Daryl Strohbehn

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"Take the Time"
Daryl Strohbehn Iowa Beef Center Iowa State
University
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What is this Take Business?

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

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"Be all you can be!"
But most of all, Be Prepared!
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Not being prepared can be a disaster!
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"Somethings we just can't prepare for."
5/20/2003 Canada Confirms Single BSE Case in a
Cow From Alberta by Roger Bernard Canadian
agriculture officials today confirmed that they
have a case of bovine spongiform encephalopathy
(BSE) or "mad cow" disease.
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How many of you are Angus 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

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Okay, if you couldnt answer that one

• Do you know if Lipton Tea employees take a coffee
  break?
• George Carlin
• What hair color do they put on the drivers
  license of bald men?
• George Carlin

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Okay, here is one that all Angus breeders can
answer

• Whatever happened to Preparations A thru G?
• George Carlin
• Now, if you cant answer these questions well..

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"Take the Time"
Use this conference to hone your skills and
improve your business strategy and savvy.
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Take the Time .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
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What best describes a successful 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.

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Hone Your Success Traits

• Success Traits
• Visionary

Imagination is more important than
knowledge Albert Einstein
"Take the Time"
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Hone Your Success Traits

• Success Traits
• Astuteness
• Setting Goals
• Customer Oriented

"Take the Time"
Your most unhappy customers are your greatest
source of learning. Bill Gates, Business _at_ The
Speed of Thought
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Hone Your Success Traits

• Success Traits
• Taking Action
• Flexibility Business Agility
• Passionate/Competitive Drive
• Compassionate
• Communicator

"Take the Time"
Communication is the universal solvent. Unknown
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Hone Your Success Traits

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

Courage is being scared to death - but saddling
up anyway. John Wayne
"Take the Time"
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Hone Your Success Traits

• Success Traits
• Reliability and Integrity

A lie can travel halfway around the world while
the truth is putting on its shoes. Mark Twain
Nothing astonishes men so much as common sense
and plain dealing. Ralph Waldo Emerson, 1841
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Hone Your Success Traits

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

"Take the Time"
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What are some of the Meat Marketing Trends?
Well, maybe I should get on with some subject
matter

• Lets take a trip down memory lane

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Pre World War II
Just give me something to eat Product innovation
-- non existent Brands were not well
established Processing and marketing were
disconnected Knew producer of my food Higher
percentage of income spent on food
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After World War II 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
marketing Processor is still the driver
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Late 60s, early 70s Era of Concentration
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Era of Concentration

• Commodity wholesale companies that created brands
  were proliferating brands
• Efficiencies were everywhere
• Took less money to buy and had more choices
• Processing and packaging increased -- didnt see
  the food anymore
• Total disconnect from their food system
• Number of people connected to the land--
  dramatically dropped
• Actively isolated the consumer from production
• Producers no longer saw and touched food as they
  knew it

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1980 90s WalMart Model
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WalMart Model

• Information flowing in a system
• Organized information
• Tracks consumer behavior
• Retailer calling shots with processors
• Wants to include everyone as a customer
• Exclusionary policy toward suppliers

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Today ???

• Are we switching power from the retailer to the
  consumer?
• The Consumer Wants to Know !!!
• Or at least that is the message being touted..

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Global Product Expectation is a changing

• World Competition may dictate necessities in our
  future production systems.
• Source and animal identity
• Verifying production processes
• Quality assurance
• Production supply chains
• Cattle Care Guidelines

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Industry Trends

• End Product Side
• Source Verification
• Traceability

Our World Competitors

• Paul Clayton Jan., 2003 NCBA Meeting
• Ear/Tail tags 11 countries
• Electronic ID 2 countries 3 planning
• Paper trail 5 countries, 1 planning
• Computer tracking 4 countries, 1 planning
• Birth to consumer track 5 countries

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Industry Trends

• End Product Side
• Case-ready revolution
• Branded Beef Programs
• Changes in Marketing Grids/Formulas

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The Look of Case-Ready
Impact of Case-Ready -forcing packing industry to
sell beef with 0 trim -current packer standard is
¼ trim with seam fat -case-ready cuts it to 0
fat trim -CURRENTLY cooler sort meets supply -but
what about the future?
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From Tyson-IBP Web Site

• IBP Fresh Meats Consumer Friendly Products will
• Allow you to redirect labor more productively
• Reduce out of stock conditions caused by time,
  pressure and workload
• Reduce marketing losses, ie, reworks, rewraps,
  markdowns, etc.
• Enhance sales because of recipe/preparation
  instructions on every package, as well as safe
  handling instructions
• Expand the variety of cuts currently offered
• Enhance greater food safety
• Extend marketing life over and above store cut
  product
• Allow you to improve your bottom line

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Will case-ready products have an impact on us?

• 2000 9 of all beef sales
• 2001 18
• Expected in 2003 35
• Expected by 2010 80

Will this cause a change in grid market premiums
discounts?
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Industry Trends
USDA Certified Beef Programs

• End Product Side
• Branded Beef Programs
• The race to brand beef products seems to be
  leveling off, but heat and eat is proliferating.

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Industry Trends

• End Product Side
• Heat Eat Products Convenience Items

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With all these product changes what changes are
taking place in the commercial industry?
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Has there been a change in use of Grid Marketing?
KS, TX, OK IA
Schroeder, et.al., Kansas State University, 2002

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

• Percentage of cattle sold using grid markets
• 1996 16
• 2001 45
• 2006 exp 62

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Industry Trends

• Commercial Side
• Supply chain development from cow-calf through
  feedlot
• More retained ownership through the supply chain
  to capitalize on genetic and management
  investments
• Demand for seedstock that positions commercial
  production correctly for the supply chain
  correct end product quality, cutability and
  weight
• Refocus on profit traits Genetic emphasis on
  efficiency reproduction and feed conversion
• Continued pressure to develop animal and
  environmental friendly systems?

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Industry Trends

• Commercial Side - Additional production aspects
• Supply chain access will require source and
  process verification.
• Market targets will continue to become better
  defined.
• Easier access to end product data will occur.
• Database management and analysis will be
  necessary.
• High valued reputation feeder cattle will need
  to have years of data to back up the claim
  reputation.

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Industry 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 managers!
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Industry Trends-Seedstock

• Even greater focus on profit traits
• Development of more EPDs and gene markers
• Especially for Reproduction, Health and Efficiency

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The John Airy Beef Cattle SymposiumVisions for
Genetics and BreedingMay, 2003
5 renown International Geneticists all spoke
about their efforts in genetic developments on
animal diseases.

• 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

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Industry Trends-Seedstock

• The role of molecular genetics will not diminish
  the importance of phenotypic recording and EPDs.
  
• Dr. Jack Dekker, ISU Molecular Geneticist _at_
  Brown Bagger

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Industry Trends-Seedstock

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

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Closing Thoughts
"Take the Time"

• 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

"Get Prepared!"
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"Take the Time"
When you come to a fork in the road, take
it. Yogi Berra