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Farmers Cooperative Conference

Farmers Cooperative Conference. November 18, 2008. North American Bison Cooperative. History. North American Bison Cooperative. 1993 formed in New Rockford, ND 1993-2000 Sold a total of 16,000 Delivery Shares with requirement to deliver one bison for each share owned.

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Farmers Cooperative Conference

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  1. Farmers Cooperative Conference November 18, 2008

  2. North American Bison Cooperative History

  3. North American Bison Cooperative • 1993 formed in New Rockford, ND • 1993-2000 Sold a total of 16,000 Delivery Shares with requirement to deliver one bison for each share owned. • 1994 built 12,000 sq. ft harvesting, processing and distribution plant in New Rockford, ND • Capacity: 10,000 head per year • 2000-2003 did not pay members for animals delivered. Member received a deferred payment certificate.

  4. North American Bison Cooperative • 2002-Purchased New West Foods • 2003-Purchased Great Plains Game • 2004-Hired new management • 2005-Declared Chapter 11 • 2006-Emerged from Chapter 11 • 2007-Paid first patronage ($.10/lb) ever to membership who delivered animals • 2008-Will pay higher patronage rate than 2007

  5. North American Bison Cooperative TenderBison Products

  6. North Dakota Natural Beef, LLC

  7. North Dakota Natural Beef, LLC • 2005: October the company was formed by NABC • 2005-06: Raised capital • 2006: Purchased John Morrell building in Fargo and received neighboring building as an equity contribution • 2007: • April: Started sales effort • July: Started construction

  8. North Dakota Natural Beef, LLC • 2008 • September: Occupied office portion of facility • October: Started warehousing and distribution • November-December: Add fabrication and further processing • 2009 • Full occupancy • New Rockford becomes solely a harvest facility

  9. North Dakota Natural Beef, LLC Dakota Farms Brand Products

  10. Why ? • NABC/NDNB • Synergy • Administration • Sales • Marketing • Operations • Lower overhead for both companies • Shared expenses • Increased probability of success for NDNB • Win-Win

  11. Key Personnel • Dr. Ken Odde: North Dakota State University • Lt Gov. Jack Dalrymple • NABC Board and Membership • North Dakota State University Administration • Dr. Chapman: President • Dr. Coston: Vice President • Rod Sather • Rick Burgum • Farmers Union

  12. Functionality • 2 separate companies • NDNB has 2 NABC Board members as representatives • Act as investors representatives • NDSU Strategic Alliance • Arms length by necessity • Key differentiation for NDNB in marketplace • Provides NDNB with resources only very large companies have access to

  13. Knowledge • What have we learned that is applicable to other businesses? • Competition today is international • Continuing reduction of operating expenses while increasing quality and consistency a requirement to compete • Leveraging assets provides opportunity • Competitors may be customers and vendors • Scientific credibility of a program provided through NDSU is a critical differentiation for new market entrant

  14. North Dakota Natural Beef, LLC North American Bison Cooperative

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