The Buzz About Bison...

One of the coolest reasons to buy buffalo? Its a truly North American food, raised in several states and Canada. And if youre still not convinced it tastes great. A buffalo burger with sliced tomato, avocado and lettuce is a burger you can feel good about eating. Buffalo is a food that deserves its Health Halo. Nutrition Radio, January 2011

Bison caught on, and even in the economic slump, prices havent discouraged consumers. USA Today, December 2010

Tasty, rich and leaner than beef, bison is appearing on restaurant menus around the country, and is also available in many large supermarkets. Eating Well Magazine, April 2009 (Bison is) Meat thats better for you, better for the environment, and still great tasting. Chef Bruce Aidells, Bon Appetit magazine, February 2008

Health-conscious consumers like bison because its lean and rich in nutrients. Environmentalists view bison roaming on the prairies as a more sustainable food. Chefs, too, have come to appreciate bison meats qualities. Sunset magazine, February 2008

Weve learned from the many cycles in the buffalo industry over the past 40 years. This surge in demand, and optimism is the best ever, and indicates a strong future for producers and marketers alike. Bud Flocchini, Durham Ranch, (A bison producer/marketer since 1965)

Check out these resources on todays bison business: National Bison Association: www.bisoncentral.com
USDA monthly wholesale bison price report www.ams.usda.gov/mnreports/nw_ls526.txt USDA NASS weekly processing report www.nass.usda.gov/QuickStats/create_Federal_All.jsp
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NATIONAL BISON ASSOCIATION

8690 WOLFF CT., SUITE 200 WESTMINSTER, CO 80031

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Bison is in Demand
increase in USDA processing 2000 - 2010

303%

alone. Today, bison can be found across the country on the menu of white tablecloth restaurants, in adult casual establishments, and in an increasing number of retail outlets. Prospects for continued growth appear bright. After all, bison meat is positioned at the convergence of major long-term trends among todays qualityconscious consumer. New York Times Food Editor Marian Burros recently summarized bisons position with the American consumer What is the strength of the industry? Two words: when she wrote, Today buffalo, shunned no ConSUmer demand. longer, has achieved an enviable position; simultaneous praise A decade ago, growth in production from chefs, nutritionists and environprimarily fueled the price increases for mentalists. At last, steak without guilt. live animals. Today, the American conNew processing facilities, distribusumer is fueling that demand. tors, and marketing programs have Bison consumptionmeasured in emerged over the past decade to supply a terms of animals marketed through national marketplace. Now we need proUSDA inspected facilitieshas increased ducers to keep pace with demand. by more than 50% in the past five years TTheres a rumble in the countryside today...the sound of the American bison industry surging to new levels of strength and profitability. Bison today represents one of the true bright spots in agriculture. Even as the general economy experienced a sharp downturn, consumer demand for bisonand the prices paid to producershit historic highs. In fact, the bison business has made a strong rebound over the past decade.

New Bison Producers Needed!

