Hawaiian Cattle Rancher - Industry Overview

Taste of the Hawaiian Taste of the Hawaiian RangeRange

Waikoloa, HawaiiWaikoloa, Hawaii

September 10, 2010September 10, 2010

Dr. Tim RichardsDr. Tim Richards

HAWAIIAN CATTLE RANCHERSHAWAIIAN CATTLE RANCHERS

Industry OverviewIndustry Overview

Hawaii Land Use?Hawaii Land Use?- 4 million acres total statewide- 4 million acres total statewide

- Hawaiian Cattle uses 1 million- Hawaiian Cattle uses 1 million

Hawaii Cattle IndustryHawaii Cattle Industry- 800 + Ranchers- 800 + Ranchers

- 85,000 Mother Cows - 85,000 Mother Cows - Produce 60,000 + Calves / - Produce 60,000 + Calves /

yearyear- $40 million annually- $40 million annually

Hawaii Born and Raised Hawaii Born and Raised Grass Finished Grass Finished

BeefBeef

Per Capita Beef Consumption is approximately 63 lbs annually (nationally)

Hawaii Island Today could produce enough Beef for twice its current population

(tourism not included)

Hawaiian Beef Use / Needs

During late 1980’s & into early

1990’s, Hawaii produced about 30% of its need.

Today Hawaii produces approximately 7% of its Beef

The Change? Export due to Economics

Hawaiian Beef Use / Needs

Grass / Forage FinishingGrass / Forage Finishing

HCPCA Historical Shipping/Receiving Data A B C ABC Total

Pasture

Year Cntr AVG Head Ship #s Avg Head Rec #s Avg SHRINK MisCnt Deaths % Dead Deaths TOTAL % Dead Cripple Injury Missing Respira Misc Total A,B,C % Dead

2008 196 61 11,898 5,182,800 436 11,891 4,782,323 402 7.73% 7 0.059% 7 0.059% 7 0.059%

2007 128 66 8,416 3,789,593 450 8,413 3,670,266 436 3.15% 1 4 0.048% 6 10 0.119% 3 1 3 7 17 0.202%

2006 140 63 8,786 3,940,120 448 8,782 3,731,352 425 5.30% 1 5 0.057% 11 16 0.182% 7 3 17 24 51 67 0.763%

2005 145 62 9,055 4,048,761 447 9,053 3,813,259 421 5.82% 1 3 0.033% 5 8 0.088% 69 26 95 103 1.137%

2004 159 61 9,701 4,426,847 456 9,693 4,178,944 431 5.60% 8 0.082% 5 13 0.134% 2 45 5 52 65 0.670%

2003 121 60 7,224 3,492,812 484 7,217 3,367,123 467 3.60% 7 0.097% 12 19 0.263% 1 4 5 16 25 51 70 0.969%

2002 109 61 6,617 3,226,081 488 6,608 3,090,585 468 4.20% 9 0.136% 18 27 0.408% 1 11 7 19 46 0.695%

2001 135 63 8,507 3,695,290 434 8,503 3,485,268 410 5.68% 4 0.047% 3 7 0.082% 16 13 6 35 42 0.494%

2000 163 68 11,142 4,460,375 400 11,126 4,089,191 368 8.32% 16 0.144% 9 25 0.224% 32 32 57 0.512%

1999 218 69 15,004 5,788,309 386 14,986 5,409,973 361 6.54% 18 0.120% 2 20 0.133% 60 60 80 0.533%

TOTAL 1,514 64 96,350 42,050,988 436 96,272 39,618,284 412 5.64% 3 81 0.097% 71 152 0.158% 8 8 26 172 188 402 554 0.575%

Local ProductFood SecurityAll Added Value Done in Our StatePotential for a Higher Return to

Rancher (Sustainablility)Minimize “Food Miles”Potential Health Benefits

- Omega 3 Fatty acids- Less saturated fats

Hawaii Grass Finished Beef - Opportunity

Overcoming PerceptionDeveloping Consistent ProductDeveloping Consistent SupplyProcessingCarcass UtilizationValue

Hawaii Grass Finished Beef - Challenges

Cattle Industry SegmentsCattle Industry Segments

• Cow /CalfCow /Calf

• StockerStocker

• Finishing Finishing

• ProcessingProcessing

(other)(other)

•SeedstockSeedstock

Cow / CalfCow / Calf