Download Room S-133B Objectives Give an overview of seedstock marketing

AnSci 3085 Sec 4
Marketing
Dennis Fennewald, M.S.
573-882-1833
[email protected]
Room S-133B
Objectives
• Give an overview of seedstock
marketing and the trends
• Give students the tools to make better
marketing decisions of commercial
calves
Syllabus
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Seedstock – Marketing Bulls
Commercial – Bull Purchase
Commercial – Calf Marketing
Trading Stockers
Field Trips
Required Reading
UMC BRTF Herefords
Seedstock
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Foundation
Branding and Advertising
Producing bulls
Marketing bulls
Customer Service
Commercial
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Buying Bulls
Foundation
Creep-feeding
Adding Value to Feeder Calves
Retaining Ownership
Trading Stockers
Field Trips
• Stockmanship – Bud Williams Methods
taught by Richard McConnell and Tina
Williams
• No-Risk Ranching – Greg Judy
• Dates are April 12 and May 3.
Reading
• Beef Sire Selection Manual by NBCEC
• The 22 Immutable Laws of Branding by Al
Ries
• Good to Great by Jim Collins
• No-Risk Ranching by Greg Judy
Optional Reading
• Extra Credit!!!
• 12 different titles to choose from!!!
UMC BRTF Herefords
• Website
• Pictures – submit 3 photos
• Ads – team effort
Policy
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NO cell phones, video, or laptops
Bring paper, pen and calculator
Ask questions
Come to my office
Show up for Class
Grading
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Participation in Class
Attend 2 Field Trips
Reading – Extra books are Extra Credit
Website
Pictures – submit 3 photos
Ads – team effort
Quizzes
Final Exam – bring calculator
Seedstock Marketing
History
Seedstock - History
Prior to early 1900’s
– Hereford, Shorthorn and Angus Assoc
formed
Early 1900’s
– Formation of Beefmaster, Santa Gertrudis,
Brangus, Barazona, Braford
– Brahman Assoc formed
Seedstock
1955 -1975 Hereford and Angus found Dwarfism
Prospector 7558
-bred to over 100 dau
High Valley 7D7
-dwarf carrier
Seedstock - History
1960’s to early 1970’s -imports of CH, SM, GV,
TA, SD, LM, SA, MA, CA
Seedstock
Expanded options allowed unplanned
crossbreeding, also known as ……..
Seedstock
1990’s - AAA starts to see success by promoting a
simple breeding and marketing program
1998 - AGA forms Balancers
-Increase production and promotion of hybrid
bulls
Seedstock
Seedstock – 2005
Market Share, est
Type
British
Continental
American
Total
Reg
428,797
223,677
57,417
709,891
% of Total
60
32
8
• Top 10 Breeds have about 90% of Market Share.
• Top 7 bos Taurus Breeds have about 84% of
Market Share.
Seedstock – 2005
Market Share, est
Breed
AN
AR
HH
SH
Total
Reg
298,770
43,201
68,826
18,000
428,797
% of
British
70
10
16
4
% of
Total
42
6
10
3
60
Seedstock – 2005
Market Share, est
Breed
CH
SM
GV
LM
CA
MA
SA
Total
Reg
73,542
43,906
27,508
39,595
8,636
11,490
19,000
223,677
% of
Conti
33
20
12
18
4
5
8
% of
Total
10
6
4
6
1
2
3
31.5
Seedstock – 2005
Market Share, est
Breed
BM
BR
SG
BN
Total
Reg
19,017
8,000
7,500
22,900
57,417
% of
American
33
14
13
40
% of
Total
2.7
1.1
1.1
3.2
8.1
Seedstock – 2006
Breed
• AN
• AR
• HH
• CH
• SM
• GV
• LM
Reg in MO
22,107
2,344
3,200
3,402
2,839
Rank in the US
4
8
6
4
4
Seedstock
• Early 1900’s – Shorthorn
• Gain due to Eastern Dominance (dual purpose)
• Lost due to Western Expansion?
• 1927 – Longhorns had to be saved from
extinction
• Mid-1900’s – Herefords (H & P)
• Gain due to Western Expansion – worked better than
Shorthorns in the West
• Lost due to dwarfism (Snorter)
• Horns
Seedstock
• Early 2000’s – Angus
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Gain due to CAB (Angus Mania)
Promote simple breeding program
100% Polled
Aggressive leadership
• Lost due to ………..?
– Over-confidence
– Arrogance (every Angus is better than the competition)
– Commercial producers rediscover hybrid vigor
Seedstock Marketing
Commodity or Consumer Monopoly
Business purpose
To create a customer
Commodity
• Where the decision to purchase the product
is based on PRICE
• Producer has very little control over setting
the price
• You can “take it or leave it”
Commodity
• Typically the ROI is less than 12% (the
average ROI in the stockmarket)
• ROI is totally based on being a Low-Cost
Producer
Consumer Monopoly
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If the store does not carry it, they lose sales
ROI potential is greater than 12%
Inflation does not impact the ROI
Elite, brand name
Consumer Monopoly
• You can’t live without it.
• Manufacturer hopes it gets used quickly so
you have to come back to buy more.
Seedstock Producer
• provide genetic material in a user friendly package which
improves the profitability of the commercial producer.
• Provides customer service which may include education,
buy-back, etc
• Sells Genetic Value, not Pounds.
• Deliver what you promise
• Fill their needs/wants