RAINBOWS END RANCH, INC.

1
RAINBOWS END RANCH, INC.

• Dan Schoenfelder

2
Evolution

• 1970s Vertical Integration
• 1980s Increase Profit/Reduce Inputs
• 1990s Expand Markets
• 2000s Capture Premiums

3
1970s

• Capture Value Through Vertical Integration
• Multi-breed Seedstock Production
• Commercial Herd
• Feedlot
• Marketing

4
Seedstock Production

• Produce Bulls For Commercial Herd
• Artificial Insemination
• Line-Breeding Program
• International Customer Base Of Seedstock
  Producers
• Embryo Transfer
• Increase Influence Of Top Cow Bloodlines
• Introduce Limited Outside Blood
• Marketing (Advertising)
• Show Ring
• National Advertising
• Bull-o-Gram Magazine
• National Breed Auctions
• Private Treaty Sales
• Production Sales

5
Commercial Herd

• Artificial Insemination
• Sire Evaluation
• Replacement Females
• Feeder Cattle
• Herd Health
• Vaccination Program
• Worming Program

6
Feedlot

• Vertical Integration
• Farm Products
• Forage (Silage, Haylage)
• Corn (Earlage)
• Livestock
• Low Inputs
• Pit Silos
• Mixer Truck
• Sire Evaluation
• Carcass Data
• Customer Support
• Purchase Feeders From Seedstock Customers

7
Marketing

• Vertical Integration
• Capitalize On Quality Product
• Every Animal Sold To Slaughter
• Finished Cattle
• Feeder Bulls
• Cull Cows

8
1980s

• Simplify Streamline
• Seedstock Production
• Cow/Calf Operation
• Feedlot
• Marketing

9
Seedstock Production

• Breed Trends Not Appropriate
• Reduced Inputs
• Eliminate Advertising Promotion Costs
• Limited AI Season
• Regional Commercial Bull Market
• Southwest
• Mexico
• Produce Bulls For Commercial Herd

10
Commercial Herd

• Focus On Cow/Calf Production
• Transition To Calf Factory
• Market Weaned Calves

11
Feedlot

• Capitalize On Built-In Values
• Genetics
• Herd Health
• Custom Feedyards
• Reduced Numbers
• Bottom Of Cattle Price Cycle (1986)
• Resurrect Feedlot
• Cheap Calves
• Cheap Hay
• Cheap Corn
• Natural Program
• Antibiotics
• Implants
• Ionophores
• Whole Corn Ration

12
Marketing

• Changing Point Of Sale
• Transition To Selling Weaned Calves

13
1990s

• Expand Markets
• Seedstock Production
• Cow/Calf Operation
• Stocker/Grower Operation
• Regional National Marketing

14
Seedstock Production

• Produce Bulls For Commercial Herd
• Limited AI (Outside Bulls)
• Estrus Synchronizaion
• Produce Bulls For Local Customers
• First Choice
• Fixed Price

15
Cow/Calf Operation

• Calf Factory
• Ranch-Raised Bulls
• Purchased Cow Herds

16
Stocker/Grower Operation

• Home-Raised Calves
• Purchased Calves
• Mexico
• Local Auction Sales

17
Regional National Marketing

• Regional Auction Sales (Colorado)
• Change Of Address
• Blend In With Top Regional Calves
• Satellite Video Auction
• True Price Discovery
• Access To Premiums
• Know Value Of Cattle
• Determine Marketing Window
• Offering Window
• Delivery Window
• Make Cattle Fit Contract
• Uniform Truckload Lots
• Recompile Remnants
• Sell Outliers At Local Livestock Auctions

18
2000s

• Capturing Premiums
• Seedstock Operation
• Cow/Calf Operation
• Marketing

19
Seedstock Operation

• Produce Bulls For Commercial Herd
• Artificial Insemination
• Estrus Synchronization
• Single Sire
• Alternative Breed Clean-Up Bulls

20
Cow/Calf Operation

• Transition To Non-Owned Land
• Reduce Costs
• Expand Herd
• Calf Factory
• Uniform Pasture Groups

21
Marketing

• Capturing Premiums
• Satellite Video Auction
• Vaccination Program
• EID
• Age Source Verification
• Breed, Pasture Group, Vaccinations, Treatments
• All Natural
• Implants
• Antibiotics
• Ionophores
• Uniform Truckload Lots
• Calves On Cows
• Stocker Operation
• Feeder Operation
• Natural

22
PRODUCT

• What am I offering (producing)?
• Genetics
• Health
• Nutrition

23
MARKETING

• How am I offering it (Presentation)?
• Satellite Video Auction
• Regional Livestock Auctions
• Direct Feedlot Sales

24
Capturing Premiums

• What Are They Paying For?
• What Does It Cost To Provide?
• How Can I Incorporate New Programs?