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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 oneâs 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 âwinter quarterâ; 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 âotherâ 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
ânaturallyâ, 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 âlightedâ 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 HollandâŚ
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 âtryâ
this novel production/marketing strategy
⢠Breed yearlings late or use early-weaned
does end of presentation