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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 .



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



• 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

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Quality Grade (Choice +)

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% 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

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Premiums PaidNote: Avg Ch-Se Spread $8-$10 cwt each year

$ PRIM E $ RR S IGN $ CHO ICE +



I n d u s t r y Tr e n d s

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Lig ht Hfrs Lig ht Strs Hv y H frs Hv y S trsLin ea r (Li ght Str s) Lin ea r (H vy H frs ) Lin ea r (H vy S trs)

Aggregate data provided by Elanco


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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) Lin ea r (H vy S trs)



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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



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.”

- Robert Rebholtz, Sr. Founder