Connecting Producers to Eaters Presentation at 3rd Annual Western Colorado Food and Farm Forum – Winter 2015

Connecting Producers and Eaters Restoring Health and Prosperity

By Mike Callicrate

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Western Colorado Food and Farm Forum

January 10, 2015

MikeCallicrate.com

*All Fresh Choice Beef – USDA-ERS Data

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

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1950 1975

1995 1996 1997

1998

2002

2000

2006

1999

Farm share of the consumer retail beef dollar A picture of abusive market power

2012

2009

2013

2014

Average return on equity before tax (ROE)

Retail grocery: ROE = 21% (last 6 years)

Meat packing: ROE = 17% (last 6 years)

All Farming & ranching: ROE = NEGATIVE 0.54%

(last 13 years)

Packers--for those with sales > $500k - Before tax ROE, 2002-2009: 17.38% - source: http://www.bizminer.com/industries/Meat-packing-plants-2011/ Retail grocery--food marketing institute book - http://www.fmi.org - 2003-2009 average: before tax ROE = 20.75% Cattle--for the farm typology "cattle" meaning primarily cattle operations in USDA/ERS annual surveys - http://www.ers.usda.gov/Briefing/ARMS/

3 "What we support prospers, what we feed grows." - MikeCallicrate.com

Farmers and Ranchers

Eaters

BIG FOOD Exploiting Producers and Consumers

4 "What we support prospers, what we feed grows." - MikeCallicrate.com

Barry Lynn's Cornered is... "A manifesto for our time."

--Thomas Frank, Wall Street Journal

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Eric Schlosser, author of the best seller Fast Food Nation, has an apt description of the industry. Over the last twenty years, about half a million ranchers sold off their cattle and quit the business. Many of the nation’s remaining eight hundred thousand ranchers are fairing poorly. They’re taking second jobs. They’re selling cattle at break-even prices or at a loss. The ranchers who are faring the worst run three to four hundred head of cattle, manage the ranch themselves, and live solely off the proceeds… Ranchers currently face a host of economic problems: rising land prices, stagnant beef prices, oversupplies of cattle, increased shipments of live cattle from Canada and Mexico, development pressures.

6 "What we support prospers, what we feed grows." - MikeCallicrate.com

Farmers and Ranchers

Eaters

THE SOLUTION

BIG FOOD

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"What we support prospers, what we feed grows." - MikeCallicrate.com

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"What we support prospers, what we feed grows." - MikeCallicrate.com 9

"What we support prospers, what we feed grows." - MikeCallicrate.com

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Cattle holding pens are 10x10 compartments to limit movement and keep animals calm.

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Refrigerated trailer transports carcasses from mobile unit to cut plant

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Slaughtering animals where they are raised means: - More humane treatment - Less stress means better quality meat - 37% less weight transported to market - Slaughter waste becomes valuable soil nutrients - Increased rural employment

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Carcasses from mobile unit are hung for dry aging or cut into primals and boxed.

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"What we support prospers, what we feed grows." MikeCallicrate.com

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Creating a new community space for eaters, growers, family farmers, ranchers and local businesses, separate and safe from Big Food and Wall Street.