Presentation Transcript

1. Where do we fit? Agriculture and the beef industry are the fabric of our country Healthy food produced by hard working farm families Making it possible for hard working consumers and their families to enjoy high –quality and wholesome food
2. Showcase It Our farms and ranches are family-run operations not corporate farms as the radical groups would have us believe Some have grown from generation to generation, improving what we do with each step Our business or businesses are built on family traditions that have always left room for the next generation to grow
3. Improvement over time The level of care our animals get on a daily basis The top quality nutritious feed we grow to balance the rations The humane treatment of our animals during all life stages All combined, we work hard everyday of our lives, humanely and efficiently raising cattle that become the number one source for the best nutritious and wholesome proteins you can have in a diet
4. Who’s the target? My personal belief is that in the next ten years, not everyone will have the luxury of eating primal steak cuts at the relatively low price we have seen for the past several years It is going to come down to demographic shifts weighing towards young women 1970-1990, baby boomers 1950-1970 and Older boomers age 60 and over (known as matures) this entire group is a source of growing consumer purchasing power To do this we are going to need to understand and focus in on their preferences and building the personalization component into our business models and products
5. Health Factor
6. 2013 Ontario Corn Fed Beef Program 2013 has been another great year with numerous successes I believe we are well on the road to even more success for the brand in 2014 We want to continue growing our relationship with our industry partners After 11 years our brand is growing legs
7. Loblaws’ Partnership Partnership continues to grow and flourish In 2011 OCFBP was featured in 156 Zehrs, Valu-Marts and Your Independent Grocers In 2012 we expanded that number from 156 to 241 stores that include Loblaws’ and Real Canadian Super Stores Excellent opportunity to build on the partnership and expand into more products
8. Partnership In addition to the 241 new Loblaw affiliate stores we continued to supply 100 plus smaller, private retailers and gourmet meat shops throughout Ontario These smaller stores are our roots so we try to give them an equal amount of focus, 2012 all new point of sale materials to give them a current and distinctive look
9. Packer Partner Norwich Packers Cargill Meat Solutions Ryding-Regency Meat Packers St Helen’s Meat Packers Corrsetti Meat Packers Each one of these companies has got behind the program and helped move it forward We were all pulling in the same direction
10. OCFBP Value-Chain Partnership in a system that builds quality, value, trust and long term success Retailer Packers Feedlots Cow/Calf Industry We work together to Consistently deliver quality, safe, premium branded beef products Leverage the system for efficiency & sustainability Long term it will improve all partners’ economic profitability & viability
11. Brand Partnership Working with Canada Beef Inc assists us in our goal of branding beef “Where your beef comes from” Leverage economics of scale at all levels Branding attributes & a real production story with co-branding opportunities Partnership in a system that builds quality, value trust and long term success
12. Ontario Corn Fed Beef Certified Platinum Loblaws’ were looking for a premium top quality product exclusive to their stores Introduced into Loblaw stores July 2012 There is a group of shoppers who want a premium branded product, better marbled, consistent flavor, juiciness and tenderness Age plays a factor as well where we are seeing a group of retired consumers , watching their diets, lowered the quantity of beef they consume, but they have not dropped the quality level
13. Qualification Steers and Heifers Less than 30 months of age Triple AAA (modest 0 ) Medium or fine marbling texture Good to excellent muscling Yield Grades Canada 1,2,3 allowed Top 3% of all Ontario Corn Fed Beef Program cattle
14. Need More Angus
15. Marketing Challenges We are going to face some challenges when it comes to marketing beef Economic pressures have a real effect on peoples shopping habits Shopping budgets will no doubt be tighter Prices for other proteins and beef products from other jurisdictions have an effect We need to now more than ever make sure that our brand and messaging resonate with the consumer
16. Trend on Cow Numbers Five years in a row of culling cows at a high rate High prices for weaned calves yet the cow herd keeps dropping, I would guess between 10% to 15% year over year Good cows are going to get harder to find and the price has to be higher in the foreseeable future There are a number of questions that need to be asked on how we bring some stability to the numbers and how do we build some numbers?
17. Focus on the Cow/Calf and Back-grounding Sector There needs to be a strong focus on the cow/calf and back grounding sectors Between Mother Nature and the need for cash crop ground, how do we as an industry convince cow/calf and backgrounders to stay in the game? This combined has huge implications for the Ontario feedlot sector. Without these two we are being forced to source even more feeder cattle from outside of Ontario
18. We not I Industry has always prided itself on being independent producers Strong positions, compromise was not in the vocabulary Changing world, changing mindset We need to think outside of the box while retaining our individual farms, families and businesses
19. Adapt to Change As beef producers you are the most resilient and adaptable group that I have ever seen Given the right tools we will continue to succeed As an entire industry we need to continue developing strategies that in both the short and long term allow us to maintain the greatest beef producing region in the world We know how. We just need the chance!
20. At the end of the day We are going to continue targeting the consumer, consumer trends and seek out the key markets Promote product consistency Promote the message of the producer, the brand and the quality attributes of OCFBP It is all of our jobs to deliver: quality of beef and service ensure supply and program performance
21. Jointly what do we need to do? Deliver the brands and the branded beef that consumers are looking for Consumers need to feel good about purchasing top quality beef Our goal is to provide Great Tasting, tender, delicious and healthful beef
22. Summary The greatest unknown question today is what role and what effect will countries like China, Japan and the Middle Eastern countries have on the Canadian beef industry as their wealthy middle class seek the richer North American diet in which beef is seen as one of the best quality protein sources available. They will be the drivers of strong and stable pricing for our beef industry for the next number of years