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Glossary
of Terms...
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 ..Base
Weight... |
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The estimated net
weight from which "slide" adjustments are made.
Typically, it is the seller's best estimate of what the cattle will actually
weigh on the delivery day. It needs to be as accurate as possible
because any deviation from the base weight affects the final sales price.
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| ..Condition... |
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Thin - Ribs
are visible and there is no rounded appearance through the back and loin.
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Moderate Flesh
- Only a few ribs slightly visible and a slight rounded appearance
through the back and loin.
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Fleshy - No
ribs visible and there is a definite rounded appearance through the back
and loin.
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| ..FOB... |
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FOB literally means “Free On
Board.” It is the place at which ownership (title) of the livestock/goods
passes to the buyer and is the point at which the buyer is responsible
for shipping costs.
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| ..Frame... |
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Large - Cattle
have large frames, and are tall and long-bodied for their age.
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Medium - Cattle
have slightly large frames, and are slightly tall and long-bodied for their
age.
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Small - Cattle
have small frames, and are shorter-bodied and not as tall as cattle with
medium frames.
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| ..Gate
Cut... |
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"Gate Cut" describes
an equitable way to sort cattle being purchased if the buyer is not taking
all.
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For example, if
the buyer is only taking 20 head out of a group of 60 head, the cattle
could be put in the alley and the first 2 animals let "by" and the 3rd
animal "caught" in the buyer's pen. Continue the process until there are
20 head in the buyer's pen and they will normally be a fair representation
of the overall group of cattle.
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| ..Quality... |
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Fancy - Exceptional
quality
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Choice - Above
average quality
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# 1 - Average
quality
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# 2 - Below
average quality
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| ..Slide... |
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The term "Slide"
refers to an increasingly common method of establishing the final sales
price on a sliding scale based on the actual net weight of the cattle in
relation to the stated "base weight".
The purpose of a "slide" is to provide a simple and equitable mechanism
to adjust the sales price of cattle based on actual net weight.
For example,
consider a seller who contracts his steer calves for $1 per lb. at an estimated
or "base weight" of 500 lbs. with a 5 cent slide. A "5 cent slide"
means for every pound over 500 lbs., the sales price will be lowered by
$0.05 per cwt.
If the steers
actually weigh 515 lbs., or 15 lbs. over the base weight, the following
calculation will be made:
(15 lbs. x
$0.05 = $0.75), which results in the final sales price being ($1 per lb.
less $0.075 = $0.9925 per lb.) or $99.25 per cwt.
The amount of
the slide is negotiable, but some sellers stipulate that the slide be "up
and down" or work both ways. In the example above, if the steer calves
had only weighed 485 or 15 lbs. less than the base weight and the slide
was "up and down", the 5 cent slide would result in the sales price being
increased to $100.75 per cwt.
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Slide
Calculator... .Calculates
Price and $'s per head for various prices, slide rates, and base and pay
weights.
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| ..Unmerchantable... |
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Refers to an animal
with a physical condition(s)
that significantly reduces its value or "merchantabilty". This includes,
but is not limited to cripples, bad eyes, lumps, chronics, quinines, locos,
and sick livestock.
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