The Future Competition
Don Schiefelbein
Schiefelbein Farms
Kimball, Minnesota
Schiefelbein Farms
A Family Operation
Frank & Frosty (Dad & Mom)
8 sons
7 daughters in-law
29 grandchildren
Raising Registered Angus Seedstock since 1958
Schiefelbein Farms… fast facts
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
Customer Buy-back program
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.
Warning
What you are about to hear,
may cause you discomfort
and unrest.
So, who is the competition?
Yourself
We have found the enemy,
and it is us!
Schiefelbein
Farms
CONFIDENTIAL
Business
Plan
Remember, when raising seedstock cattle
was easy?
The Bigger, the
Better. Right?
The Seedstock Business has Changed!
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.
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
Who’s Right?
Some seedstock producers are
suggesting that you must choose?
EPD Genetic
Wonders:
High growth,
G cattle
Company
tremendous(EPD
carcass,
Genetic Wonders)
efficient gain
vs.
Super O
Mamas:
great
udders,
moderate,
Cattle
Company
easy
fleshing,
docile
(Range
Adaptable, problem-free)
Don’t Fall for the Rhetoric
A Bad Business Mindset:
“Cow/calf producers should not be
persuaded to make business and
genetic decisions based on what the
feeding and packing industries tell us”
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”
Help your customers market
their calves
Source Identification - Angus Source
Special Feeder Sales - Special Angus Sales
Feedyard Contacts - CAB Feedyards
Calf Buy-Back programsSp
Uniform, predictable feeder cattle
Superior Livestock Results
July, 2005
Name
Location
Del.
Sex Wgt Price
Opela
Carr
Gordon
Ryland
Vinton
Stapleton, NE
Mullen, NE
Thedford, NE
Tyron, NE
Mullen,NE
10/10/05
10/15/05
10/15/05
10/17/05
9/25/05
Strs
Strs
Strs
Strs
Strs
• All neighbors
• all sold within a half hour
• all sold direct off the cow
560
550
550
550
565
$130.00
$131.00
$130.50
$131.00
$139.50
• all cattle were black
• same shots
• identical weigh-up
Lot 8491 - Bill Vinton
Breed Type:
Out of Black, BWF cows by
Schiefelbein Angus & Black Composite
bulls. Approx. 20% AI sired by New
Design. 100% black hided.
Tremendous feeding history.
Superior Livestock
July 6, 2005
Superior Livestock Results
July, 2005
Name
Location
Del.
Sex Wgt Price
Hanson
Bauman
Unruh
Rice
Entze
Stanley, ND
Golden Valley, ND
Hebron, ND
Powers Lake, ND
Golden Valley, ND
10/24/05
10/23/05
10/10/05
10/20/05
10/20/05
Strs
Strs
Strs
Strs
Strs
• All neighbors
• all sold within a half hour
• all sold direct off the cow
650
650
650
675
650
$117.00
$119.00
$124.00
$115.50
$128.00
• all cattle were black
• same shots
• identical weigh-up
Lot 8069 - Entze Bros.
Breed Type:
Angus & Angus cross cows sired by
Schiefelbein bulls. 100% black hided.
Qualify for myriad of branded
programs. Excellent carcass data.
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
Segment
Feeder
Packer
Profit per head
$10 head
$5 head
Value-added service takes lots and
lots of time
Earn $25,000 salary
Segment
Cow/calf
Feeder
Packer
Required for salary
1923 cows
2,500 feeders
3,571 carcasses
A Customer Mindset
Is satisfying your customer
your real priority?
Hybrid Seedstock... (Angus x seedstock)
Hybrid
Seedstock
combine best of
the Angus breed
with the best of
Continental
breeds in a
heterosis filled
package
Conclusion
To Be Competitive in the
future, you must provide:
* The Right Genetics
* Value-added Service
* Volume (size really does matter)
* A Customer Mind-set
Thank You!
Don Schiefelbein
Schiefelbein Farms
jschiefel@juno.com
320-398-6511