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Target marketing of slaughter goats
   by Pinkerton, McMillin, Herr, Stanton
• Definition: target-marketing is a management
  scheme in which portions of one’s herd are
  bred to produce kids that will reach desirable
  age/weight/condition (as defined) for sale at
  predetermined times
• Target-marketing may not be a logical strategy
  for all producers because of agro-climatic
  considerations and other issues
Implementing a target-marketing program

• Why? To take advantage of seasonally higher
  prices due to supply/demand imbalances
• When? Premium prices for slaughter kids
  occur in the ‘winter quarter’; see below
• Where? The major sales venues are those that
  supply packers in the northeast and mid-west
• What sort of goats? See handout
• How? See below
Seasonal variations in market prices

•   Refer to handout showing sources of variation
•   Seasonal variation, figure 1
•   Annual variation, figure 2
•   Weekly variation, figure 3
•   Live grade, figure 4
•   Sale weight, figure 5
•   Sales venues, figure 6
Price variations, continued

• Differential price responses to weight
  category; see figures 7 and 8
• Differential price responses to live grade; see
  figure 9
• Differential pre-sale sorting practices at San
  Angelo, Nashville, and New Holland; see
  handout
Economics of seasonal marketing

• Winter prices typically average 25-30% higher
  than Jun/Oct lows; holiday spikes higher?
• Are these premium prices worth pursuing?
• Only if the increased revenue exceeds the
  associated costs by some measure
• First, calculate the returns to your current
  production/marketing scheme (this is
  sometimes a bit too thrilling/chilling.
Economics, continued

• Secondly, estimate the cost-benefits accruing
  to targeting winter markets
• Income will be higher on the same weights
• Production costs of spring breeding/fall
  kidding for winter sales may be higher
• These costs are rather site-specific and only
  you can decide your optimum alternative;
  compare fall vs ‘other’ kidding times
Logistics of seasonal production/marketing

• To target winter markets (mid-Nov/late Apr):
• Breed in Dec/Jan and kid in May/Jun; assume
  ADG of .33 or 10 lb/mo, plus birth wt, less
  3-4% shrink; estimated sale wt 70-80 lb?
• Breed in Apr/May and kid in Sep/Oct; assume
  same ADG, BW, and shrinkage; estimated sale
  wt in Feb/Mar 65/75 lb?
Logistics of holiday marketing

• Refer to the Handout for planning breeding
  schedules to optimize target holiday weights
• This can be both promising and dicey; you can
  do very well or, on occasion, you can blow it,
  depending on precise timing and on
  competitive numbers at the same sale
• Forward contracting may reduce uncertainty,
  but proceed cautiously
Obstacles to spring breeding/fall kidding

• Not all does will cycle in spring; some do so
  ‘naturally’, but some need hormonal
  manipulation via management decisions.
• Mid-Dec/mid-Feb lighting (20/24 hrs/day),
  followed by 4/6 week hiatus, followed by
  introduction of ‘lighted’ bucks will USUALLY
  result in April/May conception rate of 75-82%,
  but there are no guarantees; breed
  differences? Individual differences?
Estrous induction and synchronization

• Non-cycling does may be induced to cycle via
  hormonal manipulation with vaginal sponges;
  unfortunately, this is currently illegal here
• Cycling does may be synchronized to breed in
  a very narrow window, 4-6 days, for
  management convenience/target marketing
  using Lutalyse (1-2 cc/hd on day 1; another
  1-2 cc/hd on day 10/11; estrus will occur 2-4
  days later; conception rates will be 80% plus
Continued

• Caution: if you are selling market kids, au
  natural, the use of endocrine products to
  induce, or even synchronize, estrus may
  render the resulting kids unacceptable to
  certain buyers/consumers
• I have heard that eating such kids will render
  one sterile or, worse, impotent/disinterested,
  and can alter your DNA. On to New Holland…
Summary
• Consider winter sales of market kids if it
  appears economically feasible and if it
  fits your particular management scheme
• Use only a portion of your herd to ‘try’
  this novel production/marketing strategy
• Breed yearlings late or use early-weaned
  does        end of presentation

