ii

ExecutiveSummaryHighway52BeefProducersispresentedwithauniqueopportunityintheCanadianbeefmarket.Thegrowthofprecisionagriculturehasledtotheadvanceddevelopmentofwearabletechnologyfortracingmanyfacetsofbeeflivestock.Whileindustryassociationshavebeenadvocatingheavilyfortheadoptionofnewweb-baseddatasystemstoincreaseindustryefficiency,markettrendsshowagrowingpotentialtousethisdataasawaytocommunicatewiththetargetmarketforbeefproducers–theCanadianconsumer.TheconsumptionofCanadianbeefisdescreasing;however,thiseffecthasbeenproventobemitigatedbytheintroductionofuniqueproductofferingsandretailerpartnerships,allowingsomebeefproducerstoachievecontinuedsuccessinadifficultmarket.ThisstrategicreportrecommendsthatHighway52BeefProducersinvestinamarketingmixwhichisfocusedonadatabased,publiclytraceable,beefproduct.Thisisaperceptualvariablenotfullyestablishedbyanycurrentmarketcompetition.Anextensiveoverhaulofproductioninfrastructureandfeedlotre-branding,wouldpositionHighway52BeefProducersasthetopofmindbeefproducerintermsoftraceability,trust,safety,andtransparency.

iii

TableofContentsExecutiveSummary ii 1.0 SituationalAnalysis 1

1.1 Political 11.2 Economic 11.3 Social 21.4 Technological 31.5 IndustryStrategy:Traceability 3

2.0 Target 43.0 Competition 5

3.1 DirectCompetitors 64.0 Offering 7

4.1 Price 74.2 Distribution 74.3 Product 84.4 Promotion 8

4.4.1 Re-Branding 84.4.2 PhaseOne 94.4.3 PhaseTwo 9

5.0 ActionPlan 10

5.1 InvestorRelations 105.2 Infrastructure Installation: Tracking System

and Data Collection.10

5.3 Technologydevelopmentoutsource 115.4 HumanResourcesandTraining 125.5 PromotionsAgency 12

1

1.0 Situational Analysis 1.1 Political The Canadian cattle industry has always been heavily tied to Canadian government. This is due to the need for regulated food inspection and the impact of the beef livestock industry on the Canadian economy. Cattle producers are largely represented by established industry associations; these groups lobby government on behalf of individual producers. The largest government department overseeing the agricultural sector is the department of Agriculture and Agri-Food Canada. Agriculture and Agri-Food Canada is a hub for market research. They also play leading roles in the development of many international trade deals which greatly impact Canadian beef producers. Examples of recent trade deals affecting beef production are the CETA and TTP trade deals, which in part aim to provide the best possible competitive advantage for the export of Canadian beef to partner countries. Import tariffs have been as high as 46 per cent in some key markets for Canadian beef, trade agreements greatly reduce these rates. At the time of this report, the Liberal Party maintains control of government. This change in government has not had effects on international trade deals that regulate beef imports and exports. It is however likely that Liberal Party will not be elected for a second term in 2019. A political shift to either the Conservative Party, or an unexpected federal win for the New Democratic Party, would result in massive changes to both domestic and international business prospects. Domestic law and politics are not the only factor to consider - given that the United States is by far the largest importer of Canadian beef. The year 2016 closed with an unprecedented political shift in America. The unpredictable nature of current president, Donald Trump, and his respective administration, has created general instability across all sectors dealing in trade with the United States. As the United States accounts for 73 per cent of all beef exports, producers should remain aware of US economic instability, and protectionist policies. Seemingly permanent and secure trade deals, such as NAFTA, may be at risk. Negative trade outcomes regarding beef livestock trade could potentially decimate the industry in Canada. 1.2 Economic In Canada, the cattle industry contributes $33 billion into the economy, and generates 228,811 jobs. The feedlot sector specifically, annually contributes 9.8 billion dollars in sales, 4.1 billion to GDP, 2.69 billion in labour income, and creates 82687 jobs. (CANFAX, 2016) The beef livestock industry is a pillar of economic success for Canada, and is even more critical in certain regional areas. The past decade has seen a major slowdown of the Canadian beef industry. The industry expanded rapidly in the 1990’s due to the low Canadian dollar and favorable perception of Canadian beef pedigree. This created a unique competitive advantage, a price advantage over many competitors globally and domestically, and a brand quality which perpetuated demand. However, the past 10 years have seen major shifts in both beef consumption rates and Canada’s competitive capacity based on price. A key issue has been Canada’s trade ties with the United States. As a 2012 report by Canadian Agri-Food Policy Institute explains, as Canada’s dollar strengthened, their competitive advantage

