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Direct Marketing of Beef Pro’s and Con’s Do’s and Don’ts CJ Mucklow, Routt County, CSUCE.

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Presentation on theme: "Direct Marketing of Beef Pro’s and Con’s Do’s and Don’ts CJ Mucklow, Routt County, CSUCE."— Presentation transcript:

1 Direct Marketing of Beef Pro’s and Con’s Do’s and Don’ts CJ Mucklow, Routt County, CSUCE

2 Everyone is trying it!

3 Why Should You Direct Market? Increase Income Create a Positive Image for Beef Increase Demand for Beef

4 Drawbacks Not Much Money Really Being Made Are You Just Substituting Labor? Liability

5 Create an Identity Beef is generic, What Makes Your Product? “Sell the Sizzle” Labeling Know Your Customer

6 Business Plan Write It! Include Financial Projections, Marketing Strategy, Processing and Distribution Carcass Yield, Shrink Plan on How to Sell the Whole Carcass

7 Carcass and Break-even Data from Yampa Valley Beef

8 Business Structure Cooperatives – Traditional – Marketing cooperatives – “Third generation co-ops” LLC, LLP Corporations Non-profit

9 Make the Cost of Business Ownership Realistic Nominal Financial Risk Brings Nominal Commitment to the Effort

10 Processing and Processors USDA Inspected Custom Versus Commercial Product Consistence – Lean to Fat Ratios – Speed of Freezing – Space to Allow Carcasses to Hang – Packaging

11 The Ultimate Goal is a Consistent Product Involve a Meat Scientist in the Processor Relationship

12 Inventory Management is not the Processors Responsibility, even if you store your product there.

13 Communication and Relationships The best laid plans will fail from lack of effective communication and failed relationships

14 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”

15 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

16 BE ABLE TO AFFORD YOUR MISTAKES Start Small

17 Yampa Valley Beef http://dare.agsci.colostate.edu/aftnichebeef/


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