- -  AGRICULTURE CORE CURRICULUM  - -

(CLF3000)  Advanced Core Cluster:  ANIMAL SCIENCE

  (CLF3400)  Unit Title:  LARGE ANIMAL PRODUCTION

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  (CLF3404)  Topic:  LIVESTOCK              Time          Year(s) 
                     MARKETING              1 hour        3 / 4        
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          Topic Objectives:  Upon completion of this lesson, the student 
                             will be able to:

          Learning Outcome #:

            (G-4)  -  List and discuss the different markets available for
                      the sale of livestock.

          Special Materials and Equipment:  Current issues of the 
                      "California Farmer Magazine", the Marketing Decision
                      section, or another reference source for current 
                      livestock prices.

          References: Bundy and Diggins. LIVESTOCK AND POULTRY PRODUCTION.
                      Ensminger, M.E. ANIMAL SCIENCE.
                      Glimp, Hudson A. THE SHEEPMAN'S PRODUCTION HANDBOOK.

          Evaluation: Quiz by instructor.


TOPIC PRESENTATION:  MARKETING LIVESTOCK

A.  Methods of Marketing Livestock

    1.  Usually there is a choice of livestock market outlets.  The one
        selected depends on:

        a.  Location of livestock - 

            1)  Some parts of the U.S. do not have access to all marketing
                channels, auctions for example, so they must use another
                method to market their livestock.

        b.  Type of livestock to be marketed - 

            1)  Feeder stock are not yet ready for slaughter so they can not
                be sold to the packer.

            2)  Slaughter animals may be sold directly to the packer by a
                private treaty or sold through an auction.

            3)  Purebred animals are marketed as breeding animals, such as 
                herd sires and replacement heifers, and are often sold by
                private treaty or by auction.

        c.  Number of animals - 

            1)  If only a few animals are to be sold, there may be fewer
                markets available.

    2.  Types of Markets:  

        a.  Terminal or central markets (very few in California) - 
  
            1)  These are livestock trading centers which have commission 
                firms and an independent stockyard company.

            2)  The terminal market involves the following distinct steps:   

                a)  the producer decides when to sell his/her animals,

                b)  the producer must deliver his/her animals to the 
                    terminal,

                c)  the commission firm must accept the animals upon their 
                    arrival at the terminal, 

                d)  the commission firm must house, water, feed, sort, sell, 
                    and attend to all necessary tasks from the time the 
                    animals arrive until they are sold, and

                e)  the commission firm collects from the buyer and pays the
                    seller (producer).

            3)  Advantages of terminal markets:

                a)  they can sell a large numbers of animals at one time, 
                    and

                b)  they require minimal involvement by the producer in the 
                    actual sales process.

        b.  Private Treaty or Direct Sales - 

            1)  This refers to the producer's sale of livestock directly to 
                packers, local dealers, or others without the support of 
                brokers or a commission.

            2)  This method of livestock marketing does not involve any 
                recognized market and usually takes place at the farm,
                ranch, or feedlot.

            3)  Advantages of private treaty marketing:

                a)  they permit producers to negotiate and exercise some 
                    control over selling, and

                b)  there are no marketing costs, like commissions.

            4)  Contractual marketing is another method of marketing
                livestock by private treaty and involves a buyer contracting 
                for advanced delivery of livestock such as feeder calves or 
                market lambs at a certain time and price.

        c.  Auction Market or Community Sales - 

            1)  These are trading centers where animals are sold by public 
                bidding to the buyer who offers the highest price.

            2)  There are several important differences between terminal
                markets and auctions, including:

                a)  The size of the business size, auctions are usually 
                    smaller.

                b)  Animals usually sell by bid rather than by offer and
                    counter offer like is to be done at the terminal
                    markets.

                c)  Auctions are completely open to the public with respect 
                    to bidding.

            3)  Advantage of auctions:

                a)  Single animals or small numbers of animals may be sold.

                b)  One has the opportunity to closely inspect the animals 
                    before bidding.


          __________________________________________________________
          ACTIVITY:  
                      
          1.  Take a field trip to a local auction and have students
              observe the auction process and the types of animals
              being sold.

          2.  Use the "California Farmer Magazine", the Marketing
              Decisions section, to learn about currant livestock 
              prices.
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5/10/90sg


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