USPB Founding Director,
Doug Laue, Passes

USPB Board member and Kansas cattleman, Doug Laue passed away on February 15, 2015. Laue was an original member of USPB’s Board of Directors.

“Doug played a very important role in the formation of U.S. Premium Beef,” CEO Stan Linville said. “He was a strong proponent for changing how our industry marketed fed cattle and he had a good understanding of how creating a company like USPB could impact that change.”

“Doug was with us from the very first planning meetings when there were just a half dozen of us getting together to discuss the concept of a beef marketing company,” Board Chairman Mark Gardiner, added. “He was passionate about the beef industry and about USPB and he dedicated countless hours and effort to promoting the concept of U.S. Premium Beef to other beef producers and cattle feeders.”

...continued on page 3

Lower gross margins impact net income

Company Files Fiscal
Year 2014 Results

U.S. Premium Beef has closed its financial books for fiscal year 2014 and has filed the results with the Securities and Exchange Commission. For the fiscal year, which ended December 27, 2014, USPB recorded a net loss of $9.0 million compared to a net loss of $11.2 million during the prior fiscal year. The year-over-year improvement was due to a smaller net loss at National Beef and lower operating expenses at USPB.

National Beef’s gross margins continued to be under pressure in fiscal year 2014. Although revenues increased approximately 5% to $7.8 billion for the year as a result of higher selling prices, cost of sales was markedly higher as industry slaughter volumes declined approximately 5% and cattle prices increased approximately 22% on average. The combined effects of lower volumes and tighter margins reduced profitability year-over-year. Also contributing to the net loss incurred by National Beef in fiscal year 2014 were approximately $6.9 million in expenses related to closing the Brawley facility.s

Perman family of Lowry, SD, recognized at the National Cattlemen’s Beef Association convention in San Antonio

USPB Member Receives Environmental Stewardship Award

The Lyle and Garnet Perman family, which owns and operates Rock Hills Ranch, near Lowry, SD, was named the National Cattlemen’s Beef Association’s Environmental Stewardship Award honoree for 2014. The award recognizes ranchers for their dedication to exceptional land management practices which serve to improve soil, air and water quality for all.

“The Perman family serves as a shining example to farmers and ranchers across the country, illustrating what is possible when we aspire to improve the land for future generations,” said Forrest Roberts, CEO of the National Cattlemen’s Beef Association. “Their efforts to improve their pastures have created wide-reaching benefits that extend far beyond the boundaries of their ranch. When cattlemen and women dedicate themselves to conservation efforts, such as those found on Rock Hills Ranch, we all benefit.”

“Our family was honored to be selected as the Environmental Stewardship Award recipient for 2014,” Lyle said. “We put a high priority on not simply sustaining what we have, but also in regenerating what was once here.”

To accomplish the goal of regenerating the natural state of the land in their care, Lyle and son Luke have spent years studying the ranch and working to improve pastures, reduce rainwater runoff and create wildlife habitat, all of which contribute a positive benefit to the ranch’s profitability. The family has also incorporated rotational grazing, no-till farming techniques and cover crops to increase the amount of water soaking into the soil after precipitation

....continued on page 3

The following USPB Qualified Seedstock Suppliers (QSS) will conduct sales during March through April. See USPB’s web page for links that detail sale times and locations.s

In addition, the following USPB QSS members are selling bulls through private treaty sales during the spring:

continued from page 1

Rock Hills Ranch’s 7,500 acres receives an average of 17 inches of rainfall per year, so water is a premium. Their rotational grazing program on 5,000 acres of permanent pasture, combined with grazing cover crops and crop residue on 2,500 acres of cropland, has enabled Permans to reduce winter feed costs by 50 percent on their 400 head cowherd. Their once-through grazing rotation allows some pastures to rest 350 days of the year.

To accomplish this, the Permans have installed an extensive cross-fencing system, which includes approximately 60 miles of permanent fence. Temporary fence is used to split many of the 40 permanent paddocks into smaller paddocks for grazing, depending on conditions.

The Permans also plant food plots and maintain shelter belts for wildlife. These practices have enabled them to diversify into lease hunting and a bed and breakfast operation.s

continued from page 1

“USPB and the U.S. cattle industry will miss Doug,” Linville said. “Our condolences go out to his family.”s