Dakota Beef

Dennis Sirianni

Northeast Regional Manager

Dakota Beef

The Dakota Beef AdvantageUSDA Certified Organic Beef

Organic BeefWhat is it?

• Certified organic beef must meet U.S. Department of Agriculture (USDA) National

Organic Program requirements. The Organic Foods Production Act, effective

October 2002, sets USDA standards for all food labeled organic

http://www.ams.usda.gov/nop/FactSheets/ProdHandE.html

For beef, this means:

• Cattle must be fed 100 percent organic feed, but may be provided certain vitamin

and mineral supplements.

• Organically raised cattle may not be given hormones to promote growth or

antibiotics for any reason. However, if an animal is sick, the animal cannot be

denied treatment to ensure its health; any animal that is treated with antibiotics is

taken out of the National Organic Program

• All organically raised cattle must have access to pasture

• Organic beef must be certified through USDA’s Agricultural Marketing Service (AMS).

Cattle must be raised under organic management from the last third of gestation.

Production:

• Both grass-finished and grain-finished beef can qualify as organic as long as the

cattle are produced according to organic standards

The Big Picture

Secretary of Agriculture

USDA National Organic Program

Accredited Certifying Agents

Certified Operations

1980’s – Congress discusses organic standards

1990 – Organic Food Production Act

2002 – National Organic Program fully implemented

Our Company

Dakota Beef’s premium Organic products are

always pure, healthy and delicious, the way

Mother Nature intended. Our family-owned

business provides the highest quality and most

flavorful Certified Organic beef to consumers

concerned about their families’ health, the

humane treatment of livestock, and

environmentally-friendly farming.

The Dakota Beef Advantage"Full of Flavor and Nothing Else”

Dakota Beef uses North American beef cattle

• No dairy cows in our program

• Long Term Supply of Organic Angus Calves

All Dakota Beef cattle are grain finishedOur Cattle are Raised

on Organic Grass and

Contain Naturally

Higher Levels of Healthy

Omega 3 Fatty Acids

We're Cattlemen

Not Middlemen!

100% Vertically Integrated Company

Procurement• Consistent Supply of Organic Cattle from Ranchers we Know

and Trust• We own Our Organic Ranch (McEwen Ranch) in Oregon• We Use Our own Organic Pasture Land in Oklahoma• We own a majority of the U.S Certified Organic Cattle• We own our USDA inspected and Certified Organic Processing

Facility in South Dakota• Managed Under the Highest Standards for humane treatment

of livestock

Delivery:• We can easily service large national accounts from our 33,000

sq foot state-of-the-art, Certified Organic Processing plant

Certified Organic Beef

More than a Promise

Agents of the United States Department of Agriculture

(USDA) verify and endorse that Dakota Beef cattle are:

•Born and raised humanely on Certified Organic pastures free from chemical fertilizers, pesticides and herbicides for at least

three years

•Never EVER given any antibiotics or hormones

Without added hormones, our cattle develop gradually, in accordance with nature’s schedule

•Fed only Certified Organic, strictly vegetarian diet completely

free of animal by-products, GMO’s, pesticides and herbicides

•Provided unrestricted outdoor access•Treated humanely to reduce stress and maintain good health

Organic food and beverage

sales continue to grow at

phenomenal pace

The market is being driven by consumers,

manufacturers, nonprofits, government agencies,

and the media, all of which have a stake in the

success of environmentally sustainable products.

The Organic Complex

Organic Trends

• Intense media coverage of the obesity epidemic has

resulted in new dieting trends and a wave of health-

conscious consumers

• Consumers are concerned with hormones and pesticides in

food and perceive them as having a negative affect on

their families

• Consumers are choosing Organic because

They Believe That:

– Organic foods taste better

– Organic foods are higher quality

– Organic foods are better for them

– Organic foods are better for the environment

Organic TrendsMeat, Poultry and Seafood

“Organic Meat, Poultry, and Seafood is the Fastest

Growing Major Segment of the Organic Foods and

Beverages Industry”

• Organic meat, poultry, and seafood are very popular as they are made from animals and fish that are not given

antibiotics, growth hormones, or synthetic feeds. Many

consumers perceive them to be safer and more nutritious

than conventional products. Unfortunately, demand appears to be outweighing supply

• Stronger growth is expected for this segment of the industry

over the next few years. From 2008 to 2013, sales of

organic meat, fish, and poultry should increase by an average of 23.3% per year, totaling $1.26 billion in 2013

Source; Sundale Research, 2009

Demographics

Channel

Index, 100 = Average2007 2013

Gender:

Male

Female

75

125

73

127

Age Group:

Under 25

25-34

35-44

45-54

55-64

65 and Over

33

103

121

134

130

86

34

105

124

135

130

84

Region:

Northeast

Midwest

South

West

118

90

86

129

120

91

88

127

So

urc

e; Su

nd

ale

Re

sea

rch

, 2

009Driven by

Baby Boomers

Organic Trends

“Baby Boomers, In Particular, Are Driving Organic

Food And Beverage Sales With Their High Incomes

And Preference For Fresh, Natural, And Organic

Ingredients.

