what is this take business? take the time take the time take it to the bank take it to the bank take...

What is this “Take Business”?What is this “Take Business”?

““Take the Time”Take the Time” ““Take it to the Bank”Take it to the Bank” ““Take Care”Take Care” ““Take Charge”Take Charge” ““Take Ownership”Take Ownership” ““Take Me, For Instance”Take Me, For Instance” ““Take This Job and……”Take This Job and……”

But most of all, Be Prepared!But most of all, Be Prepared!

Fax Alert… Canadian Cow Diagnosed with BSE

5/20/2003

Canada Confirms Single BSE Case in a Cow From Albertaby Roger Bernard

Canadian agriculture officials today confirmed that they have a case of bovine spongiform

encephalopathy (BSE) or "mad cow" disease.

How many of you are Angus How many of you are Angus breeders?breeders?If you can answer the following question

then I know you are prepared?

Do you know why the person that invests your money is called a broker?

George Carlin

Okay, if you couldn’t answer Okay, if you couldn’t answer that one:that one:Do you know if Lipton Tea employees take a

coffee break?George Carlin

What hair color do they put on the driver’s license of bald men?

George Carlin

Okay, here is one that all Okay, here is one that all Angus breeders can answer:Angus breeders can answer:Whatever happened to Preparations A thru

G?George Carlin

Now, if you can’t answer these questions well……..

Use this conference to hone your skills and Use this conference to hone your skills and improve your business strategy and savvy.improve your business strategy and savvy.

““Take the Time” Take the Time” …….to plan for Success…….to plan for Success

What is success?– Degree or measure of a favorable outcome.

“Success is the ability to go from one failure to another with no loss of enthusiasm.”Sir Winston Churchill

What best describes a successful What best describes a successful cattlemen to me?cattlemen to me?

Talented in many areas…..– Have the ability to be well organized; see both

the big and small picture, and are capable of time management, balancing the jobs at hand and communicating the appropriate direction to others.

Hone Your Success TraitsHone Your Success Traits

Success Traits– Visionary

““Imagination is more important than Imagination is more important than knowledge…”knowledge…”

Albert EinsteinAlbert Einstein


Success TraitsSuccess Traits– AstutenessAstuteness

– Setting GoalsSetting Goals

– Customer OrientedCustomer Oriented

““Your most unhappy customers are your greatest Your most unhappy customers are your greatest source of learning.”source of learning.”

Bill Gates, Business @ The Speed of ThoughtBill Gates, Business @ The Speed of Thought


Success Traits– Taking Action

– Flexibility & Business Agility

– Passionate/Competitive Drive

– Compassionate

– Communicator““Communication is the universal solvent.”Communication is the universal solvent.”UnknownUnknown


Success Traits– Tenacity– Working smart – Positive Outlook– Courage

“Courage is being scared to death - but saddling up anyway.”John WayneJohn Wayne


Success Traits– Reliability and Integrity

“Nothing astonishes men so much as common sense and plain dealing.”

Ralph Waldo Emerson, 1841

“A lie can travel halfway around the world while the truth is putting on its shoes.”

Mark Twain


Trait of Success– Accuracy– Continuous learner– Joy in sharing success

What are some of the Meat Marketing What are some of the Meat Marketing Trends?Trends?

Let’s take a trip down Let’s take a trip down memory lanememory lane

Well, maybe I should get on with some subject matter

Pre World War II

Just give me something to eatProduct innovation -- non existentBrands were not well establishedProcessing and marketing were disconnectedKnew producer of my food Higher percentage of income spent on food

After World War II After World War II

““The June Cleaver Era”The June Cleaver Era”

Consumers could buy more - but were not use to choices

Commodity producers owned the market and drove the demand for commodity brands

No communication up and down the production & marketing line

Beginning of emotional marketingProcessor is still the driver

Late 60s, early 70s “Era of Concentration”

““Era of Era of Concentration”Concentration”

– Commodity wholesale Commodity wholesale companies that created brands companies that created brands were proliferating brandswere proliferating brands

– Efficiencies were everywhereEfficiencies were everywhere– Took less money to buy and had Took less money to buy and had

more choicesmore choices– Processing and packaging Processing and packaging

increased -- didn’t see the food increased -- didn’t see the food anymoreanymore

– Total disconnect from their food Total disconnect from their food systemsystem

– Number of people connected to Number of people connected to the land-- dramatically droppedthe land-- dramatically dropped

