21rst Century Ranching Draft 3

21ST CENTURY RANCHING: A STORY OF LEADERSHIP AND TRANSFORMATION

i. EXECUTIVE SUMMARY

I. Evolution of Parker Ranch[1]

a. From Ranching to Real Estate (1890-2010)

b. The Rise and Fall of Local Ranching

a. Local consumption (1900s-1970)

b. Cow Calf (1980s)

c. Collapse of the Feedlot Model (2008+)

i. Financial profit volatility

d. Climate Change and drought (2000-2015)

i. Production uncertainty

ii. Persistent changes in rainfall [charts]

iii. Implications of rainfall to Parker Ranching carrying capacity

e. How to ranch responded

i. Downsized (reduction of herd)

f. . interest in "local food movement"

i. New Leadership (CEO/Board)

ii. Cattle Industry Studies on Grass Fed Beef

iii. Reasons why Local beef was not competitive (see chart from KS Study)

II. Vision for the Future of Ranching

a. Leadership Vision

a. CEO Vision (Dutch)

b. Board Vision (Jimmy)

c. Management Vision (Jason)

b. Business Model: hybrid between local/national

i. National: Wilson Joint Venture

ii. Local: Paniolo Cattle Company Joint Venture

iii. Business rationale

a. "boom and bust" market cycle

b. Local is lower risk, and lower return: more stable

i. Meets Parker Ranch vision to support local economy of waimea

c. Optimizes the economic value of the forage (Jason analysis)

c. Current challenges to sustaining the local model

1. Drought/grass

2. Consistency and Quality

3. Processor monopoly

4. Market acceptance

III. Into the Future

i. Future challenges? (interviews)

ii. Preparations?

iii.Predictions?

a. sustainability

b. ranching

c. community

IV. Summary