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Target marketing of slaughter goats

  • 1. Target marketing of slaughter goats by Pinkerton, McMillin, Herr, Stanton • Definition: target-marketing is a management scheme in which portions of one’s herd are bred to produce kids that will reach desirable age/weight/condition (as defined) for sale at predetermined times • Target-marketing may not be a logical strategy for all producers because of agro-climatic considerations and other issues
  • 2. Implementing a target-marketing program • Why? To take advantage of seasonally higher prices due to supply/demand imbalances • When? Premium prices for slaughter kids occur in the ‘winter quarter’; see below • Where? The major sales venues are those that supply packers in the northeast and mid-west • What sort of goats? See handout • How? See below
  • 3. Seasonal variations in market prices • Refer to handout showing sources of variation • Seasonal variation, figure 1 • Annual variation, figure 2 • Weekly variation, figure 3 • Live grade, figure 4 • Sale weight, figure 5 • Sales venues, figure 6
  • 4. Price variations, continued • Differential price responses to weight category; see figures 7 and 8 • Differential price responses to live grade; see figure 9 • Differential pre-sale sorting practices at San Angelo, Nashville, and New Holland; see handout
  • 5. Economics of seasonal marketing • Winter prices typically average 25-30% higher than Jun/Oct lows; holiday spikes higher? • Are these premium prices worth pursuing? • Only if the increased revenue exceeds the associated costs by some measure • First, calculate the returns to your current production/marketing scheme (this is sometimes a bit too thrilling/chilling.
  • 6. Economics, continued • Secondly, estimate the cost-benefits accruing to targeting winter markets • Income will be higher on the same weights • Production costs of spring breeding/fall kidding for winter sales may be higher • These costs are rather site-specific and only you can decide your optimum alternative; compare fall vs ‘other’ kidding times
  • 7. Logistics of seasonal production/marketing • To target winter markets (mid-Nov/late Apr): • Breed in Dec/Jan and kid in May/Jun; assume ADG of .33 or 10 lb/mo, plus birth wt, less 3-4% shrink; estimated sale wt 70-80 lb? • Breed in Apr/May and kid in Sep/Oct; assume same ADG, BW, and shrinkage; estimated sale wt in Feb/Mar 65/75 lb?
  • 8. Logistics of holiday marketing • Refer to the Handout for planning breeding schedules to optimize target holiday weights • This can be both promising and dicey; you can do very well or, on occasion, you can blow it, depending on precise timing and on competitive numbers at the same sale • Forward contracting may reduce uncertainty, but proceed cautiously
  • 9. Obstacles to spring breeding/fall kidding • Not all does will cycle in spring; some do so ‘naturally’, but some need hormonal manipulation via management decisions. • Mid-Dec/mid-Feb lighting (20/24 hrs/day), followed by 4/6 week hiatus, followed by introduction of ‘lighted’ bucks will USUALLY result in April/May conception rate of 75-82%, but there are no guarantees; breed differences? Individual differences?
  • 10. Estrous induction and synchronization • Non-cycling does may be induced to cycle via hormonal manipulation with vaginal sponges; unfortunately, this is currently illegal here • Cycling does may be synchronized to breed in a very narrow window, 4-6 days, for management convenience/target marketing using Lutalyse (1-2 cc/hd on day 1; another 1-2 cc/hd on day 10/11; estrus will occur 2-4 days later; conception rates will be 80% plus
  • 11. Continued • Caution: if you are selling market kids, au natural, the use of endocrine products to induce, or even synchronize, estrus may render the resulting kids unacceptable to certain buyers/consumers • I have heard that eating such kids will render one sterile or, worse, impotent/disinterested, and can alter your DNA. On to New Holland…
  • 12. Summary • Consider winter sales of market kids if it appears economically feasible and if it fits your particular management scheme • Use only a portion of your herd to ‘try’ this novel production/marketing strategy • Breed yearlings late or use early-weaned does end of presentation