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8uSlnLSS LAn

-CaLLle roducers MarkeLlng Coop Sample lan P



CreaLlng ?our 8uslness lan
-Cvervlew
-8equesL page
-1lLle age
-1able of ConLenLs
-LxecuLlve Summary
-8uslness uescrlpLlon rPow Lo WrlLe a vlslon and Mlsslon SLaLemenL
rLegal SLrucLures and ConslderaLlons for 8uslnesses
r8eglsLerlng a new 8uslness

-ManagemenL rLsLabllshlng ManagemenL for ?our 8uslness
rCrganlzaLlon CharacLerlsLlcs
rWho needs Lo be aL Lhe 1able?
rPlrlng 8lghL and 8eLalnlng Cood Lmployees

-lncenLlves for key Lmployees
-Should l !oln a new rocesslng CooperaLlve?
-MarkeL Analysls -MarkeL 8esearch
-8ulldlng ?our uaLabases
-roducer Survey
-Analysls of Some CompeLlLors
-8eef ?leld and ConsumpLlon

-MarkeLlng lan -1aklng Lhe MysLery CuL of MarkeLlng
-A MarkeLlng rlmer
-Pow Much Should ?ou Spend?
-lnLerneL MarkeLlng
-ulrecL MarkeLlng CpLlons
-CaLerlng LvenLs and lesLlvals
-CaLalog and Mall Crder 8uslness
-Worklng wlLh 8eLallers
-Pow Lo Approach 8uyers
-lederal rocuremenL
-Palal and kosher
-8reed and 8randed MarkeLlng
-lorelgn MarkeLs
-Crganlc MarkeLs
-MarkeLlng 1argeLs
-AbouL 8rokers
-rlclng and LsLlmaLlng Sales oLenLlal
-ulsLrlbuLlon of roducL

-roducLs or Servlces -8egulaLlons
-Lxplorlng aLenLs and 1rademark needs
-ackaglng

-ManufacLurlng lan -CuallLy ln MeaL rocesses
-1lps from Lhe LxperLs on PACC lmplemenLaLlon
-8egulaLory Compllance for Lhe Small SlaughLerlng laclllLy (CSPA)
-Survey of lowa Locker lanLs
-LsLlmaLlng WasLe SLream ([pg)
-Annual volume SlaughLered and uLlllLy ConsumpLlon ([pg)
-lannlng a rocesslng laclllLy
-ueveloplng Cood ManufacLurlng racLlces (CMs)
-SafeLy lssues ln MeaL Pandllng ln Pome 8uslnesses ([pg)
-lowa Laws for Pome lood 8uslnesses

-llnanclal uaLa -undersLandlng AccounLlng rocedures
-8lsk Analysls
-ro[ecLed Cash llow ([pg)
-ueflnlLlon of 1erms for ro[ecLed Cash llow 8aLlo Analysls ([pg)
-8aLlo Analysls Sample
-ro[ecLed lncome SLaLemenL ([pg)
-ueflnlLlon of 1erms for ro[ecLed lncome SLaLemenL ([pg)
-ro[ecLed 8alance SheeL ([pg)
-ueflnlLlon of 1erms for ro[ecLed 8alance SheeL ([pg)
-ro[ecLed lncome SLaLemenL LowMlddlePlgh ([pg)
-ueflnlLlon of 1erms for ro[ecLed lncome SLaLemenL ([pg)

-SupporLlng uocumenLs

Case SLudles
-Cory's CounLry Lamb
-uS remlum 8eef
-nlman 8anch ork Company
-WesL LlberLy loods



lebruary 29 2000

kelly Sharp resldenL
llrsL SLaLe lederal 8ank
9110 Ledger SLreeL
8lver ClLy lA 12343

uear resldenL Sharp

CaLLle roducers MarkeLlng Coop ls a producer's cooperaLlve esLabllshed Lo help more Lhan 23 area
beef producers
-secure a hlgher percenLage of Lhe consumer dollar and
-obLaln a hlgher prlce for food flber and crafLed lLems produced on famlly farms


ln order Lo fulflll lLs purpose CaLLle roducers MarkeLlng Coop headquarLered ln 8orderLown lA ls
seeklng a loan of $123000 Lo asslsL wlLh cosLs assoclaLed wlLh Lhe
-purchase of processlng machlnery and equlpmenL

1hls equlpmenL wlll be placed ln Larry and Llnda's Locker lanL ln 8orderLown 1he owners wlll
flnance Lhe purchase and wlll remaln on sLaff Lo asslsL ln operaLlon of Lhe buslness

So far 26 cooperaLlve members of Lhe coop have commlLLed $260000 ln cash Lo Lhls pro[ecL and
Lhe 8rlghL CounLy uevelopmenL CorporaLlon has agreed Lo provlde Lechnlcal asslsLance of varlous
Lypes 1he owner equlLy wlll be spllL equally beLween a down paymenL on Larry and Llnda's Locker
lanL and a down paymenL on purchase of processlng machlnery and equlpmenL

1he requesLed flnanclng wlll be needed ln 90 days 1o allow CaLLle roducers MarkeLlng Coop Lo Lake
advanLage of near Lerm opporLunlLles LhaL may be cruclal Lo long Lerm success flnanclng ls needed
by !uly 1 2000

lor addlLlonal lnformaLlon please conLacL
8alley 8 Llne Ceneral Manager
CaLLle roducers MarkeLlng Coop
MalnsLreeL
8orderLown lA 34321
hone (303) 3197120 lax (702) 3197020 Cell (309) 7023130
Lmall CoCy[planrlghLcom

1he aLLached buslness plan ouLllnes and explalns all aspecLs of Lhe proposed pro[ecL

8especLfully


8alley 8 Llne Ceneral Manager










1lLle age Sample



CA11LL 8CuuCL8S MA8kL1lnC CCC
lebruary 29 2000
8alley 8 Llne





LxecuLlve Summary Sample


8uslness uescrlpLlon
CaLLle roducers MarkeLlng Coop ls a cooperaLlve of 20 caLLle farmers locaLed ln souLh cenLral lowa
1he general manager of Lhe cooperaLlve who ls also a member and caLLle farmer ls 8alley 8 Llne
Mr Llne ls responslble for organlzlng Lhe group Lhree years ago when he declded Lo markeL hls own
producLs 1he lnlLlal group conslsLed of Lhree nelghbors locaLed wlLhln a 3mlle radlus buL has slnce
grown Lo 26 members ln Lhe LhreecounLy area of ?ork !ameson and WalnuL counLles 1he group
markeLs 83000 head of caLLle a year prlmarlly Lo Lhe 1uA packlng company 1he group sLarLed wlLh
mlnlmal sales of $10000 Lhe flrsL year beglnnlng aL a few local farmers markeLs MarkeLlng Coop
now has 12 regular lnsLlLuLlonal accounLs and 144 famllles LhaL purchase producL each monLh
negoLlaLlons are presenLly underway wlLh Lhe nearby large speclal foods markeL LhaL has poLenLlal
Lo sell $100000 worLh of MarkeLlng Coop producLs annually


-See enclosed coples of leLLers from All loods MarkeLs lnc WhlLe 1ablecloLh 8esLauranL Lhe 8rady
famlly and oLhers

1he CaLLle roducers MarkeLlng Coop cooperaLlve galns sales Lhrough Lhree avenues of commodlLy
sales of llve caLLle volume sales of freerange beef producLs and sale of beef producLs wlLh servlce
Slnce lLs beglnnlngs MarkeLlng Coop has used Larry and Llnda's Locker lanL for slaughLer and
processlng for all meaL producLs Larry and Llnda's ls a federally lnspecLed planL locaLed ln
8orderLown lA

8orrowlng Money
CaLLle roducers MarkeLlng Coop ls seeklng Lo expand sales of beef producLs 1he coop ls purchaslng
on conLracL Lhe processlng faclllLy Larry and Llnda's Locker lanL ln 8orderLown 1he coop ls seeklng
flnanclng for equlpmenL Lo
place lnLo an expanslon of Lhe faclllLy 1he new equlpmenL wlll allow producLlon of beef producLs Lo
lncrease 23 percenL allowlng lncreased sales Lo saLlsfy exlsLlng and anLlclpaLe demand An
equlpmenL llsL ls lncluded ln Lhe flnanclng secLlon of Lhls plan

A 10year loan aL 8 percenL lnLeresL ls deslred for flnanclng of Lhe equlpmenL Members of Lhe
cooperaLlve have conLrlbuLed $260000 cash as equlLy 1he money wlll be spllL equally among Lhe
purchase of Lhe equlpmenL and as down paymenL on Lhe conLracL purchase of Larry and Llnda's
Locker lanL

1he flnanclng for equlpmenL ls needed Lo meeL lncreased demand for producL Some of Lhe demand
exlsLs Loday and some ls anLlclpaLed from lncreased markeLlng efforLs 1he expanslon wlll lncrease
capaclLy 23 percenL sufflclenL Lo meeL demand for aL leasL elghL Lo 10 years based on a conLrolled
growLh plan of Lhls buslness CaLLle roducers MarkeLlng Coop plans Lo lncrease sales Lo $300000 by
2003

roducL
CurrenLly Lhe company offers Lhree baslc llnes
-lLs Lrademark freerange ground meaL roasLs and sLeaks 1hese producLs are avallable Lray ready
guaranLeed lean and cerLlfled as 100 percenL free of hormones preservaLlves anLlbloLlcs or
chemlcals
-1radlLlonal ralsed and freerange cooked producLs sold aL farmers markeLs and evenLs and fesLlvals
ln lowa and nebraska
-CommodlLy grade llve caLLle as a means of handllng producer overrun and as a meLhod of movlng
caLLle LhaL requlred anLlbloLlcs durlng Lhe growlng process

Also offered ls a growlng assorLmenL of handmade lLems ranglng from grandfaLher clocks of naLlve
oak and walnuL Lo homespun yarns wlLh naLural dyes Lo orlglnal oll and waLercolor palnLlngs of local
scenes

MarkeL uaLa and MarkeLlng lan
MarkeLlng Coop has seL Lhe followlng markeLlng ob[ecLlves and goals whlch are Lhe drlvers for Lhe
planned expanslon
1lmprove Lhe general neL worLh and wellbelng of Lhe member/owners by provldlng a falr and
sLeady markeL for Lhe food flber and oLher handcrafLed producLs ralsed and manufacLured on Lhelr
farms
2lncrease sales Lo more Lhan $300000 over Lhe nexL flve years
3MalnLaln gross marglns aL or above 18 percenL whlle addlng producL llnes
48y 2003 be flrmly esLabllshed ln processed and speclalLy markeLs
3LsLabllsh Lhe company as a name LhaL cusLomers of all descrlpLlon assoclaLe wlLh quallLy

MarkeLlng sLraLegles have been seL Lo help accompllsh Lhese goals 1he sLraLegles are broadly sLaLed
and so may appear Lo lack subsLance 1he managemenL Leam ls ln Lhe process of esLabllshlng
necessary LacLlcs Lo lmplemenL Lhe goals and accompllsh Lhe sLraLegles
1uellverlng hlgh quallLy producLs LhaL seL Lhemselves aparL from oLhers ln LasLe and value
2rovldlng servlce supporL and a sllghLly beLLer prlce Lo our cusLomers and dealers
3MalnLalnlng gross margln aL 18 percenL or beLLer
4Addlng new producLs lnLo Lhe mlx Lo malnLaln cusLomer lnLeresL and boosL sales volume


ManagemenL
1he managemenL Leam ls an experlenced group of professlonals who wlll add value Lo Lhe buslness
8alley Llne wlll be general manager wlLh responslblllLy for Lhe organlzaLlon of Lhe coop group of
producers and Lhe processlng planL An experlenced Leam wlll be used Lo manage Lhe processlng
planL Larry CuLLer Lhe currenL owner of Lhe processlng buslness wlll be Lhe planL manager
responslble for Lhe purchaslng funcLlon and for operaLlon of Lhe processlng faclllLy Pls wlfe Llnda
CuLLer wlll be Lhe markeLlng manager Llnda brlngs experlence ln sales ln undersLandlng of meaLs
and meaL quallLy and ln cusLomer servlce Lo Lhe markeLlng funcLlon All accounLlng and flnanclal
overslghL wlll be provlded by 1lna 1oLal 1ed 1oblas wlll be Lhe quallLy manager Pe ls experlenced
wlLh governmenL requlremenLs such as PACC CSPA and LA Pe has responslblllLy Lo assure
quallLy producL ls produced Pe wlll also work wlLh producers on a suppller quallLy program


8uslness uescrlpLlon Sample

Company PlsLory
Members of Lhe cooperaLlve are lndependenL caLLle producers and a cusLom meaL processor Larry
and Llnda's Locker lanL lL was organlzed when Lhe cusLom meaL processor was asked Lo process
caLLle for a consumer group ln a clLy ln Lhe MldwesL 1he consumer group made agreemenLs wlLh
lndlvldual farmers Lo purchase caLLle LhaL were ralsed ln pasLures as opposed Lo a conflnemenL
faclllLy lurLher Lhe consumer group lnslsLed LhaL use of anLlbloLlcs be resLrlcLed 1he consumers
belleved LhaL caLLle ralsed ln LhaL manner would provlde a safer more flavorful producL

uemand for conLracL grown beef ralsed ln Lhe manner prescrlbed was sLeadlly lncreaslng so much
so LhaL Lhe processor would soon have Lo bulld new faclllLles or glve up Lhe buslness Lo compeLlLors
LocaLed on Lhe maln sLreeL of 8orderLown lA a Lown of 1200 populaLlon Lhe processor would have
Lo bulld new faclllLles ouLslde Lhe communlLy AL Lhls sLage of hls llfe he was relucLanL Lo do so
because of Lhe amounL of money he would have Lo borrow ln addlLlon he would be hlghly
dependenL upon a slngle group of consumers

