Direct Marketing of Beef

Pro’s and Con’s

Do’s and Don’ts

CJ Mucklow, Routt County, CSUCE

Everyone is trying it!

Why Should You Direct Market?

• Increase Income

• Create a Positive Image for Beef

• Increase Demand for Beef

Drawbacks

• Not Much Money Really Being Made

• Are You Just Substituting Labor?

• Liability

Create an Identity

• Beef is generic, What Makes Your Product?

• “Sell the Sizzle”

• Labeling

• Know Your Customer

Business Plan

• Write It!

• Include Financial Projections, Marketing Strategy, Processing and Distribution

• Carcass Yield, Shrink

• Plan on How to Sell the Whole Carcass

slaughter paid to carc boneless % actualtype date CE? producer weight weight yield proc Be netper cow

cow 11/01/2000 y 362.52$ 496.00 342 69% 198.60$ 1.84$ 154.98$ cow 11/01/2000 y 390.08$ 528 368 70% 209.80$ 1.83$ 169.52$ cow 11/01/2000 y 367.82$ 505 347 69% 201.75$ 1.84$ 156.78$ cow 11/01/2000 y 344.50$ 475 325 68% 191.25$ 1.85$ 145.50$

Carcass and Break-even Data

from Yampa Valley Beef

Business Structure

• Cooperatives– Traditional– Marketing cooperatives– “Third generation co-ops”

• LLC, LLP

• Corporations

• Non-profit

Make the Cost of Business Ownership

Realistic

Nominal Financial Risk Brings Nominal

Commitment to the Effort

Processing and Processors

• USDA Inspected

• Custom Versus Commercial

• Product Consistence– Lean to Fat Ratios– Speed of Freezing– Space to Allow Carcasses to Hang– Packaging

The Ultimate Goal is a Consistent Product

Involve a Meat Scientist in the

Processor Relationship

Inventory Management

is not the Processors Responsibility, even

if you store your product there.

Communicationand Relationships

The best laid plans will fail from lack of

effective communication and failed relationships

DON’T USE LIVESTOCK TERMINOLGY TO DESCRIBE

A BEEF PRODUCT

Writers and newspapers don’t know your terms and you don’t

necessarily want to tell them.

“Cull Cows”

Additional Considerations

• Volunteer Labor

• Accounts Receivable

• Don’t Compete on Price Alone

• Meat Business is Very Competitive

• “Value Added” is the Buzz – Grants are available from USDA

BE ABLE TO AFFORD YOUR MISTAKES

Start Small

Yampa Valley Beef

http://dare.agsci.colostate.edu/aftnichebeef/