New Gen Co-op?

[rsomer]

"A good example is a 7 year old bull that had a value of about $160.00 at the sale and was turned into products that returned over $2000.00."

Are you talking $2000 gross or $2000 net after costs. What are the costs?

[cowman]

One of the problems of a new gen co-op is how is the management? That is definitely the most important factor in the profit/loss equation?
An example: When I was young and worked in the deboning operation at CP, we had a very competent manager. Knew the business like the back of his hand as he had spent his whole life in the butchering trade. Tight as a Scotchman!
But he ran a good profitable operation. Anyway we had this green college boy selling the product. He tried but he just wasn't getting the job done. So this old manager skidded him and brought in a new/old salesman from Toronto. Now this guy was something else! He knew every deli owner from Vancouver to Halifax and he could have sold ice to the Eskimoes! Business boomed to say the least. In fact it was a struggle to get out enough product to fill all the contracts! We all made a whole pile of money...the workers(because we had an incentive program based on piece work) the salesman(commission) and the whole plant! Unfortunately the salesman got cancer and died, the manager retired and was replaced by another college boy! The whole thing got pretty sad(the plant closed a few years later)!
So the whole idea of investing in a new gen co-op might be tempting but I think you need to be able to make sure the management can make a profit, or else you will lose your money?

[ValueChainFX]

Good point cowman, in fact a major challenge for not only a plant but for the supply chain in general. We have found that the industry itself is very fractured and there is a loud cry for more unity in pulling many of the components together. The total plan not only has a focus on management but also on training and marketing groups that are linked from the start to the end. The foundations have been laid and are being developed more tightly as things move ahead.

The $2,000.00 is the net amount, there were kill charges (it had to be inspected) and package charges. We paid the producer for his time what all producers have learned to expect (nothing LOL, in other words we didn't charge out labor) but he did get the profits from the bull!

[ebby7]

Klaus' number : 780 584 - 2307 is not in service. Is there another contact number, or a website where I can research this plan in more detail?

[ValueChainFX]

I'm sorry the number is 780-584-2407.

[ebby7]

Thank you!