AfLer waLchlng ubllc 1v's weekly program MarkeL Lo MarkeL" Lhe cusLom meaL processor learned
of efforLs of lndependenL organlc vegeLable growers who formed a producers cooperaLlve LhaL
enabled Lhem Lo pool Lhelr llmlLed resources Lo grow and markeL Lhelr producLs Pe learned LhaL
Lhere was a segmenL of consumers LhaL would be wllllng Lo pay a premlum for organlcally grown
vegeLable producLs LhaL were ldenLlfled as Lo where and how Lhey were grown 1hls was slmllar Lo
hls own observaLlons wlLh Lhe consumer group for whom he processed organlcally grown caLLle

lL occurred Lo hlm LhaL Lhe producers for Lhe buyers' group and he had a common lnLeresL and
common concerns lf Lhey banded LogeLher ln a producer cooperaLlve Lo ralse and process hlgh
quallLy meaL producLs Lhey could command a premlum for Lhelr producLs ln conLrolllng Lhe producL
from Lhe farm Lo Lhe consumer Lhey could lncrease Lhelr lncome ln Lwo ways 1) secure a hlgher
percenLage of Lhe consumer dollar for Lhemselves and 2) obLaln a hlgher prlce because of Lhe
premlum consumers are wllllng Lo pay for Lhelr speclally grown producLs Also slnce consumer
prlces for beef producLs flucLuaLe much less wldely Lhan commodlLy prlces Lhe parLlclpaLlng
lndependenL caLLle producers would be more assured of yearLoyear lncome sLablllLy

llnally he would feel much more secure by sharlng Lhe lnvesLmenL rlsk wlLh oLhers ln addlLlon
havlng an adequaLe supply of caLLle would allow Lhe cooperaLlve Lo LargeL several consumer markeLs
ln varlous geographlc locaLlons so as noL Lo be dependenL upon a slngle segmenL ln one geographlc
area

ln a serles of dlscusslons and meeLlngs wlLh lndependenL beef producers ln Lhe area he found
sufflclenL lnLeresL Lo bulld a faclllLy of adequaLe slze Lo process all Lhe caLLle Lhey were able Lo ralse
1hroughouL Lhe process lndusLry experLs and oLhers LhaL had organlzed slmllar cooperaLlves
emphaslzed LhaL Lhe caLLle ralsers had Lo be proacLlvely lnvolved ln all phases of Lhe operaLlon ln
oLher words ralslng and processlng caLLle for a hlghly speclflc group of consumers ls a markeLlng
sysLem noL a processlng sysLem rocesslng ls buL one sLep ln LhaL sysLem Larry and Llnda's has
operaLed for more Lhan 20 years 1he planL ls federally lnspecLed Larry and Llnda's does noL process
any deer meaL for hunLers and lL speclallzes prlmarlly ln processlng of beef 8eef processlng accounLs
for 80 percenL of buslness whlle 20 percenL ls devoLed Lo hogs and oLher anlmals such as buffalo

CaLLle roducers MarkeLlng Coop was esLabllshed ln 1993 on Lhe basls of offerlng Lhe hlghesL quallLy
and value ln lLs freerange beef farrowed and ralsed by Lhe farmers of Lhe greaLer Mldlands area
1lmehonored LradlLlons have been passed down Lhrough Lhe generaLlons of producers who
undersLand quallLy and purlLy of producL Concerned consumers were looklng for food and flber
producLs LhaL were produced wlLh mlnlmum chemlcal lnpuLs and LhaL could be ldenLlfled wlLh Lhe
face of Lhe producer 1hese consumers were shopplng 1hey wanLed goods produced from real
famlly farms

MarkeLlng Coop answered Lhe call flrsL wlLh quallLy beef producLs Lhen addlng oLher freerange
meaL producLs followed by ples and home baked breads ConsLanLly sLrlvlng Lo supply whaL Lhe
concerned consumer ls asklng for Lhe group conLlnually revlews whaL ls avallable ln Lhe markeLplace
and whaL lL sees oLher slmllar groups dolng successfully ln areas LhaL are dlsLanL from Lhe Mldlands
Lrade area lmprovlng on whaL ls avallable and provldlng new producLs Lo Lhe areas of need wlll
assure our success ln a markeL drlven by consumer
demand

MarkeLlng Coop has been hlndered only by Lhe lack of formal organlzaLlon and worklng caplLal Sales
have grown sLeadlly slnce Lhe group flrsL began aLLendlng area farmers markeLs LogeLher as a loosely
knlL group worklng under Lhe banner of Colden Meadow roducLs AL Lhls polnL Lo move CaLLle
roducers MarkeLlng Coop lnLo a poslLlon Lo Lake full advanLage of avallable nlche markeLs
addlLlonal caplLal ls needed Lo purchase and upgrade a faclllLy hlre sLaff wlLh
markeLlng experLlse and move larger volumes lnLo Lhe markeLplace
-See enclosed copy of leLLer of proposal from Larry and Llnda's Locker lanL

asL erformance
As a newly formed valueadded cooperaLlve CaLLle roducers MarkeLlng Coop does noL have a pasL
performance record beyond Lhe collecLlve hlsLory of lLs
owner/members who prevlously operaLed LogeLher on an lnformal basls as Colden Meadow
roducLs

1he followlng sales flgures represenL Lhe comblned esLlmaLes of Lhe lndlvldual sales experlences of
Lhe currenL owner/ members whlle worklng LogeLher as Colden Meadow roducLs


1997


1998


1999



Sales

$20000

$28000

$37300



Cross Margln

$8000

$13000

$12000



Cross (calculaLed)

4000

4642

3200



CperaLlng Lxpenses*

$11000

$12000

$16000



CollecLlon erlod (days)**

0

0

13



noLe
*ersons provldlng esLlmaLes dld noL lnclude wages for Lhemselves use of personal vehlcles Lo
LransporL goods Lo markeL or Llme spenL by famlly members when LoLallng CperaLlng Lxpenses
** CollecLlon erlod esLlmaLes reflecL LhaL some owner/members began selllng Lo resLauranLs and
wholesalers on a neL 30 days due basls

Company lndusLry
1he meaL lndusLry ls domlnaLed by ma[or packers processors food brokers wlLh relaLlonshlps Lo
ma[or lnsLlLuLlonal accounLs and large grocery sLore chalns
selllng Lhelr sLore brands of meaL A llsL of ma[or compeLlLors ls noL lncluded Lhere slnce Lhey are so
well known

uurlng Lhe lasL Lwo years Lhe beef lndusLry has seen caLLle prlces drop Lo record low levels 1hls has
led Lo groups wanLlng Lo sLarL Lhelr own slaughLer and processlng operaLlons MarkeLlng Coop ls
acLually ahead of Lhe compeLlLlon slnce lL has been ln buslness slnce 1993 8esldes Lhe grass rooLs
level of lnLeresL ln sLarLlng Lhelr own operaLlon changlng Lrends ln Lhe markeLplace now make Lhe
ldea of small speclalLy meaL buslnesses more feaslble

Legal SLrucLure
CaLLle roducers MarkeLlng Coop ls a cooperaLlve wlLh members composed of lndependenL caLLle
producers who plan Lo provlde premlum ldenLlLy preserved beef producLs dlrecLly Lo Lhe consumer
1o accompllsh Lhls Lhey plan Lo creaLe Lhelr own processlng planL and wlll conLrol markeLlng of Lhelr
producLs from Lhe farm Lo Lhe consumer

ln addlLlon Lo commlLLlng $3000 per share each member had Lo agree Lo Lhe followlng ln order Lo
become and malnLaln ownershlp ln Lhe cooperaLlve
-Acknowledge LhaL Lhey are parLlclpanLs ln a markeLlng sysLem and as such Lhey are responslble for
produclng a safe conslsLenL quallLy producL for Lhe end consumer lf Lhe cooperaLlve ls Lo succeed
-uellver a speclfled number of caLLle Lo Lhe processlng planL each year accordlng Lo a
predeLermlned schedule
-8alse caLLle accordlng Lo prescrlbed meLhods
-Cpen Lhelr caLLle ralslng faclllLles Lo lnspecLlon
-Agree Lo parLlclpaLe ln aL leasL one consumer markeLlng evenL each year
-ALLend perlodlc member meeLlngs

LmploymenL
A beef processlng faclllLy wlll be purchased from Larry and Llnda CuLLer owners of Larry and Llnda's
Locker lanL by Lhe members of MarkeLlng Coop lL wlll employ sLaLeofLhearL Lechnology
lnasmuch as producL safeLy wlll be a key aspecL of Lhelr markeLlng efforL lL ls lnLended LhaL quallLy
conLrol meLhods wlll exceed uSuA sLandards 1he planL currenLly meeLs all CSPA and PACC
requlremenLs as well as wasLe dlscharge amounLs 1he planL wlll be capable of processlng 10444
caLLle annually or 40 per day slngle shlfL flve days per week

lL ls anLlclpaLed LhaL Lhe processlng faclllLy wlll requlre 13 employees lncludlng 12 ln producLlon and
maLerlal handllng one ln malnLenance Lhree ln offlce and sales one ln managemenL Larry CuLLer
Lhe cusLom meaL processor wlll be general manager


M|ss|on]V|s|on Statement
1he mlsslon of CaLLle roducers MarkeLlng Coop ls Lo provlde lncreased and more sLable lncome by
ralslng processlng and markeLlng hlgh quallLy beef producLs Lo consumers who are wllllng Lo pay a
premlum for Lhese producLs

Current and Iuture Goa|s

1he goals of Lhe company are as follows
-rovlde producLs Lo consumers LhaL are conslsLenLly hlgh quallLy
-8alse caLLle uslng humane and envlronmenLally sound pracLlces
-rocess beef uslng laLesL approprlaLe Lechnology meLhods
-rovlde safe offfarm employmenL aL above average wages for rural based famllles

Company roducts or Serv|ces
-1he company's Lrademark producLs are avallable Lray ready guaranLeed lean and cerLlfled as 100
per cenL free of hormones preservaLlves anLlbloLlcs or chemlcals 1hls producL llne also lncludes
dlverslflcaLlon lnLo a growlng assorLmenL of handmade lLems ranglng from grandfaLher clocks of
naLlve oak and walnuL Lo homespun yarns wlLh naLural dyes Lo orlglnal oll and waLercolor palnLlngs
of local scenes
-1radlLlonal ralsed and freerange cooked beef producLs sold aL farmers markeLs and evenLs and
fesLlvals ln lowa and nebraska
-CommodlLy grade llve caLLle as a means of handllng producer overrun and as a meLhod of movlng
caLLle LhaL requlred anLlbloLlcs durlng Lhe growlng process

ManagemenL Sample

key ersonnel and ManagemenL 1eam 1he general manager of CaLLle roducers MarkeLlng Coop wlll
be 8alley 8 Llne lL ls felL LhaL wlLh hls experlence ln processlng and dlsLrlbuLlng beef producLs
derlved from speclalLy grown ldenLlLy preserved caLLle he would have Lhe requlred knowledge and
perspecLlve requlred for success Also because of hls key role as Lhe organlzer of Lhe enLerprlse he
would be hlghly moLlvaLed Lo assure lLs success

A planL manager wlll oversee dayLoday operaLlons Larry Llne former owner of Larry and Llnda's
Locker lanL has been employed Lo flll Lhls role Pls overall responslblllLy beglns wlLh acqulrlng Lhe
caLLle Lo be processed processlng Lhem lnLo producLs and Lhen dellverlng producLs Lo cusLomers
1he concepL of LoLal maLerlal managemenL wlll be used ln order Lo assure a smooLh producL flow
from sLarL Lo flnlsh Accordlngly purchaslng and schedullng wlll also be Lhe planL manager's
responslblllLy Supervlsors over producLlon workers wlll reporL Lo Lhe planL manager as well as Lhe
malnLenance supervlsor

1he quallLy conLrol manager wlll reporL dlrecLly Lo Lhe general manager 1ed 1oblas a former federal
meaL lnspecLor has been appolnLed Lo Lhls poslLlon Pls Lask wlll be Lo assure LhaL pork producLs are
processed ln a safe and sanlLary manner so much so LhaL MarkeLlng Coop exceeds uSuA sLandards
1he reason for reporLlng dlrecLly Lo Lhe general manager ls LhaL produclng safe producLs wlll be one
of Lhe key markeLlng sLraLegles 1o assure poslLlve lnspecLlon declslons Lhe quallLy conLrol manager
musL be free of processlng and dellvery pressures

1he markeLlng manager wlll also reporL Lo Lhe general manager Llnda Cook has been employed Lo
flll Lhls poslLlon She has exLenslve experlence boLh as a chef and manager of several upscale
resLauranLs She has a degree ln lnsLlLuLlonal managemenL from lowa SLaLe unlverslLy and ls
presenLly worklng Lowards her M8A wlLh an emphasls ln markeLlng Per Lask ln addlLlon Lo belng
responslble for sales and adverLlslng wlll be Lo ldenLlfy new markeLs be alerL Lo new producL Lrends
and Lo malnLaln excellenL cusLomer relaLlonshlps She wlll also be responslble for keeplng Lhe
lndependenL caLLle producers lnvolved ln Lhe markeLlng process as well as keeplng Lhem lnformed
wlLh respecL Lo sales and producL Lrends

An accounLlng manager wlll carry ouL accounLlng and flnanclal funcLlons 1lna 1oLal has been
employed for Lhls poslLlon 1he emphasls for Lhls poslLlon wlll be on dayLoday cosL and flnanclal
managemenL Lasks wlLh audlLlng and Lax reporLlng belng carrled ouL by a CA flrm 1hls person wlll
also be responslble for Lhe managemenL lnformaLlon sysLem As parL of Lhe MlS responslblllLy Lhe
accounLlng manager ls responslble ln cooperaLlon wlLh oLher managers and supervlsors for
developlng and lmplemenLlng approprlaLe performance sLandards AL leasL ln Lhe early sLages Lhls
person wlll serve as Lhe offlce manager 1oLal has a degree ln accounLlng and a mlnor ln
managemenL lnformaLlon sysLems and has experlence as a cosL accounLanL ln a [ob shop

Slnce each manager wlll be responslble for hls or her own hlrlng MarkeLlng Coop wlll noL employ a
human resources speclallsL lL wlll rely on Lhe sLaLe Workforce uevelopmenL offlces Lo do Lhe lnlLlal
screenlng 1he accounLlng manager wlll malnLaln employee records and flles as parL of her offlce
managemenL responslblllLles As ouLllned ln Lhe descrlpLlon of duLles for Lhe accounLlng manager a
compuLer based managemenL lnformaLlon sysLem wlll be lnsLalled lL ls anLlclpaLed LhaL Lhe sysLem
wlll provlde currenL operaLlng daLa on a realLlme basls for each person needlng LhaL daLa ln
addlLlon lL wlll provlde hlghly deLalled cosL/volume/proflL daLa by baLch producL dlsLrlbuLor Lype
and dlsLrlbuLor name

An lnLraneL Web slLe wlll be lnsLalled for order processlng purposes for Lhe convenlence of
cusLomers

AnoLher lnLraneL Web slLe wlll be deslgned for producer members 1hls wlll provlde Lhem lnsLanL
access Lo sales sLaLlsLlcs and operaLlng sLaLlsLlcs cusLomer feedback and perLlnenL general
lnformaLlon Also lL wlll serve as a means of communlcaLlon wlLh oLher members and managers
1hey wlll be able Lo use Lhls Web slLe Lo ralse concerns ask for advlce and share lnformaLlon

8eporLlng 8elaLlonshlps
1he company wlll be managed wlLh a LradlLlonal organlzaLlon sLrucLure Salarles wlll be as follows
8alley 8 Llne $33000 (Salary ls low buL he shares ln proflLs)
Larry CuLLer $43000 (Shares ln proflLs)
1ed 1oblas $ 33000
Llnda Cook $30000
1lna 1oLal $33000

8alley Llne ls an equal owner ln Lhe venLure along wlLh oLher coop members Larry CuLLer wlll geL a
share of Lhe proflLs 1he dlsLrlbuLlon formula ls noL yeL seL based on aLLalnmenL of performance
goals

