The Future Competition Don Schiefelbein Schiefelbein Farms Kimball, Minnesota

A Family Operation Schiefelbein Farms Frank & Frosty (Dad & Mom) 8 sons 7 daughters in-law 29 grandchildren Raising Registered Angus Seedstock since 1958

1. Run 700+ registered Angus females 2. Market 300 Angus, Balancer & SimAngus bulls annually 3. Farm 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 programs Sp 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 NameLocationDel.SexWgtPrice OpelaStapleton, NE10/10/05Strs560$ CarrMullen, NE10/15/05Strs550$ GordonThedford, NE10/15/05Strs550$ RylandTyron, NE10/17/05Strs550$ VintonMullen,NE 9/25/05Strs565$ 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 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 NameLocationDel.SexWgtPrice HansonStanley, ND10/24/05Strs650$ BaumanGolden Valley, ND 10/23/05Strs650$ UnruhHebron, ND10/10/05Strs650$ RicePowers Lake, ND10/20/05Strs675$ EntzeGolden Valley, ND10/20/05Strs650$ 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 Entze Bros. Breed Type: Superior Livestock July 6, 2005

Size Really Does Matter 100 head bull sale 200 head bull sale 300 head bull sale

Small Margins Require Size Value-added service takes lots and lots of time SegmentProfit per head Feeder$10 head Packer$5 head

Earn $25,000 salary SegmentRequired for salary Cow/calf1923 cows Feeder2,500 feeders Packer3,571 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 Thank You!