1-14-2025 ICE UPDATE
Sale date 3/15/25

Videos are up on dvauction.com! https://www.dvauction.com/video_catalogs/11717-ichthys-enterprise-annual-production-3-15-25

Hello All:

Inching Closer…to having a sale catalog online at icecattle.com and dvauction.com. Ashley is bringing that about with a huge assist from Kristin.

What are They Gonna Cost?!? This is a perennial, important and particularly unanswerable question. I will once again explain where they are going to start (the base price) and try to give a defense for what they are worth, but what they ultimately bring I don’t know. But first, some history:
We started in the seedstock business in 2004 by leasing cows from Pharo Cattle Company (PCC), we were considered a Cooperative Producer (CP). I was delighted to be part of something more than our tiny operation, with a company whose philosophies I firmly believed in. At the time our agreement was to deliver weaned bulls to company headquarters where they would be developed and marketed for a production sale. The sale proceeds would then be divided equally between the company and the CP. I remember, at the time, thinking if our bulls could average $2500 each ($1250 our share) we would have so much coin we wouldn’t know what to do! $1250 for a 400-500 lb. calf was insane.

We all have blind spots: As time went by our sale average skyrocketed. By the end we were averaging over $5000/bull ($2500 take home). I’m not certain why it took so long but the mathematician in me finally kicked in. Though we were selling 80 bulls (or whatever the number was) for $2500 each, the uncut culls were selling in a local sale barn for $700 and we were getting $350. I taught math for 10 years and one of my first lessons for each class was how a zero affected an average. Because of the lure of a high dollar sale, I sent far more bulls than I should have, and we ended up with a LOT of culls. If you average 40, $350 culls in with 80, $2500 bulls you get an average revenue per animal of $1783. This was still a great price for a 500 lb. calf…but I thought we could do better.

Ichthys Beef: About 10 years ago my cousin, a police officer in California, came back for a visit and fell in love with our beef. He asked if he could buy some and, the next year, he built a cooler in the back of a pickup and hauled 2 whole beeves back to CA with him. He ended up sharing some with other officers and within 2 years he was renting a reefer truck and hauling a dozen beeves and several pork back. In 2020 we purchased a reefer truck and now make two trips to CA each year hauling approximately 70 whole beeves and 50 whole pork total. Needless to say (but I’m still saying it) we now do a little better than $350/cull.

I’m Getting There: We currently charge $6/lb. hanging weight for our beef (about $1 of that goes to processing) and we are having trouble getting enough culls to meet that demand. Any bull that does not sell in our March sale will be banded and fed to be ready for our butcher appointments in June or September. An 800 lb. carcass weight steer is bringing in $4000 of revenue (by the way, so is a heifer). I HATE the thought of turning our bulls into steers for two reasons: 1. We pour a lot of time and energy and thought and money into developing these bulls, and we really do think they will improve most herds. 2. These bulls have genetic and epigenetic expression that exist almost nowhere in the cattle industry. However, I’m not willing to give them away when we have an alternate, highly profitable direction for them to go. Our seedstock tastes amazingly wonderful as beef!

Building a Reputation in the Seedstock Industry…is like waiting for an acorn to turn into a mighty Oak. We absolutely do not currently have a reputation that is widespread. We have some dear and excellent customers, many repeaters already, who we are thrilled to have and are very thankful for. We certainly hope that our reputation continues to positively grow and that Ashley and Brett’s future for this cattle enterprise is bright. We have a distinct competitive advantage in at least two ways: we are an ultra low-cost producer and we don’t rely on the cattle operation for the majority of our income. We can afford to be tough on our cattle because the ones that don’t make it sell very well as beef and the ones that do make it don’t need to sell for $7000 each to justify their existence.

Based on All of the Above…and other considerations we plan to have a base price of $3500 on the bulls and $2500 on the heifers. From everything I weigh in the current cattle markets these prices still allow everyone to bid and get a good value, especially if they win an animal at the base price.

One Man: I recently heard the following quote (of sorts): There is only one man in your life that will root for you to accomplish and achieve more than he does…your father. I thought about this for a bit and it seems to have some merit. Friends may root for you but rarely would you find one who wants you to do better than they do. Same with brothers and other family members. It’s certainly true regarding neighbors, competitors, etc. I have been fortunate to have multiple good friends rooting for me (genuinely wanting and praying for my good) over the years. I have aimed to root for others as well (but not to the point of “more”). I believe, in fact, that I have had three men who fit the standard of wanting the above, my father and two grandfathers. It’s possible your father was not that man for you and that could be incredibly difficult. If you have a man or men who have been this for you rejoice and glad, you are blessed. Regarding friends: Romans 12:5 “Rejoice with those who rejoice, mourn with those who mourn.” Hebrews 10:24 “And let us consider how to stir up one another to love and good works,”. Philippians 2:4 “Let each of you look not only to his own interests, but also to the interests of others.” Lord-willing you have a friend like this, but some (most?) men don’t. Be that kind of friend and see what God does with it.