Name: Meat Quality Genetics

Kelly Sheets

Econ 331

Business Proposal

Name: Meat Quality Genetics

Description of Product:

Provide the public with a cheaper cut of high meat quality pork than previous, with a similar palatability. These swine will be more feed efficient and produced in higher quantities. This will allow the consumers to buy higher quality pork for less, and restaurants to cut costs.

Intended Customers’ Needs:

In years past, pork has had palatability problems. Now, customers are paying extreme premiums to get higher palatability pork. The need of the customers is to buy a higher quality cut of pork at a lower cost, due to today’s economic trouble.

Why This Product Creates Value:

Consumers today have a choice between cheaper pork that is produce in high quantities and readily available, or more expensive pork and is harder to get. Previously the Berkshire meat was very costly to produce and also very costly to buy. By slightly modifying the genetic makeup of these pigs, we can produce them in a higher, more packer acceptable number. This proposal will allow the consumers to buy the higher quality pork at a lower cost, and also allow high-end restaurants to sell it at a lower price.

Product Differentiation:

At first, the product will be no different than the regular pigs produced for grocery store type pork, however this will help keep the operation afloat in the mean time. Pigs will be sold to packers, to produce the generic pork until the extensive rotational breeding system has been completed. The rotational breeding system will include the Landrace breed to give the offspring white hides and improve maternal ability. The landrace breed is known for high litter sizes and mothering technique. The Duroc breed is red in color and that gene is homozygously recessive as well, but is dominant to black color gene. The breed is also known to have some bloodlines to have a decent amount of intramuscular fat as well, but is primarily known for its ability to grow fast and be efficient at the feeder. So in summary, the offspring should eventually be high IMF, growth oriented pigs that are born in large, white colored litters. The female lines will be landrace sows crossbred with Berkshire boars and the progeny will all be heterozygously dominant. The male lines that will be mated to these whiteline F1 progeny will be Berkshire boars crossbred to duroc sows. The F1 progeny should be heterozygously dominantly red. When the two F1 progenies are mated together 75% of the F2 progeny will be white in color (whether it be homozygous and heterozygous dominant), and the other 25% will be homozygously recessive for deviations black and red. After some purchasing of the beginning lines and extensive cross-breeding the progeny should be marketable to the public and certified meat quality swine.

Size of Market/Opportunities for Growth:

The market is not unusually large right now, but has potential for seriously growth. Once the baselines are laid down with the F1 progeny there growth possibilities seem almost endless. It will depend on the consumer’s response to the product, and the amount of producers that would like to capitalize on an opportunity such as this. Rapid growth is possible, and a rapid shutdown is possible as well if the market swings that way.

How I will Financially Support the Business:

I currently have the resources to begin the breeding of the F1 progeny after purchasing the beginning stock. I have the facilities to raise these hogs. Then remaining costs to begin the F2 progeny breeding would either need to be taken by another producer willing to try this operation (such as licensing this idea to a large company or selling the F1 progeny to these large scale producers to make these progeny). Another option would be to put up the facilities to do it ourselves, local banks are willing to fund this expenditure until the business is up and running. Then payments would be due to them.

Who I am, and What Skills do I Have:

My name is Kelly Sheets, and I have ran a farrow to finish operation in Nevada, Iowa since I was 15 years old. I believe that I have the skills and expertise to efficiently run this operation. I have been around swine all my life, and know what it takes to run a successful swine operation.

What kind of skills I am Seeking in a Entrepreneurial Team:

I need my team to be as driven as I am at all times. The road to success will be slow at times, but the hard work will pay off in the end. Another key thing I seek in a team, is someone willing to step up and make a change to help the business run better yet. The members will need to be hands on, computer literate, and have the ability to talk to people to get more insight.