I am going to turn this thing loose a little premature. You will read about it in the news shortly, but I would like opinions from some of my mentors on this site and yes that includes you my farmers_son freind.
Celtic Beef Organization (CBO)
“CBO” would be a “non profit” organization designed to allow producers a structured market for High Quality, Naturally Raised, Celtic beef cattle to the wholesale beef level.
Agenda items for foundation meeting -
1) - Good Business Principles. Not only honesty and integrity, but also sound and structured business principles. All transactions within the organization will be 30 day accounts. These transactions include cattle purchases, feed purchases, and processing to the wholesale beef level. Each individual taking part in “CBO” will be solely responsible for his or her own business transactions and will act according to these guidelines.
As of March 10th discussion between potential members includes the following points in italics under each section.
1) People are the foundation of any business – must have people of good character involved in business. Good Honest Hard working People.
We now feel that payment should be according to “normal industry” standard practices of 2-3 days.
2) - The only financial consideration of the Organization would be a levy on each animal transaction, paid by the seller, and all of these funds would go toward promotion of the Organization.
Suggestions – ½% to 1% or a flat rate of $5.00 per head. This fund would not only help the producers but would help the retailers and marketers to grow business.
2) - Discussion has not altered this original proposal and this decision will be final on March 17th.
3) - Price structure. All the figures used in this section are “for example only”. All premiums are open for discussion but will be set in the CBO framework prior to a final written CBO business plan.
A) Calf Price B) Yearling or Feeder Price C) Finished Cattle Price D) Wholesale Beef Price
We have all attempted to look away from conventional market pricing without success. My suggestion would be to structure our pricing around the conventional market; with premiums attached a various levels.
3) - Most of the discussion on this topic involved premium to cow calf producers. These members would have the least risk and would actually benefit in a “Whole Herd” way by using the sires chosen to represent the Celtic Beef Model. That being said, this producer still deserves a portion of the profits beyond involvement at the “Brokerage Shareholder Company” level. A suggestion that this premium will be derived from the demand for premium Celtic calves as feeders see profit in the upper end of the program. Wouldn’t it be nice to finally see a “trickle down” approach in the Beef Cattle Industry in this country. So far – 15% on feeder cattle – 20% on fat cattle - 25% on boxed “Cattle Pack” Beef.
4) – The members of CBO who have chosen to feed cattle to finish or slaughter cattle for wholesale will manage these two inventories.
Suggestion – All inventory numbers, both feedlot and if need be, beef inventory will be available to all marketers on a show list. Allowance could be made for orders taken off this show list, for marketing schemes such as the current Canadian Celtic, or Aunt Marty’s programs. It is likely that only a small number of CBO members will be involved after the fat cattle stage. CBO will allow these members to help each other to market product without fear of competition.
Supply and demand will drive CBO in this loose knit organization where inventory will be all that holds back any new marketing schemes, which will ALL be encouraged. This will allow opportunity for all of us to work together on marketing beef; which is the main goal of CBO, beyond producer level profits.
4) – Little or no feedback on this issue. I would assume that this can only mean agreement, but the meeting will tell the story. Sounds like members support a pricing structure that would affect any and all interested marketing schemes on a level playing field.
5) – Cattle Standards
Branded Celtic Beef. Breed specific to Galloway, Highland, and Welsh Black (DEVON). Quality animals with no specific requirements other than a Quality sire from one of the preceding breeds.
Individual identity to birth. A record will be kept on each and every animal in the program by each individual CBO member. All cattle to have RFID age verification ear tags and records.
Cattle that fit these standards will be acceptable for CBO, but this does not hold a producer or a buyer back from specifying his or her own purebred breed or combination of crosses within the program. Identity of the cattle from birth will help both producer and marketer to select cattle and beef.
Producers will be encouraged to participate in EU protocol, but it will not be a requirement of the program like RFID, Age Verification, and complete records from birth.
5) – It’s seems that the E.U. certification requirement is no longer simply suggested but encouraged. E.U. protocol for tagging must be adhered to, but discussion over “range of birth weights” to allow large ranches less management will continue.
Standards to date for sires are registered or DNA accepted sires of the breeds listed, which now includes Devon cattle. More breeds may be accepted as time and growth continue, but discussion has mainly involved quality control and nimble individualism to set our product apart from programs that will undoubtedly follow.
Standard for carcass animal Dams will include no more than 50% continental on the Dam side with preference to an all British cow herd. British cattle have become somewhat similar in type to many of the continental breeds in the past number of years and limiting the cowherd any more will simply limit growth of the program.
Sires will have stringent rules. Suggestion thus far include Ultrasound measurement to include minimum 4 marbling score 60% lean meat yield, 1^inch2 per 100 lbs. rib eye, with no limitation for back fat due, in part, to the under twenty month rule. A.I sire limitations include even more stringent standards. 4.5 marbling – 65% lean – 1.1^inch2 per 100lbs. rib eye and again no limitation for back fat. Frame scores for the bulls have been discussed, as size will not only affect production costs but carcass quality as well. Frame score 4.5 to 5 have been suggested with “4” frame score A.I. sires.