2

weakened. Now, Canada has actually moved from being a net exporter of beef to a net importer. The trade border between these nations is open, and therefore highly dependent on individual retailer choice. The Canadian beef industry did not have consistent strategy in place to cope with this threat. In 2017 however, the economic landscape has changed once again. The Canadian dollar has been resting consistently around 75 cents to the US dollar. In addition, beef prices remain high (creating good margins), and interest rates remain low (motivating retailer purchases and private company investments). These new conditions have yet to materialize change in beef livestock trade deficits, however are they creating an optimal environment for Canadian beef to expand domestically. 1.3 Social The Canadian beef livestock industry is facing the reality of an aging population, global concerns over food safety and availability, as well as a growing awareness of food sustainability and health conscious diets. Demographic changes are discussed in detail in the target market analysis of this report. The 2003 BSE (“mad cow”) outbreak caused a worldwide reaction and call for more advanced food safety systems for beef production. Though Canada’s cattle industry has emerged from this crisis with good standing, the consumer’s concern for food information transparency is still largely present in most OECD countries. The average consumer is more health conscious than ever and the food industry is especially susceptible to health trends. Negative reports on the health effects of beef, combined with a distinct rise in the price of beef product, have caused many consumers to shift their consumption habits to other forms of proteins. Health concerns extend beyond the plate for many consumers – they worry and are more aware of the health of our planet. Food sustainability and environmentally friendly food production is a growing societal concern. The beef livestock industry is often a target of reporting and popular discussion involving this topic. Anti-industry films such as ‘Food. INC’ and ‘Cowspiracy’ have gained popularity, appearing for wide audiences on Netflix. These documentaries are examples of an observed change in societies concern and popular entertainment trends. It is clear that food purchases are becoming ethical calculations for discerning consumers. Consumers want to know where their food is from and how it is sourced, this is creating a need for traceability in the industry. Communication connectivity through social media has changed the landscape of information. Publics expect information to be transparent and readily available at their fingertips. It is understandable that public demand for food information is growing as consumers are increasingly aware of technological capability to provide this information. Companies also face external communication threats in times of crisis. Crisis communication strategies must be aware of the speed of response from publics and news outlets. Creating transparent systems of traceability can also be seen as a pre-emptive crisis communications tactic. 1.4 Technological The agricultural industry as a whole is undergoing a shift towards precision agriculture. The introduction of big data, and the systems available to process this data, have created opportunities for food producers to be more efficient and transparent; this is in line with changes in societal values. Beef livestock technology is developing through improved identification and tracking ability. The

3

incorporation of biometric technology in wearable devises allows for advancements animal disease control, ownership management, and cattle classification. RFID ear tags on individual animals has been a common practice in the industry for well over a decade. This was a needed advancement from ear notching, tattooing, and hot/freeze branding. Current low grade RFID ear tags are easily damaged and subject to data collection error. New technology has created robust in pen data collection through durable tags accessed remotely. Detailed data parameters including movement, feeding patters, health treatment, body temperature, and PH levels, can be transferred to the central offices of the cattle producer. Technology advancement in traceability is a requirement to see production growth. An award winning B2B company out of Airdrie, Alberta is a leader in this new technology. GrowSafe® utilizes advanced RFID to track biometric and environmental data simultaneously, while monitoring feed and water intake. From this information, they are able to compile a digital daily health profile for every animal. Trending this profile against the animals past profile, and aggregate profiles of surrounding animals, GrowSafe® can detect changes in behavior and health that signal disease 4 days before symptoms and 24 before traditional measures like temperature change. GrowSafe® advances the RFID technology through multiple and continuous monitoring. 1.5 Industry Strategy: The growth of traceability. The Canadian Cattle Identification Agency is the industry leader in traceability standards. Aware of the need for seamless communication both internal and external to the industry, they advocate for adoption of new technology and new standards of traceability. This sentiment is echoed in current industry publications, including the 2015 National Beef Strategy, The Canadian Argi-Food Policy Institute’s ‘Canada’s Beef Food System Report’, and Farm Credit Canada’s ‘2015 Beef Sector Report’. The most common reasons stated for a move towards greater traceability are the lack of industry standards for information sharing, the lack of communication between producers, the loss of competitive advantage, and the lack of communication to consumers. The Canadian Cattlemen’s Association (CCA) advocates the utilization of traceability and data to create a new point of entry into domestic and global markets by precise targeting of specialized beef for specific target market prospects. The CCA’s adoption of the Beef InfoXchange System (BIXS) has created a pressure for domestic beef producers to voluntarily opt into using the web-based data collection program. This system eliminates supply chain information barriers. It provides important information to producers from the packing plant, and vice-versa. Other applications include external communication, where stakeholders such as retailers are given the opportunity to easily identify the traits of beef their consumers are demanding without sourcing directly from feedlot. Access to detailed information allows the packing plant remain the main intermediate point of commerce. Highway 52 Beef Producers (HWY 52) have a critical and timely opportunity. No producer has yet led the industry on traceable technology. Impactful investments in the marketing mix will result in increased company security, and brand awareness – positively correlated to profit margins. In consideration of a 5-year strategic plan, HWY 52 will have to be aware of their target, competition

4

perception, and create a clear action plan to position the feedlot as an industry leader for safe, transparent, and traceable beef.

