Cattle for Sale: How to Buy and Sell Beef Cattle for Profit
Worldwide, people seem to have an insatiable taste for beef. That means that buying and selling beef cattle can be a very profitable business. Like with any business, though, it is important to follow certain steps to get your business off the ground and ensure success and profitability. Below are some steps you may want to follow to buy and sell beef cattle in today’s cattle market.
Step 1: Develop a Business Plan with Business Goals
As we mentioned, buying and selling cattle is a business, so you should take it seriously and treat it like any other business venture. There is a lot of different places that offer livestock for sale so it is important you develop a plan for your business. Do your research first in terms of costs and what revenues you will need to break even or turn a profit. In your plan, not only should you define the cattle industry in general, but really examine and stake out your own little part of it. There are many existing farms for sale that have already established a good business model, and are highly profitable. Are you buying and selling in a niche market? Or are you planning your business around selling in volume? Determine the cost of the livestock you want, overhead, maintenance and care expenses, and where/how you will sell. Before you go any further, you should be able to explain exactly how and when you will turn a profit.
Step 2: Determine the Most Profitable Breeds
Not all beef is the same, and different breeds have different uses. Also, some kinds of beef are more popular in various places. If you are selling to Japan, for instance, the breeds and individual cuts that are popular will probably be different than in Europe. Therefore, it is important to think about where you want to sell your beef and to understand what the cattle marketwill bear for various breeds. Of course you want to find the most profitable breed, but that really depends on the cost you will incur raising them and how much your customers can pay. That’s why it is important to consider early on who you will be selling to and how much they will be willing to pay.
Step 3: Develop a Budget and Figure Out Operating Costs
Again, a cattle operation is like any other business. You need to get a handle on operating costs and develop an operating budget. Some of the main costs include the cost to buy or rent the land on which you will keep your herd, the cost of keeping them healthy, and food and other items cattle need to be comfortable.This would include vitamin supplements and nutrients needed to supplement the food supply.There are currently many farms for saleon AgBuySell.com , so take a look at these operations to get an idea of how they run their business.
Step 4: Plan for Care and Maintenance
Although there are millions of head of livestock for sale, it’s important to make sure you select the proper breed to match your business plan. A huge part of the planning involves what you do once you have your cattle. They need to be cared for and well maintained. Think about it this way: cattle are the main investment involved in your operation, but you need to take steps to protect your investment. In this case that would include making sure you have plenty of fertile land for cattle to graze on. The more fertile the more likely they are to find nutritious forage. It also means keeping track of the herd, and following federal health guidelines such as giving scheduled vaccinations. It is important to hire a good vet to manage and document the health of the herd.
Step 5: Expect to Hire Workers
This is not a business you can do alone, especially certain times of the year. Expect to hire seasonal workers. Be sure you understand employment law and have payroll procedures in place.
Step 6: Develop and Execute Your Marketing Plan
Plan out how you will market and ultimately sell your cattle at a profit. The main place to sell is at auctions. If you are looking for a place to sell your cattle, check out https://www.agbuysell.com/ for listings of auctions and cattle for sale in your area.