Marketing Opportunities I the Beef Industry
Producers spend countless hours raising, breeding, and feeding cattle. The strategy used for selling these livestock remains equally important in the production procedure. For those individuals who do not have a clear direction and goals for marketing their cattle there may exist lost income opportunities causing the livestock to be sold at a less than desirable pricing level.
To run into and achieve these goals every producer should develop and maintain a marketing plan. These plans tin range from simple to complex, depending on your situation and level of detail. They demand to exist flexible and easily updated as things modify. Equally you wait at creating a marketing plan, you need to answer these five questions:
ane) What are yous going to sell?
If you have a electric current functioning, this tin be piece of cake to come upwards with. For instance, yous already know whether you are producing for a niche market (i.e., all natural, organic, etc.) or a commodity market. If you accept a jump calving herd, you should already know the number and sex of the calves you plan to sell. You also need to determine the target weight you desire them to reach at time of sale. If y'all are selling a replacement heifer or cow, yous need to determine the target age, as well every bit whether she will exist open or pregnant at time of sale.
2) Where are you lot going to sell?
Within the beef industry, there are several options. Sale barns have had a long tradition of selling cattle and calves. Marketplace animals tin also be sold through online forums or video auctions, as well as directly marketed to local feedyards. Some have even been known to postal service sales on Craigslist. It is important to place your target marketplace and explore all the options available to you lot to sell your product.
3) When are you going to price or sell that product?
When do you lot plan to physically market the animals? Establishing your toll may occur at a different fourth dimension than when y'all physically marketplace the creature. You should feel comfortable with the methods of selling and pricing your cattle. Some producers may only utilize cash markets or cash forward contracts, while other producers may feel comfy using the futures market or options market place. Livestock Risk Protection (LRP) Insurance is another option to consider when pricing your cattle. More data on LRP for feeder cattle is in the Nebraska Extension NebGuide, Livestock Hazard Protection Insurance for Fed Cattle (PDF 379KB). Y'all should find an adequate level of take chances and a pricing method you lot can be happy with. The best pricing methods may modify from yr to year and what your neighbor did may not be the best pick for you.
4) What are your goals and objectives?
Given current market conditions and price expectations, what are the goals and objectives you seek to achieve with your marketing programme? Keep in listen, seeking only to get the highest price tin expose you to more adventure than you can handle or feel comfortable with. Your goals should be a combination of getting a good cost and decision-making the adventure associated with the marketplace.
5) How can you attain your marketing goals and objectives?
Identify specific strategies and tools that can help you attain your marketing goals and objectives. Specify actions you need to have and deadlines you need to meet in order to put yourself on a timeline that keeps yous proactively implementing your program and managing the market risk.
Conclusion
Planning is essential. Creating a marketing plan can assistance alleviate stress as well as emotion in implementing your marketing strategy. Understanding your cost of production volition help establish your pricing objectives and the triggers that brand the marketing plan more than valuable. Make sure you continually evaluate your plan and found contingency or fill-in plans you tin implement if at that place are price or market changes that differ from your original expectations.
Reference
Kate Brooks, Agribusiness Economist
Jay Parsons, Biosystems Economist
University of Nebraska–Lincoln
Revised June 2017
Jim Jansen, Agricultural Economist
University of Nebraska–Lincoln
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back to Marketing and Livestock Budgets
Source: https://beef.unl.edu/marketing-plans-your-livestock-operation
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