Reference Library

Learning Your Way Around Your Local Auction Barn

by Roland Davie, Owner,
Decatur Livestock Market

Texas Longhorn Trails, June 1997

In certain circumstances, your local livestock auction barn may be a good place to market your cattle. Perhaps you are utilizing Texas Longhorn genetics in a crossbreeding program and are producing calves that are in demand by stocker/feeder buyers. Or as a purebred breeder, you may have spotted an animal that is not up to your standards in some way-age, infirmity, temperament-and that you do not wish to pass on to another registered breeder (especially if the animal is wearing your brand). Then again, you may simply need to move your cattle quickly because of personal emergencies, drought, lost leases etc., and cannot wait for a more advantageous registered consignment sale. Following are some tips on selecting a local auction barn, which may be useful, especially if you are new to the livestock industry.

As an overall statement, the purpose of the sale barn is to bring the point of sale closer to the producer. Basically, it is a chicken and egg situation: the barn needs to have plenty of good cattle consigned in order to attract good buyers and plenty of good buyers to attract good cattle. "Although all sale barns are government regulated and audited and must be bonded and insured, there is a difference." My concept of an auction sale barn is to provide customer service in a consistent manner and depend upon commission as a source of revenue (as opposed to trying to trade in cattle).
What To Look For
To maximize your profits, find one whose mission is to maximize return on the customer (seller) assets. First, make several visits to your local auction on sale day. I would look for a barn that did not have potential for conflict of interest, i.e. I don't want the "house" trying to buy my animals to take somewhere else for a profit. Next, watch the buyers. I would want to see several order buyers and packer buyers who get paid on commission or salary as opposed to mostly brokers or traders who make it by buying low and selling high. At Decatur, we do not cater to the "trader" or "insider" because we want "fresh" cattle that will attract the large order buying companies and larger individual buyers. Like most businesses, the auction barn is somewhat a relationship issue. Do you feel comfortable with the people you are dealing with?
What To Do
Most barns have regular hours for receiving cattle, but will make accommodations to receive your cattle any time. In our case, about 70% of our shippers bring their cattle in on Sunday for Monday's sale, but some people bring them in on Saturday or sooner. A few wait until sale day morning, but this puts your cattle farther back in the sale. While we do not have trucks to pick up cattle, we do have insured haulers who will coordinate for the producer. Some barns, which service a very wide area, may have central points of pickup where the cattle will be picked up and taken to the sale barn. When you deliver your animals, the government requires that you provide your name, address, license tag number and county from which the animals were shipped. If cattle are mortgaged, we usually get a security interest notice from the banks and are required to issue a two-party check. Registration papers are more useful at a special sale where we know and can advertise what will be there. Most of the papers at a regular auction are never claimed by the buyer. The most common USELESS information is someone bringing in a 4+ year old bull and giving papers and a story of how good he is. Normally, no one wants an old bull except the packers. The same for a yearling bull calf. Not many people want to buy a bull and wait 6-10 months to use him. Other information that is really NOT useful for 1-10 head which will be processed with 100+ other cattle at the conditioning yard is, they have had all their shots" especially when "all their shots" includes only black leg. However, if the seller has 10 or more calves of some uniformity, it is an advantage to know that they have had respiratory vaccines, etc.
What Will It Cost?
A sale barn will charge you a commission, certain required fees, and fees for services that you may request. At the present time, we charge a $7.00 minimum commission for a regular sale, 3% up to $400/head and 2-1/2% over $400. If you wish, we can palpate, fertility test, dehorn (not used very often for Longhorns), etc., for a fee. Government charges include: $1/head for Beef Council; 35 cents head for brand inspections; 15 cents/$100 insurance and 50 cents/head for bang test. Other charges include Yardage @ $1.00 head and Feed ($2/day for bulls; $1.50 day for cows; $1/day for calves; and 0 for babies. The customer may bring his own hay/ feed, and we will credit his bill. Cattle brought in on day of sale are not put onto feed nor is there a feed charge.
What To Expect
Generally, the sale order is bulls first, then cows and pairs, followed by calves. You do not need to be present when your cattle sell. If you want to leave a minimum price, you may do so at time of consignment. If your cattle do not receive a bid that meets your minimum, then they will be P.O.'d (passed out), and you are charged $7/head P.O. charge, However, with the number or order buyers at our sale, the cattle will sell for market value for that day. At times, the barn will buy cattle that the buyers seem to be reluctant to pay market value for or as necessary to protect the floor prices. We resell the cattle the next week, normally at a loss, or at best, break-even. Our sales are video taped in case there are questions about the transaction, and we will send a copy of the person's animal selling in event of a concern. At Decatur, your check will be ready within 15-30 minutes from the time your cattle sell. If your check has not been picked up by noon the next day, we mail it to the seller.
Getting Top Dollar
Raise what the buyer's want-whether it's the feedlot, packing houses, or recreational cattle buyers. Have your cattle healthy and in moderate flesh. Have a uniform group that can be sold together. And, work your bull calves!