2.0 Target The Canadian beef livestock industry faces a unique marketing challenge. There is no one market, and therefore it is increasingly difficult for producers along the supply chain to note who their target is. This issue has been overwhelmingly accepted and acknowledged by leading agricultural experts, and the associations representing cattle farmers in Canada. However, moving away from this marketing perception at the feedlot level is increasingly necessary for greater success in a potentially shrinking market. Canada’s competitive advantage is going to depend on the industry’s ability to form cohesive messages and marketing strategies. Canada’s National Beef Strategy (2015) suggests that an understanding of consumer information is integral to the success of Canadian beef. Canadian beef producers will not be able to retain market share and stay competitive if the concerns of the consumer are left in the hand of the retailer alone. The current system is run on a supply push model, not the preferred demand pull alternative. Distributors and retailers are left to respond to their consumer needs, trends, and pressures with the supply that is available. When communication is limited only to interactions between retailers and the consumer, the entire supply chain’s stakeholders are missing from the conversation. Cattle producers are losing opportunities to be sending messages directly to their true target. The target market for feedlot producers is the end user – Canadian consumers. All supply chain participants including calf-cow, backgrounders, feedlots, and packaging companies, should be aware of who is ultimately driving their success. As has been noted, the consumption in beef products is in decline in most of the developed world, and certainly Canada. Producers must be increasingly mindful of consumer demands and lifestyle trends as these should ultimately dictate marketing strategy. Feedlots like HWY 52 earn farm receipts primarily from packing companies. Packing companies, such as Cargill, maintain contracts based on retail demand for beef. This demand is dictated entirely by retail sector marketing efforts towards consumer. Integrating feedlot marketing into this process and specializing offerings can increase demand for a single feedlot’s beef specifically. A permeable example of this is already exemplified in Kasko Cattle’s partnership with McDonalds beef transparency strategy. Though feedlot producers will never directly sell to, or contact Canadian consumers, consumers are the audience producers have to understand. By understanding consumers, product offerings may be developed that give producers an advantage in the face of competition from Canada and the United States. This analysis will consider large scale Canadian consumer data. The most important aspects to consider are the perception of beef in the minds of Canadian consumers, the demographic changes, and lifestyle changes. From this information, a clear target persona for the current domestic market, and how their perception may be changing, is developed.

5

Beef consumption is dropping rapidly. Consumption in Canada has decreased by 12 per cent since 2003, and over 28 per cent since 1984. Interestingly, market research shows us that demand for Canadian beef has not. Demand has become distinct from consumption patterns because provided the food is safe, price is the primary issue for many consumers. Canadian consumers still want to eat beef, however drastic price rises in 2013 caused many consumers to find alternative sources of protein which are less expensive including pork, poultry, and fish. Demand can drive consumption, if the right conditions excluding price are met. The fall in beef consumption in Canada can also be attributed to demographic changes – age and immigration patterns. Canada’s population is aging. As consumers grow older they are statistically shown to eat less beef. According to Farm Credit Canada (2015), beef consumption peaks at age 49 in Canadian Consumers. In 2011 Statistics Canada noted that the median age of Canadians was 40 years old. In 2015, for the first time in Canada’s demographic history, the amount of population aged 65 and over was larger than the age range from 0 to 14 years old. This trend will continue to reduce the size of a consumer market with the highest beef consumption. In addition to an aging population, increasing Canadian immigration patterns are changing consumer preference. Over 60 per cent of population growth in 2014 was a result of immigration, Canada has the highest population growth of G7 countries, at 0.9 per cent per year. The majority of immigrants are entering from Asian countries, 47 per cent from Asia and 11 per cent from India. Dietary and cultural food preferences in these countries favor proteins other than beef. Critical to understanding the target Canadian consumer, is the awareness of shifting societal and lifestyle changes around food safety, transparency, and healthy diet concerns. A key aspect to consider within these changing variables is how to maintain consumer confidence by communicating safety, high quality, nutritious and sustainable beef. It is this aspect that creates the greatest potential for leveraging traceability as a perception variable. In a world of expanding social media dependency and mobile use, consumers can rightfully expect the information they want immediately at their fingertips. Consumers are seeking information as a basis to make food purchasing decisions. Information that a consumer is seeking regarding beef includes where the animal is sourced, how they were treated, and environmental impacts of the animal production. See appendix A for a detailed description of the target market persona. This is a generalized and typified outline of the Canadian consumer that can be reached with the marketability of traceable products. Beef prices are a consideration for the target market, however so are the health and background information of the animal. Though there are trends towards environmental sustainability, greater opportunities lay in the perception variable of traceability. Thus, the target market consumer is concerned with health as it relates to safety and ease of transparency to find the food source.

