Their alliance with commercial breeders will involve 35,000 cows with calving to be spread between Spring and Autumn.
This will supply them with half their annual supply of weaners while the other half will be come from trade markets.
Sundown will aim to turnoff grass fed Angus and Angus cross steers using in paddock supplementary grain assist production systems for the domestic and export sectors respectively, as well as grain finished product.
To spread production across the 52 weeks of the year crossbred steers and heifers (Charolais, Santa Gertrudis and Hererford crosses) will also be used for supply to the domestic and export markets Alliance members will directly benefit from the economies of scale Sundown can offer its domestic and export clients, who recognize the value of constant supply throughout the year. Sundown will issue 60 day forward prices every fortnight to participating alliance members which would show far less variation than the spot market.
I'm used to forward contracts weeks and months out and that just doesn't generally exist in the beef game and that's something we'll be able to secure with our economies of scale, he said.
Quality assurance throughout the supply chain is essential and will assist in achieving better prices Using the National Livestock Identification System (NLIS) electronic tags, Sundown will work with alliance producers to collate data from marking which will be provided to the processors and retailers for added marketing leverage forming part of a strict quality assurance program from marking to slaughter.
Should their steaks end up on an uptown dinner plate, which Mr Statham is confident they can, that restaurant will know what breed it is and what it was finished on. Sundown Alliance producers would be offered premium market prices and potentially some significant cost savings to their business of up to 20 cents a kilogram liveweight.
This could equate to an extra $50/head by minimizing shrinkage and other costs incurred by selling through current selling methods. Sundown will also have arrangements with some of the country's top studs to enable alliance members to lease bulls for a nominal price and will contribute $250/bull of that fee.
EXPERIENCE in life counts for a lot and these two men are right in the thick of getting Sundown Pastoral Company's 52-week-a-year supply chain happening.
Sundown's livestock and marketing co-ordinator, Rob Walker, Orange, who has helped draw up the plans based on his vast industry experience.
The other part of this equation is Sundown's New England general manager, Matthew Monk, Kingstown, who for the past five years has helped renovate pastures across the flagship property 'Sundown Valley' along with 'Newstead', 'Paradise' and 'Woombi' a 1000 head feedlot incorporating 1500 head of supplementary feeding systems.
Mr Monk, an agronomist by profession, has even lent his experience to to international companies in the United States and NZ, until recently ran a private consultancy based in Armidale.
The alliance is exciting for both of them. Mr Walker said the alliance would produce beef of the highest eating quality by interfacing the National Livestock Identification System (NLIS) ear tags with a central database, compiling information from marking to weaning and feeding.
Eating quality is my passion because there is nothing like eating a good steak, he said. Mr Monk said access to quality genetics will be part of guaranteeing good eating, incorporating a bull lease program.
Further to this, Sundown is also selling its remaining 7500 cows, pregnancy tested in calf, from $800 per head with the guarantee of buying back their calves in 2011 at pre determined prices today.
Every presentation we've made to people about this; they're excited, he said.
For further enquirers please contact Rob Walker (0439 548 222) |
