1.  Marketing Systems Obj: Describe methods used to market livestock and poultry.

2. Market Methods 1. Terminal Markets 2. Auction Markets 3. Direct Selling 4. Electronic Marketing 5. Futures Market & Hedging

3. Terminal Markets  Central markets on public stockyards where livestock are consigned to a commission firm to bargain with purchases or buyers for a certain fee  Facilities are owned and operated by a stockyard company  Company charges for the use of the facilities and feed fed while they are in the stockyard  Charge for  Yardage, feed, insurance, selling fees  Seller receives the net amount after the charges are taken out

4. Terminal Market  Fewer exist today than in 1920’s & 30’s  Most are in Western states  Located near population centers and packing plants

5. Auction Markets  Public bidding with the animals selling to the buyer who bids the highest

6. Direct Selling  Farmer sells straight to buyer with no middle person or firm receiving commissions or fees

7. Electronic Marketing  Auctioning online using computers

8. Futures Market & Hedging  Legal document calling for delivery in the future, locking in a future delivery price

9. Vertical Integration  Two or more steps of production, marketing, and processing are linked together usually by contract between producers and feed manufacturers or between producers and processors or include all three  About 99% of all broilers and a very high percentage of turkeys and laying hens and swine are grown and marketed through vertical integration contracts

11. Become a Livestock Marketing Expert!  Visit each station and read the assigned documents  Develop a 5 sentence paragraph to define each market  Develop a list of PROS (3) and CONS (3) for each type of market  You will have approximately 15 minutes at each station…GO!