My first lesson in cattle raisin' is that a cow is a female. Dan the Cow Man does not raise cows to eat. Dan raises steers. A steer is an animal that started out as a bull, but he sent his oysters off to the Rocky Mountians. However, for the next year I will continue to refer to Dans animals as cows. There were two main reasons for this: 1) I’m not a rancher, and 2) it annoyed the hell out of Dan the Cow Man. So please know that as I write and tell you this story, anytime I refer to cows, I am actually meaning a boy cow that has had a nut cut, which is a steer.
Well Dan has about 50 head of cattle. All of them are steers destined for the dinner table. I ask a lot of questions, partly because I’m curious, and partly because it drives Dan crazy. So Dan tells me that yes, there is a cow that is mine. His number is J-13. No, he didn't name him. No, his daughters didn't name him. Yes, we can pick one. He offers two suggestions – Butch or Chuck. “J” and I choose Chuck. Chuck, with yellow tag J-13, is our cow. Of course we ask for a picture and Dan brings in a photo of a heard of 50 cows. All of them are black. There is an arrow pointing to some cow in the back of the heard with Chuck written above it. He assures me that is Chuck. At this point I start to question whether he really has a cow picked out for me, or if I’m just going to get one out of the heard.
I start to tell my daughters about Chuck. I ask Dan the Cow Man if I can bring my kids out to the ranch so they can see Chuck. He agrees and I figure sometime when summer rolls around, I'll take the kids out to see Chuck. He lives about an hour or more from my house. The old ladies at work think I'm horrible. They can't imagine that I would take my kids to see an animal that we're going to eat. Dan agrees with me that its a good thing. Now, I never really get around to taking the kids out to visit Chuck, mainly for two reasons: 1) Chuck lives an hour and a half or so away from me. and 2) I'm terrified that when I show up Dan is going to start assigning chores - and frankly - I'm lazy.
Periodially I give my girls updates on how Chuck is doing, how big he is getting, and how tasty he is getting.
Now one day Dan comes in and wants to be sure J and I are going to buy this side of beef. We confirm that we are. He explains that he needs to know because he's getting ready to send most of the heard off to the sale barn.
Here was my second convoluted lesson in cattle. Supply and Demand in the real world. How does the cost of oil affect the cost of beef? Well of course it costs more to run the machines to get the hay, more to transport the cattle, more to pay the meat packers, so the beef will be more expensive, right? Well, not so much.
The cost of oil has gone up. That causes an increase in demand for alternative fuels. Corn being the main ingrediant in alternative fuels, we see a spike in the price of corn. From $2 a bushel to $4 per bushel. Corn is also the main ingrediant in corn fed beef. So if the cost of the ingrediants go up, the cost of the beef will do what? That’s right, it will drop.
How the hell does that work?
Well, a rancher has a bunch of animals. He knows how much corn each of those animals eats every day. He knows how much its going to cost him to feed those animals every day. He also knows that cows are a commodity. That means that the person selling the cows doesn’t set the price. He doesn’t say “Give me $2.00 per pound for this cow.” He says “I’m selling this cow, how much will you give me for it?” The buyers at the auction barn dictate the price.
So he knows that his cost to raise these animals is about to double. So he has to get rid of them. Now the market is flooded with lots of people getting rid of their animals. In addition to that, not very many people are going to want to buy this animal. The increase in the cost of corn has decreased the demand for the animal. As demand drops, so does the price.
All of that is in the short term. Long term – all of those animals have been raised, killed, and eaten. Now the supply is down. As supply drops, price goes up. So in the long run, the price of meat will go up, but in the short term when the food goes up, the cost to buy the animal goes down. See, corn is not an input into the cost of a cow, corn is an expense in owning the cow.
Anyway, so Dan the Cow Man sells most of his heard, but he keeps Chuck back. Yes, Chuck, yellow tag J-13 is getting big and tasty and is well on his way to winding up on my triple burner, Brinkman Propane gas grill with the side burner so you can cook your beans!
Quiok - another lesson: when you take the cattle to the auction you get paid by the pound. You get your cows there early in the day and they put them in a pen. They stand around in this pen all day until its their turn to get sold. If you've got it in good with the Auction guys, they'll let you go first. If not, you might have to wait until the end of the day. While your cows are hanging out in the pens at the auction place, they get stressed out and loose weight. They can loose some crazy amount like 5% of their weight. So if you're selling cows, get in good with the auctioneer so you can sell them first thing in the morning!
Labels: Chuck