Title: Daryl Strohbehn
1"Take the Time"
Daryl Strohbehn Iowa Beef Center Iowa State
University
2What 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
3"Be all you can be!"
But most of all, Be Prepared!
4Not being prepared can be a disaster!
5"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.
6How 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
7Okay, 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
8Okay, 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..
9"Take the Time"
Use this conference to hone your skills and
improve your business strategy and savvy.
10Take 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
11What 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.
12Hone Your Success Traits
Imagination is more important than
knowledge Albert Einstein
"Take the Time"
13Hone 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
14Hone Your Success Traits
- Success Traits
- Taking Action
- Flexibility Business Agility
- Passionate/Competitive Drive
- Compassionate
- Communicator
"Take the Time"
Communication is the universal solvent. Unknown
15Hone 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"
16Hone 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
17Hone Your Success Traits
- Trait of Success
- Accuracy
- Continuous learner
- Joy in sharing success
"Take the Time"
18What are some of the Meat Marketing Trends?
Well, maybe I should get on with some subject
matter
- Lets take a trip down memory lane
19Pre 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
20After 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
21Late 60s, early 70s Era of Concentration
22Era 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
231980 90s WalMart Model
24WalMart 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
25Today ???
- Are we switching power from the retailer to the
consumer? - The Consumer Wants to Know !!!
- Or at least that is the message being touted..
26Global 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
27Industry 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
28Industry Trends
- End Product Side
- Case-ready revolution
- Branded Beef Programs
- Changes in Marketing Grids/Formulas
29The 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?
30From 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
31Will 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?
32Industry 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.
33Industry Trends
- End Product Side
- Heat Eat Products Convenience Items
34With all these product changes what changes are
taking place in the commercial industry?
35Has 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
36Industry 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?
37Industry 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.
38Industry 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!
39Industry Trends-Seedstock
- Even greater focus on profit traits
- Development of more EPDs and gene markers
- Especially for Reproduction, Health and Efficiency
40The 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
41Industry 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
42Industry 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.
43Closing 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!"
44"Take the Time"
When you come to a fork in the road, take
it. Yogi Berra