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Livestock
Livestock & Forage
Buying running lambs to sell as shearlings
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<blockquote data-quote="Agrivator" data-source="post: 7249930" data-attributes="member: 461"><p>You can't predict what you can sell them for. All you'll know for certain is how much you paid for the first lot of ewe lambs - your initial capital investment.</p><p></p><p>When you come to sell them, you have no choice but to take what you are offered. The ''output'' or ''margin'' is what you then have to pay for their replacements. So if you sell the shearlings at £130, and you pay £85 for their replacements, your margin is £45, adjusted for mortality. Remember, what you paid for the first batch of ewe-lambs is history, it's irrelevant. </p><p></p><p>It's called current accounting. It applies equally to fattening bought-in stores. Or to buying and selling tins of peas.</p></blockquote><p></p>
[QUOTE="Agrivator, post: 7249930, member: 461"] You can't predict what you can sell them for. All you'll know for certain is how much you paid for the first lot of ewe lambs - your initial capital investment. When you come to sell them, you have no choice but to take what you are offered. The ''output'' or ''margin'' is what you then have to pay for their replacements. So if you sell the shearlings at £130, and you pay £85 for their replacements, your margin is £45, adjusted for mortality. Remember, what you paid for the first batch of ewe-lambs is history, it's irrelevant. It's called current accounting. It applies equally to fattening bought-in stores. Or to buying and selling tins of peas. [/QUOTE]
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Buying running lambs to sell as shearlings
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