Town Creek Farm Since 1993
FALL 2021
Volume 9, Issue 3 • Published by Town Creek Farm, West Point, Mississippi • Brangus and Ultrablack
The Grit welcomes your inquiries and feedback. The Grit is published by Town Creek Farm, West Point, Mississippi.
Town Creek Farm Milton Sundbeck, Owner Office: 32476 Hwy. 50 East West Point, Mississippi 39773-5207 (662)494-5944 www.TownCreekFarm.com Joy Reznicek Sundbeck, President (205)399-0221 Joy@TownCreekFarm.com Clint Ladner, Bull Development (662)812-8370 CLadner@TownCreekFarm.com Cody Glenn, Herdsman (601)508-8689 Cody@TownCreekFarm.com Anne Sutherland, Quarter Horses (662)295-6144 Anne@TownCreekFarm.com South American Representative Ing. Agr. Federico Maisonnave (011)595 981 362 898 Maisonnave.Federico@gmail.com TOTAL COMMITMENT
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Lot 5 – 312G6 - Brangus.
Two-Dollar Feeder Calf Market BY JOY REZNICEK SUNDBECK IN EARLY 2013 I WAS AT A PIVOTAL POINT IN MY CATTLE are riddling a large slice of the western United OPERATION. THE RANCH WAS BACK IN MY HANDS AFTER States. Liquidation is mounting. In some cases, A THREE-YEAR LEASE, AND IT NEEDED TO BE RESTOCKED. whole herds are being sold. In other cases, Initially, I bought a couple of groups of commercial bred heifers from Cow Creek Ranch customers. I deliberately starting the buying process at a slow pace. But as time went on, I could feel things begin to change. The cattle market was gaining steam. Beef demand was strong. And a long and sustained drought was covering a large portion of the South and Southern Plains. Liquidations were on the upswing. The change I sensed prompted me to ramp up my restocking project. Within a few weeks, I had purchased all the bred heifers I needed with the genetics I wanted. I paid an average price of $1750 a head. Within a couple of months of restocking, bred heifer values had gained strength. Prices across the country were averaging $2100 to $2400. The following year, average bred heifer prices climbed to $2800 and rose to $3000 within another year. Feeder calves were trading at $2.20 to $2.50 a pound and turn-out bulls were carrying hefty price tags. My intuition to accelerate restocking was spot on. Timing also played into my hands from a marketing position. I sold the first three calf crops out of these heifers in the strongest calf markets in our country’s history. The combination of strong consumer demand and the tightest cattle inventory since 1952 had pushed cattle prices to record levels. Something unexpected happened after 2015’s record run. As our nation’s cattle inventory grew back in balance, genetic improvement began a steady march forward. Cow herds across the country were rebuilt with superior genetics. In 2015, only 67 percent of cattle were grading choice or prime. Today, 85 to 90 percent of cattle are stamped choice or prime. Domestic beef demand today is at its highest level in 33 years. Driving demand is an available supply of high-quality, consistent beef coming from better-quality genetics. Global beef exports are at record tonnage with year-to-date exports representing 18 percent of U.S. beef production. Hide, offal and by-product value are the highest since January of 2015. Simultaneously, severe wildfires and drought
producers are trimming 25 to 30 percent of their bottom-producing cows. Depopulation and other factors have increased cow slaughter numbers, yet prices are holding strong. There is robust demand for ground beef and hamburger meat. Imports of frozen grind from Australia are down significantly this year as the country has gone through major herd liquidations due to drought. Australian cattlemen are in the mode of rebuilding herds but doing so at historically high cow prices. Are $2.00 a pound feeder calves in our future? Cattlefax and most all beef cattle economists in the country are predicting sharply higher calf prices over the next two years. The highest since 2015. This will translate into higher bred heifer values and higher bull prices. In fact, early fall bred heifer sales this season are stronger than a year ago. We likely are not going back to a 60-year low cattle inventory. Yet, as strong domestic and global beef demand, tightening cattle supplies and production cost pressures in areas devoid of moisture continue to come to confluence, our potential profitability stream could be another one for the ages. If you are considering adding replacement bred heifers to your herd or replacing or adding breeding bulls, now may be the time. There is not a more opportune time-horizon to increase cattle inventories with proven genetics. Investing now gives you the opportunity to sell calves in an upturn market, advance your genetics and position yourself ahead of the market. Back to proven genetics. Just today I received a call from a cattleman who said he appreciates our cow scoring system, which includes an annual drill of scoring feet and legs of every animal on the ranch. “I’ve had too many bulls with bad feet that left me with daughters with bad feet,” he said. We are getting more and more calls on the same subject matter. Understand the management practices of your seedstock provider. Be certain your genetic stock is vetted and comes from sound disciplined programs like Town Creek Farm.