3.0 Competition

The landscape of Canadian beef livestock agriculture is shifting. As a nation, national beef associations are strategizing how to maintain a national competitive advantage. These include enhancing beef demand, reducing production costs, increasing efficiency, and increasing connectivity between producers and consumers.

6

The 2015 National Beef Strategy called for the intensive inclusion of technology. As Canada’s industry is in the early stages of technology for traceability, there is a present gap in the capacity of beef producers to produce reliable and accessible traceable data based on individual cattle. As has been detailed, it is clear the consumer wants transparency to ensure safety. This demand combined with the ability to produce accessible information will be critical to reshape the market variable in the favor of HWY 52 feedlot. As this strategy is calculating changes over five years only, it is likely that many of the larger competitors that the feedlot faces will still be in consideration. Today’s direct competitors claim advantage over HWY 52 both from the variable of size, price, and unique product offerings. This is displayed in perceptual map 1 (Appendix B, figure 1.). By introducing the variable of traceability, based on target market demand, and following through on strategy, HWY 52 can become the primary top of mind beef production feedlot in Canada based on the perception variable of traceability with links to safety and transparency. 3.1 Direct Competition

- U.S. Imported: Demand for relative quality beef at an acceptable price has shifted the Canadian beef market. More beef now is being imported from the USA than is traditionally exported. This price advantage will likely be shifting as the Canadian dollar is expected to remain low. In addition to the loss of that competitive advantage, the US beef industry does not have a developed or reputable traceability system. As consumers demand knowledge about their food production, Canadian beef gains a large advantage.

- Large Feedlot with national contract and trace back systems: The determinate of feedlot size

is regulated by cattle herd size. Large feedlot, those with over 40,000 heads of cattle, primarily exist in Alberta. This size category is the smallest in Canada, however a large feedlot will typically have relationships with large corporations and an association with that brand. An example is Kasko Cattle’s partnership with McDonalds.

Aware of consumer trends, McDonalds openly advocates knowing where your food comes from in Canada. Promotion strategies have even included sending influencers to the Kasko Cattle lot in order to broadcast transparency. It does not however implement at system for the average consumer to access information, nor does it implement the use of the system to generate and distribute individual cattle data along the supply chain.

- Small feedlot: Specialized grass fed: A small, but popular beef option is the promotion of

grass fed beef. Created largely through perceptional branding and good public relations, consumers associate this offering with health and high quality in stores. It is likely that this trend with continue to offer a strong consumer option. However, this effects only a margin of the target market HWY 52 could potentially reach. The price being slightly less expensive than grass fed, and the value proposition will exist in quality through ensuring transparent safety, both for the animal during production and to the end consumer on their plate.

- Small growers: Specialized direct to retailer local: This competitor is marginal, however

worth mentioning as an example of the effect of specialization in the industry. Small feedlots have the unique option of forgoing mass packaging plants and selling direct to local

7

processors and butchers. This is a very specialized supply chain only available in select markets across Canada, often at a community level. This type of supply is an example of transparency and “knowing where your food comes from” from a very literal level and without the use of technology.

Perceptual maps show consumer beliefs both currently, and based on industry development and introduction of new variables. Highway 52 Beef Producers, having implemented the recommended marketing strategy, will achieve market dominance in the perception of safe and transparent beef through the introduction of traceable measures. A perceptual map for 2021 is expressed graphically in Appendix B, figure 2.

