Cattle for Sale: How to Buy and Sell Beef Cattle for Profit

Posted by John on April 1st, 2018

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 the main steps you want to follow to profitably buy and sell beef cattle.

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. That means developing 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. 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 estimate and forecast 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. There are many types of cross bred Cattle for Sale, and some breed variations are more popular than others. 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 market will 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 are willing to 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, the feed plan, and other items cattle need to be comfortable. These could include additional vitamin supplements and nutrients needed to enhance their rations and food supply.

Step 4: Plan for Care and Maintenance

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. One place to sell is at auctions, but if you have some quality Cattle for Sale, check out https://www.agbuysell.com/.We have hundreds of listings of commercial and purebred cattle for sale in your area.

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