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Gelbvieh Profit Partner's management style focuses on short-term performance metrics and benchmarks while maintaining a long-term perspective. Instead of attempting to "boil the ocean", GPP focuses on creating immediate traction through focused and disciplined management. Management strategies are utilized to minimize administrative costs and maximize efficiency of operations. By partnering on cattle with various feedlots and other interested parties, GPP will minimize risk and maximize shareholder return on equity. Also critical to the management plan is that GPP will develop an industry-leading database that will provide source verification. GPP will use benchmarking to quantify performance against industry averages providing insight into management performance and identifying investment opportunities. GPP intends to purchase Gelbvieh influenced calves and feeder cattle and then market them as feeder or fed cattle. GPP creates shareholder value by capitalizing on opportunities across the beef industry. GPP focuses on purchasing Gelbvieh influenced cattle using industry accepted methods including buying directly from a producer, buying through an order buyer, buying through special Gelbvieh sales, and buying through video auctions. Gelbvieh influenced cattle provide inherently efficient weight gains in the feedyard and also provide a high likelihood of grading 70% Choice and 70% Yield Grade 1 & 2. GPP also strives to buy cattle from producers that have a history of quality health management. Another key competitive advantage is that GPP has extremely low fixed and overhead costs as a result of low operating expense and no fixed assets. This greatly increases the flexibility of GPP, since we do not have to manage for capacity utilization. GPP actively manages inventory risk by hedging with futures and options and by feeding cattle in numerous geographical areas in order to minimize market and weather risk. GPP also manages catastrophic risk and portfolio risk. Catastrophic risk is managed by prudently insuring for casualty and theft. Portfolio risk is managed by using Value at Risk analysis and other measures of risk that allow the management to properly manage the level of risk at all times. GPP's revolutionary approach ties a unique genetics network with professional management making integrated marketing arrangement opportunities possible. Several branded product lines have expressed interest in our cattle noting GPP's ability to source verify genetically similar cattle that will meet consumer demand. By targeting branded beef production systems, GPP creates a value chain that provides a mutual advantage for both GPP and for participating branded beef companies.
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