– Actively isolated the consumer Actively isolated the consumer from productionfrom production

– Producers no longer saw and Producers no longer saw and touched food as they knew ittouched food as they knew it

1980 & 90s: WalMart Model

WalMart ModelWalMart Model

– Information flowing in a systemInformation flowing in a system

– Organized informationOrganized information

– Tracks consumer behaviorTracks consumer behavior

– Retailer calling shots with processorsRetailer calling shots with processors

– Wants to include everyone as a Wants to include everyone as a customercustomer

– Exclusionary policy toward suppliersExclusionary policy toward suppliers

Today ???Today ???

Are we switching power from the Are we switching power from the retailer to the consumer?retailer to the consumer?

The Consumer Wants to Know !!!The Consumer Wants to Know !!!

Or at least that is the message being Or at least that is the message being touted…..touted…..

Global Product Expectation is a Global Product Expectation is a changing……changing…… World Competition may dictate World Competition may dictate

necessities in our future production necessities in our future production systems.systems.– Source and animal identitySource and animal identity– Verifying production processesVerifying production processes– Quality assuranceQuality assurance– Production supply chainsProduction supply chains– Cattle Care GuidelinesCattle Care Guidelines

Industry TrendsIndustry Trends

End Product SideEnd Product Side– Source VerificationSource Verification– TraceabilityTraceability

Paul Clayton: Jan., 2003 NCBA MeetingPaul Clayton: Jan., 2003 NCBA Meeting– Ear/Tail tagsEar/Tail tags 11 countries11 countries– Electronic IDElectronic ID 2 countries & 3 planning2 countries & 3 planning– Paper trailPaper trail 5 countries, 1 planning5 countries, 1 planning– Computer trackingComputer tracking 4 countries, 1 planning4 countries, 1 planning– Birth to consumer trackBirth to consumer track 5 countries5 countries

Our World CompetitorsOur World Competitors


End Product SideEnd Product Side– Case-ready Case-ready

revolutionrevolution– Branded Beef Branded Beef

Programs Programs – Changes in Changes in

Marketing Marketing Grids/FormulasGrids/Formulas

The Look of Case-ReadyThe Look of Case-Ready

Impact of Case-ReadyImpact of Case-Ready

-forcing packing industry to sell beef with 0 trim-forcing packing industry to sell beef with 0 trim

-current packer standard is ¼” trim with seam fat-current packer standard is ¼” trim with seam fat

-case-ready cuts it to 0 fat trim-case-ready cuts it to 0 fat trim

-CURRENTLY cooler sort meets supply-CURRENTLY cooler sort meets supply

-but what about the future?-but what about the future?

From Tyson-IBP Web SiteFrom Tyson-IBP Web SiteIBP Fresh Meats Consumer Friendly Products will:IBP Fresh Meats Consumer Friendly Products will:

– Allow you to redirect labor more productivelyAllow you to redirect labor more productively– Reduce out of stock conditions caused by time, Reduce out of stock conditions caused by time,

pressure and workloadpressure and workload– Reduce marketing losses, ie, reworks, rewraps, Reduce marketing losses, ie, reworks, rewraps,

markdowns, etc.markdowns, etc.– Enhance sales because of recipe/preparation Enhance sales because of recipe/preparation

instructions on every package, as well as safe instructions on every package, as well as safe handling instructionshandling instructions

– Expand the variety of cuts currently offeredExpand the variety of cuts currently offered– Enhance greater food safetyEnhance greater food safety– Extend marketing life over and above store cut Extend marketing life over and above store cut

productproduct– Allow you to improve your bottom lineAllow you to improve your bottom line

Will case-ready products have Will case-ready products have an impact on us?an impact on us? 20002000 9% of all beef sales9% of all beef sales 20012001 18%18% Expected in 2003Expected in 2003 35%35% Expected by 2010Expected by 2010 80%80%

Will this cause a change Will this cause a change in grid market premiums in grid market premiums & discounts?& discounts?


End Product SideEnd Product Side– Branded Beef Branded Beef

Programs Programs

– The race to brand beef The race to brand beef products seems to be products seems to be leveling off, but heat leveling off, but heat and eat is proliferating.and eat is proliferating.

