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PARTICIPATION IN ALLIANCES AND CONTRACTS . 15% of producers surveyed currently market at least a portion of their calves through an alliance or coop. Number of calves marketed by participants is increasing at an average annual rate of 11%.

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Participation in alliances and contracts
PARTICIPATION IN ALLIANCES AND CONTRACTS

  • 15% of producers surveyed currently market at least a portion of their calves through an alliance or coop. Number of calves marketed by participants is increasing at an average annual rate of 11%.

  • 65% of alliances returned carcass or performance data, 46% required or recommended certain genetics, 18% would supply specific bull genetics, and 10% would supply female genetics.

  • 55% of producers surveyed indicated they would agree to long-term contracts (3-5 yrs.) to market calves to a specific feedlot or alliance, depending upon the price level at which they would agree.

    SOURCE: Cattle-Fax


Keys to success in the seedstock business
KEYS TO SUCCESS IN THE SEEDSTOCK BUSINESS

  • Find the money to get started and survive during the first difficult years.

  • Know where your expertise lies and then put it to use.

  • Seek out and listen to the most successful people in the business and never stop learning.

  • As you grow, hire the best people available. The cattle business has only three significant assets—cattle, people and land.

  • Get out of the way of your ego! Listen to your customers, your partners, and your employees. Also, study your competitors.

    SOURCE: Seedstock Digest (anonymous producer).


Supermarket trends
SUPERMARKET TRENDS

A study by FMI revealed the following:

  • Fast-food chains have given back to supermarkets some of the market share gains they won in recent years.

  • Percent of consumers eating fast food once or more a week has fallen from 38 to 32%.

  • Take-out and home delivery meals have also declined.

  • When consumers select a supermarket, their priorities are: 1) cleanliness; 2) produce quality; 3-tie) meat quality and price.

    SOURCE: Food Marketing Institute.


Major forces driving the progression to case ready products
MAJOR FORCES DRIVING THE PROGRESSION TO CASE-READY PRODUCTS

1st – Labor savings.

2nd – Out-of-stock and shrink in the meat case.

3rd – Convenience and consumer satisfaction.

4th – Food safety.

SOURCE: Dan Murphy, Meat Marketing and Technology


Largest grocery retailers in the u s
LARGEST GROCERY RETAILERS IN THE U.S.

Percent of total supermarket sales:

  • Top 3 control 31.2% of sales.

  • Top 5 control 42.1% of sales.

  • Top 10 control 62.0% of sales.

  • Top 20 control 76.3% of sales.

    SOURCE: FMI (2001 sales).


Top ten grocery retailers in u s
TOP TEN GROCERY RETAILERS IN U.S.

No. Sales % Market

Company stores (billion $) share

Kroger 3,211 $ 50.7 12.8%

Albertson’s 2,573 $ 38.3 9.7%

Safeway 1,762 $ 34.3 8.7%

Ahold USA 1,446 $ 34.3 8.7%

Wal-Mart Supercenters 1,060 $ 20.1 5.1%

TOTAL TOP 5 10,052 $166.6 42.1%

Sam’s Club 498 $ 18.4 4.6%

Costco 363 $ 17.7 4.5%

Delhaize America 1,406 $ 15.2 3.8%

Publix 675 $ 14.7 3.7%

Winn-Dixie 1,150 $ 12.9 3.3%

TOTAL TOP 10 14,204 $245.5 62.0%

SOURCE: FMI (2001 sales).


Development of animal welfare standards
DEVELOPMENT OF ANIMAL WELFARE STANDARDS

  • The nation’s two largest supermarket companies, Kroger and Albertson’s, have announced their support of standards being developed by FMI (Food Marketing Institute) and NCCR (National Council of Chain Restaurants).

  • The FMI-NCCR standards are not mandatory but are “expected” of their supermarket and restaurant members, respectively.

  • To date, the following restaurant companies have developed separate animal husbandry/welfare standards to be required of their suppliers:

    -McDonald’s

    -Burger King

    -Wendy’s

    -Applebee’s

    SOURCE: Rod Smith, Feedstuffs, 7/8/02.


Nutrient content of lean beef
NUTRIENT CONTENT OF LEAN BEEF

  • A 3-oz. serving of lean beef contributes only 9% of the calories to an average 2000-calorie diet.

  • Conversely, it supplies more than 10% of the recommended daily allowances for:

    -Protein……………………..................................... 50%

    -Zinc………………………………………………….. 39%

    -Vitamin B12…………………………………………. 37%

    -Selenium……………………………………….…... 24%

    -Phosphorus……………………………………….. 20%

    -Niacin……………………………………………….. 18%

    -Vitamin B6……………......................................… 16%

    -Iron…………………………………………...……… 14%

    -Riboflavin………………………………………....... 12%

    SOURCE: USDA and NCBA.


Aquaculture is growing at a rapid pace
AQUACULTURE IS GROWING AT A RAPID PACE

  • Globally, fish is the most important single source of high-quality protein, providing 16% of the world’s animal protein consumption. And demand is increasing.

  • Because growing numbers of fish species are being harvested into extinction, aquaculture will become one of the largest food-producing industries in the world within 10 years.

  • Today farmed seafood makes up about a third of U.S. seafood consumption, and is increasing rapidly.

  • Virtually all catfish and trout eaten around the world now come from farms, as do two-thirds of the shrimp.

    SOURCE: FAO


U s imports of goods 2001
U.S. IMPORTS OF GOODS (2001)

Item $ Billions

Food, feeds & beverages $ 46.7

Petroleum & products $103.8

Industrial supplies, except petroleum & products $167.2

Automotive vehicles, engines & parts $189.7

Consumer goods, except automotive $283.7

Capital goods, except automotive $298.8

*Computers, peripherals & parts $ 74.4

*Civilian aircraft, engines & parts $ 31.3

*Other capital goods $193.1

SOURCE: U.S. Dept. of Commerce.


Top ten animal health companies 2001
TOP TEN ANIMAL HEALTH COMPANIES (2001)

2001 Sales

Company (million $)

Merial 1,636

Pfizer 1,022

Intervet 956

Bayer 930

Fort Dodge 776

Schering-Plough 694

Elanco 686

Novartis 550

Pharmacia 469

Idexx 386

SOURCE: Fountain Agricounsel.


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