4.0 Offering An in-depth situational analysis clearly shows the opportunity to change the way that HWY 52 Beef producers is positioned in the market. The trend towards great accountability, and the development of key technologies, makes this an achievable possibility. By implementing strategic action, this feedlot can re-shape its marketing mix and become a leader in traceable beef available to Canadian consumers. By the year 2021, this report suggests that HWY 52 Marketing mix will subsist of the following: 4.1 Price The current supply chain has strong control over what individual feed lots charge per head of cattle. Without specialization or a demand for a unique product offering of the feedlots beef from retails, packing plants largely dictate the selling price which constitutes the feedlot’s receipts. As the economic situation is changing, the comparative price advantage of Canadian beef will likely change by 2021. It is not possible to predict what the selling price will be at that point in time. However, with the full launch of the new traceable beef product, consumers will perceive a value that justifies a price increase. The new price should aim to be roughly 10% higher than the average price of non-specialized Canadian beef on the market at the time of full product launch. 4.2 Distribution The distribution will not change. The goal of repositioning is to create demand pull for beef from Highway 52 Beef Producers, however this demand will still manifest in head purchase, and price, from the packing companies. Logistical supply of beef to market will remain the same. Packaging and labelling may be an option dependent on retail partnerships. 4.3 Product Given current consumer trends and the status of the industry, HWY 52 beef will have implemented a product strategy based on the traceability variable. While the end product in 2021 will continue to be high quality packaged beef for consumer consumption, addition services available to the public will be provided with the adoption of new technology at the feedlot production level. HWY 52 will optimally use company resources to adopt the newest forms of tracking technology and database collection. The end result being a transparent system data, accurate to the 99th

8

percentile, accessible at certain level to specific audiences. With the use the industry BIXS system, B2B business transparency is improved as both pre-feed calf-cow producers and packing plants will have access to individual animal record. This allows for greater efficiencies in the production process over time. Specific to the Canadian consumer target, a collection of data on each individual cow will be accessible online to the every-day consumer. The data which collected through advanced RFID systems (see Action Plan), is acquired by a unique ID code available on meat labeling in store. Data which is fed to the BIXS system is also integrated into a simplified summary of an individual head of cattle. The consumer will have access to where the cow was born, raised, fed, health records, last antibiotic dosage, clearance for packaging report, and the date and location where it was packaged. Integrated in the process must be info tabs for clarification on information presented. This service will be the first of its kind to reach consumers on a mass scale. The coded labelling will be a signal of traceability and transparency even for the consumer that is not likely to take the time to visit the data website, yet still maintains a concern of the health of his/her beef product. The consumer will place HWY 52’s product top of mind when it comes to brand trust; this create a new competitive advantage for our mid-size feedlot in the Canadian market. 4.4 Promotion HWY 52 will be launching an entire new “product line” to market. This we require intensive rebranding. It is suggested that a promotional strategy be outsourced to an agency who can launch a 5 year, 2-phase, promotional campaign. This would include a B2B personal selling and industry relations phase, followed by a paid advertising and public relations push at product launch in retail locations. 4.4.1 Re-Branding HWY 52 will adopt a new brand name that better conveys their focus on the traceability variable. They will be presented immediately as an industry trend setter and leader in adopting the newest technology and providing safe transparent food production services. This will include developing key message for advertising and public relations efforts, as well as a new graphic “image”. A new logo and color guideline will be developed to represent company messaging in promotional tactics, but also to be recognizable and congruent on physical meat packaging. A new brand will represent a company promise to safe, healthy, and traceable beef for the Canadian consumer. Highway 52 Beef Producers may choose to maintain corporation name; however, the public name will be different and on brand image. A full strategy would include items such as a new company name, Logo, Slogan, Color guide, Keywords, and associated images. Examples are proposed in Appendix C. 4.4.2 Phase One After initial technology onboarding at the feedlot throughout the remainder of 2017, HWY 52 Beef will launch a phase one promotions strategy. Beginning in the spring of 2018 a two-tiered approach of industry relations and personal selling with take place and continue for the period of one year. The intent of phase one is to build industry recognition and build critical retail partnership interest. The

9

key influencers within the Canadian beef industry should know of the newly established ‘Hale 52 Beef’ brand to build leverage and a background when entering into phase two: consumer relations. Industry relations may include the following tactics:

• Tradeshow booths • Tradeshow speaking engagement • Conference speaking engagements • Conference sponsorship • Paid industry publication advertisement

o Magazines o Association newsletters

Personal sales may include the following tactic: • In house pitching to leading retailers and packing companies. 4.4.3 Phase Two By March 2019, it is expected that the technology will be well established at the feedlot and the data systems will be ready for consumer use and B2B use. Leveraging the seasonal marketing opportunity of the upcoming outdoor grilling season, Hale 52 Beef with become fully available to the market. With the intended success of the retail partnerships and industry acceptance it is likely that the product and service may launch with a retailer partnership. Combined promotion efforts would be evaluated upon signing of partnership agreements. The many combined efforts of phase two are expected to be implemented from Spring 2019 to years end 2021. By mid-year 2020 a campaign evaluation will be required. Tactics included in phase two promotions may include the following:

• Media Relations, National Press coverage • Blogger Relations. (“mommy” bloggers, food influencers) • Advertising

o Out of home o Print magazines

• Online website advertising. • Social Media Presence • In-store direct marketing.

o Samples o Demonstrations of database access.

