2. Cow-Calf Contracting Services C. Smith, V. Pipke, D. Moen, L. Spedding

3. Mission Statement The mandate of the cow-calf contracting corporation is to produce and distribute high quality calves to the cattle market. Triple C will also provide an opportunity for producers to enter the cattle industry. Market penetration will be achieved through strong marketing plans.

4. Background of Triple C Virtual cow-calf contracting service Contracting cows to selected producers Public Corporation Publicly owned by shareholders

5. Industry Overview Beef is #1 meat eaten by consumers Beef production is changing in response to consumer demands WGTA - Crow Rate Local Concerns Environmental Concerns International Concerns

6. Goals and Objectives Short term goals  To produce a high quality calf crop  To provide superior service to the producer Long term goals  Expand business throughout Sask.  Provide a return to investors

7. Marketing Plan

8. The Marketing Mix Products and Services Price Promotion Location

9. Products and Services Product - Calves Service - Contracting

10. Producer Comments

11. Pricing Policy $1.75/cow-calf/day $1.50/cow/day $1.75/bull/day

12. Promotion Meetings (Producers/Investors) Newspaper

13. Location

14. Competitor Analysis Product - Other cow-calf producers Service - Other contracting companies

15. Target Market Geographic Demographic

16. Production and Operations Plan

17. Start up Costs Cattle purchase$2,360,000 Building/Land$59,000 Commercial Equip.$92,193 Office Equip.$11,353 Initial Shipping Cost$10,480 Total$2,533,026

18. Operations Stock selection Importance of record keeping Quality control program Capacity limits

19. Human Resources Plan

20. Organizational Structure Board of Directors 5 Directors Lawyer, Manager, Investor, Veterinarian, Producer Manager Vet AssistantAccountant Secretary

21. Triple C Employees Benefits Training programs

22. Financial Plan

23. Financing Budget Assumptions Sources of funding  Type ‘A’ shares- $1.00/share  $1,950,000 of equity required

24. Critical Success Variables Level of importance:  Critical=1 Selling price of calves1 Contracting costs1

25. Revenue Calves $1,282,050 Culled Bulls$26,250 Culled Cows$311,520 Total$1,619,445

26. Break Even Analysis

27. Summary of Financial Results

28. Conclusion Infeasible due to:  high cattle prices  high production costs  standard contracting costs are too high  cash tied up in inventory

29. Recommendations Start with lower cattle inventory Build facilities to produce our own cattle, thereby eliminating contracting costs

30. Questions or Comments