Transcript Slide 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? 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!! Branding • • • • • • • • Leachman Pharo Ohlde Fink Gardiner Werhmann Camp Cooley Circle A • Building a Reputation! Branding • Category: Farm Equipment • Brand Name: John Deere • Tagline: Nothing runs like a Deere. Branding • “Company”: American Angus Association • Category: Registered British Seedstock • Brand Name: Angus • Tagline: Old - The Business Breed New - Serving the Beef Industry Branding • “Company”: American Hereford Association • Category: Registered British Seedstock • Brand Name: Hereford • Tagline: The Efficiency Experts Branding • Company Name: Mid-America Beef Alliance • Category: Hybrids • Brands: Balancers and SimAngus • Tagline: The Simplicity of One Breed, the Power of Two. 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? Branding - Homework • Our brand is the only (category) that (different). Zag by Marty Neumeier Advertising - Homework • Heritage: When beef was king, so were Herefords. • Leadership: The Leader……… • Preference: Four out of Five ……. • Reposition your competition Branding - Homework • • • • • Company: UMC BRTF Category: The Leader in Efficiency Cattle! Brand: Hereford Logo: Tagline: Branding - Homework • • • • • • • Company: UMC BRTF Category: The Leader in Hybrid Cattle! Brand: SimAngus Logo: Tagline: Choose 4 Angus bulls Choose 4 Simmental bulls 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. Seedstock Marketing Trends affecting the Seedstock Business 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. Trends – Breed Demand • Branded beef programs and grids change the demand for certain breeds and biological types – More Angus – Less Brahman 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 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. Trends - Knowledge • Technology demands a more sophisticated supplier. – Genetic Evaluations – Carcass data – Embryo Transfer – DNA – Marketing – Customer Service 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. 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. Trends – User-friendly user-friendly genetics Trends – Customer Service Simple: -Delivery -Hybrids -Newsletter Intermediate: -Volume -Multiple breeds -Field Day Complex: -Buy-back -Heifer Development Trends – Alliances • Increased communication and alliances “dictate” management protocol. 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. Differentiate • Genetics • Volume • Education • Customer Service 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. Trends Want to be a leader? “Find a parade and get in front of it.” Zag by Marty Neumeier Trends Want to be different? “Hit the ball where they ain’t.” Zag by Marty Neumeier The Five P’s of Marketing • • • • • • Product Packaging Place Price Promotion “The Purple Cow” Product • Breed • Category within a Breed • Genetic Value Categories Diverge British Shorthorn Angus Hereford Balanced Efficiency Marbling Carcass Grass-based Maternal *It is very difficult to be everything to everybody!! Genetic Improvement Genetic change which defines the animal as optimum for maximum profitability.