Feeder cattle dealer

Feedlots, backgrounding operations, cow-calf producers and other farms that want cattle of a certain weight, breed or quality.

You earn the spread between buy and sell price per head, after trucking, shrink, feed, interest and fees. Some dealers also take a commission when arranging sales for others.

• Grading cattle by eye and weight
• Tracking markets and negotiating
• Managing cash flow and risk
• Logistics and trucking coordination

• Dealer licences, bonds and payment protection rules differ by province, check your provincial regulator
• Cattle identification, traceability and movement reporting rules, check the CFIA
• Humane transport rules and trucker qualifications
• Commercial general liability, cargo or livestock cover and vehicle insurance, ask a broker who knows agriculture
• A single truckload of feeder cattle can cost well into six figures, so you need a credit line or working capital for at least one or two loads, plus bonding; selling loads to buyers before you buy reduces the capital tied up
• Large sums tied up in each deal, so a price drop, sick animals or a buyer default can cause serious losses
• Business Number and GST/HST registration, check how livestock sales are treated

Startup costs are typically around $100,000 to $500,000, depending on your working capital, credit line and bonding. A single truckload can cost well into six figures. Selling loads to buyers before you buy reduces the capital tied up.

Dealer licences, bonds and payment protection rules differ by province, so check your provincial regulator. Also check cattle identification, traceability and movement reporting rules with the CFIA, humane transport rules, trucker qualifications and GST/HST treatment of livestock sales.

Monthly revenue is estimated at around $3,000 to $15,000, with at least around 30 hours a week of work. Large sums are tied up in each deal, so a price drop, sick animals or a buyer default can cause serious losses.