Oklahoma State University Stillwater, OK | |
Oklahoma Alfalfa |
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ALFALFA BUYER SURVEY: MARKET DEMAND FOR OKLAHOMA HAY In 1993, we conducted a survey of Oklahoma and Texas dairies to better understand alfalfa buyers, a key element to successful marketing. This is the first of several short articles about the survey results. Considerable useful information was collected from the nearly 300 survey respondents. Market Size - Alfalfa Hay Fed - Average
number of tons of alfalfa hay purchased annually by respondent dairies
was 638. As can be seen in Table 1, average number of tons purchased varies
considerably by size of dairy in Oklahoma and Texas. Based on an average
daily intake of 30 pounds, the average size dairy had 115 cows. That represents
a large potential demand for alfalfa even for average size dairies. Respondents
also indicated that on average they purchase 95 percent of their alfalfa
needs.
Dairies Buying from Oklahoma - Dairies were asked to indicate the states from which alfalfa was purchased during the past year. Oklahoma is the only supplier for some dairies and is the leading state for many others. Nearly three-fourths of all respondents (73 percent) purchased alfalfa hay from Oklahoma. Kansas ranked second, with 38 percent of the respondents. Table 2 shows the percent by size and location. Oklahoma dairies are more apt to purchase alfalfa from Oklahoma than Texas dairies, as would be expected. However, the percentage of Texas dairies purchasing from Oklahoma is relatively high. One figure is a bit troubling. Note that the percentage of large-size Texas dairies purchasing alfalfa hay from Oklahoma is lower than for medium size dairies. A higher percentage of large Texas dairies purchased alfalfa from Kansas, Colorado, and New Mexico than either small or medium-size dairies. I will attempt to address the reasons for
that in a future newsletter. Survey results may provide a partial answer.
FOR MORE INFORMATION: Clement E. Ward, Raymond L. Huhnke, and Gerrit W. Cuperus. Alfalfa Buyer Preferences by Oklahoma and Texas Dairy Producers. OSU Extension Circular E-936, 1994. |
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Clement
E. Ward, Extension Economist
Department of Agricultural Economics Oklahoma State University |