Seedstock Producer
Description
The Seedstock Producer is focused on producing bulls, heifers, semen,
and ova that meet the needs of every segment of the beef industry, including
operations that want to maximize pre-weaning terminal traits, post-weaning
terminal traits, and maternal traits. He or she is often passionately
attached to a specific breed and even bloodlines within breeds. Profit
is not the only motivator and may not even be the biggest motivator
for these producers. Recognition and respect from peers and customers
are also highly coveted in this segment of the industry. Marketing skill
is among the hallmarks of successful seedstock producers.
Strengths
• Passionately committed to the operation.
• Business responds positively to aggressive marketing.
• Strongly in tune with the science of genetic improvement.
• A great deal of beef industry research and resources are presently
focused on seedstock production.
• Accurate and detailed record keeping is highly valued.
Weaknesses
• Success depends upon marketing skill.
• Passion for the operation may produce lack of objectivity about
the business.
• There is difficulty in producing genetic resources that have
value to all segments of the beef industry.
• Small-scale seedstock production is much more capital intensive
and only marginally more profitable than small-scale commercial production.
• Because of greater gross returns, there is a tendency among
seedstock producers to ignore least-cost production methods in preference
for higher priced inputs. This is particularly true with regard to nutrition.
Opportunities
• Seedstock enterprises are among the first in the beef industry
to benefit from new technologies in animal breeding, genetics, and reproduction.
• Emerging technologies, which are more likely to be used by seedstock
producers, provide ample opportunity to differentiate and market a superior
genetic product.
• Seedstock enterprises are positioned to lead the industry into
coordinated food production systems by providing germplasm and by providing
source verification information.
Threats
• Breed associations may lead in a direction other than one focused
on system profits.
• Seedstock producers may choose or persist with breeds that lose
market share.
• New technology may alienate export markets.
• New technology may fail to make a return on investment.
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