5.0 Action Plan To become the Canadian industry leader in traceable beef production, HWY 52 beef producers must act quickly to adopt available technology. By creating a new perception variable, they would be the first to enter the market with this offering. Industry trends and analysis suggest that this product

10

offering may become the norm, or a popular and supported option. This feedlot has to the first to become top of mind. The initial investment of company financial and human resources will not be insignificant. The end result being an industry leading feedlot offering an in-demand product will stabilize the company and provide consistent revenue in a changing market. The critical time period for implementing this marketing strategy will be remainder of the year 2017 and the full fiscal year of 2018. This is the period to adopt technology and establish a fully functional product. By utilizing existing technology and systems on the market, development and implementation time will be reduced. The main marketing strategy will shift to promotions in the spring of 2019. 5.1 Investor Relations Investments required to implement this strategic plan are projected to be well over a million dollars. The company should first actively involve stakeholders and potential investors with the use of this strategic proposal to draw in additional investments. Returns on this strategy are expected to overshadow regular returns from Highway 52 Beef Producers productions. Presented as an industry leading opportunity, good relations with investors and provincial farm credit associations are expected to produce approved capital loans for initial and continuing investments in infrastructure, technology and promotions. Before any adoption of the outlined action plan, it is suggested that at least 60% of target investment amount be received. Following timelines should be adapted accordingly. 5.2 Infrastructure Installation: Tracking System and Data Collection. GrowSafe® Technology and Hardware Incorporated in 1992, GrowSafe® is a leader in precision livestock agriculture technology. Their feedlot product, GrowSafe® Beef has been available since 2007. It is an in-pen system that collects data from environment and advanced biometric RFID readers. The Feedyard Program From GrowSafe® provides a service program which includes:

• Installation, commissioning, and regular service visits. • Guaranteed replacement of equipment in case of breakdown. • Fixed, predictable monthly cost. • Access to the latest feed yard technology without requiring sophisticated in-house IT

capability. • Remote monitoring of equipment. • Periodic statistical process control. • Industry bench-marking

All RFID tags would have to be updated to match the GrowSafe® system. These tags are available through the company; they advance data to include biometric data including weight, feeding patters, intake, temperature, and PH level. The system works remotely without the need for individual scanners. The feedlot administration would be remotely notified of patterns emerging related to

11

potential health issues. Cattle can be scanned individually for data input such as medication delivery to be incorporated in data as well. BIXS Data Management System The Beef InfoXchange System (BIXS) transfers individual-animal management information up and down the production chain. It couples the mandatory Canadian Cattle Identification Agency (CCIA) tag with a web-based database. With support of the CCIA and industry associations signed onto the 2015 National Beef Strategy, BIXS is positioned to be the industry’s common repository database. Strategies for use with retail partnership and quality sourcing are currently in discussion with the industry associations. HWY 52 will lead this effort and become the first traceable feedlot, accessible not only by retailers, but consumers directly. With developer assistance, software is available to incorporate BIXS with other existing methods of data collection. HWY 52 will implement use of the BIXS system through integration of GrowSafe® data. This will require the adoption of additional software to facilitate interfacing, such as Beef Records Universal Translator (BRUT) software. Timeframe: Immediately upon approval of this marketing strategy physical installations will begin, and would be preliminarily scheduled to be completed and fully operational by February 2018. Budget: TBD - Request Quote. (>$500,000) 5.3 Technology Development Outsource Data linking Data integration will be a key outsourced cost and implemented action for this new strategy. While GrowSafe® and BIXS come with optional high-end support systems, their in-house IT departments would not be able to coordinate and install a software for information sharing between the two platforms. These companies would also not provide services regarding data linkages from their data storage systems to an accessible data-based web platform for consumers. The outsourcing of technology development in terms of installing software for interface integration is critical. The integrations would include:

• GrowSafe® to BIXS • GrowSafe® to Website

Website Development In addition to data software, the online platform and software for selective data retention will be built into an expansive web platform. The end user will experience a simple and streamlined process, however the processing power behind the consumer action is extremely high as they will be searching for one health profile of >15,000 profiles.

