Conexus’s focus is on cows and calves.
Beef cattle represent a significant portion of live animal agriculture in the United States. However, contrary to the popular imagination the industry is largely comprised of small operations. Today there are over 725,000 cattle ranches in the United States with an average herd size of slightly over 40 cows/ranch. The top 25 domestic beef cow operations, as reported by the National Cattlemen’s Beef Association, represent less than 1% of the total domestic production base of 29 million head.
Conexus Cattle - beef cattle production using a 21st century shared economy model
Conexus is establishing itself as one of the leading beef cow operations in the United States on the basis of a shared economic model that provides regular and stable cash flow to contract Cattlemen (landowners). Conexus will benefit from economies of scale, efficiencies and operating leverage, not typically available to the traditional cattle producer. Further, Conexus will largely limit its use of financial leverage to the financing of its highly liquid inventory, the cattle themselves, without bearing the capital cost of land acquisition and ownership.
Many of America’s traditional cattle producers raise cattle as part of their rural life style and to supplement their income. Conexus’s consolidation plan offers these cattlemen an opportunity to deleverage through the sale of the animals to Conexus while also entering into a contract to care for the cattle on their property for a fee. The cattlemen will continue to have cattle on their property, preserving their way of life, while greatly reducing the operating burden and cash flow issues associated with a small operation in exchange for a stable stream of income.
Conexus’s geographic focus is the central & southern states of; Kentucky, Tennessee, Virginia, Missouri, Kansas, Arkansas, northern Mississippi, northern Alabama, eastern OK, east Texas, southern Indiana and southern Illinois, with initial emphasis in: Kentucky, Tennessee, Virginia and southern Indiana These areas have a significant density of ranches that fit the company’s herd size criteria lend themselves to establishment of multiple large scale production units. This geographic area also has consistently good levels of precipitation as well as grassland that will support a relatively high density of animals/acre.