Marketing Plans and Strategies

The Lean Hog Marketing course teaches you strategies for effective and profitable marketing. The first step in the marketing plans and strategies module is how to understand and manage risk. Historical data links are included as well as explanations of tools such as futures, options, forward contracts, and long-term marketing arrangements.

Discussed next in the module are steps for developing a marketing plan. This module asks questions directed at setting goals and the steps needed to achieve those goals. Once goals have been established, tips are given for sticking to the marketing plan. Worksheets are available to download in the module to fill in with information about your operation to set price objectives, risk objectives, decision rules, pricing decisions, and evaluation measures. A review quiz is included at the end to see how much you have retained and what areas may need more attention.

Hog Production Cycles

Do you know the difference between the long-term hog production cycle and seasonal production patterns? After completion of this module, you will be able to answer that question and know why production cycles occur. You will also be given the history of past cycles and patterns in the hog industry. Information on hog price cycles shows the correlation between production and price and how the two cycles can be used together in developing marketing strategies.

Within hog cycles, producers can use shorter seasonal price patterns to their advantage. In this section, these patterns are discussed along with charts showing average prices throughout the year. You may be able to make up a working marketing plan with information given up to this point, but this module goes more in-depth and discusses the probability of prices for hogs and how to plan using historical information along with information from the current hog markets. Links to average estimated hog returns are included along with a quiz to measure the progress from this module. The more information and knowledge you can put in a marketing plan the more useful it will be in the future.

Choices for Hog Pricing

You may know there are many different options available for pricing hogs, but you also may not understand those options or know where to go to find out more about the available choices. Through this module you will learn about different pricing techniques and be more knowledgeable in deciding which one is right for you.

The first pricing method is cash market pricing. Historical data including prices throughout the year is given to show high, low prices, and changes. Tips are also given for practicing successful pricing on the cash hog market.

Through this module, you get a brief overview on forward pricing and long-term hog marketing agreements. These agreements consist of different types of contracts, and this module goes into the evolution of marketing contracts giving references for articles written by leading experts in the hog market industry. Comparison tables are also included for different packer contracts for the 1990's. With this information users can decide whether they are producing efficiently and where they could improve their operations. Concerns that often come up with contracts are also given, and what to look for in regards to contract specifics. This module ends with possibilities for the future of hog pricing. Review questions are given to help test your knowledge.

Forward Cash Contracting

After the brief overview in module 3, forward contracting is discussed in-depth in modules 4, 5 and 6, giving you all the knowledge needed to be successful in this type of hog market pricing.

Module 4 begins with the advantages and disadvantages of forward cash contracts, and how to go about selecting one. A few general contract provisions are covered such as size, future price discounts, weight and grade specifications, delivery point and period, under or over delivery provisions, and how to go about canceling a contract. Knowing what to expect in a contract and knowing what your operation can handle makes you a stronger manager and your operation more competitive. Like other modules, this one ends with review questions to test the user's knowledge.

Hedging Hogs with Futures Contracts

Module 5 discusses hedging hogs using futures contracts. The first half of this topic gives basic information on the futures market and who should consider getting into this type of pricing strategy. Descriptions of the different positions in the futures market are given to help you understand the different people involved and where you would fit into the equation, along with lenders and brokers.

Hedging Hogs with Futures Contracts - II

The information in the last module carries over into this one, with more examples and exercises. This module tells how to evaluate the different hedging alternatives, and how to localize the futures price to make it more comparable to the cash market.

This module also points out other costs that are not always noticed right away, such as brokerage fees and interest costs.

After the basics are explained, a hedging example is given to make sure everything is clear. This module goes into more detail with short hedges, hedging selectivity, and how to hedge in non-contract months. More real life examples are included at the end to test your knowledge and understanding.

Using the Hog Options Market

Do you know all there is to know about the hog options market? This module covers everything from how to adjust the option's price to writing an option yourself.

Going step by step, this module gives explanations for basic options terms, how to use options, whether writing an option is a choice for you, and when is the right time to use options. Insurance options specifically available for hogs are included with rates and coverage level links that are updated each day to give only the most current prices.

Hog Market Analysis and Forecasting

Once you have mastered the different options for marketing your hogs, this module helps you plan more for the future. Using future predictions, you can decide whether you want to stay in your current position or change to a different stand in the market.

Different types of analysis and how each can help in the decision making process are explained. Economics on the supply and demand of pork and their effect on price markets are discussed. To help pull everything together price forecast worksheets are included, along with outside websites to go to for current up-to-date information. Principles of charting are explained for you to be able to visualize trends in the markets, which can make them easier to understand. Along with these charts, you will be able to see gaps in the market which can mean money making chances for you if you know what to do with them. After completing this module you should be able to utilize these gaps to your benefit. Other worksheets and review questions are also included.

Using the Tools

The final module of Lean Hog Marketing is a summary of everything that has been discussed. The process is broken down into seven steps to get you from beginning to end for marketing your hog operation.

Course Registration and More Information

If you are interested in registering for this course, the on-line form is available here.

The course fee is $100.00.