12

Timeframe: To coincide with product launch, and to allow for a sufficient trial period, technology outsourcing should begin no later than year-end 2017 when the initial infrastructure for tracking is in place and generating data. This allows the entire 2018 business cycle to pull data and test integration of information from the two systems into one accessible database for the public. Budget: $80,000 - $150,000 5.4 Human Resource and Training As both product and promotion strategies are extensively outsourced, internal HR initiatives required are relatively minimal. In terms of new technology adoption, both GrowSafe® and BIXS provide staff training for on-site operators. In addition, both companies provide built-in product support packages to mitigate the effect of knowledge gaps by the end production user. Basic equipment maintenance is a training area that will have to be offered for all staff, though this investment is minimal in terms of time and financials. On site users are expected to maintain a level of proficiency in data entry, and basic data analysis due to nature of technology communication between the implemented systems and the feedlot operator. However, this strategic report recommends that Highway 52 Beef Producers invest in a new IT hire who specializes in data management and network operations. Additional technology and human resource investments are largely mitigated do to the outsourcing of large IT, and promotion work. Timeframe: Technology and systems training will occur during 2017 and 2018 simultaneously with infrastructure installation. The full-time IT hire should be introduced at the end of 2017, coinciding with the initial collection of data. Budget: Training - $0 (included) to $5000 (time-money). Human Resources - $75 000 per year salary. 5.5 Promotions Agency Promotions and re-branding are essential for the success of this marketing strategy. As explained above, a promotions strategy will be intricately implemented by an outside agency – ideally with expertise in the agriculture sector. Larger centers such as Calgary and Edmonton have many award-winning agencies in areas of marketing and brand building. To view the full tasks of the agency, review the promotions plan in section 4.4 of this report. Timeframe: The campaign will take place over a two-year time period from Spring 2019 to year-end 2021. It is recommended that HWY 52 launch a RFP (request for proposal) by September 2018 in order to hire the appropriate agency to complete the scope of the work required during the two-year contract. Budget: $200,000 to $300,000

13

AppendixA:TargetMarketPersona

Name:SusanSampleAge:45Gender:FemaleLives:SuburbanAlberta.Ex.SpruceGrove,Alberta.Works:30hrs/week.Mid-ManagementPosition.Financials:Mid-Income.~$75,000/yearFamily:• Headofhouseholddecisionmaker.• 2-3kids.• Marriedordivorced.• Ifmarried,husbandawayforworkoften.PersonalValues:• healthandsafetyofherfamily• earningagoodliving• familyandpersonalsecurity• healthydietbuttraditional• strongCanadianroots• politicalview:liberaltoconservative• shopslocal,butprefersthepricepointoflargerretailersandchainrestaurants• receivesmostnewsandinformationfromcomputerinthemorningandevening• onbasicsocialmedia,mostlyforkids• followsfoodbloggers,mommybloggers,homeandlifestylebloggers.• intermediateadaptivetotechnology• doesnotcouponclip,butisawareofpricepointofvarioussupermarketsPerceptionofMeat:• grewupeatingmeat• notavegetarian• enjoysusingbeefinfamilyrecipes• concernsaboutanimalhealthanduseofhormones• wantstoknowwherehemeatcomesfrom• healthsafetyconcerns,nothealthdietconcerns.

14

AppendixB:PerceptualMaps.Figure1.2017PerceptualMap.Currentcompetitivelandscape.

15

AppendixB(continued)Figure2.2021PerceptualMap.Futurecompetitivelandscape.

16

AppendixC:Re-BrandingSamples.

Image1.Highway52BeefProducersOLDLOGO: Image2.Hale52BeefNEWLOGO:

BrandNameSample:Hale52Beef.Rational:“Hale”def.StrongandHealthyImage:ScancodepatternexampleofsomethingtraceableandrecordedeasilyColors:

• Technologyscanpattern.• Bluetonesignalstrustworthy.• Brightpantonetobeeasilyincorporatedandidentifiedonfutureproductpackaging.

Keywords:Safe.Traceable.Trackable.Transparent.Healthy.

17

References:

Situational Analysis:

• http://modernagriculture.ca/precision-agriculture-steering-us-future/ • https://jackuldrich425.newswire.com/news/the-future-of-prairie-gold-jack-uldrich-

will-address-future-trends-in-17959192 • http://www.farmindustrynews.com/animal-trackers • Modern Farmer. These 5 wearable livestock devices are the future. Retrieved from: • http://modernfarmer.com/2016/01/wearable-devices-livestock/ • Government of Canada. Policy Horizons: Agriculture and Natural Manufacturing Industry.

Retrieved from: • http://www.horizons.gc.ca/eng/content/agricultural-and-natural-manufacturing-technology • http://www.beefproducer.com/story-wearable-technology-cattle-9-130757 • Business Insider. 15 emerging agricultural technologies. Retrieved from:

http://www.businessinsider.com/15-emerging-agriculture-technologies-2014-4 • http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-

product-sector/red-meat-and-livestock/red-meat-and-livestock-market-information/industry-profile/?id=1415860000002

• Canada Demographics. http://www.statcan.gc.ca/daily-quotidien/150929/dq150929b-eng.htm Grow Safe:

• http://www.growsafe.com • http://astech.ca/awardee/2011-agriculture-growsafe™ • http://www3.intel.com/content/dam/www/public/ca/en/documents/case-

studies/grow-safe-case-study.pdf Technology:

