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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
