Understanding the Cattle Market: Tips for Buyers and Sellers

Posted by John on April 22nd, 2018

The Canadian cattle market can be highly volatile, and often reacts to factors beyond our control.This includes adverse weather, government foreign trade policies, high feed prices, and variations in supply and demand. In order to survive this bustling market, it is helpful to have some tips for success. Since every market is made up of both buyers and sellers, we have broken our tips down into two categories: sellers and buyers. Below you will find the most essential tips for each.

Seller Tip 1: Be Patient

A successful cattle program requires one ingredient above all: time. It takes time to put together a genetics program that will appeal to a broad base of customers. Genetic programs can take years of testing to get the exact results you want, and can require additional time to learn what customers need and how to market to them. After all that, it can take even more time to become established in the marketplace as a name people recognize and can trust.

Seller Tip 2: Let Your Customers Be Your Best Sales Staff

The best kind of advertising is often word of mouth, especially in the cattle business. Once you have developed a program customers are enthusiastic about, they will pass along that enthusiasm to others. It is important, therefore, to be sure you have an army of happy customers, ready to spread the word!

Seller Tip 3: Provide Plenty of Information

Understand that cattle can be a complex purchase, so prospective buyers crave as much information as they can get their hands on. If they don’t know something, they may pass you by for the seller who does have the information they need. Remember that there are many questions a buyer should ask (if they are doing their due diligence). Having the right answers ready will make it much easier to make a sale.

Seller Tip 4: Be Prepared for Market Fluctuations

The old adage, “the only constant in the world is change,” surely applies to the Cattle market. You never know when the market will change for good or bad. It is always important to manage your inventory and control costs in case of pricing downturns.

Buyer Tip 1: Always Have a Plan B

So you’ve found what you believe is just the right animal to add to your herd. If it is really an attractive animal, the chances are you won’t be the only prospective buyer. You might be able to beat others out in some instances, but you won’t get lucky all the time. Therefore, be sure to have a backup plan. If you can’t get this particular animal, be prepared to do some additional legwork to find what you want.Rank the animals currently for sale so that you can have an alternate plan of action if needed. If first place is already sold, go to number 2, and so on.

Buyer Tip 2: Study all Available Information

Make sure to get access to the sales book and any available videos. If the information is somehow incomplete, be sure to ask. Most sellers will be happy to fill you in on the latest data. Be sure to ask questions about preventative health measures taken (and when). Remember, you can never have too much information when making an important decision.

Buyer Tip 3: Always Look Before You Buy

Be sure you get a look at your cattle before you buy. Be sure they look generally healthy, and make sure the size and average weights are what you are looking for.

Buyer Tip 4: Expect the Unexpected

Buyers must be prepared for contingencies. Market prices can increase just as you are ready to buy, or something could happen to make your first choices unavailable. Be sure to havean idea of estimated costs and a plan (including your Plan B). It’s always a good idea to budgetmore money than youthink you needfor situations where the animals you are interested in are selling for top dollar.

When you are ready to buy or sell, be sure to check out https://www.agbuysell.com/ where you will find an online Cattle market catering to producers from all across Canada!