Clobal AccounLlng 8lg ClLy lA wlll be employed as Lhe corporaLe accounLanL CompuLer SpeclallsLs
also of 8lg ClLy wlll be reLalned Lo provlde compuLer and lnformaLlon Lechnology supporL

8eporLlng 8elaLlonshlps llow CharL

8oard of ulrecLors and Advlsors
1he general manager wlll reporL Lo Lhe board of dlrecLors elecLed by Lhe coop members Members
wlll serve on Lhe board on a roLaLlng basls Lo assure Lurnover and full member parLlclpaLlon 1he
board wlll selecL a chalrperson 1he lengLh of each Lerm wlll be deslgnaLed ln Lhe coop bylaws

1he currenL 8oard of ulrecLors ls composed of 8alley 8 Llne and several advlsors from publlc
buslness asslsLance agencles such as Lhe CenLer for lndusLrlal 8esearch and Servlce (Cl8AS) uSuA
8ural uevelopmenL SCC8L and local and sLaLe economlc developmenL lnLeresLs

ersons on Lhe 8oard of ulrecLors are AlberL 8anks Carl uemarco Lrnle llllman Clna PllLon lrene
!ones kevln Leonard and Marvln nelson All of Lhe board members llve ln Lhe surroundlng greaLer
Mldlands area and are largely buL noL excluslvely represenLaLlve of Lhe beef buslness

ln addlLlon Lo Lhe board of dlrecLors Lhree sLandlng commlLLees also composed of Lhe members
wlll be formed Lo oversee areas of quallLy assurance markeLlng and processlng

CuallLy Assurance 1he purpose of Lhe quallLy assurance commlLLee ls Lo assure LhaL caLLle are ralsed
accordlng Lo Lhe sLandards esLabllshed by Lhe cooperaLlve Members wlll make slLe vlslLs Lo conducL
compllance audlLs provlde advlce Lo caLLle ralsers when asked and sLay apprlsed of currenL research
and meLhods ln open range pracLlces ln addlLlon Lhey wlll work wlLh Lhe markeLlng manager Lo
lmmedlaLely address quallLy concerns 1hey also wlll conLracL wlLh a veLerlnarlan Lo provlde healLh
care and advlce Lo Lhe commlLLee and ralsers and Lo assure LhaL caLLle are recelvlng LreaLmenL ln
accordance wlLh cooperaLlve sLandards

MarkeLlng 1hls commlLLee wlll work proacLlvely wlLh Lhe markeLlng manager Lo provlde
promoLlonal asslsLance ln addlLlon lL wlll help organlze markeLlng and promoLlonal asslsLance and
assure LhaL all members parLlclpaLe

rocesslng 1hls commlLLee wlll focus on Lhe processlng planL Lo assure LhaL lnspecLlon sLandards are
malnLalned and LhaL employees are worklng ln a safe envlronmenL Members wlll sLay apprlsed of
Lhe laLesL processlng Lechnology and wlll make recommendaLlons abouL lnvesLmenLs for processlng
and relaLed
equlpmenL


SLafflng lan
AL Lhe presenL Llme wlLh Lhe managemenL Leam llsLed above and wlLh Lhe purchase of Larry and
Llnda's operaLlon no addlLlonal hlrlng ls anLlclpaLed

8uslness CrganlzaLlon
Whlle organlzed as a cooperaLlve ln Lerms of operaLlons CaLLle roducers MarkeLlng Coop wlll
funcLlon slmllar Lo a convenLlonal corporaLlon 1he coop members are Lhe sLockholders who employ
salarled managers roflLs ln excess of agreed upon relnvesLmenL requlremenLs wlll be dlsLrlbuLed Lo
members based upon Lhelr ownershlp share (ln addlLlon Lhe members wlll recelve a premlum prlce
for caLLle dellvered aL Lhe Llme of dellvery)

Cwnershlp
Coop members and Lhelr ownershlp share wlll be supplled as needed by lenders 1he documenL ls
consldered confldenLlal and ls Lherefore noL lncluded here
1here are no oLher lnvesLors ln Lhls buslness

MarkeL Analysls Sample
CusLomers
CaLLle roducers MarkeLlng Coop has developed a daLabase of presenL cusLomers who buy on a
regular basls and cusLomers who have boughL only occaslonally as Lhe opporLunlLy presenLs lLself
such as aL farmers markeLs CusLomer demographlcs show Lhe currenL cusLomers are ln an lncome
range of $43000 or more Lwo lncome famllles professlonal occupaLlons concerned abouL Lhe
envlronmenL and locaLed prlmarlly ln urban areas 8esearch also shows Lhese cusLomers are lnLerneL
users and wllllng Lo order producL from our buslness vla Lhe lnLerneL

8esearch conducLed by Lhe company has verlfled LhaL Lhere ls a markeL segmenL large enough Lo
[usLlfy Lhe lnvesLmenL ln Lhe processlng faclllLy lurLher Lhe premlum Lhese consumers are wllllng Lo
pay wlll allow Lhe shlpmenL of producLs Lo nearly all geographlc locaLlons ln Lhe counLry locus
groups markeL surveys and producL demonsLraLlons aL several locaLlons were used Lo develop
demographlc proflles of each promlslng locaLlon so LhaL zlp codes could be used Lo easlly ldenLlfy
fuLure markeLs when expanslon ls deemed approprlaLe (noLe 8esulLs of Lhe surveys can be
provlded lf addlLlonal lnformaLlon ls
deslred)

A slgnlflcanL number of consumers are concerned abouL where Lhelr meaL producLs are comlng from
and how Lhese producLs are processed 1he company wlll markeL dlrecLly Lo LhaL group Slnce Lhey
are hlghly lnformed consumers however a ma[or Lask wlll be Lo esLabllsh credlblllLy

ln Lhe farmers markeLs LargeLed for sales Lhere are an esLlmaLed 100000 poLenLlal cusLomers (based
on census esLlmaLes) AL presenL MarkeLlng Coop has reached only a fracLlon of LhaL cusLomer base

8ased on daLa ln Lhe uS Census 8ureau daLabases esLlmaLed cusLomer poLenLlal ls as follows

8lg 1own larmers MarkeL

33000
LoLus

10000
keeper
10000
Sagmore
13000
Cool Sprlngs
3000
Market S|ze and 1rends
1he followlng beef consumpLlon Lrends have emerged from a varleLy of naLlonal sources
-uS consumers purchase more Lhan 67 pounds (reLall welghL) of beef per caplLa annually
-Movlng beef from producer's gaLe Lo Lhe consumer's plaLe wlll faclllLaLe more Lhan one mllllon
nonfarm [obs ln addlLlon Lo Lhe 186000 [obs supporLed on Lhe farms and ranches where lL was
grown
-8eef's share of consumer expendlLures has changed llLLle ln Lhe pasL 30 years


Genera| 1rends |n Meat Consumpt|on
1here are a number of new and emerglng Lrends ln meaL markeLlng whlch are relevanL Lo Lhe
lnLeresL of Lhls feaslblllLy sLudy ln general Lhere are Lhree consumer preferences Loday whlch are
drlvlng ma[or changes ln Lhe meaL lndusLry
-Consumers are demandlng meaLs LhaL requlre llLLle preparaLlon Llme opulaLlon and labor Lrends
are drlvlng Lhls preference An unprecedenLed number of women are ln Lhe workforce Loday 1here
ls an lncreaslng number of slngle adulL households ln Lhe uS of Lhose Lhe number of slngle parenL
femaleheaded households ls lncreaslng resulLlng ln more Lhan ever llmlLed Llme for meal
preparaLlon wlLhln uS households
A ?ankelovlch poll (reporLed by Lhe Amerlcan MeaL lnsLlLuLe) clalms LhaL half of all Amerlcans spend
less Lhan 43 mlnuLes cooklng an evenlng meal compared Lo Lhe Lwohour meal preparaLlon Lyplcal ln
Amerlcan households 30 years ago eople have a llmlLed amounL of Llme and don'L wanL Lo spend lL
cooklng Add Lo Lhls Lhe facL LhaL aL 4 pm 60 percenL of Amerlcans do noL know whaL Lhey wlll eaL
for dlnner 1he lmpllcaLlons are LhaL Lhe meaL markeLlng lndusLry has a whole new challenge for
capLurlng palaLes and dollars
-Consumers have llLLle knowledge of and skllls for cooklng SLudles reporL LhaL many consumers feel
LhaL Lhelr knowledge of cooklng and skllls for meal preparaLlon are more llmlLed Lhan Lhose of Lhelr
parenLs and grandparenLs lurLhermore Lhe Amerlcan MeaL lnsLlLuLe reporLs LhaL many Amerlcan
consumers flnd meaL preparaLlon Lo be challenglng lmpllcaLlons for meaL markeLlng are LhaL meaLs
are becomlng lncreaslngly avallable as mealready or wlLh mlnlmal preparaLlon
-Consumers are concerned abouL healLh and nuLrlLlon when buylng meaL 1he lood MarkeLlng
lnsLlLuLe clalms LhaL nearly 80 percenL of Amerlcans wanL Lo eaL food Lhey percelve Lo be exLremely
healLhy and LhaL 42 percenL are wllllng Lo pay more for lowfaL verslons of commonly consumed
producLs ln Lhe lunch meaL and hoL dog markeLs a record 30 percenL of Lhe producLs offered are
lLems wlLh reduced or low faL

Consumers are demandlng changes from Lhe meaL lndusLry and Lhe lndusLry ls respondlng
numerous opLlons and lnnovaLlons can be observed aL all levels ln producLlon processlng and
packaglng 1he reLall polnL of sale ls Laklng on a new look

Lmerg|ng 1rends |n Meat Market|ng
Case8eady MeaL 1hese are value added fresh meaL producLs LhaL Lhe supermarkeL purchases ln
precuL packages uue Lo new packaglng Lechnologles precuL Lrayready packages Lend Lo offer a
longer shelf llfe Lhan convenLlonal producLs CfLen hermeLlcally sealed Lhey offer cusLomers
Lrlmmed lndlvldually wrapped conslsLenL porLlons Caseready meaLs ellmlnaLe exLra sLeps ln
handllng for reLallers and consumers allke

Consumerkeady roducts 1hese producLs go a sLep beyond Lhe caseready meaL producLs by
lncludlng preparaLlon Llps cooklng lnsLrucLlons splces or seasonlng packeLs orLlons are lndlcaLed
on Lhe package Consumerready producLs lnclude lLems such as marlnaLed meaLs sLuffed chops
kabobs and seasoned sLeaks and roasL whlch are ready Lo Lake home and pop lnLo Lhe oven
mlcrowave or place on Lhe grlll

nome Mea| kep|acement 1hese are fully prepared producLs whlch free Lhe consumer from all
responslblllLy of meal preparaLlon 1hey ofLen come packed and porLloned as enLrees wlLh opLlons
Lo purchase complemenLary slde dlshes or exLras Also known as 1C1L (1ake CuL 1o LaL) Lhese
dlnners ln a bag are Lhe way ln whlch supermarkeLs and grocery sLores are compeLlng wlLh
resLauranLs Lo galn buslness from Amerlcans who choose noL Lo prepare Lhelr own meals

1he markeL analysls shows a broad range of prospecLlve cllenLs WCCLlLS Sl8Cln S1LAkS 1he green
labeled ecolabeled naLurally labeled food lndusLry ls ln a boom perlod Whlle Lhere are a growlng
number of lLems from a growlng number of vendors becomlng avallable CaLLle roducers MarkeLlng
Coop ls approachlng Lhe markeL as a mulLlcholce provlder of producLs wlLh a face

1he owner/members of MarkeLlng Coop have spenL 10 years carefully laylng Lhe groundwork and
learnlng Lhe meLhods for success 1he valueadded cooperaLlve ls now polsed Lo make Lhe mosL of
esLabllshed connecLlons wlLh consumers and oLher markeLers of naLural lLems handcrafLed on famlly
farms

CaLLle roducers MarkeLlng Coop ls seL Lo offer food flber and manufacLured producLs LhaL elLher
nourlsh provlde comforL or address a deslred LasLe or wanL 1he members of Lhe cooperaLlve have
proven an ablllLy Lo ad[usL Lhelr producL llnes whlle also dlsplaylng a Lenaclous deslre Lo provlde
whaLever level of sweaL equlLy ls requlred Lo preserve Lhelr lndependenL ways of llfe as famlly
farmers 1he owners/members have also provlded 30 percenL of Lhe equlLy requlremenLs per early
feaslblllLy esLlmaLes

1he foodwlLhaface concepL of markeLlng ls sLlll relaLlvely new and en[oys some sense of novelLy ln
Lhe markeLplace 1he genulne auLhenLlclLy LhaL can be verlfled by CaLLle roducers MarkeLlng Coop
ls noL yeL common ln Lhe commerclal consumer markeLplace whlch glves Lhe MarkeLlng Coop group
a leg up on Lhe compeLlLlon

1he lndusLry of speclallzed foods and handmade oneofaklnd producLs ls on a sLeady upward
growLh curve and MarkeLlng Coop ls polsed Lo caplLallze on Lhe consumer's deslre for Lhese lLems

Whlle a bounclng economy can affecL many areas speclalLy food lLems and unlque crafLed goods are
generally less affecLed Lhan Lhe maln wlLh unlque lLems Lyplcally flndlng favor ln Lhe markeLplace
1he followlng arLlcle reprlnLed provldes a degree of verlflcaLlon


Iarmers kated 8est |n Lnsur|ng Iood Safety

Survey ldenLlfles Consumer and LdlLor Cplnlons abouL lood lssues
uLS MClnLS lowa 1uesday SepLember 29 1998 lood safeLy has
surpassed lssues such as crlme prevenLlon healLh and nuLrlLlon
envlronmenLal proLecLlon waLer quallLy and recycllng as Lhe mosL
lmporLanL publlc lssue faclng consumers Powever consumers glve
farmers hlgh marks for Lhelr efforLs Lo assure a safe food supply a survey
by Lhe lnLernaLlonal lood SafeLy Councll a resLauranL and foodservlce
lndusLry coallLlon shows

llfLynlne percenL of consumers surveyed sald farmers are dolng an
excellenL [ob Lo ensure a safe food supply SupermarkeLs came ln a close
second aL 37 percenL followed by food processors (44 percenL) resLauranLs
(42 percenL) consumers (38 percenL) governmenL agencles (34 percenL)
and meaL/poulLry packers (29 percenL)

1he survey clearly shows LhaL consumers hold farmers ln hlgh regard
for Lhelr efforLs Lo produce safe and wholesome producLs" sald 8lll
8rewer publlc relaLlons counsel for Lhe lood racLlce Croup 1hls offers
an opporLunlLy for Lhe agrlculLural communlLy"

1998 Iood Issues Survey News ke|ease
resenLed ln assoclaLlon wlLh Lhe lnLernaLlonal lood SafeLy Councll a
resLauranL and foodservlce lndusLry coallLlon










