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A Partial Business Proposal for a Cow/Calf/Hay Operation

My farm’s name is King Family Ranch, located at the mountainsides of Colorado. I have been operating the ranch business for past three years. Currently I shifted to mixed farming where I produce hay and raise cows. The ranch has 500 cows and 350 acres of land under hay producing about 875 tons per year of hay. I have been managing calving process of my cows and my cows calve between March and April and are weaned to be sold in October of every year.

Mission Statement

“We are committed to being the leading provider of healthy cows and weaned calves in the domestic market. Cows’ health and living conditions are the first priority. In addition we strive to achieve continuous breed improvement and ensure that we offer competitive salary.

Vision Statement

“Providing the best cows and weaned calves in the U.S. at reasonable prices.”

Three Goals

By the end of 2017, I want to expand my business to 700 cows. Since my farm is not too big and cow need time to adapt new density, I think I can raise 200 more cows in my farm during a period of 2 years. The higher the number of cows, the higher the number of weaned calves are available for sale and the higher the income

By the end of 2016, I want to improve my cows’ breed fertility, and get 500 weaned calves. I predict by end of 2016, the number of cows will be 550 from which I can wean 50 calve. In addition, I intend to improve the state of my breeds through strengthening the nutrition supply, preventing and curing infertilitas feminins, and keeping close observation of cows. Raising cow’s breed fertility is very important to me because I can earn $520 more from an extra weaned calf.

By the end of 2016, I want to find a cooperative partner, who can produce large bean curd residues. Bean curd residue is a kind of cheap feed. It has been used widely in Asian countries for hundreds of years. It is composed of protein, crude, fat, crude fiber, and carbohydrates, which are good for cows’ health. Therefore, we can add 10% bean curd residues to cow’s daily feeds. And since the U.S. has a lot of Tofu factories, but not too many farms use bean curd residue for their animals’ feed. The price of bean curd residue will be cheaper than other normal feeds. A corporative partner who will provide enough bean curd will help me save reasonable amount of money.

Strength:

1. 350 acres of hay production

Having enough hay is critical because hay price fluctuation will not affect my cows’ feeding conditions as the farm is self-sufficient. In addition, it allows for the calves to stay in the ranch for longer period to attract more income.

2. The mountains of Colorado have attractive scenery

This is a strength because a good scenery can attract employees, no one wants to work in a bad environment.

3. Timing of weaned calves sale

Selling weaned calves over the month of October attracts higher prices due to the climatic conditions and most other ranches do not wean their calves.

Weaknesses:

1. Unfavorable traffic environment The traffic conditions are very poor in these mountain areas. It means selling my production is a difficult task, and it also hard for customers to visit.

1. Lack of family support and stigma

My parents have not been supportive enough in pursuit of the business and it has been hard to have a boyfriend due to the stigma associated with business as it is viewed as dirty and hard work to run the business. Therefore, they would not give me too much economic support.

1. Challenging employment opportunity

My business need full-time employees who should stay in the same locality as the cows. It is challenging because most people prefer to live in towns and taking the work on the farm is deemed low.

Opportunities:

1. Selling weaned calves to international market

This is an opportunities because my weaned calves’ standard is higher than most countries’, if my price is reasonable, they will happy to buy my weaned calves to upgrade their cows’ breed.

1. Developing agri-tourism

The presence of hilly terrain of Colorado attracts many visitors and therefore breeding some exceptional cows and plantation of some orchards in the area will attract more tourist in the areas, a source of extra income.

1. Low interest loan

This is an opportunities because USDA Service Center provide low interest loan for new farmers named Beginning Farmers and Ranchers Loans. It will helps me a lot.

Threats

1. Bad weather.

Disease outbreak as result of bad weather is common as the ranch sustain semi-free cows. In addition, breeding fertility of the cows may be affected due to the weather conditions.

1. Epidemic diseases

Hosting large number of cows is very risk as disease spread in the ranch may be very drastic and claim a lot of animals within a short time.

1. Market price falling down

Lack of stability in the market price is a great threat to the progress of my business, the lower the price the lower profitable the business is and the claims lower returns.

In conclution, At next two years, I plan to have more cows and good partners, and also to improve my cows’ breed fertility. I have three strenghes, they will help me to increase profits and attract employees, but I also have three weakness which can reduce my competitive powers and economic capabiliies. I hope that I can sell weaned calves to international market, develop agri-tourism, and get low interest loan in the future, but at the same time, I am afraid of bad weather, epidemic diseases, and market price falling down.