0

10

20

30

40

50

60

'85 '97 'June01

'July02

'May03

USDA Certified Beef ProgramsUSDA Certified Beef Programs

With all these product With all these product changes what changes are changes what changes are taking place in the taking place in the commercial industry?commercial industry?

Has there been a change in use of Has there been a change in use of Grid Marketing? KS, TX, OK & IAGrid Marketing? KS, TX, OK & IA

Fewer cattle will be Fewer cattle will be sold on the cash live sold on the cash live and carcass dressed and carcass dressed basis.basis.

Percentage of cattle Percentage of cattle sold using grid sold using grid marketsmarkets– 1996 – 16%1996 – 16%

– 2001 – 45%2001 – 45%

– 2006 exp – 62%2006 exp – 62%

Schroeder, et.al., Kansas State Schroeder, et.al., Kansas State University, 2002University, 2002

Industry TrendsIndustry TrendsCommercial SideCommercial Side

– Supply chain development from cow-Supply chain development from cow-calf through feedlotcalf through feedlot

– More retained ownership through the More retained ownership through the supply chain to capitalize on genetic supply chain to capitalize on genetic and management investmentsand management investments

– Demand for seedstock that positions Demand for seedstock that positions commercial production correctly for commercial production correctly for the supply chain: correct end product the supply chain: correct end product quality, cutability and weightquality, cutability and weight

– Refocus on profit traits: Genetic Refocus on profit traits: Genetic emphasis on efficiency; reproduction emphasis on efficiency; reproduction and feed conversionand feed conversion

– Continued pressure to develop animal Continued pressure to develop animal and environmental friendly systems?and environmental friendly systems?

Industry TrendsIndustry TrendsCommercial Side - Additional Commercial Side - Additional

production aspectsproduction aspects– Supply chain access will require Supply chain access will require

source and process verification.source and process verification.– Market targets will continue to Market targets will continue to

become better defined.become better defined.– Easier access to end product data Easier access to end product data

will occur.will occur.– Database management and analysis Database management and analysis

will be necessary. will be necessary. – High valued “reputation” feeder High valued “reputation” feeder

cattle will need to have years of data cattle will need to have years of data to back up the claim – “reputation”.to back up the claim – “reputation”.

Industry Trends-SeedstockIndustry Trends-Seedstock Full service providers- Ritchie, ’03 Not only specification type seedstock,

but… Feeder cattle merchandising Arrangement of retained ownership

programs Alignment with feedyard and carcass

data feedback Contract matings Embryo services for commercial

producers wishing to raise their own bulls for bio-security purposes

Replacement heifer programs for both seedstock and commercial customers

Seedstock alliances to accommodate commercial sector

Informational Informational managers!managers!

Industry Industry Trends-Trends-SeedstockSeedstockEven greater focus on profit traitsDevelopment of more EPDs and gene

markers– Especially for Reproduction, Health and

Efficiency

The John Airy Beef Cattle SymposiumThe John Airy Beef Cattle Symposium“Visions for Genetics and Breeding”“Visions for Genetics and Breeding”

May, 2003May, 2003

Dr. Michel Georges, U of Liege, Belgium Dr. Morris Soller, Hebrew University of

Jerusalem Dr. Jay Hetzel, Genetic Solutions, Australia Dr. Merete Fredholm, Royal Vet. & AG

University, Denmark Dr. Stephen Bishop, Roslin Institute, UK

5 renown International Geneticists – all spoke about their 5 renown International Geneticists – all spoke about their efforts in genetic developments on animal diseases.efforts in genetic developments on animal diseases.

Industry Industry Trends-Trends-SeedstockSeedstock “The role of molecular genetics will not

diminish the importance of phenotypic recording and EPDs.” Dr. Jack Dekker, ISU Molecular Geneticist @ Brown Bagger

Industry Industry Trends-Trends-SeedstockSeedstock

And finally, due to the increased number of EPDs and gene markers – selection and profit indexes will be demanded by your future customers.

Closing ThoughtsClosing Thoughts

Improve your competitive edge Better understand each others problems Improve your communications with

customers and other segments And do your best to learn new skills

““When you come to a fork in the road, When you come to a fork in the road, take it.”take it.”

Yogi BerraYogi Berra

what is this take business? take the time take the time take it to the bank take it to the bank take...

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