Spring Semester 2003
Spring Semester 2003
Final Project: The final project is the creation of a marketing plan. The plans are individual, not group, projects and they count for 30% of your grade. They are due at the time of the final exam for this class--by 5:30pm on Friday, May 9. I encourage you to hand the final project in earlier than that. Five extra credit points will be awarded for projects turned in before the end of study week (May 7).
There is no absolute outline for a marketing plan. They will, and should, differ according to the unique characteristics of your business. However, there are several components that should be present in all plans. You can download an outline of the major components of a marketing plan here. You can also access a list of price risk management tools here.
Most of you will want to write your marketing plans from the perspective of a milk producer. An integral part of a marketing plan is knowing what your costs of production are. If you have access to an actual farm's financial summary that you would like to use, please do so. If you don't have access, I have provided summaries for three farm sizes that you may choose from:
If you want to write your plan from the prospective of a dairy processor, you may do so. Here, your strategies would include the expected output price for a dairy product such as cheese, and you would focus your strategies on the input side--i.e., milk procurement. I can help you with some cost of processing estimates for a firm.
A spreadsheet calculator was developed by colleagues at the University of Wisconsin. It may help you think about strategies to employ under different market situations.
Lectures:
Thursdays, 2:30-4:25, 131 Warren Hall
Office Hours:
Most Mondays, 10:00-12:00, 347 Warren Hall or any time by appointment. It is best to call ahead to assure that I am in town.
Prerequisite:
ECON 101 or equivalent
Instructor:
Mark Stephenson
Questions: mws5@cornell.edu
Administrative Support:
Andrea Besley , 314 Warren, 255-1406
This course will employ the use of electronic documents (PDF) and Acrobat. Under each lecture heading there will be a single label called "Handouts" which you should download and print off for lecture. Generally, these will be available on the Wednesday before class. If there are other PDF files for download, they are reference material and do not need to be printed.
CLASS HANDOUTS:
Lecture 1
Marketing (8k PDF)
History (28k PDF)
History Reference (84k PDF) This is for your reference. You do not need to print it.
Lecture 2
Lecture Notes (312k PDF)
Product Prices (Optional) (228k PDF)
Milk Checks (Optional) (4.8m PDF, I'll bring copies of this to class)
Federal Order Q&A Reference (Optional) (356k PDF)
Lecture 3
We will cover the Milk Checks that we didn't get to last lecture. I will bring these handouts to class.
Federal Order Formulas (272k PDF)
Homework #1 (80k PDF)--Due in class, Feb 20
Video on Sources of Risk
Lecture 4
Futures Markets for Milk (345k PDF)
Dairy Options (897k PDF)
Lecture 5
Milk Checkoff Program (1000k PDF) Guest lecturer
NOTE: We will have a guest lecturer today for half of the class time. The other half, we will conduct a game of paper trading options. Your homework is due on Thursday in class. Next week will be the first exam in the course covering all material through lecture 5.
Lecture 6
Homework #1 returned today. Q&A before exam. Discussion of Farm Bill and dairy policy options. No handouts.
Exam #1 given in second half of class.
Lecture 7
I will bring handouts to class with me.
Regional Competitiveness (736k PDF)
Forecasting Milk Prices (874k PDF)
Lecture 8
I will bring handouts to class with me.
Role of Dairy Cooperatives (230k PDF)
When Bigger is Better (92k PDF)
Lecture 9
Developing a Marketing Plan (805k PDF)
Return exam and discuss current market
Lecture 10
Trends in the Dairy Industry (943k PDF)
We will have a guest speaker and I will bring copies of his PowerPoint to class. The "Trends" notes are for you to bring to class.
Homework #2 (115k PDF)--Due in class, April 17
Please Note: The 2nd exam will be given in class on April 24.
Lecture 11
Farm to Retail Prices This is a link to material that will be presented in class today. We will have a guest speaker.
Reminder: Homework #2 is due in class next week, April 17 and, the 2nd exam will be given in class on April 24.
Lecture 12
Competitive Equilibrium (276k PDF)
On-Farm Processing (253k PDF)
Please Note: The 2nd exam will be given in class next week on April 24. Homework due in class today.
Important Announcement About Last Class (138k PDF)
Lecture 13
Exam in class today.
Lecture 14
Last day of class! We will conduct a special class session dealing with trade in dairy products. It will be an interactive session and you will be divided into groups to participate and report back to the class. You will be greatly advantaged if you take the time to read the trade weblet (they used to be leaflets until they were only published on the web) at the link below. Prizes will be given for group performance!
Trade Handout (207k PDF)
MPC Imports (297k PDF)