Cattle marketing: Analysis of traders perceptions and market structures
The ABC’s of Marketing Your Cattle.
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Transcript of The ABC’s of Marketing Your Cattle.
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ADDING VALUE TO YOUR CATTLE:The ABC’s of Marketing Your
Cattle
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Export Premiums Prior to 2003 nearly ALL tongues went to
Japan at >$5/lb premium (today $4.56/ lb in JP; $2.12/lb in US)
Short ribs/plates from ALL cattle (today ~ 30%)
Export premiums would add $20-35/ head in value
EXPANDED ACCESS IN JAPAN
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1.4 billion people Per-capita income (annual):
2000: $1,000 2008: $3,000 2020 (f): $8,500 Top 15% of population: $5,000+ (150 million)
Pork : 83#/capita (US : 60#/cap) Over 759 McDonald’s (Adding 100/ year)
CHINA POTENTIAL
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According to BQA Guidelines cattle should be castrated and/or dehorned prior to 120 days of age or 500 lbs.
Recommended by American Veterinary Medical Association
Surgical is most commonly used method.
CASTRATING AND DEHORNING
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Why is castration a common practice?
Castration reduces aggressiveness and sexual activity by lowering testosterone levels, and modifies carcass characteristics by decreasing the number of animals with a high muscle pH.
CASTRATING AND DEHORNING
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Why is dehorning a common practice?
Dehorning reduces the risk of injury to those handling cattle as well as cattle themselves, for example transporting.
CASTRATING AND DEHORNING
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Now, why should I do this?
On average bulls will be discounted $5-$8 cwt versus a steer at comparable weight
$8 cwt x 550 lbs = $44 per head
On average horned cattle will be discounted $2 cwt versus a polled animal at comparable weight
$2 cwt x 550 lbs = $11 per head
CASTRATING AND DEHORNING
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VACCINATION PROGRAMS
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WEANING PROGRAMS
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GENETICS AND BREED INFLUENCE
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DISPOSITION
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DISPOSITION
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MARKETING PROGRAMS
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Sale Barn or Auction Sale Private Treaty Internet Auctions Video Auctions Retained Ownership
METHODS OF MARKETING
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Weighing Conditions Shrink Commission Consignment Fees Details, Details, Details….
METHODS OF MARKETING
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Shrink
550 550x 5% x 2%27.5 lbs 11 lbs
$160 cwt$44 less $17.6 = $26.40 per head
or $ 4.80 per cwt
METHODS OF MARKETING
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THANKS