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AnSci 3085 Sec 4 Marketing

AnSci 3085 Sec 4 Marketing. Dennis Fennewald , M.S. 573-882-1833 fennewaldd@missouri.edu 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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AnSci 3085 Sec 4 Marketing

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  1. AnSci 3085 Sec 4Marketing Dennis Fennewald, M.S. 573-882-1833 fennewaldd@missouri.edu Room S-133B

  2. Objectives • Give an overview of seedstock marketing and the trends • Give students the tools to make better marketing decisions of commercial calves

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

  4. Seedstock • Foundation • Branding and Advertising • Producing bulls • Marketing bulls • Customer Service

  5. Commercial • Buying Bulls • Foundation • Creep-feeding • Adding Value to Feeder Calves • Retaining Ownership • Trading Stockers

  6. 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.

  7. 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

  8. Optional Reading • Extra Credit!!! • 12 different titles to choose from!!!

  9. UMC BRTF Herefords • Website • Pictures – submit 3 photos • Ads – team effort

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

  11. 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

  12. Seedstock Marketing History

  13. 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

  14. Seedstock 1955 -1975 Hereford and Angus found Dwarfism Prospector 7558 -bred to over 100 dau High Valley 7D7 -dwarf carrier

  15. Seedstock - History 1960’s to early 1970’s -imports of CH, SM, GV, TA, SD, LM, SA, MA, CA

  16. Seedstock Expanded options allowed unplanned crossbreeding, also known as ……..

  17. 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

  18. Seedstock

  19. Seedstock – 2005 Market Share, est Type Reg % of Total British 428,797 60 Continental 223,677 32 American 57,417 8 Total 709,891 • Top 10 Breeds have about 90% of Market Share. • Top 7 bos Taurus Breeds have about 84% of Market Share.

  20. Seedstock – 2005 Market Share, est % of % of Breed Reg British Total AN 298,770 70 42 AR 43,201 10 6 HH 68,826 16 10 SH 18,000 4 3 Total 428,797 60

  21. Seedstock – 2005 Market Share, est % of % of Breed Reg Conti Total CH 73,542 33 10 SM 43,906 20 6 GV 27,508 12 4 LM 39,595 18 6 CA 8,636 4 1 MA 11,490 5 2 SA 19,000 8 3 Total 223,677 31.5

  22. Seedstock – 2005 Market Share, est % of % of Breed Reg American Total BM 19,017 33 2.7 BR 8,000 14 1.1 SG 7,500 13 1.1 BN 22,900 40 3.2 Total 57,417 8.1

  23. 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

  24. 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

  25. 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

  26. Seedstock Marketing Commodity or Consumer Monopoly

  27. Business purpose To create a customer

  28. 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”

  29. Commodity • Typically the ROI is less than 12% (the average ROI in the stockmarket) • ROI is totally based on being a Low-Cost Producer

  30. 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

  31. Consumer Monopoly • You can’t live without it. • Manufacturer hopes it gets used quickly so you have to come back to buy more.

  32. 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

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