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Marketing Hay To The Fast Growing Horse Industry Dr. Tim L. Stanton Owner/Manager of Sunset Stables LLC Extension Feedlot Specialist for 25 years.

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Presentation on theme: "Marketing Hay To The Fast Growing Horse Industry Dr. Tim L. Stanton Owner/Manager of Sunset Stables LLC Extension Feedlot Specialist for 25 years."— Presentation transcript:

1 Marketing Hay To The Fast Growing Horse Industry Dr. Tim L. Stanton Owner/Manager of Sunset Stables LLC Extension Feedlot Specialist for 25 years

2 How does one find horse stables or horse owners willing to buy your hay? Phone book/website North Forty News, Fence Post, Thrifty Nickel, Newspapers, Local Horse Publications Hay haulers What do stables want? –People that want to board or breed horses

3 How do you make the connection? Personal contact –Phone call –Visit stable –email Advertisement Bring a sample of your hay with analysis

4 How do you keep repeat business? Deliver quality at a fair price Ask your customers what they want! –Be ready to provide it Know your product Minimize variability

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6 Hay quality assessment Free of mold, dust, & foreign material Free of weeds & blister beetles Fresh smell Leafy & green without a lot of stems Lab analysis??

7 Horse Hay Reality Hay weight x digestibility = performance + manure Eating rate - palatability Uniformity in bale weight

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9 Hay Classification Horse hay $100-250/ton –Priced by bale ( small squares) or ton Dairy hay $110-180/ton –Priced on RFV basis/ton (big packages) Cow hay $80-150/ton –Priced per ton Mulch/erosion control price ???

10 Hay Cost and Board Fees $/ton30 lbs$/month$300/month 1001.5045.00255.00 1251.8856.25243.60 1502.2567.50232.50 1752.6278.75221.40 2003.0090.00210.00 2253.37101.25198.75

11 Hay Costs and Board Fees For every $25/ton increase in hay prices, one must increase board fees about $11.25 per month to offset the hay $ increase. –@ 30 lbs hay/horse/day Can we decrease lbs/head/day and still maintain body condition? –Yes, if we purchase higher quality hay!

12 Hay Quality Determination Stage of maturity when cut Lack of weathering Handling during harvest Duration and conditions of storage –Minimize bottom or top bale spoilage –Don’t send cow chips and rocks –Weed free as possible

13 Storage Losses Inside 5-10% Outside on ground 8-29% 2 yrs 13-32% Bottom bales - to prevent losing a whole layer - consider placing gravel or recycled asphalt on hay storage area (outside under tarp)

14 Storage & Feeding Losses, % Stored Inside & Rack Fed Hay formStorageFeedingTotal Small sqs.459 Large rnds.448 Cubes or pellets 224

15 Stage of Maturity on Alfalfa Digestibility Stage% digestibility Pre-bud66.8 Bud65.0 Early bloom63.1 Mid-bloom61.3 Full bloom59.4 Late bloom57.5 Mature55.8

16 Grass, Grass/Alfalfa, Alfalfa Choice depends on supply and what horse owners want you to feed. Can you feed alfalfa only? –disadvantage if you are riding on city trails. –Increased urine volume & ammonia odor Cereal grain hay – harvested when green –More grain – higher feeding value- soft dough

17 How Should I Sell Hay? By the bale? By the ton? What is the best value?

18 Cost per Bale Bale wt. lbs$/bale$/ton 406.00300 506.00240 606.00200 706.00171 806.00150

19 Pricing on RFV 125 RFV x 1.1 = $137.50/ton 1.3 = $162.50/ton Coefficient varies depending on supply & demand

20 Relative Feed Value Hay sellers will find labs that tend to analyze forage a little higher in RFV. Ask if the analysis is from a certified lab. There may be an economic advantage to move from buying hay on a per bale basis to a RFV basis or use crude protein/ADF or TDN basis.

21 Hay Packages Small squares – 35-100 lbs Usually the package of choice

22 Hay Packages Medium squares –730-1425 lbs –3 x 3 x 8 ft. May offer potential savings some years Precise feeding is more challenging

23 Switching from Small to Medium Square Bales May require a different type of feeding system One has to recalibrate flake size –Instead of 2 flakes am & pm with small bales –Might only feed one flake of a medium square per horse per day This may require a larger stall feeder

24 Medium & Big Squares Require a hefty tractor/ loader and a different method of feeding, rather than feeding 2-4 flakes per horse per day. Weigh the flake!

25 Hay Packages Big squares –3 x 4 x 8 ft. –4 x 4 x 8 ft. –1300-1800 lbs

26 Hay Packages Round bales 5 x 6 or 6 x 6 500-1500 lbs –Good for feeding groups of horses –Difficult to feed individual animals without processing

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28 Alternatives Sun cured alfalfa pellets Beet pulp pellets Soyhulls Cottonseed hulls/sunflower hulls Millet hay Straw/corn stalks

29 Least Cost Energy Ingredient$/tonDE Mcal/lb$/Mcal alfalfa1401.1.063 grass1700.9.094 corn1421.8.039 oats1501.54.049

30 Energy & Requirements 16.4 Mcals/d for 1100 lb Horse IngredientsLbs of feed required/d Cost/day Alfalfa16.4/1.114.91.04 Grass16.4/.918.21.55 Corn16.4/1.89.1.65 Oats16.4/1.5410.6.80

31 Grain May want to consider feeding more grain –Cheaper on cost /unit of energy Forage should never be less than –0.5 lbs/100 lbs of body wt. Or 5 lbs/1000 lb horse/day –Safer if not more than ½ of total feed eaten

32 Risks of Alternatives Boarder perception Constipation Colic Must supplement more concentrate to maintain weight

33 How to Buy Hay? Purchase on a ton basis Develop good relationships with hay growers – pay promptly & don’t bounce checks

34 Marketing Hay to the Horse Industry?

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36 How to Market Hay to the Horse Industry? Developing relationships Providing value Delivering in a timely manner Delivering hay year round –Do you have storage?

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38 All I Need to Know in Life I Learned From My Horse 1. When in doubt, run far, far away. 2. You can never have too many treats. 3. Passing gas in public is nothing to be ashamed of. 4. New shoes are an absolute necessity every 6 weeks. 5. Ignore cues. They're just a prompt to do more work. 6. Everyone loves a good, wet, slobbery kiss. 7. Never run when you can jog. Never jog when you can walk. And never walk when you can stand still. 8. Heaven is eating for at least 10 hours a day... and then sleeping the rest. 10. Eat plenty of roughage. 11. Great legs and a nice rear will get you anywhere. Big, brown eyes help too. 12. When you want your way, stomp hard on the nearest foot. 13. In times of crisis, take a poop. 14. Act dumb when faced with a task you don't want to do. 15. Follow the herd. That way, you can't be singled out to take the blame. 16. A swift kick in the butt will get anyone's attention. 17. Love those who love you back, especially if they have something good to eat.

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