Livestock Production/Industries, Marketing,

Watkins, Brian H.

English

Research Papers in Economics

Agricultural Outlook Forum 2003      Presented:  February 20, 2003 
 
 
SWINE PRODUCERS ADD A MARKETING DEPARTMENT 
 
Brian H. Watkins 
Ohio Grain and Swine Producer 
Vice-President, Great Lakes Pork Cooperative 
 
 
  Great Lakes Pork Cooperative is an effort by swine producers in Ohio, Indiana, 
and Michigan to gain control of more of the pork marketing chain.  GLPC is offering 
investment shares to producers to own a pork slaughter and processing facility.  GLPC 
has identified specific markets for pork that may be underserved and provide opportunity 
for a market niche for their production.  GLPC’s success will be determined by 
producers’ willingness to make significant financial commitment to this business vision 
and venture.   
 
Farmers have long bemoaned their lack of control over the markets into which 
they sell their products.  Although no business ultimately “controls” its market, moving 
away from commodity production to a differentiated product requires a radical change in 
the marketing philosophy and strategy of farmers.  Agriculture producers are attempting 
to make this move via cooperative efforts that retain ownership of their commodity 
through the processing stage of the market chain.  A key challenge for these producers is 
to vertically integrate their marketing mentality as they vertically integrate their business 
structure. 
 
If farmers can successfully evolve their marketing capability, the potential 
benefits are significant.  Every b-school grad knows that “marketing” means 
understanding the customers’ needs and driving all facets of the business to meet or 
exceed the customers’ demand.  Yet commodity producers for the most part have not had 
the opportunity to create that kind of strategy.  For them, cost control is the 
overwhelming strategic issue.  But now, by vertically integrating their business, they can 
personally encounter someone – the end-user of their product – whose previous existence 
for them had been real, but muted.  This new relationship should profoundly change the 
flow of information to the producer and allow him to make better decisions on what and 
how much to produce, and how to produce it. 
 
 
 
 
 
    

SWINE PRODUCERS ADD A MARKETING DEPARTMENT

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics