Nebraska Beef Producer Invites World Class Partners

A world class cattle organization is taking shape at Samson, Inc., an innovative Nebraska commercial feedlot. Manager Scott Mueller invites like-minded producers to join Samson Premium Beef (SPB).

The idea for this source-verified alliance came from Mueller operating Samson feedlot and Traditions Inn restaurant, both licensed by Certified Angus Beef, LLC (CAB). Through that vantage point, Mueller began to fully realize the economic impact of cattle and beef inconsistencies. The "World Class" concept came from attending MBA classes, and Mueller sees it as a good fit in the world of beef production.

That vision is to harness the concept to facilitate the flow of cattle from conception to consumption, providing process-verified premium beef to consumers while improving the value chains of SPB network affiliates. Besides interested producers, other affiliates will include ConAgra Beef, Purina Mills, Inc., and Certified Angus Beef, LLC (CAB).

"World Class is an evolutionary step beyond total quality management," Mueller explains. "We must have continuous improvement and continuous learning, supported by information systems, to achieve that, and we must be able to react quickly to opportunities and threats.

"One reason to strive for the world-class standard is to gain strength within the beef industry," he adds. "We seek cooperative relationships that will work to create value for the entire conception to consumption system. We can build value by reducing costs and differentiating our product."

Communication is a key ingredient in the envisioned organization. "Each segment--cow-calf, backgrounder, feeder--can be individually hard working and effective, but working together we can capitalize on our strengths to maximize cattle performance all the way through to the consumer," Mueller says.

SPB aspires to industry leadership at every level, its affiliates seeking "world class status" each stage of beef production, Mueller says. "In a premium market, you cannot take poor quality cattle and make them better. People may buy commodity cattle and try to make them better--but when harvested, you still have commodity cattle due to the variation. In a premium system, we identify cattle that don't fit early on, and move them out to other programs so we can develop consistency and uniformity to achieve premium target markets.

Cattle that do fit the SPB ideal--preferably Angus-influenced--will find a value-based market that rewards CAB acceptance and the upper Choice and Prime quality grades. Taking it to the next level, the SPB grid pays premiums for process verification, and the SPB system returns individual data and dollars to the ranch even with a change in ownership.

Samson Premium Beef is open to all CAB-licensed feedlots that are willing to follow additional SPB guidelines to coordinate health and nutrition programs. "Many other quality-minded feedlots already do these things, it's just a matter of communicating. Ultimately, we want to be proud of our product and willing to put our name behind it."

CAB, ConAgra and Purina Mills are excited to be supportive of the new venture. John Stika, CAB director of feeder-packer relations, points out Samson won the 2000 CAB Progressive Partner award for innovation. "This is another great example of Scott's continuous thinking outside the box and commitment to excellence," he adds.

ConAgra Beef value-based cattle procurement officer Tim Schiefelbein applauds Mueller's vision. "ConAgra Beef is extremely excited to be part of this alliance that ties end-product quality all the way back to the cow-calf and seedstock producer," he comments. "The only way to improve beef for consumers is through this kind of organization where the true value of each animal can be optimized, paid for, and the economic message sent back to the ranch."

Purina Mills views the SPB program as positive for the beef industry. Purina has provided both nutritional consulting and program management the past 6 years with Samson Feedyard, and intends to support the SPB program in the same manner.

Producers interested in joining forces with Samson Premium Beef can contact Mueller at 402-246-2084 or e-mail Scott@samson-inc.com.