 Reference Library

TEXAS LONGHORNS: A SYMBOL OF WESTERN HERITAGE AND BREED OF ECONOMICALLY IMPORTANT TRAITS FOR THE BEEF CATTLE INDUSTRY
by Dr. Bob Kropp, Oklahoma State University
Chairman, Breed Advisory Committee -- Texas Longhorn Breeders' Association of America

Evolution is a strange and wonderful process that has been responsible for the creation of a multitude of forms and shapes in the kingdom of nature - forms and shapes that are unique to their time and totally adaptable to the environment in which they evolved. The Texas Longhorn is such a creature.

The Texas Longhorn, an evolutionary marvel, traces its history from Texas to Mexico, to Spain and finally back to Africa. Columbus landed cattle in Santa Domingo in 1493 on his second voyage to the New World, and 29 years later in 1521, Gregorio de Villalobos brought the first cattle from Santa Domingo to Mexico. Explorers, settlers, and expeditions to establish missions brought cattle into Texas. These cattle propagated as they escaped, were scattered by Indians, or abandoned when missions failed.

Thus began the second phase of the evolutionary process that began as these cattle were put aboard ships. Space limitations allowed for a minimum of food and water, and as days at sea lengthened into weeks, the elements took a great toll on animals totally unaccustomed to the conditions. It is probable that the losses were extreme, and hardiness, a major trait of today's cattle, first began to function as a genetic trait.

The crucible of evolution and its nursery was between the Rio Grande and the Nueces Rivers of Texas. Texas Longhorns were unique in that they could be fattened on the trail. A trickle of the flood that was to follow began in 1846 when the first documented drive to Missouri occurred. These cattle were held in Ohio that winter and sent to eastern markets in 1847.

During the 1850s, sporadic drives of probably less than 1,000 cattle each were moved north. By 1860 the census recorded 31 million people and 26 million cattle in Texas. However, when the Civil War closed the northern markets, the trail drives were turned to the east and Texas beef began to supply the Confederacy. The eastern drives had many new and different obstacles. The rivers, swamps, and vast timbered areas were extremely difficult to negotiate, and the herds were consequently smaller than those that were driven north over the open prairies. The northern movement of Texas Longhorns was resumed after the Civil War because the demand for beef had driven the price of sirloin steak in New York to the exorbitant price of $0.25 to $0.35 a pound.

In 1866, over 260,000 head were moved up the trail to Kansas and Missouri, but less than half reached their destination. The herds were driven by cowboys, many of which were in their teens, 14 to 19 years of age. They faced constant hazards from storms, floods, Indians, and those who would steal the herds.

The trickle that had begun in 1846 became a flood, as over 10,000,000 cattle were sent over the northern trails before they were closed. More than 700,000 cattle were driven north in 1871, the year of maximum effort. The trail herds of the 1860s and 70s probably averaged 2,000 to 2,500 cattle. They were driven by about 12 men or boys, a "boss" driver, and a cook. The cowboys received an average of one dollar per day and with the traveling rate of 10 to 12 miles per day, were on the trail for a minimum of two months.

Nature produces animals that all possess a single common denominator, environmental adaptability. It is this common denominator that is sometimes called survival of the fittest. Nature is a harsh master; if you cannot adapt, you perish.

The evolutionary process created a breed of cattle that had a body size commensurate with the availability of food, a breed of cattle that developed horns for protection, allowing the dominate males to propagate the breed. Polled or non-horned cattle did not survive.

Thus was created the Texas Longhorn, imported into Texas, defined and refined by nature, tested by the crucible of time, found not wanting, responsible for the economic recovery of a Sovereign State after the Civil War and finally in a few short years, man in his infinite wisdom did begin, in his opinion, to "improve" these fine cattle and improved them to the point of near extinction. This improvement began with the importation of bulls of "new" breeds from England and Europe. The mating of Texas Longhorn cows to these bulls and the resulting crossbred progeny bred back to similar bulls increased the "beefiness and fleshingability" of the cattle. In the space of only four generations, the traits that had evolved through decades of natural selection of Texas longhorns under range conditions began their swift decline into obscurity.

