What Type of Marketing Strategies Are You Going to Use for a Beef Cattle
Producers spend countless hours raising, convenance, and feeding cattle. The strategy used for selling these livestock remains every bit of import in the product process. For those individuals who practice non have a articulate direction and goals for marketing their cattle in that location may be lost income opportunities causing the livestock to be sold at a less than desirable pricing level.
To meet and achieve these goals every producer should develop and maintain a marketing program. These plans tin can range from simple to complex, depending on your situation and level of item. They need to exist flexible and easily updated every bit things change. As you look at creating a marketing plan, y'all demand to answer these five questions:
1) What are you going to sell?
If you have a current operation, this can exist piece of cake to come upward with. For instance, you already know whether you are producing for a niche market (i.e., all natural, organic, etc.) or a commodity market. If you lot have a jump calving herd, you lot should already know the number and sex of the calves you programme to sell. You lot likewise need to determine the target weight you lot want them to reach at time of sale. If you are selling a replacement heifer or cow, y'all need to determine the target age, too as whether she will exist open up or meaning at fourth dimension of sale.
two) Where are you going to sell?
Inside the beefiness industry, at that place are several options. Auction barns have had a long tradition of selling cattle and calves. Market animals can likewise exist sold through online forums or video auctions, every bit well as direct marketed to local feedyards. Some have even been known to postal service sales on Craigslist. Information technology is important to identify your target market and explore all the options available to you to sell your production.
3) When are y'all going to cost or sell that production?
When do you plan to physically market the animals? Establishing your price may occur at a different time than when you lot physically market the animal. You should feel comfortable with the methods of selling and pricing your cattle. Some producers may but use cash markets or greenbacks forward contracts, while other producers may feel comfy using the futures market place or options marketplace. 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 Risk Protection Insurance for Fed Cattle (PDF 379KB). Y'all should find an acceptable level of run a risk and a pricing method you tin be happy with. The best pricing methods may change from year to year and what your neighbour did may non be the best choice for you.
4) What are your goals and objectives?
Given current market weather condition and cost expectations, what are the goals and objectives you seek to accomplish with your marketing programme? Continue in mind, seeking only to go the highest toll can expose you to more than risk than you can handle or feel comfortable with. Your goals should be a combination of getting a good price and controlling the risk associated with the market place.
five) How tin can you lot accomplish your marketing goals and objectives?
Identify specific strategies and tools that tin help y'all reach your marketing goals and objectives. Specify actions y'all need to take and deadlines you need to meet in order to put yourself on a timeline that keeps you proactively implementing your plan and managing the market gamble.
Conclusion
Planning is essential. Creating a marketing plan can help alleviate stress besides as emotion in implementing your marketing strategy. Understanding your toll of product will help constitute your pricing objectives and the triggers that make the marketing plan more than valuable. Make certain you continually evaluate your plan and found contingency or backup plans y'all can implement if there are price or market place changes that differ from your original expectations.
Reference
Kate Brooks, Agribusiness Economist
Jay Parsons, Biosystems Economist
Academy of Nebraska–Lincoln
Revised June 2017
Jim Jansen, Agricultural Economist
University of Nebraska–Lincoln
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Source: https://beef.unl.edu/marketing-plans-your-livestock-operation