Plan for Market Animal SUCCE$$ Building on 4-H Fundamentals

Plan for MarketAnimal SUCCE$$Building on 4-H Fundamentals Jim Wilson Area 4-H Youth Extension Educator Coeur d’Alene, Idaho

Definitions • Budgeting • Act of carefullyplanning for income and expenses related to a given topic. • Marketing • Seriesofsteps needed to get a product to a point where it can be sold or used.

Revisiting our 4-H Roots • What is the mission of 4-H? • Empower youth to become productive citizens • Build effective youth-adult partnerships • What do we hope youth gain through their 4-H involvement? • Brainstorm list

Reaffirming a Shared Vision • “Life Skills” model • How does our list match up with the Life Skills model?

Workshop Goals • Strengthen volunteer confidence in helping members create project plans and develop accompanying budgets. • Provide resources which will empower youth to develop effective project marketing strategies.

Planning Basics • Why do we plan? • What happens if we fail to plan? • “Dissect” sample plan (from group) • Plans don’t have to be elaborate (but do have to have sufficient detail to know if your “on track”)

Planning Process • Planners work backwards thru process • Identify desired results • “Where do you want to be” • Identify current situation • “Where you are” • Determine resources needed • What steps will it take to get the desired results

4-H Livestock Project Planning Worksheet • General • Considerations - Facilities

4-H Livestock Project Planning Worksheet • Animals / Feed Market Animal Selection

“Thinking Backwards to Get Ahead” • Finished Weights • Why worry about Finished Weights? • Target weights within Industry Standards • Beef = 1,100 – 1,325 lbs. • Swine = 240 – 280 lbs. • Sheep = 110 – 135 lbs. • Goat = 60 – 90 lbs.

Feeding Trial Growth • Feeding Trial = days from initial weigh-in to Fair weigh-in • Beef = 136 days Sheep = 59 days • Swine = 94 days Goats = 59 days • Target Feeding Trial ADG’s • Beef = 3.0 lbs/day Sheep = .60 lbs/day • Swine = 1.8 lbs/day Goats = .35 lbs/day {Adjust gains based on past feeding experience}

Initial Weigh-in Targets • To achieve Final Target Weight Range at Fair (assuming members are achieving the previous page Feeding Trial ADG’s), project animals should weigh: • Beef = 692 – 917 lbs. (136 x 3.0 = 408 lbs gained) • Swine = 71 – 111 lbs (94 x 1.8 = 169 lbs gained) • Sheep = 75 – 100 lbs (59 x .6 = 35 lbs gained) • Goats = 39 – 69 lbs (59 x .35 = 21 lbs gained)

Prior to Initial Weigh-in • Need to consider: • Number of days from date of purchase to Initial Weigh-in • Expected rate of gain during this period • Calculate project animal weight gain during this period; subtract this weight from your Initial Weigh-in Targets to determine appropriate selection weight range at time of project animal purchase.

Market Animal Selection Formula • EPW = EFW – FTG – PWG EPW = Estimated Purchase Weight EFW = Estimated Final Weight FTG = Feeding Trial Growth [Feeding Trial ADG x Number Days in Feeding Trial] PWG = Pre Weigh-in Growth [Pre Weigh-in ADG x Number Days from Purchase to Weigh-in]

4-H Livestock Project Planning Worksheet • Animals / Feed - Marketing

“Guilt-free” Progress Check • Self- Assessment • Do your members have project plans? • What are they doing well? • How can they improve? • Activity: Hit or Miss • How does this related to project planning?

From Planning to Budgeting • Primary Budget Components: • Fixed Costs • Facilities/shelter, fencing, equipment • Has a “useful life” greater than one year • Annual Expenses • Animals, feed, health care, show supplies • Annual Income • Animal sales, awards, support, etc.

