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
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
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
* 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
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
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
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)
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
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) Cu and Web subscrlpLlon $99