1 / 29

Cow-Calf Contracting Services C. Smith, V. Pipke, D. Moen, L. Spedding

Triple C. Cow-Calf Contracting Services C. Smith, V. Pipke, D. Moen, L. Spedding. Mission Statement.

kiara
Download Presentation

Cow-Calf Contracting Services C. Smith, V. Pipke, D. Moen, L. Spedding

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Triple C Cow-Calf Contracting Services C. Smith, V. Pipke, D. Moen, L. Spedding

  2. Mission Statement The mandate of the cow-calf contracting corporation is to produce and distribute high quality calves to the cattle market. Triple C will also provide an opportunity for producers to enter the cattle industry. Market penetration will be achieved through strong marketing plans.

  3. Background of Triple C • Virtual cow-calf contracting service • Contracting cows to selected producers • Public Corporation • Publicly owned by shareholders

  4. Industry Overview • Beef is #1 meat eaten by consumers • Beef production is changing in response to consumer demands • WGTA - Crow Rate • Local Concerns • Environmental Concerns • International Concerns

  5. Goals and Objectives • Short term goals • To produce a high quality calf crop • To provide superior service to the producer • Long term goals • Expand business throughout Sask. • Provide a return to investors

  6. Marketing Plan

  7. The Marketing Mix • Products and Services • Price • Promotion • Location

  8. Products and Services • Product - Calves • Service - Contracting

  9. Producer Comments

  10. Pricing Policy • $1.75/cow-calf/day • $1.50/cow/day • $1.75/bull/day

  11. Promotion • Meetings (Producers/Investors) • Newspaper

  12. Location

  13. Competitor Analysis • Product - Other cow-calf producers • Service - Other contracting companies

  14. Target Market • Geographic • Demographic

  15. Production and Operations Plan

  16. Start up Costs • Cattle purchase $2,360,000 • Building/Land $59,000 • Commercial Equip. $92,193 • Office Equip. $11,353 • Initial Shipping Cost $10,480 Total $2,533,026

  17. Operations • Stock selection • Importance of record keeping • Quality control program • Capacity limits

  18. Human Resources Plan

  19. Organizational Structure Board of Directors 5 Directors Lawyer, Manager, Investor, Veterinarian, Producer Manager Vet Assistant Accountant Secretary

  20. Triple C Employees • Benefits • Training programs

  21. Financial Plan

  22. Financing Budget Assumptions • Sources of funding • Type ‘A’ shares- $1.00/share • $1,950,000 of equity required

  23. Critical Success Variables • Level of importance: • Critical=1 • Selling price of calves 1 • Contracting costs 1

  24. Revenue • Calves $1,282,050 • Culled Bulls $26,250 • Culled Cows $311,520 Total$1,619,445

  25. Break Even Analysis

  26. Summary of Financial Results

  27. Conclusion • Infeasible due to: • high cattle prices • high production costs • standard contracting costs are too high • cash tied up in inventory

  28. Recommendations • Start with lower cattle inventory • Build facilities to produce our own cattle, thereby eliminating contracting costs

  29. Questions or Comments

More Related