4-H Market Livestock Budget Template • Preliminary Data: • - Animals • - Feeds

4-H Market Livestock Budget Template - Fixed Costs • Annual Income & • Expenses • Overall Budget

“Beauty of Budgeting” • Helps to avoid “sticker shock” • Teaches several essential Life Skills • Enables members (parents) to run various “what if” scenarios

Before We Shift Gears . . . • Further questions on: • Project Planning • Basic Budgeting • Forms & Templates • Available Resources

Marketing Fundamentals • What is marketing? • Seriesofsteps needed to get a product to a point where it can be sold or used. • Primary types of markets for animals • Auctions • Private Treaty • Niche Markets

“Real World” Market Factors • Supply & Demand • Greater supply than demand  price drops • Lower supply than demand  price increases • Weight & Grade Specifications • Animals more closely aligned generally increase in value • Location • Proximity to markets influence price received • Dressing Percentage • Higher dressing animals generally receive higher prices

Key Market Plan Components • Who – identify potential customers • What – determine specific actions • When – develop a timeline • Where – will these actions occur • Why – should prospective buyer participate

When to Begin the Plan • EARLY!Initial planning should occur before buying your project animal. • What market options are available? • If one “falls through”, my back-up plan is? • What is a realistic price I might receive? • What will it cost to raise my project animal? • Therefore, what can I afford to pay?

Who are my customers? • Identifying potential customers • Businesses you or your parents patronize • Neighbors, friends, family members • Remember past buyers, but also cultivate new buyers • Customer contacts (initial / follow-up) • In-person • Telephone • Written • Be prepared to share your message

Preparing Your Message • Introduce yourself • Name, club, etc. If business: how you “connect” to them • Tell briefly about your project • What project, animal experiences, what your learning • Invite them to the sale/event • Date, time, location, etc. • Explain how they (the buyer) benefit • Quality product, support positive efforts of local youth • Discover potential “buyer preferences”

Quality Assurance • Producer responsibilities • Facilities are kept in good repair  safe • Clean water is always available • Quality feed ingredients fed (garbage in  garbage out) • Animals are handled to minimize stress • Followed label directions on all products used • Good sanitation practices are followed • Any treatments are properly administered; all treatment records maintained

1-2 Weeks Before Sale • Follow-up with prospective buyers • Remind: date, time & location; buyer breakfast • Ask if they have questions or need added info. • Arrange fairgrounds arrival meeting time/place, help them register, etc. (especially new buyers) • Provide them a contact number where you (or a parent) can be reached if questions arise.

Sale Day • Putting your best foot forward: • Have pens & animals cleaned early • After chores, clean up and dress nicely • If arranged to meet buyers, be punctual • Pre-sale: be at pen/stall; cheerfully greet buyers and answer their questions • Be prompt to sale ring, exhibit animal with pride • Thank buyer when sold, return animal to pen • Write a sincere, age-appropriate thank you note.

Expressing Thanks • Show sincere appreciation • Buyers generously give to support your efforts • Any amount received over market isagift! • Be specific with Thank You notes • Tell a little about yourself and what you learned • Express gratitude for their generosity • If have specific plan for these funds, share it • Invite them to participate in future years

Building a Successful Plan • Personally cultivating potential buyers (early) • Follow-up with prospective buyers (pre-Fair) • Graciously greet general public / buyers • Offer assistance, if needed • Sincerely thank whoever buys your animal • NEVER complain about the price received!! • Follow-up on buyer satisfaction, if applicable • Invite buyers to return in future years

Remember: • Key Marketing Points • Who – identify potential customers • What – determine specific actions • When – develop a timeline • Where – will these actions occur • Why – should prospective buyer participate • Develop your plan early • People don’t usually plan to fail; instead they fail to plan

Program Review • Effective planning is a critical ___ ____. • Life Skill • What are the 4 primary components of a 4-H Livestock Project Plan? • General Considerations, Facilities, Animals/Feed, Marketing • EPW = EFW – FTG – PWG (Mkt. Animal Selection Formula) • EPW = Estimated Purchase Weight FTG = Feeding Trail Growth • EFW = Estimated Final Weight PWG = Pre Weigh-in Growth • What tool aids in determining project profitability? • Budget

Program Review • A budget consists of what 3 primary components? • Fixed Costs, Annual Income, Annual Expenses • When should a Marketing Plan be developed? • Early in year, ideally before purchasing project animals • What are 4 elements of “Your Message to a Buyer”? • Introduce yourself Invitation to sale/event • Tell briefly about your project Explain how buyer can benefit • Thank you notes should be ___-______, ______ and show ________ appreciation. • Age-appropriate, specific, sincere

Was this Program “On Target” • Did this information: • Encourage you to help members create project plans? • Increase your confidence in being able to help members develop project plans / budgets? • Provide you with an effective overview of a 4-H Livestock Marketing Plan? • Generate topic ideas / activities that you could use for upcoming project meetings?

Wrap Up • Any remaining questions / comments • Program Evaluation form

Plan for Market Animal SUCCE$$ Building on 4-H Fundamentals