Livestock producers must develop a marketing plan that answers the three W's: what products they will sell, where they will sell them, and when during the seasonal price cycles. The document outlines different marketing channels producers can use like auctions, cooperatives, or private sales. It also discusses types of risks in livestock production and strategies for managing financial and price risks through tools like futures contracts. Finally, the summary emphasizes the importance of a marketing plan and investigating value-added opportunities for livestock operations.

2. Livestock Marketing
By
Mr Allah Dad Khan

3. Livestock Marketing
Every operation should develop a marketing
plan.
To develop a marketing plan, producers must
answer the 3 W’s
 What?
 Where?
 When?

4. What?
What product is being produced?
 Market animals
 Size, weight, sex, breed
 Replacement animals
 Age, open or bred, breed, sex
 Niche markets
 All natural, organic, etc.
Knowing what product is going to be sold
helps determine an operations market
potential.

5. Where?
 Off of the farm
 No commission or transportation costs
 Need to know current market situation
 Weight?
 Auction Barn
 Easiest
 No problems collecting money
 May not receive complete worth of livestock
 Cooperatives
 Able to group like kind and weight
 Usually receive higher prices
 Must of right kind and type to participate

8. Livestock Marketing Channels
Producer
Consumer
Trader/
Middleman
Processors
Purveyors
Cooperatives
Food Service
Retail
Local Market
Regional
Market

9. When?
 Most livestock prices have a seasonal pattern.
 Prices are higher and lower than average for
certain types and weight groups during certain times
of the year.
These changes are generally caused by:
 Increased demand
 Holidays
 Summer BBQ season
 Decreased supply
 Production cycles

16. Risk Management
The use of different management techniques
in order to reduce the amount of risk.
Types of Risk
 Production
The uncertainty of weather, disease, insects, weeds and
infertile breeding stock.
 Price
Fluctuations in price due to unforeseen events.
 Financial
Uncertainty of operations ability to pay off debts, future
interest rates, future borrowing ability and needs, and
etc.

17. Risk Management Tools
Production Risk
 Keep up to date on the latest production
practices and never be afraid to seek more
information
 Advanced input pricing (Booking ahead)
Price Risk
 Futures contracts and options
 Forward pricing contracts
Financial Risk
 Keep good records
 Keep up to date on all financial statements and
reports

18. Value Added Opportunities
Preconditioning
Cooperative marketing/purchasing
Retained ownership through custom feeding
Strategic alliances
Niche Markets
Organic
Natural

19. Summary
Every livestock operation needs to develop a
marketing plan.
Remember the 3 W’s
What
Where
When
There are risk management tools available.
Be sure to investigate value added
opportunities.