattle farmers make for 2016?
In just a few days, 2015 will be gone, and I believe everyone has that “where did the time go” feeling. Facing the upcoming 2016, are you cattle farmers ready?
Whether for the whole world or for us cattle farmers, 2015 had an indescribable feel to it. Stocks plunged, terrorist attacks, crude oil plunged, economic depression…… But none of these have much direct impact on us cattle farmers. For us, it is simply that cattle prices have fallen. This is something none of us want to see. Cattle farming itself is just hard-earned money, and if prices are far from ideal, how are we cattle farmers supposed to get by?
This year many cattle farmers ran into this situation: buying calves was expensive, and selling cattle was cheap. Those who know how to raise them can still make a little, while for beginners, breaking even is already good.
Given the cattle prices in 2015, many people are not very optimistic about the cattle farming industry in 2016. But no matter how the market is next year, many cattle farmers still have to keep going, so since the market is hard to predict, we must make more thorough preparations.
1. Cattle purchase prices
When the market is bad, it is not only the slaughter cattle sale price. Cow and calf prices are also much cheaper than before, so when buying calves, everyone must negotiate the price down to the lowest possible. Compared with previous years, a calf is 1,000 to 2,000 yuan cheaper; if the market is bad next year and calves are 1,000 to 2,000 yuan cheaper, you will still more or less make money, and if the market is good next year, heh, then we will make a bit more.
2. Feed prices
When the market was good in the past, many cattle farmers did not pay much attention to feed prices. If a jin of forage was a few cents more expensive, it did not matter, since they made money either way. When cattle prices are not ideal, we must reduce feed costs as much as possible. Those raising few cattle can collect forage themselves, and those raising many should also push the price down when buying forage. This year, straw-type feed prices in northern regions are generally much lower than last year; corn straw and wheat straw are about half of previous years, while peanut vines and soybean straw are about one-third lower. At current feed prices, one head of cattle costs nearly 1,000 yuan less in feed than in previous years.
3. Strengthen feeding management and reduce deaths and injuries
The worse the market, the more we must strengthen feeding management. Only with good feeding management can cattle grow fast, and only then will feed utilization be better. At the same time, we must also do a good job of epidemic prevention measures to reduce disease and deaths and injuries in cattle.
4. Strictly guard against cattle dealers driving prices down
When cattle prices are good, cattle dealers do not push prices down too hard. Now that cattle prices are not very optimistic, cattle dealers are driving prices down even more seriously. So we must always keep track of market prices, communicate more with local cattle-farming friends, contact several cattle dealers or buyers, and try to sell cattle at a higher price. Take a 1,200-jin slaughter cow as an example: if it is 5 mao more per jin, that is 600 yuan.
If buying cattle costs 1,000 to 2,000 yuan less, feed saves 1,000 yuan, and selling cattle brings a few hundred yuan more, then even if cattle prices in 2016 are not optimistic, our cattle-farming profits will not drop too much.
5. Be prepared for a long battle
Although next year's cattle prices are hard to predict, cattle prices will certainly rise again in the future, so we must be prepared for a long battle. This year cow prices are very cheap, and this is a good opportunity. Those who have the conditions and whose local area has subsidies can raise some cows. Even if you buy pregnant cows, they will calve in the second half of next year, and it will still take two or three years for the calves to grow to slaughter age. Surely cattle prices by then will not be like they are now, right?
Although it is still a few days until 2016, Xiao Lu here wishes everyone a happy New Year in advance, good health, and may all go well. May the cattle be fat and strong, and may cattle prices rise quickly.
Author: Veterinarian Xiao Lu