Feed prices affect livestock growers

By Libby James
North Forty News

Bill Conrad, sales manager at Ranch-Way Feed Mills in Fort Collins, says his company has a policy to reconsider and adjust the prices of the feed they sell every month.

"And the price never goes down these days," he said. "There was a time when we'd go four to six months without a price change, but not in recent months."

Livestock growers, from Jon Slutsky and Susan Moore who operate La Luna Dairy near Wellington to young people who raise animals for 4-H projects, are feeling the effects of the rising cost of feed for their animals large and small.

"The problem is ethanol," said Conrad. "When corn is used to produce ethanol, the usable share of grain in the country is reduced and the price goes up."

He further explained that the agriculture industry has become global and the dollar has weakened, both factors that result in higher prices. The escalating cost of oil directly affects the price of diesel fuel, making any product that must be moved from one place to another more expensive.

While Conrad said Ranch-Way's sales are remaining constant and he doesn't know of customers who are getting rid of their livestock just yet, he has seen customers switching to feed that is less fortified and less expensive, which may eventually make a difference in the general health of animals.

"I don't know just where everyone is cutting back, but I know that people who make a living from their livestock need to use high-quality feed if they intend to maintain the health of their animals," he said.

Slutsky and Moore milk between 1,300 and 1,500 cows and currently have 1,100 calves, for a total of 2,600 animals. That makes La Luna a big operation for Colorado but not when compared with dairies across the country. It employs 28 to 30 people.

"Feed is the biggest issue for us," Slutsky said. "Last year we were paying $180 a ton for soybean meal and today our cost is close to $400."

Like Conrad, he believes the decision to use corn to produce ethanol was the impetus for the spike in the cost of grain.

"It's immoral," he said. "Are we growing food or are we growing fuel? One day we'll find ourselves dependent on foreign food."

La Luna Dairy works in several ways to be as efficient as possible. It consults a nutritionist who carefully analyzes the animals' needs, cost of feed ingredients, the protein, energy and fiber content, and then creates a custom blend according to an animal's needs.

"You don't want to overfeed," Slutsky explained. "Too much protein has an environmental impact - it gets secreted in the form of ammonia and is released into the atmosphere."

In addition to balancing the rations of their animals, they sort them into corrals according to their production level and cull animals that no longer meet their production standards. To conserve fuel, they make sure their equipment is always in good condition, and they are careful not to idle machines unnecessarily. They have found ways to recycle water two or even three times, using it to cool milk and then feeding it to their cows.

Ron and Denise Haines raise alpacas northwest of Fort Collins and confront the same issues as other livestock growers as the price of grains, hay and fuel increase. Their 128 head live on grass, hay and a pelleted ration, all of which are more expensive these days.

The Haineses raise and sell alpacas for breeding stock. The animals are valued for their fiber and for packing into the mountains. They shear their animals and have the raw fiber milled into yarn, which they sell. They also hire women to make garments from alpaca yarn. Their wares are popular items at the National Western Stock Show each year.

In addition to operating their ranch with a couple of employees, they own and operate a manufacturing plant in Greeley where they produce hay feeders, stock panels and gates for the llama and alpaca industries.

"Alpacas are a luxury item," he said. "There will always be a market for them, and there will always be people seeking quality products."

Another facet of their business is boarding alpacas, and Ron said that while they aren't happy about it, they will soon need to raise their daily boarding rate.

The Haineses buy a year's supply of hay in the early fall each year. "Five years ago 70 tons cost us between $12,000 and $14,000," Ron said. "This fall we'll pay between $21,000 and $24,000. It's difficult to raise prices enough to meet that difference."

Pat Alger raises alpacas in Timnath and also sponsors the 4-H alpaca/llama project for Larimer County. Because alpacas are so expensive, Alger makes it possible for young people to participate in raising and showing the animals by lending hers to 4-H participants and allowing the animals to remain on her farm. She has 27 animals and her son Jonathan, 14, and daughter Victoria, 13, each have their own alpacas. Both earned trophies at the Larimer County Fair in 2007.

Alger also shears her animals and processes the fiber. She and her mother, Pat Blackburn, weave, crochet, knit and felt it into scarves, hats, felted insoles and felted soaps, which they sell at their own store on the property.

"We talk about tightening up," Alger said. "We've come up with our own formula for feed which has reduced our price from $22 to $8.43 for 100 pounds."

Alger is committed to staying in the alpaca business and even more dedicated to making it possible for young people to raise and learn about the animals through the 4-H program.

Russ Spence is Alger's counterpart in poultry. He serves as assistant superintendent of poultry for Larimer County 4-H and poultry superintendent for the National Western Stock Show in Denver. He has 100 birds of his own but said he's probably going to scale back to 50. Chickens are a sideline for Spence, who is a custom processor.

"You name it and I'll kill, cut and wrap it for you," he said.

In the last few months he's observed clients bringing in lighter cattle for slaughter. "With the price of hay what it is, people can't afford to feed for as long," he explained.

He said that this year the number of 4-H large animal entries is down for the Larimer County Fair because of rising costs. However, poultry and rabbit entries are up, a trend that he believes will continue as long as the cost of feeding an animal remains high.

While the higher cost of raising animals has had an impact on livestock growers young and old, the majority remain committed to their work and their 4-H projects. They may decide to tighten their belts and forego some extras, but they won't easily give up a lifestyle they love

Paragraph 9 error in the printed version was corrected here 08/02.