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Marketing SystemsObj: Describe methods used to market livestock and poultry.
Market Methods
1. Terminal Markets
2. Auction Markets
3. Direct Selling
4. Electronic Marketing
5. Futures Market & Hedging
Terminal Markets
Central markets on public stockyards where livestock are consigned to a commission firm to bargain with purchases or buyers for a certain fee
Facilities are owned and operated by a stockyard company Company charges for the use of the facilities and
feed fed while they are in the stockyard
Charge for Yardage, feed, insurance, selling fees Seller receives the net amount after the charges are
taken out
Terminal Market
Fewer exist today than in 1920’s & 30’s
Most are in Western states
Located near population centers and packing plants
Auction Markets
Public bidding with the animals selling to the buyer who bids the highest
Direct Selling
Farmer sells straight to buyer with no middle person or firm receiving commissions or fees
Electronic Marketing
Auctioning online using computers
Futures Market & Hedging
Legal document calling for delivery in the future, locking in a future delivery price
Vertical Integration
Two or more steps of production, marketing, and processing are linked together usually by contract between producers and feed manufacturers or between producers and processors or include all three
About 99% of all broilers and a very high percentage of turkeys and laying hens and swine are grown and marketed through vertical integration contracts
Become a Livestock Marketing Expert!
Visit each station and read the assigned documents
Develop a 5 sentence paragraph to define each market
Develop a list of PROS (3) and CONS (3) for each type of market
You will have approximately 15 minutes at each station…GO!