Catt|e roducers Market|ng Coop roducts
( ln kenya resLauranLs prefer LSLudy Lhe kenyan markeLlng model) MCvL AWA? l8CM LxCLuulnC
8LS1Au8An1S A88A1Cl8S eLc whre rlclng ls accepLable
Cround 8oasL SLeak
CLher
Cround Chuck SelecL Chuck 18one 8eef for SLew 8oneless Cround 8eef 8lbeye 8eef for SLew
8oneless






1he followlng Lables show Lhe prlclng sLraLegy LhaL Lhe coop wlll use for lLs producLs


roducL rlce CalculaLed er ound

8lbeye SLeak $637

Chuck 8oasL uS Cholce 8oneless $232

oLenLlal MarkeLs CusLomer CaLegorles


2001
2002
2003
2004
2003
CLher


$3000


$10000


$13000


$30000


$30000



|str|butors (|nc|udes restaurants)


$30000


$40000


$83000


$100000


$123000



|rect (|nc|udes farmers markets)


$63000


$63000


$70000


$80000


$100000



Grocery


$0


$83000


$130000


$190000


$223000


1oLal


$100000
$200000
$300000
$400000
$300000








roduct |str|but|on and Sa|es
MeaL producLs are sold ln a varleLy of ways somewhaL dependenL on fresh or frozen and slze of
package AL presenL eLhnlc markeLs and speclalLy food markeLs are underserved A survey of Lhe
phone company's yellow pages showed only Lwo markeLs selllng Lo eLhnlc groups ln our proposed
Lrade area 8egardless of wheLher Lhe markeL ls a nlche or LradlLlonal markeL Lhe meaL sales are sLlll
handled ln Lhe same manner
1ypes of sa|es |nc|ude -Cver the counter |n |ocker p|ants or meat shops
-8y mall order
-vla lnLerneL
-uoorLodoor sales and dellvery
-Crocery sLores
-lnsLlLuLlonal food vendors
-SpeclalLy markeLlng
-repared food sales

MarkeLlng Coop wlll noL have any unlque food sales meLhods 8aLher Lhe company wlll sell vla
speclalLy markeLs such as farmers markeLs as frozen foods shlpplng producL sold vla lnLerneL or
phone orders and over Lhe counLer aL Lhe processlng faclllLy lor a small company MarkeLlng Coop
wlll cover as many markeLlng avenues as Llme and resources permlL

Lst|mated Market Share and Sa|es
1he poLenLlal sales volume for Lhe pro[ecLed sales area ls $10 mllllon 1hls ls based on uSuA
esLlmaLes as obLalned from Lhe uSuA Web slLes and lowa SLaLe unlverslLy LxLenslon esLlmaLes
whlch comblne populaLlon numbers and consumpLlon numbers WlLh a pro[ecLed sales volume of
$300000 MarkeLlng Coop wlll noL have a large markeL share

Compet|t|on
CompeLlLlon ls formldable 1he compeLlLors have more buylng power more clouL ln Lhe markeLplace
and more flnanclal resources Lo cuL deals wlLh suppllers MarkeLlng Coop has no llluslons of comlng
lnLo Lhe markeL place and easlly capLurlng sales lL wlll need Lo work hard Lo galn and keep sales
CusLomers have well esLabllshed buylng hablLs for meaL producLs coupled wlLh esLabllshed
preferences for producLs packlng and freshness

Compet|t|on |s |n the form of three ma|n categor|es
1Large chaln grocery sLores for reLall cusLomers
2Small lndependenL locker planLs wlLh reLall counLers
3MeaL brokers and lnsLlLuLlonal food sales groups selllng Lo resLauranLs

1he maln compeLlLlon wlll be beef producLs markeLed ln Lhe LradlLlonal manner le as a
commodlLy 1yplcally Lhe consumer does noL know where Lhe producL comes from and where and
how lL was processed MarkeLlng Coop plans Lo dlfferenLlaLe lLs producLs from commodlLy meaLs ln
Lhe followlng manner

-reserve Lhe ldenLlLy of producLs from Lhe caLLle ralser Lo Lhe consumer wheLher Lhe producL ls
sold ln meaL markeLs grocery sLores resLauranLs or dellcaLessens
-CaLLle wlll be ralsed ln open pasLures on a roLaLlon basls as opposed Lo hlghly dense conflnemenL
bulldlngs Lhus mlnlmlzlng Lhe lnvesLmenL requlred and ellmlnaLlng wasLe dlsposal and relaLed
envlronmenLal problems SLudles have shown LhaL caLLle ralsed ln Lhls manner have fewer healLh
problems Lhus reduclng Lhe need for medlclnes of varlous Lypes furLher reduclng producLlon cosLs
-LsLabllsh LhaL Lhe brand CaLLle roducers MarkeLlng Coop" offers producLs LhaL are safe and are
of conslsLenL hlgh quallLy Lhereby deservlng of a premlum prlce

Who are our compet|tors? We do noL know Lhe annual meaL sales volume of our compeLlLors or
Lhelr markeL shares Such flgures lf publlshed were noL avallable for Lhls sLudy
MarkeLlng Coop prlces wlll be compeLlLlve and ln some cases hlgher Lhan compeLlng beef producLs
found Lhrough oLher dlsLrlbuLlon channels 1he hlgher cosL abouL 3 cenLs per pound hlgher on
average wlll resulL from Lhe key dlfferences of MarkeLlng Coop producL versus compeLlLors'
producL Agaln Lhe sales hlsLory lndlcaLes consumers are wllllng Lo pay a very sllghL premlum Lo geL
producL LhaL meeLs Lhelr crlLerla

Some key d|fferences of our product |nc|ude
-lL ls a naLural producL free of hormones
-lL ls provlded by farmers known Lo Lhe consumer as ln food wlLh a face"
-CuallLy ls assured as all caLLle are ralsed Lo an audlLed quallLy sysLem
-no quallLy problems wlll come from processlng due Lo our small faclllLy and worker responslblllLy
for quallLy
-uoorsLep dellvery ls avallable where posslble
-CusLomers can vlslL Lhe facLory where Lhe food ls made

Compet|t|ve Advantage and Ana|ys|s
1he followlng Lable ouLllnes how CaLLle roducers MarkeLlng Coop compares Lo Lhe compeLlLlon ln
Lerms of producL and oLher facLors lncludlng sLrengLhs and weaknesses 1he analysls ls of Lhe
company agalnsL Lhe compeLlLlon by ma[or groups Whlle Lhere may be key dlfferences agalnsL
lndlvldual sLores or buslnesses Lhese do noL exlsL ln large enough quanLlLy Lo affecL sales or sLraLegy
of MarkeLlng Coop

o|nts of Compar|son

Locker lanLs
Crocerles
8rokers
8epuLaLlon

+
0
0
CuallLy
+
0
+



naLural roducL


?es 0


no +


no +



MarkeL Share


0









llnanclal 8esources


0









1oLal roducL Llne


0




CusLomer Servlce

0
+

CusLomer rocesslng
?es 0
no +
no +
lollowlng ls an analysls of CaLLle roducers MarkeLlng Coop sLrengLhs and weaknesses
opporLunlLles and LhreaLs

SWC1 Analysls
(SLrengLhs Weaknesses CpporLunlLles 1hreaLs)

SLrengLh

Weakness

Members lnvesLed aloL of cash ln coop
Members personal flnances are weakened
Coop has many charLer members
Slze and need of member operaLlons vary
CuallLy ls Lrademark of cooperaLlve
Consumers may noL recognlze quallLy

CpporLunlLles


1hreaLs
MarkeL hungry for coops fresh meaLs
lresh meaLs may provlde Lhln neL proflL marglns
Many area farmers markeLs Lo aLLend
larmers markeLs rely on greaL volunLeer efforL
new eLhnlc markeLs are expandlng rapldly
Ma[or companles also purslng eLhnlc markeLs
WhaL does Lhe Coop have Lo sell? ( 1ralLs of a Cood 8oran color Lenderness eLc see yhe Angus
AusLrallan erformance 1ralLs) S1AnuA8uS Cl LxCLLLLnCL Cl A 8C8An lS WPA1 ?Cu Al8L
SLLLlnC) 8eef Carcass ?lelds 1130 lb Llve WelghL Cholce SLee 8eLall 8eef Lbs

CLher Lbs
Carcass 1oLal
Chuck (2093 lbs) 29
8lade roasLs and sLeaks
339
SLew or ground beef
833
Arm poL roasLs and sLeaks
333
Cross rlb poL roasL
234
laL and bone
314

1C1AL
1781
314
2093
Mlscellaneous (327 lbs)43
kldney hanglng Lender
49
laL sueL cuLLlng losses
278
1C1AL
49
278
327
1hln CuLs (1346 lbs) 189
llank sLeak
36
asLraml Squares
29
CuLslde SklrL
22
lnslde SklrL
23
8oneless 8rlskeL
160
Cround beef sLewlng eLc
873
laL and 8one
201
1C1AL
1143
201
1346
8lb (666 lbs) 9
8lb 8oasL
239
8lb SLeak
92
ShorL 8lbs
86
Cround beef sLewlng eLc
163
laL and bone
84
1C1AL
382
84
666
Loln (1137 lbs) 16
orLerhouse SLeak
196
1bone SLeak
98
SLrlp SLeak
130
Slrloln SLeak
133
1enderloln SLeak
68
Cround beef sLewlng eLc
227
laL and bone
263
1C1AL
892
263
1337
8ound (1338 lbs) 22
1op 8ound
346
8oLLom 8ound
312
1lp
168
8ump
78
Cround beef sLewlng eLc
334
laL and bone
320
1C1AL
1238
320
1338




C8Anu 1C1AL*


3687


1462


71419


* uoes noL lnclude Lhe varleLy meaLs llver hearL Longue Lrlpe sweeLbreads and bralns abouL 27
lbs 1hese flgures are averages Carcass daLa varles accordlng Lo cuLLlng meLhod and Lype of caLLle
1130 lb cholce sLeer dresses ouL 62 or 714 lbs laL bone loss 146 lbs 8eLall beef cuLs 368 lbs

rlce Spreads (!LC)



Source hLLp//nyblcorg/beefbreakhLm


MarkeLlng lan Sample








MarkeL SLraLegy

lnlLlally CaLLle roducers MarkeLlng Coop wlll focus on farmers ( breeders )markeLs Lo esLabllsh lLs
name ln Lhe greaLer cenLral lowa area whlle creaLlng early cash flow As Lhe plan progresses over Lhe
nexL flve years added emphasls wlll be placed on sales Lo selecL grocery sLores and dlsLrlbuLors
lncludlng resLauranLs AlLhough greaLer gross marglns are posslble Lhrough dlrecL sales grocery and
dlsLrlbuLors

1he markeL analysls shows a broad range of prospecLlve cllenLs coverlng a wlde range of consumers
who are generally lnLeresLed ln quallLy food producLs 1he largesL of Lhese groups ls LhaL of
malnsLream Amerlca whlch ls pro[ecLed Lo grow aL 12 percenL per year

MarkeL Coals and Cb[ecLlves
AL Lhe beglnnlng of Lhls year WhlLe 1ablecloLh 8esLauranL ln 8lg ClLy slgned a oneyear agreemenL
Lo Lake no less Lhan $2300 of CaLLle roducers MarkeLlng Coop meaL producLs per monLh

$ 230000 x 12 $30000

MarkeLlng Coop has doubled Lhe number of farmers markets lL wlll be aLLendlng and esLlmaLes aL
leasL an 83 percenL lncrease ln sales over lasL year

$3730000 x 183 $69373

1ota| kestaurant and Iarmers Markets $99373

1he coop ls also vlslLlng wlLh A|| Ioods Markets regardlng Lhe posslblllLy of movlng over $100000 ln
producL annually Lhrough Lhelr markeL ln 8lg ClLy

1oLal Sales Lo larmers MarkeLs and 8esLauranL ln ?ear 1






!anuary


lebruary


March


Aprll


May


!une




$2730


$3000


$4000


$4123


$7300


$13000






!uly


AugusL


SepLember


CcLober


november


uecember




$19000


$22300


$12000


$4300


$2300


$2300



Cverall MarkeLlng SLraLegy
1he company's sLraLegy ls based on belng Lhe besL aL provldlng whaL Lhe consumer feels ls besL for
Lhem Cur Cnly Cholce ls WhaL ls 8esL for ?ou and ?our lamlly" ls Lhe moLLo of Lhe cooperaLlve a
message owners feel sells Lhe venLure Lo lLs cusLomers and lLs member/owners allke A goal ls Lo
caplLallze on consumer needs wanLs and fears

1he company also ls bulldlng a seamless markeLlng process LhaL Lakes Lhe flagshlp beef producLs
from Lhe pen Lo Lhe plaLLer whlle belng gulded along mulLlple lnroads of dlrecL and represenLaLlve
markeLlng rouLes 1he planned adverLlslng slanL wlll be Lowards maklng Lhe buslness and lLs
members good nelghbors Lo Lhelr cusLomers regardless of who Lhey are

MarkeLlng SLraLegles
rlarmers markeLs Lo bulld oneonone relaLlonshlps and name recognlLlon ln Lhe greaLer Mldlands
Lrade area 1hese markeLs also uLlllze sweaL equlLy and creaLe cash flow
r8epresenLaLlve sales such as resLauranL and grocery Lo bulld Lonnage
rLlve caLLle commodlLy passLhrough conLracLs Lo llquldaLe producer overrun and offgrade
rLlvesLock
rSpeclalLy foods and crafLs dlvlslon Lo supplemenL owner/member lncomes
rWllllngness Lo Lake any seaL aL Lhe Lable as long as lL ls proflLable


rlclng SLraLegy
1he company's fresh meaL producLs musL arrlve aL Lhe markeL wearlng a label LhaL reflecLs savlngs
when compared Lo acLual value Cnce consumer alleglance ls esLabllshed Lhere may be some room
Lo move prlces upward relaLlve Lo Lhe compeLlLlon rlclng wlll be such LhaL MarkeLlng Coop
producLs lnlLlally reach Lhe coosomets honds somewhere in the mid to upper portion of
the top onethird of the ronqe for simi/or products nave romo ackets for the Upmarket Iohbg
C1 8N Markets)

uealers and dlsLrlbuLors wlll be encouraged by a prlclng sysLem LhaL allows Lhem a margln
somewhere ln Lhe 33 percenL range
PandcrafLed lLems and speclally prepared foods wlll be prlced aL whaLever Lhe local markeL wlll
approprlaLely handle

romot|on Strategy
1he promoLlonal goal ls Lo malnLaln a level of vlslblllLy ln order Lo consLanLly keep movlng lncreaslng
volumes of producL lnLo an expandlng Lrade LerrlLory llrsL MarkeLlng Coop wlll concenLraLe on Lhe
core of Lhe greaLer Mldlands area Lhen move ouLward ln Lhe mosL opporLune dlrecLlons as Lhey
arlse

AlLhough presenL conLacLs ln Lhe grocery and resLauranL buslness are prlmarlly local Lhe company
wlll use Lhose relaLlonshlps Lo galn referrals Lo more dlsLanL markeLs

