AnSci 3085 Sec 4Marketing

Dennis Fennewald, M.S.573-882-1833

fennewaldd@missouri.eduRoom 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

• Seedstock – Marketing Bulls• Commercial – Bull Purchase• Commercial – Calf Marketing• Trading Stockers• Field Trips• Required Reading• UMC BRTF Herefords

Seedstock

• Foundation• Branding and Advertising• Producing bulls• Marketing bulls• Customer Service

Commercial

• 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

• NO cell phones, video, or laptops• Bring paper, pen and calculator• Ask questions• Come to my office• Show up for Class

Grading

• 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 Reg % of TotalBritish 428,797 60Continental 223,677 32American 57,417 8Total 709,891

• 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

% of % of Breed Reg British TotalAN 298,770 70 42

AR 43,201 10 6HH 68,826 16 10SH 18,000 4 3Total 428,797 60

Seedstock – 2005 Market Share, est

% of % of Breed Reg Conti TotalCH 73,542 33 10SM 43,906 20 6GV 27,508 12 4LM 39,595 18 6CA 8,636 4 1MA 11,490 5 2SA 19,000 8 3Total 223,677 31.5

Seedstock – 2005 Market Share, est

% of % of Breed Reg American TotalBM 19,017 33 2.7BR 8,000 14 1.1SG 7,500 13 1.1BN 22,900 40 3.2Total 57,417 8.1

Seedstock – 2006

Breed Reg in MO Rank in the US• AN 22,107 4• AR 2,344 8• HH 3,200 6• CH• SM• GV 3,402 4• LM 2,839 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• 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

• 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