State of the Bison Business
A Report from the
National Bison Association
Bison Advantage Workshop
November 2011
Today’s U.S. bison business
• 4,450 U.S. farms with 198,000 bison
– Average herd of 44 animals
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Processing handled in small plants
Major distributors now carry bison
Major marketers focus on selected markets
Market evenly divided between foodservice
and retail
Of bison and beef
Beef
Bison
• Per-capita consumption of
beef is 67 lbs.
• 125,000 animals processed
under USDA inspection
daily
• USDA-administered
checkoff program generates
$82 million for promotion
and research yearly
• Per-capita consumption of
bison is 0.1 lb.
• 52,900 animals processed
under USDA inspection for
all of 2010
• Voluntary checkoff
generates roughly $50,000
yearly
Prices strong at 2011 annual NBA sale
$9,000
Ave. 2010
$3,000
Ave. 2011
$2,000
$1,000
2 Yr Old
Bulls
Yearling
Bulls
Bull
Calves
2 Yr
Heifers
Yearling
Heifers
Heifer
Calves
$-
Prices Per Animal
Per Lb. 2009
Per Lb. 2010
Per Lb. 2011
Price Per Lb.
Bull Calves
$4,000
Yearling Bulls
Ave. 2009
2 Yr Old Bulls
$5,000
Heifer Calves
$6,000
Yearling Heifers
$7,000
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$-
2 Yr Heifers
$8,000
Steady/strong growth
• Young Bull prices up
213% over 2006
• Young heifer prices up
229% over 2006
• Tight supply limiting
market growth
$400.00
$350.00
$300.00
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
Beef
Slaughter
Price
(Cwt.)
Bison Bull
Slaughter
Price (Cwt.)
Sept. Sept. Sept. Sept. Sept. Sept. Sept.
2005 2006 2007 2008 2009 2010 2011
Beef
Oct.
2011
Source: USDA Crop & Livestock Reporting Service
$400.00
$350.00
$300.00
$250.00
Beef
Slaughter
Price
(Cwt.)
Bison Heifer
Slaughter Price
(Cwt.)
$200.00
$150.00
$100.00
$50.00
$0.00
Sep.
2005
Sep.
2006
Sep.
2007
Sep.
2008
Sep.
2009
Sep.
2010
Sep.
2011
Heifers
Oct
2011
USDA monthly bison report
YTD Processing male/female
• 2009 YTD
– 56% male
44% female
• 2010 YTD
– 58% male
42% female
• 2011 YTD
– 63% male
37% female
Supply limiting market growth
• Retail/foodservice sales
estimated at $235.5
million in 2010
• Increase of 4.6% over
2009
• But…6.5% fewer bison
processed in 2010
• Adjusted growth of 11.9%
Source: NBA Annual Market Overview
Annual Bison Slaughter - USDA Inspected
2000
60000
2001
50000
2003
2002
2004
40000
2005
30000
2006
2007
20000
2008
2009
10000
2010
0
Source USDA NASS
How serious is the shortage?
• 78% of marketers are shorting
customers more than 10%
• 40% of marketers are shorting
customers more than 20%
• Half of marketers feel they
could sell at least 25%
more product at today’s
prices, if it were available.
• We’re asking
customers to
be patient
while we
grow the
herds
Addl. marketing opportunities
• Value-Added Products
– Leather
– Pet Food/treats
– Bison Wool
– Skulls
– manure
• Agri-Tourism
– Hunts
A future of opportunity
• Affordable Start-Up
• Profitable, growing markets
• Producing a product, not a
commodity
• Connecting with consumers
• NBA Resources
• Willing mentors
Bison Producers’ Handbook
• 30+ authors
• Experts from U.S. and
Canada
• All new information
• Best resource available
• Special FFA convention
price!!
On-Line Resources
A new generation
NBA resources
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Mentors
Workshops
Bison 101/201
Junior Judging
Business Planning Assistance
and
Thank You!!
www.bisoncentral.com
david@bisoncentral.com