These Consumers Are Also Passing Their Food

Preferences Down To Future Generations, Setting The

Stage For Long Term Growth In The Organic Foods

And Beverages Industry”

Source; Sundale Research, 2009

De

mo

gra

ph

ics

Channel

Index, 100 = Average2007 2013

Total Family Income:

$15,000-$29,999

$30,000-$39,999

$40,000-$49,999

$50,000-$69,999

$70,000-$79,999

$80,000-$99,999

$100,000 and Over

38

77

94

115

131

186

233

37

79

93

117

132

188

235

Race:

White

Asian

African American

Hispanic

118

129

53

90

120

124

53

95

Household Composition:

Husband and Wife

Husband and Wife with Children

Single Parent

Single

145

142

54

88

145

144

55

87

Source; Sundale Research, 2009

Empty Nesters

Organic Food Distribution

By Channel

Channel

2007

% of Total

2008

% of Total

2013

% of Total

Natural Food / Specialty Stores 43 42 39

Grocery Stores 35 36 35

Mass Merchandiser/Club Stores 13 14 16

Farmer’s Markets & Co-Ops 6 6 6

Foodservice 2 1 2

Export 1 1 2

Total 100% 100% 100%

Source; Sundale Research, 2009

U.S. Organic Sales

2005-2013

Meat, Poultry, and Seafood

Year

Sales

$ Millions

Annual %

Change

% Total (M,P,S)

Organic Food Sales

2005 236 - 1.7

2006 301 27.4 1.8

2007 380 26.2 1.9

2008 440 15.9 1.9

2009 542 23.0 2.0

2010 667 25.1 2.1

2011 874 29.0 2.3

2012 1,021 16.9 2.3

2013 1,257 23.1 2.4

Source; Sundale Research, 2009

Year

Organic Food and

Beverage Sales

$ Millions

Total Food and

Beverage Sales

$ Millions

% Total

Organic Food

Sales

2005 13,900 613,784 2.3

2006 16,725 619,382 2.7

2007 19,995 649,729 3.1

2008 23,175 665,651 3.5

2009 27,075 676,947 4.0

2010 32,250 709,624 4.5

2011 37,990 734,718 5.2

2012 44,400 749,939 5.9

2013 52,375 778,430 6.7

Source; Sundale Research, 2009

U.S. Organic Sales

2005-2013

Food & Beverage Sales% of Total Food & Beverage Sales

15.9%

Increase

Competitive Advantage

Selling Organic Beef, You Will:

– Create a strategic point of differentiation

– Reduce Cross-ShoppingKeep the “Whole Food” customer in YOUR meat department

– Show strong support for your customers’ concernsBuild loyalty with the Early Adopter Organic Consumer

– Increase Your Average Basket SizeHigher Ring

– Improve profitabilityHigher Margin and Penny Profit

– Proactively address consumer demand

Our Product Lines

Boxed Primal Cuts

Cut – DescriptionNAMP #

Ribeye, Bone-in Export Style 109E

Ribeye, Lip-on 1x1 112A

Shoulder Clod 114

Flatiron 114A

Boneless Chuck Roll 116A

Mock Tender 116B

Brisket, Deckle off 120

Outside Skirt 121C

Inside Skirt 121D

Boneless Short Ribs 123D

Beef Bones 134

Stew Meat 135A

Ground Beef – Bulk 85% lean 136-85

Lean Trim 136-80

Hanging Tenders 140

Beef Round Peeled Knuckle 167A

Top Round (Inside) 169

Top Round, (Inside) Cap Off 169A

Outside Round (Flat) 171B

Eye of Round 171C

NY Strip Loin, Boneless 1x1 180

Top Sirloin Butt, Boneless 184

Beef Loin, Sirloin Flap 185A

Tri Tip 185C

Full Tenderloin 189A

Flank Steak 193

All Products Shipped Fresh or Frozen

Shelf Life (from production day)

Portion and Primal Cuts – 28 Days

Ground Beef – 21 Days

Hot Dogs - 45 Days

Cut to your specifications in our own facility

Our Product Lines

Case Ready Cuts

Cut/DescriptionCount

6 or 16 per

Case

SKU# UPC

Ribeye, Boneless, 12 oz Steaks 6/16 1112A 856345001512

Flatiron Steak, 12 oz 6/16 1114A 856345001574

Chuck Roast, 3 lb 6 1115 856345001260

Skirt Steak, 12 oz Steaks 6/16 1121 856345001574

Cubed Stew Meat, 1 lb 8/24 1135 856345001154

NY Strip, 12 oz Steaks 6/16 1180 856345001611

Sirloin Steaks, 12 oz. Steaks 6/16 1184 856345001765

Tenderloin 8 oz. Filet Mignon 8/24 1189A 856345001819

Tri Tip Steak, 12 oz. Steaks 6/16 1185C 856345001222

Ground Beef, 1 lb. 85/15 8/24 136-1 856345001017

Grass Fed

Grain Finished

Organic & Glatt

Kosher

What is Glatt Kosher?

