Course: Advanced Animal Science. Unit Title: Livestock Marketing TEKS: 130.7(C)(14)(A) Instructor: Ms. Hutchinson. Objectives:

Transcription

1 Course: Advanced Animal Science Unit Title: Livestock Marketing TEKS: 130.7(C)(14)(A) Instructor: Ms. Hutchinson Objectives: After completing this unit of instruction, students will be able to: A. Define Livestock Marketing; B. Define price determination; C. Define price discovery; D. List what questions a person must ask themselves when making livestock marketing decisions; E. List the two stages of price discovery; F. Explain the different types of marketing systems; and G. Research methods of marketing.

2 Interest Approach: Curriculum & Instruction: Curriculum A. Define Livestock Marketing; Marketing: Marketing is an important aspect of any livestock system. Definition: producers exchange livestock and products for cash. B. Define price determination; C. Define price discovery; Price Determination & Discovery: Price Determination is the broad forces of supply and demand establishing a market clearing price for a commodity. Price Discovery is the process by which buyers and sellers arrive a a specific price for a given lot of produce at a given location for a specific time period. D. List what questions a person must ask themselves when making livestock marketing decisions; Livestock Marketing Decisions: What to sell Live, carcass, grid Where to sell Type of market Location When to sell Weight, grade, costs Instruction PPT Slide 4 Define livestock marketing. PPT Slide 5 What is price determination? What is price discovery? PPT Slide 6 What are the three main questions you need to ask yourself when making Livestock Marketing Decisions? E. List the two stages of price discovery; Price Discovery: A human process, subject to relative bargaining power of the buyer and seller. Two stage process Evaluate Supply and Demand Estimate the price for the specific trade. PPT Slide 7 What are the two stages of price discovery? F. Explain the different types of marketing systems; and

3 Methods of Marketing: Terminal Markets Central markets on public stockyards Livestock are consigned to a commission firm to bargain with buyers for a certain fee Auction Markets Public bidding Sell to the buyer that bids the highest PPT Slide 8-16 Describe the following marketing systems: Terminal Auction Direct Electronic Futures Vertical Integration Direct selling No middle person Producer sells straight to the buyer No commission or fees Electronic marketing auctioning on-line using computers Futures marketing and hedging legal document calls for the delivery in the future prices are locked in to a futures price Vertical Integration: Definition Two or more steps of production, marketing and processing are linked together usually by a contract between the producer and feed manufactures or between producers and processors including all three

4 About 99% of all broilers and a very high percentage of turkeys, laying hens and swine are grown and marketed through vertical integration contracts Which Do you Prefer? G. Research methods of marketing. Students Teaching Students: Students will research the different methods of marketing. Students will be split into groups and each group will research a different method. Students will then create a PowerPoint and present their information to the rest of the class. Students will make a notes version of their PowerPoint so that the rest of the class can follow along during the presentation. Make Your Own Test! Each student will come up with their own questions that may be used on the test. Each student will write a question on one side of an index card and the answer on the other side of the index card. Each student will write one question from the information they presented in their PowerPoint and then one question on the information from the PowerPoint that I presented in the lesson. Index cards Review & Instruction: Objectives will be reviewed before examinations. Exams will be developed based on objectives as taught in class. Instructional Support: A. References a. Agricultural Curriculum by Sam Houston State University B. Teaching Aids & Equipment: a. Livestock Marketing PPT b. Livestock Marketing Student PPT

5 c. Index cards C. Facilities: a. Agriculture classroom