• Radio Frequency Identification (RFID) fro Livestock Identification by Dr Deepak Upadhyay http://www.slideshare.net/dpkvet24/livestock-identification-by-radio-frequency-identification-methods-by-dr-deepak-upadhyay

• http://www.bixsco.com/feedlots • http://www.vitalherd.com

Canadian Beef Industry/Feedlot Analysis:

• http://globalnews.ca/news/2038440/wheres-the-beef-from-tracking-meat-from-farm-to-fork/ • http://dnatraceback.ca • http://www.thecanadianencyclopedia.ca/en/article/beef-cattle-farming/

• http://www.thecanadianencyclopedia.ca/en/article/meat-processing-industry/

18

• https://www.fcc-fac.ca/en/ag-knowledge/ag-economist/two-great-opportunities-awaiting-canadas-beef-industry-can-we-capitalize-on-them.html

• http://www.ufcw.ca/index.php?option=com_content&view=article&id=2441:by-the-numbers-the-canadian-beef-industry&Itemid=6&lang=en

• http://www.agr.gc.ca/eng/about-us/publications/economic-publications/an-overview-of-the-canadian-agriculture-and-agri-food-system-2016/?id=1462288050282

• http://www.statcan.gc.ca/pub/95-640-x/2011001/p1/p1-01-eng.htm • http://www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-

product-sector/red-meat-and-livestock/red-meat-and-livestock-market-information/demand-and-protein-disappearance-by-species/?id=1415860000022

• http://www.cattle.ca/resources/industry-stats/ • http://beefstrategy.com • https://www.fcc-fac.ca/en/ag-knowledge/ag-economist/two-great-opportunities-awaiting-

canadas-beef-industry-can-we-capitalize-on-them.html • http://beefstrategy.com/information-and-background.php • http://www.cattlefeeders.ca/industry-overview/feedlots-101/ • https://canadaid.ca/about_us/faqs.html • http://www.cattlefeeders.ca/industry-overview/beef-production/ • http://www.canfax.ca/samples/CRS%20Fact%20Sheet%20challenges%20at%20the%20bott

om%20of%20the%20cattle%20cycle.pdf • http://www.cattle.ca/resources/animal-care/feedlot-operation/ • http://www.cattle.ca/resources/production-practices/traceability/ • http://www.farmfoodcare.org/canada/wp-content/uploads/2016/03/Fact-Sheet-Beef-2016.pdf • http://bic3dev.boldinternet.com/ca/en/beef_export/industry/finishing.aspx

Publications:

• Ali Ismail Awad. (2016) “From classical methods to animal biometrics.” Computers and Electronics in Agriculture. Vol. 123.

• Statistics Canada. (2012) Cattle Statistics. Catalogue no. 23-012-X.

• Canadian Cattlemen’s Association. (2010) “Recommendations for Policy on Traceability

Implementation for the Canadian Beef Cattle Industry.”

• AgricultureandAgri-FoodCanada.(2015)FactSheet.“Canada:AtaGlance.”

• AgricultureandAgri-FoodCanada.(2012)InternationalMarketsBureau.“GlobalConsumerTrends:AgeDemographics.”

• AgricultureandAgri-FoodCanada.(2012)InternationalMarketsBureau.“Americaneating

trendsreport:redmeat(beefsteak,roastsandothercuts).”

• AgricultureandAgri-FoodCanada.(2012)InternationalMarketsBureau.“Americaneatingtrendsreport:redmeat(groundbeefandgroundbeefpatties).”

19

• OECD/FAO(2016),OECD-FAOAgriculturalOutlook2016-2025,OECDPublishing,Paris.http://dx.doi.org/10.1787/agr_outlook-2016-en

• OECD/FAO(2016),OECD-FAOAgriculturalOutlook2016-2025CommoditySnapshots:Meat.,

OECDPublishing,Paris.http://dx.doi.org/10.1787/agr_outlook-2016-en

• FCCAgEconomics.(2015)The2015BeefSectorReport.

• CANFAXResearchServices.(2012)TheBeefIndustry’sContributiontoCanada’sEconomy.

• TheCanadianAgri-FoodPolicyInstitute.(2012)Canada’sBeefFoodSystem:ARoadmapforDialogueStrategy.

• CanadianCattlemen.(2013)“Canada’scustomfeedlotguide:2013.”CanadianCattlemen,

TheBeefMagazine.

• CANFAXResearchServices.(2016)StatisticalBriefer:inventoriesandreceipts.

• BeefStrategy.(2015)“Canada’sNationalBeefStrategy.”Beefstrategy.com.Retrievedfrom:http://beefstrategy.com/pdf/National_Beef_Cattle_Industry_Strategy_Dec.pdf