Due to the volatile nature of the cattle markets, we have continued to broaden our contact base among industry professionals in this industry. Our desire is to create a solid network of contacts that can assist us in relating both real market fundamentals and market hype to our customers price risk management needs. In addition, however, we also want to have a better general understanding of potential breakeven levels for cow-calf producers, and margin operators producing both feeder and fat cattle. And finally, we want to be able to quickly assess the number of cattle exposed to price risk, determine the best price management strategy. We feel that Giles Enterprises will allow us to make these contacts and decisions in a more efficient manner.
Therefore, we subscribe to the services of Giles Enterprises, LLC to provide us with another valuable resource in the area of cattle marketing and management. Kelly Giles, owner and consultant, has the experience to look at the full integrated nature of beef cattle production management and marketing. We have access, then, to unique insights into the retail sales, beef processing, cattle feeding, procurement, genetics, animal health and nutrition aspects of the business. This fully integrated view allows us to develop a more informed price risk management plan for our customers producing beef. These plans include the estimation of breakeven prices, evaluation of cash marketing alternatives, and futures and/or options recommendations based on possible hedging needs.