6) – Feed and Feedlot Standards
Feedlots selected and suggested by members who choose to finish cattle.
No added Hormones.
No Antibiotics once cattle are on finishing ration.
No rumensin. Suggestion – Yeast for “ionophore like” rumen activity.
Maximum 70% barley finishing ration.
6) – The main focus on this point has been market differentiation. High (or Conjugated) Linoleic acid and some of the other health benefits of Beef have been eroded due to the high barley content in fed cattle rations. Natural Feed additives are being explored by Cam Ostercamp and suggestions are being considered, and welcomed concerning barley content in the finishing stages.
7) – A seventh point has been added to include the crucial “Inventory Scheduling Process”. Darcy Gooderich, our inventory specialist, is working on a spread sheet to accommodate this item.
I would ask that each of you make suggestion of how this program could work and not what is wrong with it if you are planning to come to this meeting. This meeting is about going forward, not looking back or finding roadblocks. The major points in the plan are very simple, and I for one want to keep it that way. If another major point needs to be added; so be it. Write that point down and bring it along to the meeting. The meeting date to be set once each person on the following list has had a chance to read these notes and decide if he/she wants to attend.
Randy Kaiser
– Paul Froeler – Dan Mohan – Bruce Skocdoploe family – Scott Campbell family – Darcy Goodrich - Wally Foremsky – Darcy Meuller – Ted Ford
– The list has grown to include our export marketing professional David Bowman, and the following list of folks which includes any and all family members wishing to participate.
– Paul Gutteridge – Brady Wobeser Family – Layton Bezan – Kevin Forwood – Jason Roach – Mike Drake – Doug Fraser – Cam Ostercamp – Darcy Boese – Craig Van Stryland - Ken Aylesworth and an export rep from the Ranchers Beef Plant at Balzac Alberta
An introduction to the Beef Brokerage Company will follow Lunch at 1:00 p.m on March 17th, 2007
The CBO structure meeting will begin at 10:00 a.m. That’s 10 in the morning for us rednecks who don’t use the a.m. p.m. thing much.
Thank you
Randy Kaiser.
Can’t get a song out of my head these days. Have you ever heard the song called “Don’t cry for me Argentina”? Well the line I have added goes something like this. “When we punt you and your new Tyson Plant out of Europe”. All the best everyone.
Celtic Beef Organization (CBO)
“CBO” would be a “non profit” organization designed to allow producers a structured market for High Quality, Naturally Raised, Celtic beef cattle to the wholesale beef level.
Agenda items for foundation meeting -
1) - Good Business Principles. Not only honesty and integrity, but also sound and structured business principles. All transactions within the organization will be 30 day accounts. These transactions include cattle purchases, feed purchases, and processing to the wholesale beef level. Each individual taking part in “CBO” will be solely responsible for his or her own business transactions and will act according to these guidelines.
As of March 10th discussion between potential members includes the following points in italics under each section.
1) People are the foundation of any business – must have people of good character involved in business. Good Honest Hard working People.
We now feel that payment should be according to “normal industry” standard practices of 2-3 days.
2) - The only financial consideration of the Organization would be a levy on each animal transaction, paid by the seller, and all of these funds would go toward promotion of the Organization.
Suggestions – ½% to 1% or a flat rate of $5.00 per head. This fund would not only help the producers but would help the retailers and marketers to grow business.
2) - Discussion has not altered this original proposal and this decision will be final on March 17th.
3) - Price structure. All the figures used in this section are “for example only”. All premiums are open for discussion but will be set in the CBO framework prior to a final written CBO business plan.
A) Calf Price B) Yearling or Feeder Price C) Finished Cattle Price D) Wholesale Beef Price
We have all attempted to look away from conventional market pricing without success. My suggestion would be to structure our pricing around the conventional market; with premiums attached a various levels.
3) - Most of the discussion on this topic involved premium to cow calf producers. These members would have the least risk and would actually benefit in a “Whole Herd” way by using the sires chosen to represent the Celtic Beef Model. That being said, this producer still deserves a portion of the profits beyond involvement at the “Brokerage Shareholder Company” level. A suggestion that this premium will be derived from the demand for premium Celtic calves as feeders see profit in the upper end of the program. Wouldn’t it be nice to finally see a “trickle down” approach in the Beef Cattle Industry in this country. So far – 15% on feeder cattle – 20% on fat cattle - 25% on boxed “Cattle Pack” Beef.
4) – The members of CBO who have chosen to feed cattle to finish or slaughter cattle for wholesale will manage these two inventories.
