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Country Natural Beef

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Agenda

About CNB

Supply ChainSumming Up

Recommendations

Q & A

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About CNB

History

Strategy

Traceability / Quality

Third Party Certification

Fixed Price Model

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Supply Chain

Commodity Beef Vs. CNB

Difficulties/Obstacles for CNB Sustainability

Hidden costs (e.g. Animal treatment, Environmental cost)

Cannot ensure the diet quality in BNW

Rely on one large customer (Whole Foods)

Traceability ends at the Packer

Third party certification?

Rancher

Consumers

Co-op

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External Parties

Third Party

e. g. Certifying Agencies

Competitors

Other Ranchers

Customers Market

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Third Party

Food Alliance

Sustainable business practices

CNB and Fulton

Global Animal Partnership (GAP)

Improvement of animal welfare

5-step program

Wholefoods

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5-step programBy GAP

Step 1 prohibits cages and crates. Step 2 requires environmental enrichment for indoor

production systems; Step 3, outdoor access; Step 4, pasture-based production; Step 5, an

animal-centered approach with all physical alterations prohibited; and, finally, Step 5+, the

entire life of the animal spent on an integrated farm.

-in Wholefoods in Seattle

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Competitors

Panorama All organic and grass-fed beef

Sit down dinner (rancher with consumers)

Painted Hills Corporation Same place: slaughter and packaging operation (Walking to slaughter)

Marketing program: customer education

Regional Grass-fed Beef Ranches Sell beef online

Meyer Natural Angus Sell beef online

Niman Ranch Own custom butchering plant and feedlots

Sell beef online

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Customers of CNB

Wholefoods

Burgerville

New Seasons grocery store

PCC Natural Markets

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Wholefoods

Worlds largest natural foods store

70% of total CNB annual sales

Focus on humane animal treatment

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CNBs Summary

Differentiation

Challenges

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Differentiation High Product Quality

No hormones or antibiotics

Different diet patterns at the feedlots

Reliable Certification from Third Party organizations

Effective Product Traceability

CNB ranchers own products throughout supply chain

Ear tag (from birth to plate?)

Carcass data provided to CNB ranchers to make improvements

Pricing Model

Fixed price

o Remove price fluctuations and secures steady cash flow

o Use cost of production and cost plus method to determine price

o Commission and bonus plan incentives

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Challenges Customer Perception and Loyalty

Continued Product differentiation and branding

o End-consumer has less knowledge about the food supply chain

Animal Welfare Concerns

Marketing Strategy Online selling(costs and feasibility)

Move to Grass Fed Beef Costs and benefits

Environment impacts (sustainability of land, grass, global warming )

Relationship with Large Customers More reliance

Less control and negotiation power

o e.g. Whole Foods

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Recommendations

Short Term Increase frequency of consumer interactions

Do not increase rate of entering Grass-fed market

Long Term Email list for news letter (includes web link)

Online sales (AB Foods already set-up)

Implement communication capabilities amongst

partner organization (transparency) Determine feasibility of Grass-fed market penetration

Do some research on the carbon-footprint to reduceimpact on global warming