the future competition don schiefelbein schiefelbein farms kimball, minnesota
TRANSCRIPT
The Future Competition
Don SchiefelbeinSchiefelbein FarmsKimball, Minnesota
A Family Operation
Schiefelbein Farms
Frank & Frosty (Dad & Mom)8 sons7 daughters in-law29 grandchildren
Raising Registered Angus Seedstock since 1958
1. Run 700+ registered Angus females
2. Market 300 Angus, Balancer & SimAngus bulls annually
3. Farm 4000+ acres
4. Feed 5000 head of fed cattle annually
Schiefelbein Farms… fast facts
Schiefelbein Farms actively purchases and feeds calves sired by our bulls. We market these calves as fed animals, collect carcass data and share it with our customers.
Customer Buy-back program
What you are about to hear, may cause you discomfort
and unrest.
Warning
So, who is the competition?
We have found the enemy, and it is us!
Yourself
CONFIDENTIAL
Schiefelbein Farms
Business
Plan
Remember, when raising seedstock cattle was easy?
The Bigger, the Better. Right?
The Beef Business will NEVER return to the “good ol’ days”. If
you long for the days when raising seedstock was simpler, you are
going to be disappointed.
The Seedstock Business has Changed!
What Do Our Customer’s Need?
The Right Genetics
Genetics are becoming increasingly similar making it more difficult to differentiate your operation from
others
Great Genetics are Relatively Inexpensive
$40 investment in 1 generation gets you in the game
$80 investment over 2 generations gets you competitive
$120 investment over 3 generations gets you real competitive
Appropriately Combining the Right Genetics is the Key
G cattle Company (EPD Genetic Wonders)
vs.
O Cattle Company (Range Adaptable, problem-free)
Who’s Right?
Some seedstock producers are suggesting that you must choose?
Super Mamas: great udders, moderate, easy fleshing, docile
EPD Genetic Wonders: High growth, tremendous carcass, efficient gain
“Cow/calf producers should not be persuaded to make business and
genetic decisions based on what the feeding and packing industries tell us”
Don’t Fall for the Rhetoric
A Bad Business Mindset:
P Cattle Company
September, 2004 BEEF magazine
Goal: Combine EPD Genetic Wonders with Super Mamas
Schiefelbein Excel - Sitz Alliance x EXT
BUILD IT AND THEY WILL COME!!
… but will they pay more??
Customer Service
Customer service is quickly becoming the most effective way to differentiate seedstock operations
Value-added Customer Service
Study the Walmart revolution? It’s not really customer service; it’s
value-added service.
Remember the “Golden Rule” of business
“Those who write the checks, write the rules”
Source Identification - Angus Source
Special Feeder Sales - Special Angus Sales
Feedyard Contacts - CAB Feedyards
Calf Buy-Back programsSp
Help your customers market their calves
Uniform, predictable feeder cattle
Superior Livestock Results
• All neighbors• all sold within a half hour• all sold direct off the cow
Name Location Del. Sex Wgt PriceOpela Stapleton, NE 10/10/05 Strs 560 $130.00Carr Mullen, NE 10/15/05 Strs 550 $131.00Gordon Thedford, NE 10/15/05 Strs 550 $130.50Ryland Tyron, NE 10/17/05 Strs 550 $131.00Vinton Mullen,NE 9/25/05 Strs 565 $139.50
July, 2005
• all cattle were black• same shots• identical weigh-up
Out of Black, BWF cows by Schiefelbein Angus & Black Composite
bulls. Approx. 20% AI sired by New Design. 100% black hided.
Tremendous feeding history.
Lot 8491 - Bill Vinton
Breed Type:
Superior Livestock
July 6, 2005
Superior Livestock Results
• All neighbors• all sold within a half hour• all sold direct off the cow
Name Location Del. Sex Wgt PriceHanson Stanley, ND 10/24/05 Strs 650 $117.00Bauman Golden Valley, ND 10/23/05 Strs 650 $119.00Unruh Hebron, ND 10/10/05 Strs 650 $124.00Rice Powers Lake, ND 10/20/05 Strs 675 $115.50Entze Golden Valley, ND 10/20/05 Strs 650 $128.00
July, 2005
• all cattle were black• same shots• identical weigh-up
Angus & Angus cross cows sired by Schiefelbein bulls. 100% black hided.
Qualify for myriad of branded programs. Excellent carcass data.
Lot 8069 - Entze Bros.
Breed Type:
Superior Livestock
July 6, 2005
Size Really Does Matter100 head bull sale
200 head bull sale
300 head bull sale
Small Margins Require Size
Value-added service takes lots and lots of time
Segment Profit per headFeeder $10 headPacker $5 head
Earn $25,000 salary
Segment Required for salaryCow/calf 1923 cowsFeeder 2,500 feedersPacker 3,571 carcasses
Is satisfying your customer your real priority?
A Customer Mindset
Hybrid Seedstock... (Angus x seedstock)
Hybrid Seedstock
combine best of the Angus breed with the best of
Continental breeds in a
heterosis filled package
* The Right Genetics
* Value-added Service* Volume (size really does matter)
* A Customer Mind-set
To Be Competitive in the future, you must provide:
Conclusion