Looky at One Earth

[Hopperbin]

Partnering up with Organic Farms Beretta
and making Mike Baretta COO of One Earth.

TORONTO, Feb. 19, 2013 /CNW/ - One Earth Farms Corp. ("One Earth Farms"), a subsidiary of Sprott Resource Corp. ("SRC") (TSX: SCP) has today acquired Toronto based Beretta Farms Inc. ("Beretta Farms"), a purveyor of hormone free and antibiotic free natural and organic branded meat products in Ontario and British Columbia, in consideration for cash and shares in One Earth Farms.

Beretta Farms was founded 20 years ago by Mike and Cynthia Beretta who, together with Elvio DelZotto their partner for the last 10 years, have grown the Beretta natural and organic product range into a market leading brand of fresh beef, poultry, deli products and meal solutions in the greater Toronto and Vancouver markets. Beretta Farms products are available to consumers through selected national grocery chains, leading natural and organic retailers, direct home delivery, and a specialty catering operation that provides meals to professional athletes and corporate clients based around the Beretta product line. In connection with the transaction, Mike Beretta will join the executive committee of One Earth Farms as the Chief Operating Officer.

Commenting on the transaction, CEO for One Earth Farms, Larry Ruud said, "I am pleased to welcome Beretta Farms to the One Earth Farms family. Mike and Cynthia Beretta are market visionaries with a passion for farming and the marketing of natural and organic meat products. The Beretta Farms supply chain and consumer brands perfectly complement the One Earth Farms source of beef from our more than 17,000 animal herd of top quality natural and organic cattle. With Mike and Cynthia remaining actively involved in the day to day operation of the business, this combination gives One Earth Farms an integrated business model and broadens our reach from the farm to the end consumer where there is increasing interest in naturally raised meats, food traceability and best practices in animal care."

Mike Beretta added, "Cynthia and I are delighted that we can continue the growth and evolution of our business through this partnership with One Earth Farms. The fit between the Beretta brand, our customer base of prestigious retailers and the organic and natural cattle supply of One Earth Farms make this joint entity an ideal platform for growth. "


Looks yummy but pricy.
http://berettafamilyfarms.ca/

Looks like smelling rosy at the momment.

[Goodtime]

Well thats awesome for One Earth, maybe they will be able to sell all of the crop they have left in the field as organic.

[food4u]

So how much did they leave out this past
winter?

[Burbert]

Greed is good? Ain't it. Looky, looky the
future is comin atcha! Comedian framers
better wakeup soon. Ya's all small
framers compared ta these boys/girls, eh!
Heil Harper, F Ritz...

[wilagro]

Looks to me like a desperate move by "One Earth Farms" to be rescued before everything went down the drain.

I could be wrong but the wording in these news releases doesn't always tell the whole story.

It could be a very good move with an alliance with a successful operation.

[Goodtime]

They have a fair chunk left in East Central Sask, I have actually sledded past some of their snow covered canola fields, thats what happens when corporations don't want to pay workers on Thanksgiving weekend....those CASEIH combines were standing when they could have had a lot more off!

[WiltonRanch]

Sure they can partner with this organic meat outfit
but it still doesnt solve the fact their beef operation
is a complete disaster. You would gasp at the
money spent to purchase some of the best
commercial purebred herds. Only to see sub sub
90% live calves and 80% rebreed. Oh there was talk
they were gonna run 10000 head in the forrests of
nw sask. That isnt happening anytime soon when
the reserve you are running the cows on wants you
out immediately. I guess it will last as long as the
money men are willing to throw good after bad.

[bucket]

Does this mean they are going to switch their entire herd to organic beef?

Or just use the label to get their beef sold as organic.

CFIA might want to start auditing their livestock supply bill after this. Same with the new partner.

I guess stranger things have happen but these are strange bedfellows.

[hobbyfrmr]

It is definitely strategic. The cattle farmers/ranchers I am aware of do not normally use growth hormones and they are very judicial with antibiotics. It does not take much more to be able to use the claim of "natural".
One Earth has bought their access to the beef market. Not a bad business idea.
I am thinking a person like Grassfarmer, may be able to sell into this market, possibly for a premium. He may be able to sell a few more of his animals away from the common commercial cattle market. This would be after satisfying his farmgate customers of course.
I dont know much about Beretta, but, it appears like they have built a supply chain into the high population centers. That is where the greatest demand is.
Looks to me like an opportunity worth looking into. What does it hurt? A half hour on the phone for insight.
If it turns out there is a chance to make a sale, pay for a/r insurance credit check to qualify Beretta, and then cover the transaction.
Or, do nothing if a person is satisfied with status quo.

[Hopperbin]

Interesting read on the Beretta farms timeline, just out of ag college getting married,then together they purchase a farm. Does not show he has any history in ag before college but most likely he and wife do. I think I read somewhere their main sale item was grass fed beef without the growth hormones no grain in diet. Called natural beef. Cannot find any info on the amount of sales they have. Looks like they just kicked it up a couple gears. Are they now going to have to build their own meet processing facility in Western Canada? Grassfarmer should know how this stuff is marketted. Myself I don't think should be too negative on this one, looks good on paper. :-)

[bucket]

Good packing plant in Moose Jaw.

Would be ideal to get from XL. Upgrade and slaughter.

Forget about breaking the union there, they will have to pay good wages with all the competetion for labour from the industrial corridor.

[bucket]

Technically its like the buffalo prior to colonization in Canada.

Interesting stuff, but following that with the herd size of One Earth farms makes me wonder.

I think the bigger play would be to get a slaughterhouse.

[Hopperbin]

Farm to plate looks good. Canadian Branding good I suppose they could sell you what ever you wanted. Grass fed topped up with certain types of grain in the end. The worst thing about buying a local beef or pork is that its not neccessarily consistent product maybe due to diet or handling. If they can improve on that then good for them.

I would be concerned about the amount and complexity of the partnering going on, the giving a taking in a partnership could also be a downfall so maybe they got it all figured out.

[Hopperbin]

As of Feb. 19/2013 sprott is reported to have 57.3 million invested in OEM for 54.3 percent ownership. Which leaves other investment money at 45.7 percent and another (Bank loan, and other industry partners)39.8 million calculated for a total investment in OEM for all investors at 97.1 million dollars. Since the the aquisition of Berreta farms was also anounced on Feb.19 the total invested of sprott plus their share of ownership may or may not be included in the above figures. Maybe a simple phone call to Sprott would clearify. Now putting this into perspective. 91.1 million would purchase 97,100 acres of land at 1000 dollars per acre. Pretty sure most of their crop land that they farm would be valued under that with the pasture land much under that. Just for perspective of the amount of investment already put into OEF.

[Hopperbin]

On Sept 30 2012 sprott reported total cash investment in OEF of 57.5 million for a share 58.1 percent in OEF. Not sure why the .2 discrepancy in cash invested. So from Sept 2012 to Feb 19 2013 their percent ownership declined by 3.8 percent. So total monies invested in OEF but not by sprott increased by 3.7 million(calculated) by all other partners. So the Berreta investment maybe is valued at 3.7 million. (complete speculation) or was something else.