Beginner with a few questions

3 posts
Wed, 02/17/2016 - 20:48 #1

Member for

8 years 10 months
Sheffo
Last seen: 03/08/2018 - 21:05
Joined: 02/10/2016 - 10:51

Beginner with a few questions

Hi all,

 

I have spent a little time on a close friend's property in QLD, and am wanting to get into the hobby farm game myself. 

I'm in the very early stages or working the financials of it all and i think i'm on the right track, but any advise is appreciated.

 

The workings of second mortgages etc are all sorted, what i need to know is if i am working out buy/sell prices for cattle correctly. 

 

The figures I have been given so far are:

 

Buy price - $1.75/kg for roughly 250kg weener

Sale Price - $2.30/kg for roughly 450kg beast

COG price - 1.40 per kg (for the 200kg gain)

 

I understand these prices will fluctuate, but am i in the ballpark??

 

Also, my final question is how long does it take for a 250kg weener to reach its 450kg sale weight?  Obviously there would be many factors like feed availability etc.  

The areas ive been looking at are just past Cunningam's gap QLD, 100-200 acres, although i have also looked into northern NSW as its much greener down that way with more natural water.

 

As i said - very eary days for me, and I've a long way to go, so any advise is greatly appreciated.

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Sun, 02/21/2016 - 16:28 #2
peter_marybank
Last seen: 03/08/2018 - 21:05
Joined: 02/26/2015 - 13:47

Hello Sheffo

 

Your question is a little more complex then a simple answer can supply. There are many "it depends" and "what ifs" . 

If you'd like to chat feel free to contact me - I've traded sheep and cattle in the corporate ag world for over three decades but have stepped back now

 

You are in effect (reading your information), trading weight gain and price - this is very difficult to achieve consistently .

Your cost of gain needs some rationale around it - it may or may not be correct depending on your circumstance

 

The time to achieve the final sale weight has too many "it depends" to simply give you an answer that could be exceedingly (but unitentionally) misleading 

 

Peter Nilon

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Mon, 02/29/2016 - 10:29 #3
barb
Last seen: 09/17/2019 - 18:07
Joined: 11/23/2011 - 09:38

Hi Sheffo,

as Peter said there are many variables when considering how much money you could make when running a breeding or fattening property. The price you receive for your finished livestock is only part of the equation. You have to factor in the cost of production: Feed, vaccinations, cost of buy in of weaners ( if you are buying in weaners and growing them on for sale), cost of transport to sale yards if you are going that route. There are many TAFE colledges running small business courses that could be useful for you to have a look at, also many accountants in rural areas have a good grasp of what is involved. I suggest a talk with one of those could also be a useful starting point.

 

good luck with your new enterprise,

 

Barb

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