Suggestion – All inventory numbers, both feedlot and if need be, beef inventory will be available to all marketers on a show list. Allowance could be made for orders taken off this show list, for marketing schemes such as the current Canadian Celtic, or Aunt Marty’s programs. It is likely that only a small number of CBO members will be involved after the fat cattle stage. CBO will allow these members to help each other to market product without fear of competition.
Supply and demand will drive CBO in this loose knit organization where inventory will be all that holds back any new marketing schemes, which will ALL be encouraged. This will allow opportunity for all of us to work together on marketing beef; which is the main goal of CBO, beyond producer level profits.
4) – Little or no feedback on this issue. I would assume that this can only mean agreement, but the meeting will tell the story. Sounds like members support a pricing structure that would affect any and all interested marketing schemes on a level playing field.
5) – Cattle Standards
Branded Celtic Beef. Breed specific to Galloway, Highland, and Welsh Black (DEVON). Quality animals with no specific requirements other than a Quality sire from one of the preceding breeds.
Individual identity to birth. A record will be kept on each and every animal in the program by each individual CBO member. All cattle to have RFID age verification ear tags and records.
Cattle that fit these standards will be acceptable for CBO, but this does not hold a producer or a buyer back from specifying his or her own purebred breed or combination of crosses within the program. Identity of the cattle from birth will help both producer and marketer to select cattle and beef.
Producers will be encouraged to participate in EU protocol, but it will not be a requirement of the program like RFID, Age Verification, and complete records from birth.
5) – It’s seems that the E.U. certification requirement is no longer simply suggested but encouraged. E.U. protocol for tagging must be adhered to, but discussion over “range of birth weights” to allow large ranches less management will continue.
Standards to date for sires are registered or DNA accepted sires of the breeds listed, which now includes Devon cattle. More breeds may be accepted as time and growth continue, but discussion has mainly involved quality control and nimble individualism to set our product apart from programs that will undoubtedly follow.
Standard for carcass animal Dams will include no more than 50% continental on the Dam side with preference to an all British cow herd. British cattle have become somewhat similar in type to many of the continental breeds in the past number of years and limiting the cowherd any more will simply limit growth of the program.
Sires will have stringent rules. Suggestion thus far include Ultrasound measurement to include minimum 4 marbling score 60% lean meat yield, 1^inch2 per 100 lbs. rib eye, with no limitation for back fat due, in part, to the under twenty month rule. A.I sire limitations include even more stringent standards. 4.5 marbling – 65% lean – 1.1^inch2 per 100lbs. rib eye and again no limitation for back fat. Frame scores for the bulls have been discussed, as size will not only affect production costs but carcass quality as well. Frame score 4.5 to 5 have been suggested with “4” frame score A.I. sires.
6) – Feed and Feedlot Standards
Feedlots selected and suggested by members who choose to finish cattle.
No added Hormones.
No Antibiotics once cattle are on finishing ration.
No rumensin. Suggestion – Yeast for “ionophore like” rumen activity.
Maximum 70% barley finishing ration.
6) – The main focus on this point has been market differentiation. High (or Conjugated) Linoleic acid and some of the other health benefits of Beef have been eroded due to the high barley content in fed cattle rations. Natural Feed additives are being explored by Cam Ostercamp and suggestions are being considered, and welcomed concerning barley content in the finishing stages.
7) – A seventh point has been added to include the crucial “Inventory Scheduling Process”. Darcy Gooderich, our inventory specialist, is working on a spread sheet to accommodate this item.
I would ask that each of you make suggestion of how this program could work and not what is wrong with it if you are planning to come to this meeting. This meeting is about going forward, not looking back or finding roadblocks. The major points in the plan are very simple, and I for one want to keep it that way. If another major point needs to be added; so be it. Write that point down and bring it along to the meeting. The meeting date to be set once each person on the following list has had a chance to read these notes and decide if he/she wants to attend.
Randy Kaiser
– Paul Froeler – Dan Mohan – Bruce Skocdoploe family – Scott Campbell family – Darcy Goodrich - Wally Foremsky – Darcy Meuller – Ted Ford
– The list has grown to include our export marketing professional David Bowman, and the following list of folks which includes any and all family members wishing to participate.
– Paul Gutteridge – Brady Wobeser Family – Layton Bezan – Kevin Forwood – Jason Roach – Mike Drake – Doug Fraser – Cam Ostercamp – Darcy Boese – Craig Van Stryland - Ken Aylesworth and an export rep from the Ranchers Beef Plant at Balzac Alberta
An introduction to the Beef Brokerage Company will follow Lunch at 1:00 p.m on March 17th, 2007
The CBO structure meeting will begin at 10:00 a.m. That’s 10 in the morning for us rednecks who don’t use the a.m. p.m. thing much.
Thank you
Randy Kaiser.
Can’t get a song out of my head these days. Have you ever heard the song called “Don’t cry for me Argentina”? Well the line I have added goes something like this. “When we punt you and your new Tyson Plant out of Europe”. All the best everyone.
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