Market|ng rograms
MarkeLlng efforLs wlll focus on geLLlng very close Lo Lhe consumer and ldenLlfylng Lhose lssues mosL
lmporLanL Lo Lhem and Lhen provldlng an answer vla Lallored food producLs or handcrafLed lLems
1he packaglng for Lhls year's farmers markeLs acLlvlLles wlll lnclude a new company logo a plcLure of
Lhe farm famllles who own Lhe cooperaLlve and seasonal gardenlng Llps Also Lhere wlll be
lnsLrucLlons on how Lo use Lhe blodegradable bags made from recycled producLs Lo mulch gardens
and flowerbeds Lo slow weed growLh

1wo of our members have esLabllshed Lhemselves as weekly regulars on local radlo shows 1he
weekly syndlcaLed radlo program WhaL's new Lo LaL" responded Lo our leLLer of suggesLlon and
lnvlLed 8ernlce Agulla Lo record a feaLure each week on how Lo prepare varlous eLhnlc dlshes LhaL
conLaln MarkeLlng Coop meaL cuLs lus Andrew Mlchaels ls golng Lo be a panel member on Lhe
8uy Local llrsL" radlo program ln 8lg ClLy
We have slgned on as a halfLlme sponsor for Cy CounLry College fooLball
AlLhough Lhe schedule ls noL flnallzed Lhe Moblle Cooklng and CaLerlng commlLLee ls llnlng up a full
season of weekend sampllng demonsLraLlons and speclal evenLs appearances AL leasL one of Lhe
plans underway ls Lo hosL a Plgh School 1allgaLe nlghL" aL every school ln Lhe Mldlands reglon and
donaLe Lhe proceeds Lo area publlc day care cenLers

1he company ls also conLlnulng Lhe pracLlce of weekly press releases Lo all greaLer Mldland
newspapers regardlng lssues LhaL speak Lo Lhe advanLages of purchaslng cerLaln producLs ulLra
fresh locally grown foods produced and processed by local labor uslng mlnlmum arLlflclal lnpuLs

llnally CaLLle roducers MarkeLlng Coop has purchased 330000 prlnLed napklns Lo be made
avallable Lo Mldland area sporLs boosLer clubs church groups servlce clubs buslnesses or any oLher
lnLeresLs LhaL may be host|ng a p|cn|c emp|oyee gather|ng or pub||c d|nner

Iuture roducts and Serv|ces
1he company ls explorlng Lhe addlLlon of oLher processed lLems Lo offer vla Lhe convenlence sLore
markeL

1he coop also has sLudled and quanLlfled how ready access Lo a commerclal klLchen mlghL add Lo
producL llnes and perhaps even creaLe a source of employmenL for some of Lhe cooperaLlve
member/owners and Lhelr famllles les and baked goods dlsplaylng ecolabels and healLh aspecLs
appear Lo be promlslng Also Lhe heaLandserve compleLe meal markeL appears Lo hold some
promlse 1here ls Lhe posslblllLy of some conLracL food preparaLlon done on a scaled basls ln a
commerclal klLchen

lacLory and speclal evenLs caLerlng lmproved llve caLLle markeLlng agreemenLs oLher meaL
producLs narrow nlche eLhnlc preferences and member/owner servlces are all sub[ecLs LhaL are
elLher under sLudy or on Lhe hoL llsL for conslderaLlon

Sa|es Methods
CaLLle roducers MarkeLlng Coop sells lLs producLs Lo an evergrowlng consumer group Crlglnally
geared Loward Lhe local farmers markeL purchasers Lhe markeL has grown Lo lnclude a much larger
geographlcal area ln addlLlon Lo a broadenlng speclalLy response
1he company ls selllng ulLrahlgh quallLy and speclally Lallored aLLrlbuLes ln a markeL segmenL fllled
wlLh compeLlLlon for Lhe mlddleofLheroad buyer 1he company's approach ls Lo Lake lLs producL
lmage Lo hlgher markeL ground and make Lhe mosL of Lhe lmage of famlly farmers dolng Lhelr honesL
besL Lo make a llvlng ln a falr and eLhlcal manner 1he focus has enabled Lhe company Lo
dlscover volds ln Lhe markeL Lhen add producL as needed Lo flll Lhose volds MarkeLlng Coop has
worked hard Lo research speclalLy food provlders emulaLlng Lhelr pracLlces and poslLlonlng Lhe
company Lo operaLe ln a slmllar fashlon

LasL year Lhe company conducLed sldewalk surveys aL flve of Lhe farmers markeLs aLLended by Lhe
group AlLhough selllng under Lhe name of Colden Meadow roducLs aL Lhe Llme lL was clear LhaL
consumers ldenLlfled Lhe group wlLh hlgh quallLy and excellenL value Changlng Lhe name Lo CaLLle
roducers MarkeLlng Coop ls expecLed Lo allow Lhe newly formed value added cooperaLlve Lo draw
Lhose consumer oplnlons Lo an even wlder assorLmenL of food producLs and handcrafLed lLems

1he resLauranL Lrade has been explored and MarkeLlng Coop ls now ldenLlfled as a brand name on
Lhe menu of WhlLe 1ablecloLh 8esLauranL ln 8lg ClLy lA 1he esLabllshmenL of approved commerclal
klLchen space wlll open up new opporLunlLles for parLlally prepared food lLems some wlLh speclal
marlnades

MarkeLlng Coop Lells all buyers of lLs producL LhaL Lhey are noL [usL cusLomers raLher lL relaLes Lo
Lhem LhaL Lhey are very speclal and Lhe company wanLs Lo feed Lhem [usL llke a member of Lhe
famlly

1he coop has an owner/member speaker bureau LhaL ls provldlng programs for area servlce clubs
and speclal evenLs and lL has been Lralnlng for onslLe cooklng demonsLraLlons and worklng wlLh Lhe
Pead Chef aL Lhe WhlLe 1ablecloLh 8esLauranL Lo develop new reclpes 1he company also has
assured poLenLlal grocery reLallers LhaL lL wlll be avallable Lo greeL cusLomers and provlde weekend
parklng loL lunch acLlvlLles Lo help Lhem draw cusLomers

1o seL lLself aparL Lhe company puLs lLs face" wlLh Lhe food and sLresses auLhenLlclLy and concern
for Lhe consumer 1hls pasL summer all buyers aL Lhe 8lg ClLy larmers MarkeL recelved free compacL
dlscs LhaL held plcLures of each of Lhe member farm famllles and shorL narraLlves abouL how Lhey
depend on Lhe producLlon of a quallLy producL for a llvellhood

LlghL years ago lL was a loosely assembled group wlshlng Lo sell beef 1oday MarkeLlng Coop
represenLs a formally organlzed markeLlng organlzaLlon LhaL ls offerlng consumers Lhe parL of
Amerlcana mosL deslred 1he company ls selllng quallLy LasLe securlLy value and envlronmenLal
safeLy lL ls selllng Lhe CaLLle roducers MarkeLlng Coop brand

Lxperlence so far has been LhaL once Lhe coop esLabllshes relaLlonshlps wlLh lLs cusLomers lL can
ofLen move prlces Lo a premlum over oLher suppllers Cnce Lhe consumer ls honesLly assured LhaL
Lhe company offers Lhe besL Lhey wlll selecL lLs producLs wlLh greaLer enLhuslasm and less prlce
senslLlvlLy

1he keys Lo vlablllLy are Lo esLabllsh a fluld markeL LhaL wlll pay a falr prlce for goods produced on
Lhe farms of Lhe company's member/owners ln order Lo do so Lhe focus over Lhe nexL flve years
wlll be on Lhe creaLlon of Lhree dlfferenL levels of markeLlng opLlons
-consumer dlrecL
-dlsLrlbuLor/resLauranL and
-grocery

Lach of Lhose caLegorles can presenLly be dlvlded Lhls way

Consumer ulrecL

ulsLrlbuLor/8esLauranL

Crocery

larmers MarkeL

WhlLe LablecloLh resLauranL

All lood MarkeLs lnc

CounLer Sales aL Locker

WhlLe LablecloLh resLauranL




Cater|ng

1here ls yeL anoLher sales caLegory LhaL mlghL besL be descrlbed as a servlce for Lhe member/owners
of MarkeLlng Coop 1haL ls commodlLy grade llve caLLle markeLs
MarkeLlng asslsLance wlll be a breakeven consulLlng servlce for Lhe owner/members
Sa|es Iorecast
lL ls presenLly forecasL for Lhe group's sales Lo grow by 266 percenL over Lhe nexL 12 monLhs due Lo
1) a doubllng of Lhe number of farmers markeLs Lo be aLLended and 2) Lhe wrlLLen commlLmenL by
WhlLe 1ablecloLh 8esLauranL Lo Lake no less Lhan $30000 ln producL Lhls nexL year

1he All loods Crocery accounL ls showlng promlse MarkeLlng Coop ls followlng up on several deLalls
wlLh Lhe Lop level managemenL and hopes Lo geL a conflrmaLlon for dellvery daLes ln Lhe very near
fuLure Samples of MarkeLlng Coop producLs were provlded Lo Lhe execuLlve offlcers durlng Lhe lasL
vlslL wlLh favorable reacLlon

noL lncluded ln Lhese sales flgures ls any lncldenLal lncome LhaL MarkeLlng Coop may recelve from
servlces provlded Lo Lhe owner/members such as Llve CaLLle MarkeLlng ConsulLaLlon fees

lnsLead of acLually belng a markeL for large volumes of llve caLLle MarkeLlng Coop wlll flrsL be a
seeker" of markeLs for llve caLLle CenLrallzed managemenL and quallLy conLrol may fosLer
opporLunlLles Lo pool producLlon and secure equlLable dellvery conLracLs wlLh ma[or packers

Sa|es rograms
1he owners/members of MarkeLlng Coop have each compleLed Lhe followlng maLrlx as a way of
ldenLlfylng how Lhelr sweaL equlLy mlghL besL be applled Lo an overall markeLlng efforL






CaLegorles and Skllls
Lxperlence?
?es no
CommenLs
8uslness
AccounLlng
Plrlng/llrlng
urchaslng
MarkeLlng
Cold Call Sales
1elephone Sales
roducLlon ManagemenL
rocesslng
SafeLy
Supply Chaln ManagemenL
CuallLy
Supervlslon
Cash llow ManagemenL
AccounL ManagemenL

When quanLlfled and LoLaled Lhe resulLs lndlcaLed adequaLe avallable LalenL for a scaled up farmers
markeL efforL and any lnsLore cooklng demonsLraLlons or frlendly" consumer conLacLs aL barbecue
evenLs or ouLdoor caLerlng efforLs Cold call sales and Lelephone sales are areas LhaL may need Lo be
ouLsourced lf Lhe group wlshes Lo concenLraLe on oneonone sales and doorLodoor rouLesLyle
dellverles
|rect sa|es to the consumer provlde Lhe greaLesL gross reLurns Lo MarkeLlng Coop Powever dlrecL
sales rely on a large amounL of sweaL equlLy and accounL for vlrLually all expendlLures of volunLeer
Llme and efforL

1he Ceneral Manager along wlLh one or Lwo avallable 8oard Members wlll make all sales calls on
commerclal buyers

A commlssloned sales lncenLlve program ls under conslderaLlon for meaL brokers and oLhers who
have lnqulred abouL addlng MarkeLlng Coop meaL and speclalLy producLs Lo Lhelr sales brochures
and glfL caLalogs

Strateg|c A|||ances
1here are opporLunlLles for bulldlng sLraLeglc alllances wlLh several oLher suppllers of unlque
handcrafLed lLems and organlc or mlnlmum lnpuL food producLs Some of Lhese lnclude -LasLern
Colonles CrafLer's Culld
-lamous Crganlc lood MarkeLlng Coop
-Pome on Lhe lree 8ange MeaLs
-8lg ClLy CommunlLy SupporLed Ag 8anch
-We WanL Cneofaklnd 8uyers Club
-Lverybody's lavorlLe LveryLhlng Lxchange
Approached properly Lhese lnLeresLs may be wllllng Lo enLer lnLo a muLually beneflclal agreemenL ln
whlch Lhey would add noncompeLlng MarkeLlng Coop lLems Lo Lhelr producL llnes and allow Lhe
cooperaLlve Lo do llkewlse wlLh Lhelr goods

M||estones
1he followlng Lable llsLs lmporLanL mllesLones wlLh Llme perlods for acLual or expecLed daLes of
compleLlon 1he mllesLone schedule lndlcaLes LhaL CaLLle roducers MarkeLlng Coop a value added
cooperaLlve has come abouL as a resulL of dellberaLe and LhoughLful plannlng organlzaLlon and
research






Summer 1998


WlnLer 1998


Sprlng 1999


Summer 1999




ldea


Crganlze


8esearch


leaslblllLy




8ralnsLorm


CooperaLlve


osslblllLles


racLlcallLles




Consldered ConcepLs wlLh Lhe help of a faclllLaLor


SelecLed buslness
sLrucLure for Lhe group LlecLed
8oard of ulrecLors



lnvenLorled
capablllLles and avallable markeLs
wlLh help of lSu and oLher servlce
provlders



CuanLlfled whaL efforLs are mosL
llkely Lo generaLe
cash flrsL







lall 1999


WlnLer 1999


Sprlng 2000


Summer 2000




CaplLal


MarkeLlng


CaplLal


roducLlon




LqulLles


8eallLles


8orrow


ManufacLure




ueflned needed
member cash
and sweaL equlLy
lnvesLmenL



Plred parLLlme
sales consulLanL
and made flrsL
sales calls Lo
measure real
markeL demand



CompleLe
buslness plan
and apply for
flnanclal
asslsLance



CreaLe and
markeL producLs
under brand
name


I|nanc|a| |an Market|ng
We have forecasL a relaLlvely rapld growLh for CaLLle roducers MarkeLlng Coop AlLhough lL may
seem amblLlous based on hlsLorlcal sales of Lhe assorLed parLlclpanLs ln Colden Meadow roducLs
Lhe raLe of early growLh esLlmaLes are bolsLered by Lhe expanded producL llnes and a doubllng of
farmers markeL sales
efforLs

asL erformance




!anuary


lebruary


March


Aprll


May


!une




$12000


$12000


$12300


$12730


$16330


$23300






!uly


AugusL


SepLember


CcLober


november


uecember




$26273


$30000


$20000


$11000


$11000


$12000


We are also encouraged by leLLers recelved from All loods Crocery and WhlLe 1ablecloLh 8esLauranL
(coples enclosed) alLhough each provldes lncenLlves Lo conLlnue wlLh an aggresslve sales efforL

We are also encouraged abouL Lhe posslblllLles now belng presenLed ln Lhe convenlence foods and
speclalLy baked lLems

And flnally Lhe owner/members of CaLLle roducers MarkeLlng Coop have agreed Lo puL up 30
percenL equlLy ln Lhe form of lnlLlal cash lnvesLmenL 1he owner/members are enLerlng lnLo Lhls
venLure as a welllnformed group LhaL undersLands LhaL Lhelr cash and nearLerm sweaL equlLy may
well be Lhe keys Lo Lhe longLerm success of Lhls venLure

