| The SSDB can
arrange sales for any producer requesting the service. The sales can be
of breeding stock, feeder lambs, or slaughter and lambs. The marketing
plan also gives the board the authority to sell goats. However, the
board is not a single desk selling office there is no obligation
to sell through the board.
| Charges Include: |
 |
Handling Charge: |
1.75 |
paid to the SSDB |
| |
Yardage: |
1.25- 2.00 |
paid to the assembly yard, includes weighing* |
| |
GST: |
.21 |
|
| |
Insurance: |
.50 |
producer fund - covers losses |
| |
Total: |
3.71- 4.46 |
|
| |
*worst
case: yardage at two locations |
Producers are responsible for shipping costs from
their farm to the assembly yards. Buyer covers the cost of shipping from
the assembly points to destination.
Determining whether to sell Rail Grade, Live Weight
Rail grade sales are based on finished weight and
condition of the carcass. In most cases good producers whose animals
yield in excess of 50% should find rail grade results in more money per
animal. One draw back is not knowing the final price until after
slaughter. Currently, Sunterra is the only company offering this
option. Producers can forward contract with them.
The sales arranged by the SSDB are live weight sales.
This type of sales is of greatest benefit to producers who like to know
the price they will receive before they ship. The producer then has the
option of selling or not selling at that time. The buyer benefits from
the advantage of full semi loads in transportation saving and easy
access to large number of animals from around the province. The producer
with a smaller flock has the advantage of being part of the large load
that is bid across Canada.
| Typical Sale:
based on 100 lamb yield 45% |
 |
Weight: |
100 lbs |
|
| |
Shrink 3% |
0
lbs |
|
| |
Selling Weight |
100 lbs |
carcass yield 48.5 lbs |
| |
Price |
1.30 |
price (spring 2007) |
| |
Total |
130.00 |
|
| |
Selling Fees |
3.71 |
|
| |
| |
Cheque mailed to producer $126.29 |
| |
Equivalent carcass price $2.68 /
lb |
The auction sales are another example of live weight
sales. Auction sales can be specifically sheep sales or general
livestock sales. Sheep sales usually have buyers agents bidding on their
behalf. The prices at an auction are a combination of market price and
how many people are bidding. Obviously, the more competitive the bidding
the higher the resulting price. However, if few bidders are present
prices could be lower. Producers need to remember the bidders are
responding to visual appearance of the sheep in the ring. One or two
scruffy or poor quality sheep can lower the bids on the group. Sorting
the sheep can offset this problem. The cost to the producer is
approximately the same as selling through the SSDB.
|