The Texas Longhorn was nearer extinction than the buffalo or the whooping crane, when in 1927, the federal government appropriated $3,000 for the requisition and preservation of a herd of Texas Longhorns. U. S. Forest Service employees, John H. Hatton and Will C. Barnes traveled for over seven years through Texas and Mexico to discover and acquire 20 cows, 4 calves, and 3 bulls with which to develop a herd that was the remains of some 40,000,000 cattle in Texas only 60 years before. Thus, the development and maintenance of a once proud breed was placed in the hands of the federal government at the Wichita Mountains Wildlife Refuge near Cache, Oklahoma. Despite the scarcity of good bulls, soon the WR herd had grown to 67 head. Today the WR program represents, to many, one of the finest herds of Texas Longhorn cattle in the world. What began as a careful and well-documented, yet nonetheless hurried, effort to preserve the Texas Longhorn breed developed into an extremely sophisticated cattle-breeding program. The WR herd numbers 32 bulls, 148 cows and 100 steers that all trace back to the original 27 head purchased in 1927.

By 1964 with over 2,500 Texas Longhorns in the United States, the Texas Longhorn Breeders Association of America was created to preserve the cattle and perform the registration requirements to maintain a herd book and follow the ancestry. Today the membership totals over 3500 members and a total registry of over 200,000 head.

Thus, the breed was created, evolved, became virtually extinct, and seemed to be relegated to being preserved only for their historical significance and heritage when a new awareness of the significance of their genetic capabilities became dominant in the mid 1970s. The Texas Longhorn developed many traits, genetically coded into its being, that have many viable economic benefits that can be utilized by today's beef producer:

  • LONGEVITY - a result created by the fact that the longer-lived cattle produced greater numbers of offspring and gradually infused this genetic component into the breed.
  • CALVING EASE - the natural result of calving difficulties causing the early and swift demise of those cows that did not give birth easily and without undue problems.
  • DISEASE AND PARASITE RESISTANCE - a subtle but important attribute. Susceptibility to disease and parasites soon depleted that type of cattle.
  • BROWSE UTILIZATION - the sometimes harsh environment, that was the nursery of evolution, demanded that the cattle do well in times of drought as well as in times of plenty.
  • HARDINESS - a trait directly connected to "survival of the fittest.
  • FERTILITY - a genetic trait dominant in evolution of a species. A species is fertile, or it dies out.

The cattle industry began to appreciate the value of the genetic traits possessed by the Texas Longhorn and making use of them through the use of F-1 or one-half Texas Longhorn brood cows. This combination, when bred to a bull of yet another breed, produces a three-way cross calf that is a complete product.

Jim Hutchinson of Berryville, Virginia is a dedicated Texas Longhorn breeder as well as a commercial cattleman involved in a fully integrated USDA - certified natural beef company (Shenandoah Natural Beef, Inc.) which breeds, backgrounds, feeds, processes and sells retail/wholesale natural beef to supermarkets, restaurants and direct to the consumer. His main concern is not the color of the hide or the length of the horns, but how much it costs to maintain a cow, raise a calf to weaning, how fast the calf will gain on pasture and how well the calf feeds, yields when slaughtered and whether the final product-BEEF- is tender, juicy and flavorful!

The goal of most Texas Longhorn breeders that would like to see the Texas Longhorn cattle have a greater impact on the future of the beef cattle industry is simply to maximize the positive influence of Texas Longhorns on the beef industry and to do so in a way which increases the value of registered Texas Longhorn cattle. Given the demographics of the beef industry and the positive and negative characteristics of the Texas Longhorn breed, it appears that the Texas Longhorns can have their greatest impact on the American beef cattle industry by using them in commercial crossbreeding programs. Today's consumer is demanding a leaner, highly trimmed, but palatable portion of beef. Packers, feeders and commercial cow-calf producers are now focusing more consumer needs and desires as far as carcass specifications are concerned. By utilizing the desirable genetic characteristics of Texas Longhorn cattle, Mr. Hutchinson has been able to produce a commercial cow that will wean 50% of her body weight in calf and the calf will grade Choice with a minimal amount of external fat deposition. Animal scientists across the country as well as successful commercial cow-calf producers have long been proponents of crossbreeding to increase the efficiency of beef production. He has found that a basic English bred cow bred to a well-muscled Texas Longhorn bull will produce an excellent F-i replacement female. Other outstanding results have been found by crossing Salers, Gelbvieh and Simmental to Longhorn cattle. Regardless, the mating of a F-1 Texas Longhorn crossbred female to a bull of a third breed to produce a three way cross feeder steer has been ideal for his operation. Data from the USDA Meat Animal Research Center, Texas A&M and other Texas Longhorn breeders have shown that Fl and three way cross steers possessing Longhorn blood have performed well, while producing well marbled carcasses with little fat trim.