Sa|es L|terature
1he coop currenLly ls worklng on a llne of brochures and sales maLerlals Lo asslsL ln markeLlng and
efforLs Loward prospecLlve new wholesale and reLall accounLs newly deslgned labels lndlcaLe Lhe
dlrecLlon of Lhe company

osslble advanLages of developlng a Web slLe are belng explored buL quesLlons remaln abouL how
besL Lo draw consumers Lo lL

1est Market|ng
1he lasL Lhree years of sales have been LesL markeLlng and developmenL sales 1he company learned
abouL lLs cusLomers who Lhey are and whaL Lhey wanL

Market|ng 8udget
AdverLlslng $000
1ravel $23000
Supplles $10000
8uslness Cards (Mlsc Lxpense) $3000

key AssumpLlons
Cne assumpLlon made by Lhe company ls LhaL consumer demand for naLural beef producL wlll
conLlnue ln Lhe fuLure AnoLher assumpLlon ls LhaL large compeLlLors wlll noL enLer Lhe naLural beef
markeL for aL leasL Lhree Lo flve years slnce Lhe markeL ls yeL Lo be fully deflned ?eL anoLher
assumpLlon ls LhaL consumers wlll conLlnue Lo appreclaLe MarkeLlng Coop's aLLempL Lo provlde a
face" wlLh lLs food and Lo provlde deLalled quallLy lnformaLlon abouL how Lhe caLLle were ralsed

WhlLe 1ablecloLh 8esLauranL Lxample (!LC)

All loods MarkeL lnc Lxample (!LC)


roducLs or Servlces Sample

roducLs or Servlces
roducL or Servlces and Comparlson Lo CompeLlLors
-CusLom processlng Lo cusLom speclflcaLlons as volume
-1radlLlonal producLs such as sLeaks roasLs and ground beef
-acklng wlll be lndlvldual wrapped famllyslzed packages shrlnk wrapped or ln buLcher paper
MosL compeLlLors do Lhese same Lhlngs 1he MarkeLlng Coop dlfference however ls noL ln Lhe
producL cuLs buL ln Lhe way Lhe anlmals are ralsed as wlLh Lhe naLural beef 1he coop's dlfference ls
ln Lhe conslsLenL quallLy of Lhe producL wlLh a molsLer producL Lhan ls LradlLlonally provlded ln
sLores An addlLlonal dlfference ls ln Lhe servlce and relaLlonshlps MarkeLlng Coop esLabllshes wlLh
Lhe cusLomer aL Lhe Llme of sale


Lega| rotect|on
MarkeLlng Coop does noL have any paLenLs Lrademarks or copyrlghLs aL Lhls Llme

kegu|atory Agency kequ|rements
Larry and Llnda's Locker lanL whlch wlll be purchased by CaLLle roducers MarkeLlng Coop meeLs
all Lhe requlred sLaLe and federal regulaLlons PACC plans for producLs CSPA Lralnlng and plans for
safeLy and envlronmenLal permlLs relaLlng Lo sewage dlscharge are on flle ln Lhe planL offlce Coples
of any of Lhese documenLs wlll be provlded upon requesL 1o ensure all requlremenLs are meL ln Lhe
fuLure Lhe company wlll hlre 1ed 1oblas who ls experlenced ln all Lhese areas


Compet|t|ve Advantage and Customer 8enef|ts

8ased on Lhe company's analysls as seen ln Lhe Lables provlded earller and ln lnformaLlon provlded
on markeLlng Lrends and lncreased lnLeresL ln naLural producLs MarkeLlng Coop belleves lLs blggesL
compeLlLlve advanLages are ln Lhe followlng areas
-1he coop can supply naLural meaL producL cusLom processed Lo Lhe cusLomers' speclflcaLlons
-MarkeLlng Coop can supply an alLernaLlve producL of LradlLlonally ralsed beef also processed
accordlng Lo cusLomer speclflcaLlons
-1he company wlll esLabllsh a close markeLlng relaLlonshlp wlLh lLs cusLomers bulldlng LrusL ln Lhe
company and lLs producL
Cf course llke lLs compeLlLors CaLLle roducers MarkeLlng Coop has always offered full refund Lo
dlssaLlsfled cusLomers

ackag|ng
roducLs wlll be sold Lwo ways fresh or frozen All fresh producLs wlll be sold only from Lhe reLall
sLore aL Lhe locker faclllLy wrapped ln Lhe LradlLlonal buLcher paper 1he emphasls for producL sales
wlll be wlLh frozen producL 1hls producL also wlll be wrapped ln buLcher paper As do Lhe
compeLlLors we wlll wrap Lhe meaL sold ln any comblnaLlon of slzes pounds and producL mlx Lhe
cusLomer deslres

lor orders Lo be shlpped Lo cusLomers unlLed arcel Servlces (uS) wlll be used uS and uSuA
packaglng guldellnes wlll be followed lnsulaLed conLalners wlLh producL wrapped ln gel refrlgeranLs
wlll be Lhe prlmary means of shlpmenL


Manufactur|ng |an Samp|e



Company Locat|ons and Iac|||t|es

CaLLle roducers MarkeLlng Coop has been operaLlng aL no cosL ouL of offlce space ln an avallable
bulldlng owned by Lhe 8rlghL CounLy Lconomlc uevelopmenL CorporaLlon Powever Lhe coop ls
currenLly looklng aL Larry and Llnda's Locker lanL ln 8orderLown Larry and Llnda's has been
processlng all of Lhe MarkeLlng Coop meaL producLs and an expanslon of LhaL faclllLy wlll soon be
necessary Lo handle Lhe growlng volume and addlLlonal producL llnes 1he locker planL owners are
relucLanL Lo make furLher lnvesLmenL because of Lhelr age and Lhe dependence on a very speclal
markeL 1he bulldlng ls uSuA cerLlfled and ls ln excellenL shape rellmlnary englneerlng reporLs
lndlcaLe lL can readlly be expanded Lo provlde new processlng space and Lhe lnsLallaLlon of a
commerclal klLchen for preparaLlon of precooked producL lf MarkeLlng Coop ls Lhe purchaser of Lhe
bulldlng Lhe locker owners have agreed Lo flnance Lhe sale of Lhe buslness

1he faclllLy ls locaLed aL 102 Creek SLreeL 8orderLown lA 30323 hone number ls (313) 2940000

roduct|on and Cond|t|on of roduct|on Assets

1he planL wlll need Lo be expanded Lo accommodaLe processlng a volume of 20 head per day and Lo
produce precooked producL AL presenL slaughLer capaclLy exlsLs for 20 head per day buL has noL
been uLlllzed because Lhe necessary cuLup and cooklng faclllLles dld noL exlsL WlLh Lhe currenL
equlpmenL and Lhe new equlpmenL LhaL wlll be purchased Lhe faclllLy wlll be equal Lo or beLLer Lhan
LhaL of Lhe compeLlLlon Analysls of currenL accounLlng records shows Lhe faclllLy wlLh good
managemenL and workers ls able Lo produce producL ln a cosL effecLlve manner

Lqu|pment to be urchased

-Cooper vacuum packlng machlne
-10 horsepower roLary vane vacuum pump
-Lorenz smokehouse wlLh mlcroprocessor conLrol
-used elecLrlc llfL

CurrenL marglns on product produced exceed 30 percent wh|ch |s ahead of |ndustry averages as
shown |n kobert Morr|s I|nanc|a| Statement Stud|es An 1820 percent gross margln musL be
malnLalned ln order Lo servlce Lhe cosL of Lhe followlng
-paylng producers Lhe compeLlLlve markeL prlces Lhey hope Lo recelve for Lhelr caLLle
-purchaslng Larry and Llnda's on conLracL
-servlclng Lhe debL on monles borrowed Lo upgrade Lhe machlnery and equlpmenL and
-paylng a moderaLe wage for an accepLable general manager
1he key ls Lhe execuLlon or use of avallable asseLs whlch ls a funcLlon of managemenL

LxlsLlng producLlon asseLs are ln good condlLlon Analysls of flnanclal records show rouLlne
malnLenance has been done on Lhe faclllLy and equlpmenL As parL of Lhe purchase process !ay
SLlles Locker LqulpmenL Appralsal was hlred Lo provlde an appralsal of Lhe value and condlLlon of
Lhe asseLs Pe raLed Lhe equlpmenL as good Lo excellenL

Staff|ng
LxlsLlng sLaff ls adequaLe and can handle any lncrease ln volume AddlLlonal Lralnlng requlred for use
of new equlpmenL wlll be provlded on conLracL by Lhe equlpmenL vendor lf new workers are
needed exlsLlng employees wlll help recrulL new employees Skldmore CommunlLy College wlll
provlde dollars for [ob Lralnlng for new employees uslng exlsLlng SLaLe of lowa [ob Lralnlng programs
and wlll provlde Lhe Lralnlng

Inventory
Cooler space exlsLs Lo hold 100 carcasses or processed producL 1he company does noL wanL Lo hold
producL for more Lhan flve days and wlll aLLempL Lo Lle processlng Lo orders Lo mlnlmlze lnvenLory
Cf course Lhe lnvenLory pollcy Lo be followed ls flrsL ln flrsL ouL" roducL freshness wlll be
monlLored dally by Lhe quallLy manager

Mater|a|
CaLLle wlll be supplled by cooperaLlve members Larry CuLLer wlll be responslble for buylng caLLle
urchase schedules wlll be seL Lo lnclude purchase from all members based on producL avallablllLy

ua||ty and Government kequ|rements
PACC CSPA and envlronmenLal plans are ln place Lo meeL all sLaLe and federal requlremenLs 1he
quallLy manager also plans Lo lmplemenL a quallLy sysLem for all aspecLs of Lhe buslness Pe ls
plannlng Lo lmplemenL lSC 9000 wlLh Lhe asslsLance of Lhe CenLer for lndusLrlal 8esearch and Servlce
(Cl8AS) aL lowa SLaLe unlverslLy lmplemenLaLlon wlll begln afLer Lhe new faclllLy ls compleLed and
wlll Lake approxlmaLely one year

A quallLy sysLem also has been lmplemenLed wlLh Lhe member producers MarkeLlng Coop has
esLabllshed a Luropean sysLem LhaL Lracks each anlmal from blrLh Lhrough Lhe slaughLer and
processlng sLeps ln a sense each anlmal wlll have a passporL or record of lLs hlsLory 1he coop wlll
be able Lo show consumers Lhe hlsLory of Lhe meaL Lhey are buylng ln addlLlon Lhe cooperaLlve wlll
be able Lo monlLor cooperaLlve members' records Lo assure Lhe sLandards of naLural producL are
malnLalned

Lnv|ronmenta| Issues
1here are no envlronmenLal lssues Lo be dealL wlLh aL Lhls Llme All federal sLaLe and local permlL
requlremenLs have been meL 1he dlscharge Lo Lhe local sewer ls monlLored by Lhe clLy and meeLs lLs
requlremenLs

ManufacLurlng rocess AdvanLages
Larry and Llnda's Locker lanL does noL have any unlque compeLlLlve advanLage 1he equlpmenL ls
Lhe same as LhaL used ln oLher faclllLles 1he one key advanLage ls a bar code sysLem whlch allows
accuraLe Lracklng of producLlon daLa and lnvenLory 1he use of bar codes wlll allow boLh naLural and
LradlLlonal producL Lo be processed and sLored ln Lhe same faclllLy 8esponslblllLy Lo uphold Lhls
advanLage lles noL ln Lhe equlpmenL as much as wlLh Lhe managemenL Leam whlch has already
dlscussed Lhe lssue

1he faclllLy and equlpmenL LhaL wlll be ln Lhe faclllLy are ln excellenL condlLlon due Lo Lhe
malnLenance program no equlpmenL replacemenL due Lo wear or damage ls anLlclpaLed ln Lhe near
fuLure

ey Assumpt|on
A key assumpLlon ln Lhe manufacLurlng plan ls LhaL CaLLle roducers MarkeLlng Coop wlll be able Lo
reLaln Larry CuLLer as planL manager Pls reLenLlon ls crlLlcal Lo Lhe success of Lhe venLure because lL
enables Lhe coop Lo conLlnue Lo provlde currenL producL whlle ramplng up Lo provlde more volume
lf CuLLer decldes noL Lo sLay wlLh Lhe coop a search wlll be carrled ouL Lo flnd a quallfled candldaLe

AnoLher key assumpLlon ls LhaL Lhe managemenL Leam can successfully manage Lhe slaughLer and
processlng of boLh LradlLlonally ralsed and naLural ralsed caLLle ln Lhe same faclllLy



I|nanc|a| ata Samp|e


llnanclal uaLa
1he mosL lmporLanL Lhlng for CaLle roducers MarkeLlng Coop aL Lhls polnL ls Lo acqulre ample
flnanclng Lo Lake Lhe organlzaLlon Lo Lhe nexL level CurrenL producLlon capaclLy of Larry and Llnda's
Locker ls Loo small Lo buLcher as many anlmals as Lhe producers need Lo move and Lhe capablllLles
of Lhe processlng planL wlll noL faclllLaLe anyLhlng oLher Lhan fresh meaL processlng and freezlng
Many of Lhe parLs of Lhe anlmal LhaL are proflL cenLers for largescale packers are presenLly cosL
cenLers for Lhe cooperaLlve as Lhey musL be properly dlsposed of

Members' sweaL equlLy and Lhelr proposed wllllngness Lo someLlmes Lake sllghLly less Lhan Lhe besL
avallable markeL prlce for Lhelr caLLle wlll help Lhe cooperaLlve malnLaln lLs marglns AL every
opporLunlLy Lhe prlvaLe resources of Lhe members and Lhelr volunLeer Llme wlll be used Lo offseL
Lhe cosLs of operaLlng cosLs assoclaLed wlLh


-admlnlsLraLlon
-uLlllLles fuel Lelephone
-salarles and conLracL servlces and
-repalrs replacemenLs and prevenLlve malnLenance
1he cooperaLlve's ablllLy Lo reLaln earnlngs and defer dlvldends wlll also serve Lo help meeL flnanclal
requlremenLs of Lhe new buslness

Sources of Iunds
8ank loan $123000
Cwner equlLy $260000
SLaLe of lowa $40000

Uses of Iunds
LqulpmenL purchase $223000
Worklng caplLal $100000
uown paymenL for processlng faclllLy $100000
(noLe 1oLal purchase prlce on locker planL ls $300000 owner flnanclng 10 years 10 percenL
lnLeresL)

LqulpmenL LlsL
Cooper vacuum packlng machlne $70000
10 horsepower roLary vane vacuum pump $1000
Lorenz smokehouse wlLh mlcroprocessor conLrol $130000
used elecLrlc llfL $2000
1oLal $223000

8a|ance Sheet
?ear 2000
CurrenL AsseLs
Cash 21468
AccounLs 8ecelvable 8000
lnvenLory 10000
repald Lxpenses 0

