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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/