Feed Market Share & Sales Estimation

Client Background:

A major feed supplier in the Midwest, aiming to optimize its market share and sales strategies, engaged a leading management consulting firm for strategic insights. Recognizing the need for specialized expertise in data aggregation, modeling, and logistics, the consulting firm subcontracted our team to spearhead these critical components of the project.

Objectives:

1. Estimate market share of feed products from various grain elevator facilities.

2. Predict potential sales based on livestock populations, including hogs, feeder cattle, dairy cattle, and birds.

3. Optimize logistics for both procuring grain products necessary for feed production and selling the finished feed products.

Challenge:

The feed supplier sought a comprehensive understanding of the market dynamics for feed products in the Midwest. This included gauging the demand based on livestock populations and streamlining logistics for efficient product movement.

Approach:

1. Data Collection:

   • Grain Elevator Data: We gathered comprehensive data on grain elevator facilities across the Midwest, including their production capacities, historical sales, and distribution networks.

   • Livestock Population Estimation: Using a combination of agricultural census data, satellite imagery, and proprietary algorithms, we estimated the populations of hogs, feeder cattle, dairy cattle, and birds in the target regions.

2. Logistics Data: We collected data on roads, rail networks, and barge routes to understand the logistics landscape and identify potential bottlenecks and opportunities.

3. Market Share Estimation: Leveraging the data on grain elevator facilities and estimated livestock populations, we developed models to predict the potential market share for each facility based on their proximity to livestock farms and production capacities.

4. Logistics Optimization:

   • Feed Product Distribution: We mapped out optimal routes for distributing feed products to livestock farms, considering factors like road conditions, rail availability, and barge routes.

   • Grain Procurement: Simultaneously, we identified the most efficient logistics pathways for grain elevator facilities to procure the necessary grain products for feed production.

5. Collaboration with Consulting Firm: Our team worked closely with the management consulting firm, ensuring that our findings and recommendations aligned with the broader strategic objectives set by the major feed supplier. Regular workshops and feedback sessions were conducted to refine our approach and outputs.

Outcome:

Our in-depth analysis and recommendations provided the consulting firm and, in turn, the major feed supplier with actionable insights into the feed product market in the Midwest. With a clearer understanding of market share, potential sales, and optimized logistics, the feed supplier was better positioned to make informed decisions, streamline operations, and maximize profitability.

Key Takeaways:

1. Understanding livestock populations is crucial for estimating the demand for feed products.

2. Optimized logistics play a pivotal role in ensuring efficient product movement, both for procuring raw materials and distributing finished products.

3. Collaboration between specialized teams, consulting firms, and clients can lead to comprehensive and actionable insights.

4. Data-driven decision-making can significantly enhance market positioning and operational efficiency for feed suppliers.

This case study underscores the value of specialized expertise in data aggregation, modeling, and logistics, and how collaboration between different stakeholders can drive transformative results for businesses.