Research Accomplishment Reports 2007

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AIM

L. Anderson
Department of Animal and Food Sciences

 

Project Description

The purpose of the AIM program is to encourage the formation of local alliances or cooperatives to enable producers to lower input costs of production and create a greater demand for their product.  The goal is to provide producers with information to help them organize and develop collective production and marketing plans.  The AIM concept encourages producers to form a county- or area-based alliance.

Impact

Currently, 6 AIM alliances are functioning in Kentucky.  Together they encompass 378 producers who own approximately 21,000 cows.  Purchased costs of these products were from 20-30% lower than available over the counter.  Financial analyses have indicated that production costs were reduced $45 per cow in the first year alone. Cooperative marketing efforts have also been successful.  Feeder calf sales have generated a $5-12 / cwt. premium over other cattle sold in Kentucky that same day.  The cooperative marketing has increased net returns per cow by $28.  If revenues increase approximately $75 per cow, then AIM has increased profitability by approximately $2,163,000.