Wade Small, AgriBeef Inc. June 22, 2018 BIF 2018 General Session II, Loveland, Colo. 1 B OI S E , I DA HO Value Driven By Information B e e f I m p r o v e m e n t F e d e r a t i o n J u n e 2 2 nd 2 0 1 8 Value Driven by Information • History of Agri Beef Co. • Agri Beef Co., What we produce • Where is value created in the production system • Trends in Agri Beef Production • Trends in the Industry • Value created in the industry • What does it mean • How do we improve Agri Beef is a family-owned and -operated company in Boise, Idaho and has been in business since 1968. OUR STORY Robert Rebholtz, Sr. Founder NORTHWEST ROOTS OPERATIONS We are a company rooted in the Northwest. We have 14 operations within Idaho and Washington.
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Wade Small, AgriBeef Inc. June 22, 2018
BIF 2018 General Session II, Loveland, Colo. 1
B O I S E , I D A H O
V a l u e D r i v e n B y I n f o r m a t i o n
B e e f I m p r o v e m e n t F e d e r a t i o n
J u n e 2 2 n d 2 0 1 8
Va l u e D r i v e n b y I n f o r m a t i o n
• H is t o r y o f A g r i B e e f C o .
• A g r i B e e f C o ., W h a t w e p r o d u c e
• W h e r e is v a lu e c r e a t e d in t h e p r o d u c t io n s y s t e m
• Tr e n d s in A g r i B e e f P r o d u c t io n
• Tr e n d s in t h e I n d u s t r y
• V a lu e c r e a t e d in t h e in d u s t r y
• W h a t d o e s i t m e a n
• H o w d o w e im p r o v e
A g ri B ee f is a
fam ily-ow ned
and -ope ra ted
com pany in
B o ise , Idaho and
has been in
bu s iness s in ce
1968 .
O U R S T O R Y
Robert Rebholtz, Sr.Founder
N O R T H W E S T R O O T S
O P E R A T I O N S
W e a re a c o m p a n y ro o te d in th e N o r th w e s t . W e h a v e 1 4
o p e ra t io n s w ith in Id a h o a n d W a s h in g to n .
Wade Small, AgriBeef Inc. June 22, 2018
BIF 2018 General Session II, Loveland, Colo. 2
P R O D U C E R S
W e p a r tn e r w ith fa m ily -o w n e d
a n d -o p e ra te d ra n c h e s
th ro u g h o u t th e e n t ire
N o r th w e s t a n d b e y o n d . T h e s e
re la t io n s h ip s e n s u re th a t th e
c a t t le w e s o u rc e fo r o u r
b ra n d e d b e e f p ro g ra m s a re
h u m a n e ly ra is e d in a m a n n e r
th a t a d h e re s to o u r c o re v a lu e s .
F A M I L Y O F B R A N D S
C r e a t i n g Va l u e i n t h e B e e f S u p p l y C h a i n• Industry
• Value• Demand
• Seedstock• Genetic Value
• Cow/Calf• Weaning weight• Stayability• Cow efficiency • Health
• Stocker• Daily Gain• Feed efficiency• Health
• Feeder• Daily Gain• Feed efficiency• Carcass quality• Health
• Packer• Food Safety• Carcass quality• Red meat yield• Consistency
• Retailer• Food Safety• Eating experience• Consistency• Story
C r e a t i n g Va l u e i n t h e B e e f S u p p l y C h a i n• Industry has done a great job at responding to economic drivers that are easy to measure
• Rate of Gain• Marbling
• Value may be different depending on production system/market
• Vertically integrated• Natural• Retail vs food service
• Value may also change with changes in consumer demands and industry trends
• More focus on animal welfare• Increased regulation on antibiotics
Wade Small, AgriBeef Inc. June 22, 2018
BIF 2018 General Session II, Loveland, Colo. 3
• The legendary breed of Wagyu cattle was brought to Japan in the 2century A.D. from the Asian mainland.
• Originally working animals, the
Japanese soon discovered the Wagyu’s natural ability to deposit intramuscular marbling.
• Centuries of careful breeding have further enhanced these characteristics and has ultimately brought worldwide attention to the Wagyu.
A M E R I C A N WA G Y U B E E F
The Prodi gi ous Breed: Produc i ng Per f ect i on:
• Crossing bloodlines from our herd of purebred Wagyu bulls with traditional beef animals, we have found “the best of both worlds.”
• Fed an all-natural, sustainable diet of Idaho potatoes, soft white wheat, corn, and alfalfa hay.
• We use a combination of the Japanese and U.S. grading systems because the USDA scale simply can’t convey Snake River Farms’ premium quality.
A B F o o d s Q u a l i t y G r a d e I m p r o v e m e n t
0. 00%
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20 10 20 11 20 12 20 13 20 14 20 15 20 16
Quality Grade (Choice +)
PR IM E % RR SIG N % LO WE R C H %
A B F o o d s Q u a l i t y G r a d e I m p r o v e m e n t
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%Black Hided
% Blac k H ide d
A B F o o d s G r i d P r e m i u m G r o w t h
$ -
$ 2,00 0,0 00
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$ 12,0 00, 000
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Premiums PaidNote: Avg Ch-Se Spread $8-$10 cwt each year
Lig ht Hfrs Lig ht Strs Hv y H frs Hv y S trsLin ea r (Li ght Hfr s) Lin ea r (Li ght Str s) Lin ea r (H vy S trs)
Aggregate data provided by Elanco
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BIF 2018 General Session II, Loveland, Colo. 6
I n d u s t r y Tr e n d s 5 5 0 l b S t e e r I n d u s t r y Tr e n d s 5 5 0 l b S t e e r S p r i n g H i g h
I n d u s t r y Tr e n d s 5 5 0 l b S t e e r S u m m e r L o w W h a t d o e s t h i s m e a n ?• Industry has done a great job at responding to economic drivers that are easy to measure
• Rate of Gain• Marbling
• Trend is not in the right direction for Animal Health
• Will this cost at some point in time exceed the progress we have made• Can we continue to take two steps forward and one step back
• Identify problem areas and anticipate where we are headed• We fixed product quality because we had to
• Continue to add value not fix a problem• Identify what truly adds value
• Utilize available tools to add value• Crossbreeding
• Data capture and analysis• DNA
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BIF 2018 General Session II, Loveland, Colo. 7
H o w d o w e i m p r o v e ?• Data feed back
• Industry standardization/benchmarking• Cow/Calf participation
• DNA testing/parent verification
• Removing bias
• Breed• Hide color• Let the data lead
• Use the tools we know will work
• Crossbreeding• DNA
• Must involve the middle
• Cow/Calf• Backgrounder • They have the most at risk
C h a l l e n g e s • No standardized data collection systems
• Difficult to collect data
• Difficult data to collect
• Fearful of what the data might tell us
• Fearful of who owns the data
• Consolidation
• Seedstock• Feeding• Packing
• Difficult to see the value
• Everyone wants paid• What’s it going to cost and what are you going to pay me
W h a t I h e a r i n t h e i n d u s t r y
• Cow stayability is a concern
• Animal Health is a problem
• Weaning calves• Long days on feed• Labor
• How do we get cow/calf producers on board
• Antibiotics will be more scrutinized
• Animal welfare is a top priority
• The consumer does not care who owns the data
• Beef demand is fantastic
• Let’s Keep it That Way
“Over tim e, m any things m ay change as we strive to achieve new levels of quality
and excellence. But we won’t change our core fundam entals— our integrity and
highly m otivated team . We want our custom ers to want to do business w ith us.”
