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