Beginner Farmer Meat Marketing Analysis & Strategies
Explore pricing strategies, market channels, and financial goals for beginner farmers in profitable meat marketing. Learn to identify desired profit, determine pricing per channel, and select viable sales avenues. Analyze market observations and plan sales projections for different meat types. Discover various sales channels for meat, including carcass sales, retail stores, restaurants, and farmer's markets, among others.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Beginner Farmer Resources Profitable Meat Marketing Market Channels & Pricing Part 4 This presentation template was developed by NC Choices and project partners to be shared in full for educational purposes. NC Choices, funders, and project partners are not responsible for content selected or adapted outside of the original slide deck presentation. The project is supported by the Beginning Farmer and Rancher Development Program competitive grant no. 2018- 70017-28550 of the USDA National Institute of Food and Agriculture.
Beginner Farmer Resources In this section Identify the farm s desired profit per head. Determine the pricing needed to reach the goal, in each channel. Determine which channels are viable based on pricing. Learn how price can be used to aid inventory management.
Beginner Farmer Resources Observations of pricing in the market: Freezer Trade Average NY Freezer Trade prices on MeatSuite.com: Beef: $4.10 HCW (104 farms)(1/4) Pork: $3.89 HCW (70)(1/2) Chicken: $4.13/lb. (51)(whole) Lamb: $7.64 HCW (34)(whole) Prices include processing. Observed Dec. 2017
Beginner Farmer Resources Observations of pricing in the market: Farmers Market Cut Name Cut Name Farmers Market Farmers Market Avg. Avg. $5.79 (n=6) Wegmans (FYFGA*) Wegmans (FYFGA*) Ground Beef $5.99* Strip Steak $13.43 (n=7) $19.19* Eye Round Roast $7.25 (n=3) $3.69 Sirloin Steak $10.21 (n=7) $14.99* Short Ribs $5.05 (n=5) $7.29 Chuck Roast $6.75 (n=5) $11.49* Prices observed Oct. 2017, Tompkins Co. NY
Beginner Farmer Resources What are the farm s financial goals? Per Year Per Species Per Head How much do we need to Gross Gross? How much do we wish to retain as Profit Profit? How many head do we need to market to reach annual goals? Can use this to create monthly sales projections and write specific objectives!
Beginner Farmer Resources Channels for Meat Sales By the carcass Commodity Small/regional brand Co-op brand Retail stores Restaurants By the cut Farmers Markets Farm Store (own) Meat CSA Retail stores Restaurants Institutions Freezer trade Institutions
Beginner Farmer Resources Channels with high prices come with greater demands More time. More skill. More cost.
Beginner Farmer Resources Each Channel has different costs. Each cut comes in a proportion. Each cut has a level of demand. Therefore, we need unique pricing for each channel.
Beginner Farmer Resources In fact, why expect different levels of profit in different channels?
Beginner Farmer Resources We can create a scenario where profit/head is fixed and the cost of marketing is the variable.
Beginner Farmer Resources Each step has opportunity. Each business must profit.
Beginner Farmer Resources Calculator Prep 1: Production Example: $1300/head What is my break-even cost of production? $100/head How much profit would I like my PRODUCTION business to make on 1 head?
Beginner Farmer Resources Calculator Prep 2: Processing & Marketing Example: $600/head What is the value of time I invest selling? $500/head How much profit would I like on 1 head? 5 markets, 8 hours each, $15/hour = $600 That means selling 80 lbs per market.
Beginner Farmer Resources Go to Calculator http://calculator.meatsuite.com/
Beginner Farmer Resources What s the point? To ensure a profit. To test & adjust current market channels. To account for labor & costs. To manage inventory of cuts. To evaluate and price for new opportunity. To aid wholesale buyers. To develop channel-specific pricing that works!
Beginner Farmer Resources What s the point? What does it mean if you develop pricing but determine that your customers in that channel would never pay those prices?
Beginner Farmer Resources The difference between $4 & $8 ground beef? $8.00/LB Target Market identification Marketing Strategy Market Research = Pull Marketing Applied Marketing Management Marketing Budget Consumer Communication Time $4.00/LB
Beginner Farmer Resources Factors influencing feeder calf prices at auction: $2.00/LB Good bull genetics Body Condition Score Castrated Applied Production Management Weaned Started on-feed Vaccinated & boostered $1.00/LB
Beginner Farmer Resources For Successful Use: Prepare in advance. Set aside the time. Estimate COP. 1 head data (or AVG). Weigh all cuts. Processing invoice. Trucking time & $. Current channel prices. Decide Production Profit/head. Estimate Marketing Time.
