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Seedstock Business

Seedstock Business. What does Gardiner, Pharo , and Leachman have in common with Jordan, Oprah, and Trump? What do the names Precision, Traveler, New Trend, Bando, Scotch Cap mean to you? What is the value of AI over Natural Service?. Branding.

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Seedstock Business

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  1. Seedstock Business • What does Gardiner, Pharo, and Leachman have in common with Jordan, Oprah, and Trump? • What do the names Precision, Traveler, New Trend, Bando, Scotch Cap mean to you? • What is the value of AI over Natural Service?

  2. Branding “You do not merely want to be considered the best of the best. You want to be considered the only ones who do what you do.” Jerry Garcia of the Grateful Dead Bottom Line: Be Unique!!

  3. Branding • Leachman • Pharo • Ohlde • Fink • Gardiner • Werhmann • Camp Cooley • Circle A • Building a Reputation!

  4. Branding • Category: Farm Equipment • Brand Name: John Deere • Tagline: Nothing runs like a Deere.

  5. Branding • “Company”: American Angus Association • Category: Registered British Seedstock • Brand Name: Angus • Tagline: Old - The Business Breed New - Serving the Beef Industry

  6. Branding • “Company”: American Hereford Association • Category: Registered British Seedstock • Brand Name: Hereford • Tagline: The Efficiency Experts

  7. Branding • Company Name: Mid-America Beef Alliance • Category: Hybrids • Brands: Balancers and SimAngus • Tagline: The Simplicity of One Breed, the Power of Two.

  8. UMC BRTF Herefords RFI/Efficiency Carcass Value, primarily Marbling Calving Ease Maternal • Mature size • Mate to Angus to produce Maternal Lines • Function What can we be the best in the world at? What are we passionate about? What can we make money at?

  9. Branding - Homework • Our brand is the only (category) that (different). Zag by Marty Neumeier

  10. Advertising - Homework • Heritage: When beef was king, so were Herefords. • Leadership: The Leader……… • Preference: Four out of Five ……. • Reposition your competition

  11. Branding - Homework • Company: UMC BRTF • Category: The Leader in Efficiency Cattle! • Brand: Hereford • Logo: • Tagline:

  12. Branding - Homework • Company: UMC BRTF • Category: The Leader in Hybrid Cattle! • Brand: SimAngus • Logo: • Tagline: • Choose 4 Angus bulls • Choose 4 Simmental bulls

  13. Commodity or Consumer Monopoly • The best marketer in the US is Kit Pharo. • Second is Lee Leachman. • The best breeder of type is Tim Ohlde. • The best customer service is Gardiner, Schiefelbein, Circle A, Wulf, Power Genetics, etc.

  14. Seedstock Marketing Trends affecting the Seedstock Business

  15. Trends – Fewer Bulls Needed • The US needs fewer bulls due to smaller cowherd (ie. Drought and pasture converted to crops) • The US needs fewer bulls due to increasing production on fewer cows.

  16. Trends – Breed Demand • Branded beef programs and grids change the demand for certain breeds and biological types • More Angus • Less Brahman

  17. Trends – Breed Demand The preferred breed composition is 50-75% Angus with 25-50% Continental. No more than 25% Brahman. -Tom Brink, Five Rivers Cattle Feeding Target is 70:70:0 Today, we hit 60:50:10

  18. Trends – Demand for Hybrids • Simplified breeding program increase the demand for Hybrid seedstock • Simple • Capture hybrid vigor • Breed Complimentarity • Over 1/3 of registrations at Gelbvieh and Simmental are hybrids. Percentage is even higher with Maines and Chianina.

  19. Trends - Knowledge • Technology demands a more sophisticated supplier. • Genetic Evaluations • Carcass data • Embryo Transfer • DNA • Marketing • Customer Service

  20. Trends - Size • Consolidation at the cow/calf level increases the need for larger or cooperative seedstock suppliers. • Supply all the genetic needs. • Advanced customer service. • Minimum of 100 bulls to be a player. • Elite suppliers are over 200 bulls.

  21. Trends – User-friendly • Increased labor costs and cowherd size increases the need for user-friendly genetics. • Cannot tolerate physical problems • Do not want to pull calves, treat pinkeye, milk cows, etc.

  22. Trends – User-friendly user-friendly genetics

  23. Trends – Customer Service Simple: -Delivery -Hybrids -Newsletter • Intermediate: • -Volume • -Multiple breeds • -Field Day • Complex: • -Buy-back • -Heifer Development

  24. Trends – Alliances • Increased communication and alliances “dictate” management protocol.

  25. Trends – Shows • For Mainstream Bull Production, beef cattle shows have essentially no value or at least greatly decreased in value. Shows are still important to Shorthorn, Maine, Chi breeders.

  26. Differentiate • Genetics • Volume • Education • Customer Service

  27. Trends – MO • Small increase in number of seedstock suppliers over 100 hd of bulls/yr but most will remain small and subsidized. • Greater interest in service after the sale (calf marketing). • Large increase number of hybrid bulls sold. • Continued interest in carcass value with more emphasis on efficiency.

  28. Trends Want to be a leader? “Find a parade and get in front of it.” Zag by Marty Neumeier

  29. Trends Want to be different? “Hit the ball where they ain’t.” Zag by Marty Neumeier

  30. The Five P’s of Marketing • Product • Packaging • Place • Price • Promotion • “The Purple Cow”

  31. Product • Breed • Category within a Breed • Genetic Value

  32. Categories Diverge British *It is very difficult to be everything to everybody!! Angus Shorthorn Hereford Balanced Efficiency Marbling Carcass Grass-based Maternal

  33. Genetic Improvement Genetic change which defines the animal as optimum for maximum profitability.

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