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

Don Schiefelbein

Schiefelbein Farms

jschiefel@juno.com

320-398-6511

Thank You!