Poducer meaning of animals manual#
Poducer meaning of animals series#

Transportation considerations include both the costs of the trucking and the costs of lost quality or weight of the animals. When evaluating marketing alternatives, keep in mind how the animals will be delivered to the buyer and if this delivery method will influence the settlement price. All pricing agreements will have a direct influence on the final returns. For example, a pricing method may determine whether an animal is sold live or rail graded, and whether it is sold with a pencil shrink or not. As a pricing alternative is considered, keep the target prices in mind.įor each of the market delivery alternatives, there are associated pricing methods to consider. Other livestock pricing alternatives include open bids at auction markets, producer or breed association sales, video auctions, electronic auctions, direct sales to packers, sales to livestock order buyers or using the futures or options market for a hedging strategy. A forward contract offers you the opportunity to lock in a price for the livestock ahead of an expected sale date. When pricing livestock, there are several choices available. Each alternative has specific features that may make it more suitable than another. Evaluate pricing and delivery alternativesĮvaluate all available alternatives for pricing and delivering livestock.

Staying in touch with the market is crucial when trying to achieve a target price. The advantage of setting several target prices rather than just one price is that it gives you flexibility to respond to changing market trends. The level and timing of these targets should be set based on outlook information, cost of production figures and cash flow needs rather than expected profit levels. Set target prices by knowing production costs and what the market is paying or is expected to pay. Selling clean and healthy animals assures buyers that they are paying for a quality product.

Sorting animals into lots of similar size and weight will make them more attractive to buyers. Knowing your product also involves presenting it favourably. By knowing what you have for sale, you can contact interested buyers and, if there are premiums in the market for livestock with specific characteristics, you can then capitalize on them. The quality and type of livestock for sale must be known before you can seriously evaluate the different pricing and delivery alternatives. In some cases you will watch the United States market for export opportunities, so a decision could be made to finish animals to a weight preferred by American buyers. For example, deciding whether to sell weaned calves, yearlings or slaughter cattle depends upon the market outlook for each of these animals. Gather market information, including market outlookįollowing market trends and projected livestock prices aids you in deciding what to produce in order to bring the greatest returns.

Poducer meaning of animals series#

Production cost estimates and breakeven calculations are critical in setting a series of target prices that should be watched for in the changing market. These estimates, along with price forecasts, should be used to determine how the animal will be marketed.īy knowing past production costs and future price forecasts, you can also determine when to retain female stock for expansion or to cull more heavily. While it can be done at any time, it is best to do this step as early as possible.īy estimating both production costs and cash flow requirements, you can decide what type of animal to produce and when it will have to be sold to meet payment schedules. This step is listed first because of its importance. The first step involves accurately estimating costs of production and cash flow needs. More detailed discussions of these steps to marketing livestock can be found in other modules Steps to livestock marketing success 1.

Poducer meaning of animals manual#

The livestock section of the marketing manual contains many relevant modules that focus on these individual marketing steps. This module outlines how the marketing process can be organized into seven logical steps. Once the final sale has been made, it's useful to review the marketing process to determine what worked well and what needs improving.

Final steps in the plan are evaluating the pricing and delivery alternatives, and deciding on which of these to use. Other essential components of the process include: estimating production costs, calculating cash flow needs, knowing what type and quality of animal is being produced and which buyers will be interested in that type of animal. The initial step in cattle marketing is selecting the type of stock in demand by the market place. Marketing is part of the entire process to produce, promote and price a commodity.

To the smart livestock producer, marketing means more than selling.