Case Study: A Systems Analysis of Cattle Morbidity in a Niche Market Beef Cooperative

by Kim McCuistion^1,*, Jen Johnson Livsey¹, Doug Wilmeth¹, Dan Probert², Barry Dunn³, Ryan Rhoades¹, and Clay Mathis¹

http://dx.doi.org/10.5304/jafscd.2011.021.011, pp. 279–286

Abstract

Country Natural Beef (CNB) is a rancher-owned, niche market beef cooperative. In fall 2008, CNB experienced an increase in cattle morbidity at the feedlot. With a reduced number of animals qualifying for the CNB program, the possibility of being unable to meet customer demand became a critical concern. Consequently, CNB proactively initiated an internal investigation to identify the underlying reasons and key risk factors that contributed to the increase in morbidity. An analysis was conducted to determine size and scope of the problem, identify key risk factors, and provide recommendations for supply chain improvement. A sample of 42 CNB member ranchers, CNB employees, and personnel from the feedlot where CNB cattle are finished were interviewed to provide a better understanding of the ranchers' behavior, production chain structures, management protocols, and company policies. Recommendations to reduce morbidity rates included: (1) background all cattle, (2) institute internal process controls to include auditing the accounts at regular intervals, and (3) amend the policies that allow the shift in financial responsibility of morbidity from individual ranchers to the organization as a whole. Implementing these recommendations should minimize feedlot morbidity in the CNB program and make the program more viable in the marketplace by reducing fluctuations in supply. Similar niche beef production programs should consider their entire production chain in order to maintain a balance between the demand and supply and minimize the cost of production.

Keywords: animal health, niche beef production, producer cooperative, supply chain

¹ King Ranch Institute for Ranch Management, Texas A&M University-Kingsville, Kingsville, TX 78363 USA

² Country Natural Beef, Boardman, OR 97818 USA

³ South Dakota State University, College of Agriculture and Biological Sciences, Brookings, SD 57007 USA

* Corresponding author: Kim McCuistion, 700 University Boule- vard, MSC 137, Kingsville, TX 78363 USA; +1-361-593-3690; This e-mail address is being protected from spambots. You need JavaScript enabled to view it.