One factor inhibits continued growth in the consumer marketplace: SUPPLY.
Market prices for mature bison have increased by 59% in the past three years alone as processors compete to keep the foodservice and retail markets supplied. Current supplies of live animals simply wont meet the anticipated future demand. The bison market is becoming an established part of the agricultural sector. The U.S. Department of Agriculture now publishes monthly wholesale bison market price reports. Lawmakers are including bison as eligible recipients for conservation and disaster assistance. Take a new look at todays bison industry. This important part of our American heritage is increasingly a popular part of the American diet, and the agricultural marketplace.
USDA Monthly Bison Report Summary November 2010 compared to November 2009 and November 2005
WHOLESALE PRICES Young Bulls Young Heifers Aged Bulls Aged Cows Strip Loin Fresh Strip Loin Frozen Ribeye, Lip-On Fresh Ribeye, Lip-On Frozen Top Sirloin Fresh Top Sirloin Frozen Chuckroll Fresh Chuckroll Frozen Top Round Fresh Top Round Frozen Tenderloin Fresh Tenderloin Frozen Bison Trimmings 90% Fresh Bison Trimmings 90% Frozen Ground 90% Bulk, Fresh Ground 90% Bulk, Frozen NOV. 10 Weighted Ave. (cwt.) 325.34 312.02 237.88 228.73 1,029.37 824.91 1,090.87 1,063.45 651.44 806.25 456.79 540.14 634.37 621.67 1,627.09 1,637.55 505.15 494.40 482.00 502.03 NOV. 09 Weighted Ave. (cwt.) $239.53 $221.90 $160.61 $159.98 $897.64 $751.43 $951.00 $840.26 $616.18 $503.44 $340.32 $354.93 $432.02 $432.46 $1,267.10 $1,108.55 $328.00 $321.95 $333.00 $371.65 % CHANGE 8-10 vs. 8-09 36% 41% 48% 43% 15% 10% 15% 27% 6% 60% 34% 52% 47% 44% 28% 48% 54% 54% 45% 35% NOV. 05 Weighted Ave. (cwt.) $169.89 $154.24 $115.42 $112.61 $875.72 $628.71 $937.53 $962.76 $467.33 $434.55 $301.10 $281.54 $371.86 $317.46 $1,331.43 $1,313.08 $260.45 $200.11 $291.00 $273.49 % CHANGE 11-05 vs. 11-10 92% 102% 106% 103% 18% 31% 16% 10% 39% 86% 52% 92% 71% 96% 22% 25% 94% 147% 66% 84%

www.bisoncentral.com

Source: USDA Market News Reporting Service / All Prices Hot Weight. More information on bison: www.nationalbison.com

Its Not Just Prime Cuts... There is a Marketplace for the Whole Animal.

Put the Pencil to Bison

Bison Cow-Calf Herd Break-Even*
Assumptions No. of cows 60 Calf Crop Percentage 0.90 Operating Costs Feed Costs Grain Hay Salt & Minerals Total Feed Cost Other Operating Costs Veterinary Medicine & Supplies Fuel, Maintenance & Repairs Utilities Marketing & Transportation Death Loss Insurance Miscellaneous Subtotal Operating Costs Operating Interest Total Operating Costs Fixed Costs Depreciation Facilities Machinery & Equipment Investment Facilities Machinery & Equipment Livestock Pasture Land & Fencing Total Fixed Costs Total Operating and Fixed Costs Labor Total Cost of Production Per Cow $ $ $ $ $ $ $ $ $ $ $ $ $ $ 17.92 52.50 18.07 88.49 20.68 25.00 3.33 10.00 23.67 14.60 8.33 194.10 12.21 206.31

Take a look at this sample break-even. Bison works in todays agricultural economy!

Total Herd $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,075.20 3,150.00 1,084.20 5,309.40 1,240.80 1,500.00 199.80 600.00 1,420.20 876.00 499.80 11,646.00 732.60 12,378.60

The NBA Can Help

The National Bison Association can help you get started. Our all-new Bison Producers Handbook is the best resource around on every aspect of production and marketing. Our Bison 101 and 201 on-line curriculums can help you take your first steps from your desk-top computer. And, experienced producers in the NBA are always available to provide guidance and support to those who are just entering our business. A membership in the National Bison Association will give you access to all of these resources, including a free copy of the Bison Producers Handbook.

$ 28.75 $ 33.34 $ $ $ $ $ 11.50 24.00 31.34 95.66 224.59

$ 1,725.00 $ 2,000.40 $ $ $ $ $ 690.00 1,440.00 1,880.40 5,739.60 13,475.40

35%
$332.43/CWT.

increase in wholesale bison meat value 2008 - 2010 USDA PRIME BISON BULL CARCASS PRICE

$ 430.90 $ 40.00 $ 470.90

$ 25,854.00 $ 2,400.00 $ 28,254.00 $13,754.00 $28,726.67 $31,393.33

$241.11/CWT.

Breakeven selling price/head $/head Operating Costs $229.23 Operating & Fixed Costs $478.78 Operating, Labor & Fixed Cost $523.22 Breakeven Price/head = Cost % calf crop

$203.27/CWT.

*Sample break-even for illustration only. Actual figures will vary based upon region and producers.

Dec. 05

Dec. 08

Dec.10

Source: USDA Livestock & Grain Market News Service