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Marketing Strategy

Investor Grazing, Feeding, and Marketing Strategies for 2007 and the Future

Flintrock Feeders Ltd. believes the following areas will be very important in the very near future, and are adapting to our changing market to compensate.  We are not willing to play catch up with the rest of the market.  We are on the leading edge of things to come:

·         Targeting animals to markets will increase along with specification buying.

·         The industry will be more two-tiered than it is now.  Producers will tend to be genetics-driven and aligned with production systems.  Part-time producers will continue to produce generic products but to a much lesser market.  Genetic - driven  producers will dominate the prices.

·         Perceived food safety---More health aware consumers are willing to to pay more for branded and natural products.

·         There will be fewer people producing their pet breed as a novelty, not as many breeds will be common in the commercial production area.

·         There will be more specialized genetics targeting particular environments. IMI

·         Breed associations and breeders are defining more specific goals and targets for carcass characteristics.

·        The availability of export markets will play a major role in the price of beef in the U.S. IMI

It has become increasingly difficult to purchase cattle for placement into the feedlot at a price that will produce a profit on a continuous basis. This is due to increased competition for feeder cattle among many feedlots and a shrinking supply due to droughts in some areas and lower cattle numbers.

  We at Flintrock Feeders, LTD believe we can increase producer profitability and carcass predictability through a more stringent selection process whereby we precondition and grow our feeder supply from calves to yearlings with certified contract growers with a set cost of gain, death loss, nutrition, mineral, and health program. This program will be set up for each investor to participate on a level from 210 to 2500 head. The calves may be purchased  by Flintrock Feeders, LTD and placed with our certified pre-conditioners/growers for a period of 45 to 60 days. Or in the alternative purchased already preconditioned and vaccinated to our specifications.

 After preconditioning, they will be shipped to our contract grazing operators until they reach a desirable feedlot placement weight of approximately 650 lbs. to 750 lbs. The cattle will then be shipped to Flintrock Feeders, LTD. for finishing, ultrasound sorting, and marketing. If Flintrock is financing the cattle, they have to be fed, finished, and marketed at Flintrock.

Example:

1. Flintrock Feeders, LTD.  purchases grazing Lot 519 containing 700 steers or heifers.
2. Investor purchases 700 head of steers for $130.00 per head margin of $91000.00 Flintrock Feeders, LTD. will finance all remaining costs for preconditioning, grazing, hedging, transportation, and feedlot costs until the cattle are delivered to the packer. (this is now done on a 30% equity requirement, where Flintrock finances 70%)
3. When the lot is closed out, the investor is returned his profit and equity less all input costs, including any interest accrued.
4. The investor may request periodic reports as to the status of his cattle, as well as our marketing and risk management strategies.
5. Flintrock Feeders LTD. shall approve all cattle purchased for this program to decrease risk and increase the probability of positive returns.  In most cases Flintrock Feeders LTD. will be the original purchaser of the cattle.

We at Flintrock Feeders, LTD  believe this program will enable us to produce a more desirable, consistent, high quality, healthy product for the consumer while helping our investors maintain consistent profitability.  This program is subject to change at anytime depending on market and other conditions, so be sure and contact one of principles below for more information.

As in any business it should be noted that any investment including cattle investments have a risk of loosing money, if you can not afford to loose money sometime or another, you should not make an investment. Flintrock does not guarantee any success in any investment, however, we would not be in this business if our goal were to loose money, but never the less we believe that you should have someone you trust evaluate the risk to profit potential for your particular situation.

If you desire more information, please contact Levi Berry, mgr. at Flintrock Feeders, LTD., Taff Tyler Asst. mgr.,or Bud Bostic, owner.

Levi Berry- Manager                 (806) 733-2129         Gruver, TX        ultrasort@yahoo.com

Taff Tyler-Asst. Manager          (806) 733-2129         Gruver, TX        ttyler@gruver.net

Bud Bostic-Owner                    (501) 428-0498          Enola, AR         budbostic@yahoo.com