The Hudson Ranch near Manhattan, Kansas is one of the largest and best-known commercial cattle operations in eastern Kansas. Covering over 10,000 acres of some of America's best agricultural land, the Hudson Ranch carries 1000 cow/calf pairs and summers over 500 yearling annually. In 1978, the owners of the ranch went in search for bulls to breed their first calf heifers. After researching several breeds, the decision was made to use Texas Longhorns primarily because of their calving ease. The manager of the ranch, Dave McKinney, was against the idea. He commented, "I thought that we could get the same calving ease with a small Angus or something. When they started keeping the Fl heifers, I really had a negative attitude. But after they had their third calf, I began to see that these cows were doing a good job. They had even udders; the calves were kind of even coming off of them, and they provided a real rich milk that produced a real nice looking set of calves.

Dave is a graduate of Kansas State University in Animal Science and Industry with an emphasis in Beef Production. Shortly after taking over as manager, Dave put some of his schooling to use by doing a study. The Hudson Ranch herd is divided into three separate groups. They had some primarily Angus, Angus/Hereford cross cows that they put with Charolais bulls. The second herd consisted of British/Charolais cows that they placed with Simmental bulls. The third herd was a herd of Texas Longhorn cross cows that were placed with Simmental bulls.

The study was conducted over a three-year period. "In each group we had a control group so that they were all pretty much treated the same," Dave explained.

"We weighed the calves at birth, at 45 days, at 100 days, and at 210 days," he continued. "The Longhorn calves at the end of 45 days were always the lightest calves. That's about what you would expect. But, what we found was that at the end of 210 days, they had actually caught up." In each of the three years, the calves out of the Longhorn cross cows had the highest average daily gain (ADG).

Other genetic traits that the Texas Longhorn seems to throw into a crossbreeding program were high fertility and continued calving ease. In each of the six years that McKinney has been managing the ranch, "the Longhorn cows have had the highest conception rate. The other two herds will run 94% to 95% which is pretty good. But, the Longhorn cattle will run 96% or better. They just breed back better."

And when it comes to calving ease, "even with the half Longhorn cow bred to a Simmental bull, we just don't have any problem. They'll have 70 to 75 pound calves even out of bulls whose records predict 100 lb. calves."

"In fact," he announced, "we get a little reckless with the bulls we put on the Longhorns. If we have a bull that has a history of problems or maybe he has a record of 110 lb. calves, we just make sure he goes with our Longhorn cows."

"The bonus is not having to be out there baby sitting them during calving season!" he said with relief.

So what's the future of the Texas Longhorn on the Hudson Ranch? "Over the next year or so I expect it will expand to about a third of the herd McKinney predicted. We've got about 600 head of yearlings bred to the Longhorn bulls this year, and I imagine we'll have a good number to pick from for replacements."

Has Dave's attitude changed about the Texas Longhorn? At a sale held in Manhattan this past spring he was overheard to say, "When we first started using the Longhorns, we kept the calves in the back and sent them to market separate from our other cattle. After working with them for the past few years, now we' re bragging about them!"

What commercial cattlemen would pass up the opportunity to own a small to moderate sized cow (900-1100 lb) which eats less, lives longer is extremely fertile and produces over 50% of her body weight in a calf that grades Choice with minimal external fatness.

The Texas Longhorn has become a symbol of survival. It evolved, prospered, was brought to the brink of extinction, recovered, and is now on the way of again becoming one of the world's most useful breeds of cattle.
Reprinted with permission of Texas Longhorn Trails Magazine
  and/or TLBAA (Texas Longhorn Breeders Association of America)

Lucky S&L Ranch P.O. Box 18757 Corpus Christi, TX 78480-8757
Phone: (361) 949-7197(H) or (361) 949-6919(O) Fax: (361) 949-7405

 


 
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