For meat to be kosher, it must come from a kosher animal and be slaughtered in a kosher way. For meat to be glatt kosher, in addition to the two above conditions, the meat must also come from an animal with adhesion-free or smooth lungs.

The word glatt means smooth in Yiddish. In Jewish Law, the term glatt is used to refer to the lungs of animals. If the lungs are found to be defect-free or smooth, the meat is considered to be glatt kosher.

Wise Organic Kosher

•100% USDA Organic Dakota Beef

•Double Kosher Certified

David Elliot Farms Kosher

•Double Kosher Certified

•Locally Sourced Wholesome Cattle

The Seal of

Crown HeightsThe Hechsher of the

Orthodox Union

10 millionAmericans

Live and Buy Kosher

Dakota Beef Directand

Private Label

Full service, custom Private Label program

– Dakota Organic Beef will cut to your specifications

• Retail Ready Steaks

• Hot Dogs

• Ground Beef

• Primal Cuts

– Full service graphic design and production of your labeling

– Dakota Organic Beef can process, package and ship direct to you!

Marketing Support

The majority of your customers are willing to experiment with core “Gateway” items:

– Ground Beef

– Hot Dogs

– Seasonal Grilling Steaks

To encourage trial, Dakota Beef provides the following:

–Dakota Beef Demo ProgramWe will support our product by conducting in-store sampling "Food In The Mouth Opens The Ears!"

–Meat Department EducationDakota Beef will train your meat departments on Organic beef

–In-Store POSDakota Beef will supply you with branded case dividers, brochures and in-store signage

USDA

Organic Certification

Dakota Beef Offers USDA Organic Certification Services And Training For Your Meat Department:

– Get certified to handle all organic proteins

– Tremendous Value-Add for your customers

– Cut Dakota Beef Organic Primal cuts in-house for that fresh, just-cut appearance in your meat case

– Dakota-branded butcher paper and foil stickers for that premium product presentation

USDA On Site Inspection

Inspector Will:

• Physically Verify The Accuracy Of Certification Application

• Inspect Facilities

• Ask Questions Regarding

• Receiving

• Storage

• Handling

• Sanitation

• Displays

Retail Signage Must Comply With USDA National Organic Program

Displays Must Minimize The Potential For Commingling

Org

an

ic P

rod

uc

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Qu

ality

Ass

ura

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Ch

ec

klist

Receiving

• Trailer inspected for cleanliness-absence of odors

• Temperature within desired range

• Organic pallets of product are separated from conventional

• Organic product is stacked above conventional produce

• Invoices identify each organic produce item as 100% organic

• Temperature is within desired range

• All shipped product displays the term 100% organic or organic

• All shipped product displays the name of the grower/packer

• All shipped product displays the accredited certifying agent

• Product vendors are on record as certified USDA organic suppliers

• All shipped product displays the accredited certifying agent

Storage

• Organic storage areas are marked

• Organic containers/cases display item information facing outward

• Organic products are stored above or next to conventional produce

Cleaning

• Contact surfaces/utensils are cleaned prior to handling organic produce

• Only cleaning agents approved for organics are used

• All contact surfaces are cleaned according to a set schedule

Processing

• Organic product is prepared prior to conventional produce

• Organic product is not prepared with conventional produce

• Only utensils marked “organic” are used to prep organic products

Display

• Organics are displayed so they do not touch conventional product

• Organic product is not prepared with conventional product

• Materials are cleaned when organics replace conventional product on display

Labeling

• Labels differentiate organic from conventional product

• Packaged organic products carry the label “certified organic by”

• Signage displays “100% Organic,” or “Organic” for organic products

Record Keeping

Receiving

• Docs depicting date, type and amount

Storage

• Records indicating inventory

Handling & Processing

• Logs demonstrating cleaning and handling

Sales

• Reports verifying date, type and volume

Dennis Sirianni

Northeast Regional Sales Manager

31 DiPietro Lane

Bristol, CT 06010

Bus: +1 (860) 582-9129

Mobile: +1 (860) 919-9894

E-mail: [email protected]