# pre- selling contracts



## hillside hay (Feb 4, 2013)

I was curious if anyone had ever pre-sold contracts for fall delivery of beef, pork or poultry. How did it work out for you that may have attempted this in the past or currently market in this manner? I had never considered this in the past but the local business model is changing due to the growth of CSAs in the area.


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## bbos2 (Mar 20, 2015)

I sell cattle on packer contracts. I really like it. Be prepared for big margins but its the protection you pay for. Some say it puts the ball in the packers court but it helps my risk management. Long term you probably be better off running open. I'd rather take a guarantee short term with the money it takes to play


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## hillside hay (Feb 4, 2013)

It might be worth it temporarily as in this area direct marketing is getting to be a race to the bottom. Beef and hay alike. What would a minimum contract be? I can only support 100,000 lbs. at the moment.


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## bbos2 (Mar 20, 2015)

Minimum contract is 50000 lbs. Basically a semi load of 34-36 fats. I shoot for them being born within 2 weeks of each other and 40 head to cover contract. If you get spread out more then 2 weeks you risk quality scores with yield grade and muscle scores. There are other packer contracts you can do tho. This just works for me. These are hard fed holsteins


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## endrow (Dec 15, 2011)

What is the age and weight of a finished hard fed Holstein.
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## bbos2 (Mar 20, 2015)

Usually for me I feed,them for 13 monthes, round 15 monthes old. Average 1450-1475


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## hillside hay (Feb 4, 2013)

So do you have to bid for these contracts or do they just have a list of what they are needing when?


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## bbos2 (Mar 20, 2015)

Packer will have so many available per month. They will follow current markets closely. Along with market spreads.


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## hillside hay (Feb 4, 2013)

Thanks for the information. Guess I gotta beat some bushes now.


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