Ontario and Quebec - Farms and Cows

In terms of farms and cows, Ontario and Quebec has higher numbers.

Total – 965 farms and 12746 cows

Notably in the spring when the fields were damp and in the winter when cows were housed together indoors—

5--15% of a herd could have hoof disease;

farmers were just as likely to treat the cows themselves.

In the presentation, we should also include the following, but how?

Milk production: milk production from cows with hoof disease was reduced by 20 to 80%, depending on the severity of the disease. If the cow had to be placed on antibiotics the milk production went to zero, as milk from cows on these powerful drugs couldn’t be sold. Conservative estimate, cost for treatment would be $6 to $20 per cow and $20 to $30 on average per cow for a vet visit.

Farmers Loss

Given that a total of 5450 litres average were produced by the cows, with $0.62 per litre,

Daily – 5450/300 = appx 18 litres per day that gives $11.2 per day sales

When with disease – reduction 20 to 80% - 14.5 to 3.64l so sales would be ranging from $2.25 to $9

With antibiotics – Zero(0) litre – for 3 to 4 days and additional 3 – 4 days after treatment – 6 to 8 days I.e loss of apprx $66 to $88 considering 11$ per day

So overall,

Loss for farmers with infected cows → Sales loss - $69 to $99 ( of course annually)

Treatment cost → $6 to $20 per cow

Antibiotics cost → $20 to 30 per cow

Total loss -> $96 to $150

(THIS IS w.r.t to the average milk per day. We can consider the dairy farm data of highest yielding cow 10Litres per day and still it would be a loss for farmers. My idea is to highlight this to farmers and make them understand the amount of money they should spend for a disease. There is also given only a certain number of farmers go to veterinarian. Still the ones who didn’t go will have a loss of $69 to 99. We can highlight this in our trade show and give at a reasonable price. Please suggest your ideas also guys. Let’s finalise after then)

Place

Distribution Channels

Pros

Cons

Direct sales

Have a direct relationship with customers

Costly and time consuming to deal with customers directly

wholesalers of veterinarian supplies

Wholesaler like CDMV Inc. has offices in Quebec, Nova Scotia and Alberta, they can distribute the product quickly in Quebec and Alberta which are two of our target markets.

Cons: company like CDMV would want 15 to 25% margin on the products

Veterinarians

would lend credibility to the product

get market exposure much more quickly than direct sales or wholesales

Cows are considered large animals – hence only 40% of the veterinarians treat cows

Total 12000 veterinarians so that gives us only 4800 veterinarians who can actually treat cows.

Also veterinarians ask for a 40% margin for having inventory