PARTICIPATION IN ALLIANCES
AND CONTRACTS



15% of producers surveyed currently market at least a
portion of their calves through an alliance or coop.
Number of calves marketed by participants is increasing
at an average annual rate of 11%.
65% of alliances returned carcass or performance data,
46% required or recommended certain genetics, 18%
would supply specific bull genetics, and 10% would
supply female genetics.
55% of producers surveyed indicated they would agree
to long-term contracts (3-5 yrs.) to market calves to a
specific feedlot or alliance, depending upon the price
level at which they would agree.
SOURCE: Cattle-Fax
KEYS TO SUCCESS IN THE
SEEDSTOCK BUSINESS
1.
2.
3.
4.
5.
Find the money to get started and survive during the first
difficult years.
Know where your expertise lies and then put it to use.
Seek out and listen to the most successful people in the
business and never stop learning.
As you grow, hire the best people available. The cattle
business has only three significant assets—cattle, people
and land.
Get out of the way of your ego! Listen to your customers,
your partners, and your employees. Also, study your
competitors.
SOURCE: Seedstock Digest (anonymous producer).
SUPERMARKET TRENDS
A study by FMI revealed the following:
 Fast-food chains have given back to supermarkets some
of the market share gains they won in recent years.
 Percent of consumers eating fast food once or more a
week has fallen from 38 to 32%.
 Take-out and home delivery meals have also declined.
 When consumers select a supermarket, their priorities
are: 1) cleanliness; 2) produce quality; 3-tie) meat
quality and price.
SOURCE: Food Marketing Institute.
MAJOR FORCES DRIVING THE
PROGRESSION TO CASE-READY PRODUCTS
1st – Labor savings.
2nd – Out-of-stock and shrink in the meat case.
3rd – Convenience and consumer satisfaction.
4th – Food safety.
SOURCE: Dan Murphy, Meat Marketing and Technology
LARGEST GROCERY RETAILERS IN
THE U.S.
Percent of total supermarket sales:
 Top
3 control 31.2% of sales.
 Top
5 control 42.1% of sales.
 Top
10 control 62.0% of sales.
 Top
20 control 76.3% of sales.
SOURCE: FMI (2001 sales).
TOP TEN GROCERY RETAILERS IN
U.S.
Company
No.
stores
Sales
(billion $)
% Market
share
Kroger
Albertson’s
Safeway
Ahold USA
Wal-Mart Supercenters
TOTAL TOP 5
Sam’s Club
Costco
Delhaize America
Publix
Winn-Dixie
TOTAL TOP 10
3,211
2,573
1,762
1,446
1,060
10,052
498
363
1,406
675
1,150
14,204
$ 50.7
$ 38.3
$ 34.3
$ 34.3
$ 20.1
$166.6
$ 18.4
$ 17.7
$ 15.2
$ 14.7
$ 12.9
$245.5
12.8%
9.7%
8.7%
8.7%
5.1%
42.1%
4.6%
4.5%
3.8%
3.7%
3.3%
62.0%
SOURCE: FMI (2001 sales).
DEVELOPMENT OF ANIMAL
WELFARE STANDARDS



The nation’s two largest supermarket companies, Kroger and
Albertson’s, have announced their support of standards being
developed by FMI (Food Marketing Institute) and NCCR (National
Council of Chain Restaurants).
The FMI-NCCR standards are not mandatory but are “expected” of
their supermarket and restaurant members, respectively.
To date, the following restaurant companies have developed
separate animal husbandry/welfare standards to be required of their
suppliers:
-McDonald’s
-Burger King
-Wendy’s
-Applebee’s
SOURCE: Rod Smith, Feedstuffs, 7/8/02.
NUTRIENT CONTENT
OF LEAN BEEF


A 3-oz. serving of lean beef contributes only 9% of the
calories to an average 2000-calorie diet.
Conversely, it supplies more than 10% of the recommended
daily allowances for:
-Protein……………………..................................... 50%
-Zinc………………………………………………….. 39%
-Vitamin B12…………………………………………. 37%
-Selenium……………………………………….…... 24%
-Phosphorus……………………………………….. 20%
-Niacin……………………………………………….. 18%
-Vitamin B6……………......................................… 16%
-Iron…………………………………………...……… 14%
-Riboflavin………………………………………....... 12%
SOURCE: USDA and NCBA.
AQUACULTURE IS GROWING
AT A RAPID PACE




Globally, fish is the most important single source of
high-quality protein, providing 16% of the world’s animal
protein consumption. And demand is increasing.
Because growing numbers of fish species are being
harvested into extinction, aquaculture will become one
of the largest food-producing industries in the world
within 10 years.
Today farmed seafood makes up about a third of U.S.
seafood consumption, and is increasing rapidly.
Virtually all catfish and trout eaten around the world now
come from farms, as do two-thirds of the shrimp.
SOURCE: FAO
U.S. IMPORTS OF GOODS (2001)
Item
$ Billions
Food, feeds & beverages
$ 46.7
Petroleum & products
$103.8
Industrial supplies, except petroleum & products $167.2
Automotive vehicles, engines & parts
$189.7
Consumer goods, except automotive
$283.7
Capital goods, except automotive
$298.8
*Computers, peripherals & parts
$ 74.4
*Civilian aircraft, engines & parts
$ 31.3
*Other capital goods
$193.1
SOURCE: U.S. Dept. of Commerce.
TOP TEN ANIMAL HEALTH
COMPANIES (2001)
Company
Merial
Pfizer
Intervet
Bayer
Fort Dodge
Schering-Plough
Elanco
Novartis
Pharmacia
Idexx
SOURCE: Fountain Agricounsel.
2001 Sales
(million $)
1,636
1,022
956
930
776
694
686
550
469
386