Marketing SystemsObj: Describe methods used to market livestock and poultry.

Market Methods

1. Terminal Markets

2. Auction Markets

3. Direct Selling

4. Electronic Marketing

5. Futures Market & Hedging

Terminal Markets

Central markets on public stockyards where livestock are consigned to a commission firm to bargain with purchases or buyers for a certain fee

Facilities are owned and operated by a stockyard company Company charges for the use of the facilities and

feed fed while they are in the stockyard

Charge for Yardage, feed, insurance, selling fees Seller receives the net amount after the charges are

taken out

Terminal Market

Fewer exist today than in 1920’s & 30’s

Most are in Western states

Located near population centers and packing plants

Auction Markets

Public bidding with the animals selling to the buyer who bids the highest

Direct Selling

Farmer sells straight to buyer with no middle person or firm receiving commissions or fees

Electronic Marketing

Auctioning online using computers

Futures Market & Hedging

Legal document calling for delivery in the future, locking in a future delivery price

Vertical Integration

Two or more steps of production, marketing, and processing are linked together usually by contract between producers and feed manufacturers or between producers and processors or include all three

About 99% of all broilers and a very high percentage of turkeys and laying hens and swine are grown and marketed through vertical integration contracts

Become a Livestock Marketing Expert!

Visit each station and read the assigned documents

Develop a 5 sentence paragraph to define each market

Develop a list of PROS (3) and CONS (3) for each type of market

You will have approximately 15 minutes at each station…GO!