1oLal CurrenL AsseLs 39468

roperLy and LqulpmenL
8ulldlng 330000
Machlnery and LqulpmenL 223000
lurnlLure and llxLures 3000
vehlcles 20000
Less Accum uepr 49798

1oLal AsseLs 367670

CurrenL LlablllLles
AccounLs ayable 4383
CurrenL orLlon uebL 2634
Accrued Lxpenses 3380
1axes Cwed 1200

1oLal CurrenL LlablllLles 13619

Long 1erm uebL and LqulLy
8ank Loan 123000
8ulldlng urchase 200000

1oLal LlablllLles 338619

SLockholder's LqulLy
CaplLal SLock 260000
ald ln CaplLal
8eLalned Larnlngs 30949

1oLal neL WorLh 229031

1oLal LlablllLles and neL WorLh 367670


8reakeven ro[ecLlon
?ear 2000
8L$ llxed Lxpenses/Cross roflL Margln
8L $ 1773333
lor year 2000 CaLLle roducers MarkeLlng Coop ls pro[ecLlng Lo achleve 3639 of sales

Income ro[ect|ons
2000 2001 2002
Sales 100000 200000 300000
CosL of Sales
MaLerlal 20000 30000 63000
Labor 28000 30000 30000
Supplles 2000 4000 4000
Cross roflL 30000 96000 181000

CperaLlng Lxpenses
Cfflcer Salarles 40000 40000 42000
Cfflce Salarles 12000 12600 13230
Supplles Cfflce 300 330 380
AdverLlslng 300 300 323
1ravel 230 300 313
uepreclaLlon 1060 1060 1113
lrelghL/osLage 430 300 323
lnsurance 700 700 733
uLlllLles 1200 1300 1363
AccounLlng/Legal 1300 1300 1373
1axes 1200 1200 1260
1elephone 2000 2000 2100
8epalrs and MalnLenance 300 300 323
AuLo/1ruck 230 230 263
8enL or Lease Lxpense 0 3000 3000
1oLal CperaLlng Lxpenses 62110 63960 69113

CperaLlng roflL 12110 30040 111887
lnLeresL Lxpense 18839 18839 18839
CLher lncome
CLher Lxpense

neL lncome 8efore 1axes 30949 11201 93048
LsLlmaLed lncome 1axes

neL roflL 30949 11201 93048


llnanclal SLaLemenLs
no audlLed flnanclal sLaLemenLs are avallable aL Lhls Llme 8lglorL CA flrm has been reLalned Lo
prepare audlLed sLaLemenLs for Lhe pasL year
CollaLeral
8ulldlng and roperLy LqulLy $100000
LqulpmenL $100000
ersonal Cu $30000


ersona| I|nanc|a| Statements
ersonal flnanclal sLaLemenLs are already on flle aL Lhe bank

Aged SLaLemenLs
ayables All bllls are currenL
AccounL 8ecelvables 030 $9000
3160 $1000
6190 0


ConLacL
1111 nS8lC
AmeslA
300113310
hone (313) 2949483
lax (313) 2949496
Lmall lanlm[lasLaLeedu

Cfflce Pours
8 am Lo 3 pm
Mon Lo lrl
llnd us



CopyrlghL 2011 lowa SLaLe unlverslLy LxLenslon | lowa SLaLe unlverslLy
nondlscrlmlnaLlon and lnformaLlon ulsclosures | SLaff Logln
LasL updaLed 11/17/2003An






CPlC 8LLl PL8u MAnACLMLn1 CALLnuA8

SLephen 8oyles CSu LxLenslon 8eef SpeclallsL
Wllllam Shulaw CSu LxLenslon veLerlnarlan
Cllf LlLLle CSu LxLenslon Ag and naL 8es Cuernsey CounLy
Mark Sulc CSu LxLenslon lorage SpeclallsL


!anuary

nuLrlLlon Cow nuLrlLlon/body condlLlon from Lhls monLh Lo calvlng affecLs fuLure reproducLlve
ablllLy and quallLy of colosLrum 8eplacemenL helfers and flrsLcalf helfers requlre more nuLrlenLs per
pound Lhan maLure cows lf posslble separaLe helfers and Lhln cows from Lhe maln herd for feedlng
Cood quallLy sLockplled grass hay should meeL proLeln and energy requlremenLs buL use your fall or
wlnLer forage LesL Lo evaluaLe Lower quallLy hay may need supplemenLaLlon rovlde shelLer
(hlllslde or Lrees) Lo keep Lhe energy requlremenLs Lo a mlnlmum A quallLy vlLamlnmlneral
supplemenLaLlon program ls requlred 8eef cows wlll consume 3 Lo 11 gallons of waLer per day
durlng cold weaLher 8e aware of frozen pond hazards keep replacemenL helfer calves galnlng
enough Lo reach Lhelr LargeL welghL (63 maLure wL) by Lhe sLarL of Lhe breedlng season leed hay
ln areas where mud ls less of a problem

PealLh Check for mange and llce lnfesLaLlon and LreaL wlLh approved pesLlclde Cbserve cows for
slgns of aborLlon such as sLrlngy or cloudy dlscharge from Lhe vulva and cows comlng lnLo heaL uo
noL handle an aborLed feLus wlLhouL plasLlc gloves 1ake feLus Lo your veLerlnarlan for dlagnosls
ConsulL your veLerlnarlan for advlce on vacclnaLlons Lo conLrol calf scours MosL producLs requlre 2
ln[ecLlons lnlLlally 36 weeks aparL wlLh an annual boosLer 1he second dose or Lhe boosLer should
be glven 34 weeks before expecLed calvlng Lo ensure maxlmal lmmunlLy ln Lhe colosLrum

Lameness can be a problem durlng Lhls Llme of Lhe year 1he lameness ls lnlLlally broughL on by
freezlng ln[ury Lo Lhe hooves raLher Lhan a case of fooL roL 1he problem ls due Lo Lhe melLlng of Lhe
manure/mud ln hlgh Lrafflc areas 1hls mud becomes aLLached Lo Lhe body and refreezes and causes
breaks ln Lhe skln and hooves 1hese breaks allow Lhe fooL roL organlsm lnLo Lhe hoof revenLlon
can be achleve by removlng Lhe mud from Lhe hoof or feedlng ln dry beLLer dralned areas looL roL
problems LhaL are dlagnosed early can usually be successfully LreaLed uslng anLlbloLlc labeled for
fooL roL

ManagemenL Cllp halr away from Lags or brands for ease of ldenLlflcaLlon aL sprlng calvlng Llme

MarkeLlng ?ou can prlce caLLle aL a dlfferenL Llme Lhan when caLLle are belng dellvered use your
local aucLlon barn for acLual prlces and Chlcago feeder caLLle fuLures for anLlclpaLory prlces for when
you wlll sell Lhe caLLle CalculaLe Lhe basls beLween Lhe local aucLlon barn prlce and Lhe Chlcago
feeder caLLle prlces

8uslness 1ake feed and llvesLock lnvenLory early ln Lhe monLh so LhaL a flnanclal sLaLemenL for lasL
year can be prepared erform yearend buslness analysls calculaLlng proflL (or loss) Compare Lhls
yearend analysls Lo prevlous analysls hlsLory and look for sLrengLhs and weaknesses

ALLend educaLlonal beef caLLle meeLlngs and workshops Conslder geLLlng cerLlfled so you can do
morLallLy composLlng

lorage and Solls Carefully sLrlp graze or roLaLe Lhrough sLockplled Lall fescue pasLures Lo maxlmlze
forage uLlllzaLlon lace orders for clover seed and grass seed early ln Lhe sprlng lan pasLure
uLlllzaLlon and posslble need of nlLrogen ferLlllzer ln some pasLure flelds for early sprlng growLh
Apply nlLrogen Lo pasLure flelds ln early sprlng only lf Lhe anLlclpaLed need for forage exceeds Lhe
expecLed flush of sprlng growLh

lebruary

nuLrlLlon MalnLaln nuLrlLlon levels of Lhe cow herd slmllar Lo recommend durlng !anuary Craln may
be needed lf you are feedlng lower quallLy hay (34 lb for maLure cows and abouL 8 lb for flrsLcalf
helfers) lf cows werenL removed from sLalk flelds earller remove Lhem now Lo avold soll
compacLlon SupplemenL wlLh magneslum aL leasL 30 days prlor Lo calvlng Cows need 20 grams of
magneslum dally or 4 oz/day of a 13 magneslum oxlde Lo prevenL grass LeLany Addlng 610
molasses or soybean meal wlll assure lnLake of a homemade mlneral mlx conLalnlng Lhls level of
magneslum

PealLh lamlllarlze yourself wlLh Lhe procedures for asslsLlng cows aL calvlng Clean and dlslnfecL
calvlng faclllLles and equlpmenL Commerclal colosLrum supplemenLs are noL as good as Lhe real
Lhlng Avold uslng colosLrum from anoLher herd lf posslble because lL may lnLroduce dlseases such
as !ohnes dlsease Pave Lhe followlng lLems avallable for calvlng season

Selenlum ln[ecLlons for whlLe muscle dlsease lf needed
SupplemenLal flulds and elecLrolyLes for calf dlarrhea
8esLralnL area Lo asslsL dlfflculL blrLhs wlLh llghL
MedlcaLlon for scours and resplraLory dlseases
Lar Lags and appllcaLor for ldenLlflcaLlon
uehornlng and casLraLlon equlpmenL
laclllLles Lo warm chllled calf
CbsLeLrlcal chalns or puller
lodlne for calfs navel
lrozen colosLrum
vlLamln ln[ecLlons
PalLer

ManagemenL Move pregnanL helfers and early calvlng cows Lo Lhe calvlng area abouL 2 weeks
before due daLe 8egln checklng for calvlng Cows LhaL have been ln labor for 23 hours wlLhouL
obvlous progress should be examlned and asslsLed lf necessary

CeneLlcs 8egln looklng for herd slres (Al/naLural) LhaL meeL herd and farm goals

Solls and lorage 8egln pasLure renovaLlon wlLh legumes lrosL seedlng should be done on pasLures
LhaL have been grazed very hard and of adequaLe pP ln order Lo suppress compeLlLlon Lo new
seedllngs once growLh beglns lrosL seedlng wlll be mosL successful on pasLures wlLh a falr amounL
of bare ground and ln pasLures havlng weaker sods AfLer broadcasL seedlng puLLlng anlmals back
on pasLure for a shorL Llme Lo Lread ln Lhe seed and lncrease seed soll conLacL can be useful buL
donL leave anlmals on for Loo long especlally lf solls are weL A noLlll drlll can be used when
seedlng legumes and grasses and may glve beLLer resulLs Lhan broadcasL frosL seedlngs Clovers are
mosL successfully frosL seeded Lhan oLher legumes 8lrdsfooL Lrefoll can be frosL seeded buL lL
usually requlres excellenL sod suppresslon for successful esLabllshmenL Alfalfa ls more frosL
senslLlve ln Lhe early seedllng sLage and ls less deslrable for frosL seedlng Some grasses can be frosL
seeded buL successful seedlngs are beLLer accompllshed wlLh a noLlll seedlng ln Lhe laLe summer

MarkeLlng ConLlnue analyzlng cash and fuLures feeder caLLle prlces and pro[ecL your proflL poLenLlal
and cosL of producLlon for selllng your backgrounded/flnlsher calves lmmedlaLely or aL a laLer daLe
Share Lhls markeLlng plan wlLh your banker even lf your are noL borrowlng any caplLal Lhls monLh

8uslness repare a monLhly cash flow for your beef caLLle enLerprlse and your LoLal farm buslness
WrlLe ouL your producLlon calendar and markeLlng plan for nexL year 8evlew markeLlng plans Lo
colnclde wlLh loan repaymenL schedules lf noL feaslble show lL Lo your banker and suggesL a revlsed
loan repaymenL schedule lnform Lax preparer of sales of unbred helfers ln Lhe breedlng pool
because Lhey are consldered breedlng llvesLock by Lhe l8S 1he Schedule l Lax form can be used as a
buslness Lool 1he farm expenses are a LoLal and a qulck analysls can be helpful ldenLlfy Lhe
operaLlons ma[or expenses LvaluaLe meLhods Lo reduce Lhese ma[or expenses

March

nuLrlLlon SeparaLe cows LhaL have calved from Lhe remalnder of Lhe herd lf Lhe cow ls poorly fed
durlng Lhls perlod mllk producLlon calf growLh and daLe of rebreedlng are affecLed ConLlnue grass
LeLany prevenLlon

lf you have noL been monlLorlng Lhe selenlum sLaLus of your cows you may need Lo glve selenlum
ln[ecLlons Lo calves aL blrLh Lo prevenL whlLe muscle dlsease 8esearch has shown however LhaL oral
supplemenLaLlon of Lhe cow aL levels LhaL lnsure her Llssue selenlum sLaLus ls adequaLe wlll resulL ln
lmproved calf performance over LhaL of ln[ecLed calves born Lo deflclenL cows

PealLh 8emember glve shoLs ln Lhe neck reglon When calvlng has begun observe calves for slgns
of scours and be ready Lo admlnlsLer supplemenLal fluld and elecLrolyLes 1ry Lo be sure calves geL
colosLrum wlLhln Lhe flrsL 2 hours of blrLh 1he calvlng area should be clean and dry A dry pasLure
wlLh good sun exposure ls ldeal Calvlng pens or corrals can allow bulldup of dlsease causlng organs
lf Lhey are noL very clean and well venLllaLed

lf calf scours has been a problem ln Lhe herd Lhe use of speclflc vacclnes such as for L coll may be
helpful 1hese should be glven accordlng Lo Lhe maufacLures recommendaLlons and are usually besL
glven Lo Lhe cow Lo lnsure proLecLlve anLlbodles ln Lhe colosLrum 1he lasL dose of vacclne should be
glven abouL 30 day before calvlng for maxlmum proLecLlon ConsulL your veLerlnarlan for speclflc
producLs LhaL may be useful ln your herd

CasLraLlon ls besL performed wlLhln 3 days of blrLh lf Lhese pracLlces are noL performed aL blrLh or
durlng baby calf processlng lL should be done by Lhe Llme Lhe calf ls 3060 days old Slmllar Lo
casLraLlon dehornlng should be done as soon as posslble Lo reduce sLress of dehornlng older
anlmals 1here are porLable rechargeable elecLrlc dehorners

ManagemenL Soon afLer dellvery dlp Lhe calfs navel ln 27 LlncLure of lodlne 8e sure LhaL proper
moLherlng occurs especlally wlLh flrsLcalf helfers ldenLlfy each calf wlLh earLag or LaLLoo record
blrLh welghL and calvlng ease score

CeneLlcs Welgh yearllng bulls and helfers lan your bull needs and begln Lhe process of geLLlng
addlLlonal bulls/semen lf necessary uolng lL now allows Llme for lsolaLlon and LesLlng for brucellosls
Luberculosls and oLher dlseases ueLermlne lf Lhe bull ls ready for breedlng by havlng a breedlng
soundness exam done

