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My feed dealer hanging it up.
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bgunzy
Posted 12/31/2007 08:30 (#271799 - in reply to #269913)
Subject: Re: My feed dealer hanging it up.



Humeston, IA
Good night! $20K loss/month just because there's some competition (or he lost some previous customers)? Did he build a brand new feed mill, or leasing one for a dear price?

In these tighter times for cattle producers, the feed mill, in order to keep it's shirt, has to show how a producer will be money ahead by using it's products/services. Otherwise, there's no reason for them to be in business.

Is Silver Moon/Milbank Mills competiting with him, too? If so, what are your thoughts on them?

When I go out and talk to guys about DDGS (which I sell), I point out that it is the most economical source of protein for their cows and calves at this time. I also try to build them a ration, depending on their forage quality, so they know they are feeding their livestock the right amount, not over or under feeding.

The "commodity mix" product sounds nice, and I'm guessing it's a mix of DDGS, gluten pellets, and soy hull pellets. Nice stuff, but it's a shotgun approach. Soy hull pellets are priced WAY more than they are worth. Gluten pellets should be less than DDGS, because of energy and protein levels, but this year they are not. It would be better to have a semi-tailored ration based on forage quality and other feedstuff availability (corn, oats, etc).
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