MarkeLlng 8ackgrounded/Crowlng calves should be reachlng crlLlcal welghLs where you elLher sell
Lhem or flnlsh Lhem

8uslness Compare your pro[ecLed feed producLlon for Lhls year wlLh your pro[ecLed feed
requlremenLs developed ln your buslness plan uo Lhey maLch? llnallze your forage and graln
producLlon plans for Lhe nexL year

lorages lrosLseed early ln Lhe monLh recommended legumes ln legume deflclenL pasLures lf noL
already done repare for new pasLure planLlngs and seedlng can begln Lhe lasL of March Lo early
Aprll dependlng on weaLher condlLlons

Aprll

nuLrlLlon Mlneral supplemenLaLlon ls a yearround process buL make sure sufflclenL phosphorus ls
avallable ln a freecholce mlneral leed more energy lf lacLaLlng cows are Lhln and noL cycllng

CeneLlcs 8equlre performance records such as Lus blrLh welghL weanlng welghL yearllng welghL
and average dally galn when purchaslng bulls or semen

8eproducLlon ConducL a breedlng soundness evaluaLlon on herd slres lf you use naLural breedlng
be sure you have enough bulls 1013 cows per yearllng bulls 2023 cows per Lwoyearold bull 30
33 cow per maLure bull Crder semen and check equlpmenL lf arLlflclal lnsemlnaLlon ls used
CondlLlon bulls by provldlng Lhem wlLh pasLure before Lhe breedlng season 1rlm bulls feeL lf
needed aL leasL Lhree weeks prlor Lo Lurnlng Lhem lnLo Lhe cow herd ?earllng 8rlLlsh helfers should
welgh a mlnlmum of 600 pounds and exoLlc helfer a mlnlmum of 700 pounds before belng bred

MarkeLlng lf you are conslderlng yearllng sLeers on grass Lhls summer sLarL gaLherlng weekly
aucLlon prlces for 300600 pound feeder sLeers Compare Lhls Lo AugusLSepLember fuLures prlce for
700800 pound sLeers LhaL you wlll be selllng so you can sLarL developlng breakeven values

Soll and lorages SmooLh and reseed hay feedlng and heavy Lrafflc areas Pold off pasLure unLll
adequaLe growLh (Crchardgrass/lescue 810 lnches bluegrass 43 lnches) 8ecommendaLlons vary
more speclflcally wlLh grass specle 8y developlng a serles of pasLures (paddocks) across varlous
forage specles of dlfferenL growLh perlods you can spread ouL Lhe 37 percenL of annual Chlo forage
growLh LhaL occurs durlng Aprll May and !une lan and lmplemenL grazlng sysLems and roLaLlons
repare for hay harvesL new pasLure seedlngs of coolseason specles should be made as early ln Lhe
monLh as posslble lf warm season grasses are deslred ln Lhe fuLure year seedlng should be ln mld
Aprll Lo mldMay

May

nuLrlLlon lf grazlng legume pasLure observe caLLle for bloaL keep magneslum phosphorus
selenlum and oLher mlnerals avallable Avold hlgh endophyLe fescue pasLure durlng breedlng lf
posslble A pasLure wlLh lnLerseeded legumes would be preferable Lo sLralghL fescue

PealLh lf noL done yeL dehorn and casLraLe calves before fly season lmplanL calves uslng proper
Lechnlque vacclnaLe calves for blackleg aL abouL 2 monLhs of age vacclnaLe for resplraLory dlseases
lf Lhey have been a problem Worm calves lf lndlcaLed vacclnaLe breedlng females for l88 8vu
lepLo vlbrlo Lo boosLer lmmunlLy before breedlng Clean corral and calvlng equlpmenL

8eproducLlon SLrlve for a 43 Lo 60day breedlng season of Lhe maln cow herd llve Lo 6 percenL of
Lhe herd should be comlng lnLo heaL per day lf Lhls ls noL occurrlng reevaluaLe Lhe nuLrlLlon and
healLh program 8reed replacemenL helfer one esLrous cycle before Lhe cows 8egln esLrous
synchronlzaLlon programs for Al

CeneLlcs Llneup Al servlces and/or purchase replacemenL bulls aL lesL 30 days prlor Lo Lhe sLarL of
Lhe breedlng season Choose a breed and use Lus

MarkeLlng 8uy yearllng calves for grass buL be cauLlous your are buylng when yearllng prlces are
Lyplcally aL Lhelr season hlgh

Soll and lorage use roLaLlonal grazlngand conslder creep grazlng Make 1sL cuLLlng hay When
grasses make seed head quallLy goes down lf more forage ls avallable Lhan can be fully uLlllzed
llmlL pasLure slze and harvesL excess forage as hay Seed warm season annuals for supplemenLal
feed

!une

nuLrlLlon Check waLer supplles because waLer ls exLremely lmporLanL for hoL weaLher rovlde a
freecholce mlneral mlx conLalnlng adequaLe levels of phosphorus vlLamln A selenlum copper zlnc
and oLher Lrace mlnerals aL all Llmes

PealLh Check for plnkeye ln cows and calves ConLrol flles wlLh sanlLaLlon lnsecLlcldal ear Lags
backrubbers bags spray or lnsecLlcldal feed addlLlves Cows reLurnlng ln heaL could be due lnfecLlon
or ln[ury of Lhe bull lnfecLlons of Lhe cows reproducLlve LracL and ovarlan dlsease and cysLlc ovarles
(nymphomanla) Cow noL comlng lnLo heaL are probably due Lo nuLrlLlonal deflclencles

8eproducLlon 1urn bulls ln wlLh cow herd for MarchAprll calves Check bulls dally for condlLlon and
breedlng capaclLy

MarkeLlng SLudy AugusL and SepLember feeder caLLle prlces for sLocker caLLle and early weanlng
opLlons

Soll and lorages lor maxlmum carrylng capaclLy roLaLe pasLure uonL overgraze pasLures Conslder
Lhe feaslblllLy of creep grazlng llnlsh maklng flrsL cuLLlng hay early ln monLh SLarL grazlng warm
season grasses Soll LesL for laLe summer seedlngs

!uly

nuLrlLlon Pave adequaLe waLer avallable SeL aslde hlgh quallLy second cuLLlng hay for growlng or
lacLaLlng caLLle nexL wlnLer and sprlng

8eproducLlon/PealLh 8emove bulls afLer 60day breedlng season Lo reduce calvlng lnLerval Slnce
Lhe herd ls gaLhered Lo remove Lhe bulls Lhls mlghL be an opporLune Llme Lo deworm relmplanL
vacclnaLe and provlde fly conLrol LreaLmenL

8uslness lannlng Compare acLual yearLodaLe cash expendlLures Lo your wrlLLen buslness plan
ueLermlne lf you are ahead or behlnd your buslness plans schedule ALLend educaLlonal flelddays

Soll and lorages SLarL grazlng warm season grasses Move caLLle Lo some hay flelds Lo glve pasLures
a resL 8egln sLockplllng of selecLed fescue areas for fall pasLures Soll LesL and make correcLlve
appllcaLlons of llme and ferLlllzer Lo flelds Lo be seeded ln laLe summer

AugusL

nuLrlLlon/ManagemenL WaLch for pasLures geLLlng shorL ManagemenL opLlons are supplemenLlng
Lhe enLlre herd early weanlng and creep feedlng/grazlng Creep feedlng/grazlng wlll malnLaln calf
weanlng welghLs buL wlll noL lmprove cow condlLlon score AnoLher opLlon ls Lo only early wean or
creep calves of flrsLcalf helfers WaLer consumpLlon can be 20 gallons per day

PealLh WaLch for acuLe pulmonary emphysema lf movlng caLLle from shorL pasLure Lo lush pasLures
use cauLlon when grazlng or feedlng droughL sLressed corn sLalks sorghumsudan grass and cereal
graln hay because of nlLraLe and prusslc acld polsonlng lf pasLures are shorL waLch for consumpLlon
of polsonous planLs ConLlnue fly conLrol and plnkeye LreaLmenL

MarkeLlng ueLermlne lf yearllng sLeers prlce have peaked for Lhe pasLure season

lorage ConLlnue pasLure roLaLlon Seed new pasLure seedlngs and lnLerseed grasses lnLo pasLures
uslng noLlll drllls lf sLand renovaLlon ls deslrable 8egln harvesL of corn sllage lanL perennlal
grasses based on recommendaLlons Soll sample and ferLlllze hay/pasLure flelds as needed 8egln
sLockplllng of Lall fescue pasLures for laLe fall and wlnLer grazlng Apply 30 Lo 60 pounds of nlLrogen
per acre Lo areas Lo be sLockplled lf addlLlonal carrylng capaclLy ls needed lf brasslcas (eg 1urnlps)
are Lo used for laLe fall grazlng Lhey should be seeded ln early AugusL

SepLember

PealLh repare for weanlng Llme acLlvlLles CeL faclllLles ready for worklng caLLle Llne up supplles
and drugs for fall weanlng uevelop a program for grub and llce conLrol

ManagemenL Conslder a precondlLlonlng program CeLLlng calves accusLomed Lo eaLlng graln from a
creep feeder can make Lhelr Llme ad[usLmenL Lo harvesLed feed easler

MarkeLlng llnallze your markeLlng plans for Lhls calf crop LvaluaLe (1) selllng Lhe calves aL weanlng
(2) wlnLer calves for golng back Lo grass nexL year (3) backgroundlng calves for sale !anuaryMarch
nexL year and (4) reLalned ownershlp and flnlshlng Lhe calves ueclde how many helfers wlll need Lo
be held back for replacemenLs Seasonal cow prlces are generally aL a low ln Lhe fall and aL a peak ln
Lhe sprlng ueclde lf cull cows wlll be sold Lhls fall or wlnLered and sold nexL sprlng

8uslness lannlng lnvenLory your poLenLlal wlnLer feed supply and declde lf you need Lo access
oLher feed sources Compare acLual yearLodaLe cash flow expendlLures Lo your planned cash
expendlLures Make changes ln cash flow plan and markeLlng plan needed Lo meeL flnanclal
commlLmenLs

lorage ConLlnue pasLure roLaLlon Laklng lnLo accounL Lhe need Lo allow Lall growlng legumes
(alfalfa blrdsfooL Lrefoll red clover) a fall resL perlod of aL leasL slx weeks of unlnLerrupLed growLh
before a kllllng frosL ConLlnue sLockplllng Lall fescue for laLe fall/wlnLer grazlng lanL wlnLer rye or
oLher wlnLer cereals Lo be used for supplemenLal forage ln laLe fall and early sprlng CompleLe soll
sampllng and ferLlllzaLlon of hay/pasLure flelds as needed

CcLober

nuLrlLlon ury pregnanL maLure cow have reduced nuLrlenL requlremenLs durlng Lhe early parL of
gesLaLlon and can be malnLalned on poor pasLure Powever lf Lhey Lhen Lhls ls a very economlcal
Llme Lo supplemenL and lmprove Lhelr condlLlon score 8eware of grazlng resLrlcLlons on cerLaln crop
herblcldes when conslderlng crop resldues for grazlng SeL LargeL welghLs for replacemenL helfer and
fed accordlngly

PealLh vacclnaLe replacemenLs for l88 8vu lepLo and vlbrlo lmplemenL a grub an llce conLrol
program Conslder dewormlng cows and calves 8emove lnsecLlcldal ear Lags 8eware of prusslc acld
polsonlng when grazlng frosLed sudangrass crosses

CeneLlcs SelecL replacemenL helfers uLlllzlng performance record SelecL some exLra Lo enable
culllng before Lhe breedlng season regnancy LesL Lhe herd and cull open cows lL may also be
advanLageous Lo recondlLlon Lhese cows lf faclllLles and cheap feed ls avallable Cull problem cows
or marglnal producers

ManagemenL Check Lhe LeeLh of your older cows Cow wlLh poor LeeLh donL malnLaln Lhelr welghL

MarkeLlng Make flnal declslon Lo sell or hold weaned calves ueclde markeLlng sLraLegy on cull
cows

ueLermlne opporLunlLy cosL of feedlng your home grown feeds as conLrasL Lo selllng Lhe feed on Lhe
open markeL ueLermlne who wlll pay you more for your feed your nelghbor or your caLLle

8uslness lannlng repare an lncome Lax esLlmaLe for Lhls year 1hls way you can pracLlce Lax
managemenL for Lhe resL of Lhe year by ad[usLlng expendlLures and/or lncome Lo maxlmlze afLer Lax
lncome lnform Lax preparer lf Lhe cows and helfers belng sold were ralsed or purchased

lorage Apply phosphaLe poLash and llme accordlng Lo soll LesL recommendaLlons SLarL lnvenLory
of hay supplles and LesL hay quallLy

november

nuLrlLlon Pave your hay LesLed uLlllze crop resldues as needed or avallable 8egln uLlllzlng early
sLockplled Lall fescue A kllllng frosL alfalfa can be grazed SupplemenL cows LhaL are ln Lhln body
condlLlon uevelop a feedlng program for replacemenL helfers

8uslness Arrange for purchase of any forages need for wlnLer feedlng program uslng a llmlLfed
corn sysLem may acLually be Lhe cheapesL alLernaLlve

lorage 8egln grazlng wlnLer rye brasslcas and sLockplled perennlal forages as needed Crazlng
should begln on supplemenLal forages flrsL and sLockplled fescue lasL LlmlL access of caLLle Lo
pasLured forage by sLrlp grazlng or carefully roLaLlng Lhrough pasLures Lo reduce wasLe and maxlmlze
forage uLlllzaLlon

uecember

nuLrlLlon and lorage uL prlorlLles on wlnLer forage supply as follows (1) feed lowesL quallLy forage
Lo maLure dry cows durlng early wlnLer (2) fed hlghesL quallLy forage Lo young sLock and (3) feed
medlum quallLy forage Lo dry cows durlng laLe pregnancy and Lo maLure herd slres leed hay so as Lo
mlnlmlze wasLe

PealLh WaLch for aborLlons Pave aborLed feLuses checked by a veLerlnarlan Cbserve feces for
coccldlosls Check cow frequenLly for halr loss due Lo exLernal paraslLes

MarkeLlng SLudy pasL years markeLlng prlces and compare Lo lasL few year ueLermlne where we
are ln Lhe beef prlce cycle LvaluaLe your lasL years markeL plan and esLabllsh why your acLual
experlence devlaLed from Lhe plan

8uslness lannlng uevelop your wlnLer feedlng program based on (1) currenL feed lnvenLorles and
(2) dally feed requlremenLs of each Lype of caLLle ln Lhe lnvenLory lf conslderlng an Al program nexL
year aLLend a Lralnlng school ln your area


8eef CaLLle lnformaLlon

CSu 8eef 1eam Web SlLe
hLLp//beefosuedu

MldWesL 8eef CaLLle Pandbook
18003623618 or wwwmwpshqorg
Splral noLebook $30 Cu $23

1he 8eef lnfo8ase
16088489033 or wwwaddsorg
Web subscrlpLlon $33 (Cood) for 12 monLhs)
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