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|Articles - February 2011|
|Thursday, January 27, 2011|
BY PETER BELAND // PHOTOS BY RANDY JOHNSON
Mounted firmly on a cowhide sofa in his log cabin home overlooking the rolling hills near Fossil, Mehrten Homer, president of Painted Hills Natural Beef, is watching a late-season Beavers game. The phone rings and he turns down the TV. Dressed in a pressed cowboy shirt and jeans, he picks up the phone and speaks swiftly into the receiver, not wasting a breath as he arranges a money transfer to one of his producers. Never mind that Mehrten oversees an operation with 30,000 head of cattle and more than $30 million in revenue, formal business meetings aren’t needed when a phone call will do. “We trade millions of dollars this way,” the fourth-generation rancher says, not without a satisfied look.
For years Mehrten, 65, and his wife, Glenda, 63, ranched like most ranchers have for decades: They raised cattle and sold them to a broker who then sold them to a processor. Though they raised choice-grade Angus, “When you sell cattle to a broker, they get sent to a feed lot and get mixed up with lower-grade cattle,” says Glenda, who is the general manager.
Governed by a commodity market in which the value of calves had increased little from the 1960s to the 1990s, they were selling their calves at a meager 60 cents a pound when in 1996 the Homers and six other Fossil-area ranchers pooled their resources and started Painted Hills in an effort to shake off the middlemen.
They planned to control all aspects of their business; to raise, process and market their grass-fed, corn-finished cattle raised without antibiotics or hormones. And they would ask a premium price for their beef. With the help of a grant from the governor’s reserve fund, they hired an analyst to identify markets where they could sell their beef. “It was a mess, just a mess,” says Glenda with a weary laugh. After six months, the grant ran out and Mehrten and Glenda hopped in their car and drove across the Northwest to build relationships with market owners and ranchers. Despite their efforts, after four years they were $425,000 in the red. “We told ourselves we’d lose [another] $25,000 and call it good,” Mehrten says.
Painted Hills was processing 10 head of cattle a month in the early years, losing money because it didn’t process enough to make it economical and because it didn’t get money for offal, the non-meat parts of the cow. In 1999 the company approached Washington Beef (now AB Foods) in Toppenish, Wash., to get a better processing deal, but the plant told them they needed to provide at least 60 head of cattle a month to make it work. Once again, Mehrten and Glenda got in their car and drove off, this time to Seattle to convince market chain Associated Grocers to sell their beef. Washington Beef gave them the green light to process more cattle and that month they lost less money. Six months later they were making money.
“We gotta try this again,” Mehrten remembers saying. And so they jumped in the car again and again to convince more ranchers to join. Glenda would drive out to where she could get cell phone service to jot down orders when the office landline was out.
Painted Hills now processes about 2,000 head of cattle a month and is paid for its offal. The increase in production was the result of getting enough ranches — 80 to date —and consumers on board with the idea of natural beef, a task that took years of educating both groups about Painted Hills' natural, all-vegetarian feeding program. Fifteen years later, Painted Hills’ network of small markets and ranchers, forged over handshakes and coffee, is paying off. Now playing the role of producer, broker and marketer, Painted Hills is able to weather changes in the volatile commodity market.
Mehrten and Glenda can relax a bit more while their son, Will (the operations manager), and other family members take over major portions of the company’s management. Those cowhide sofas are comfy.
Yet even with their loyal network of ranchers and buyers and their aggressive drive to find new markets on the East Coast and elsewhere, Mehrten does not entirely rest.
“We’ve gotta hell of a lot of beef and there’s only so many days,” Mehrten says, his booming voice tinged with something that almost sounds like regret.
Tuesday, August 26, 2014
BY DEBRA RINGOLD | OP-ED CONTRIBUTOR
Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?
Tuesday, July 01, 2014
BY HANNAH WALLACE | OB BLOGGER
Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.
Wednesday, August 13, 2014
BY TOM COX | OB BLOGGER
When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”
Friday, August 22, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
When business intersects with family, a host of situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.
Monday, July 14, 2014
BY TERRY "STARBUCKER" ST. MARIE
I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Wednesday, August 20, 2014
By Kim Moore | OB Editor
The 2015 survey launched this week. It is open to for-profit private and public companies that have at least 15 full- or part-time employees in Oregon.
|The Private 150: Bigger But Leaner|
|The Perfect Food|
|Powerlist: Staffing Firms|
|Taxis Uber Alles?|
|Google tests drone deliveries|
|Abercrombie to remove logos from most clothing|
|FBI investigates JPMorgan 'cyber-attack'|
|GoPro launches camera dog harnesses|
|Snapchat now worth $10B|
|Tomatoes may lower prostate cancer risk|
|WHO: Ban e-cigarette use indoors|
Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Lane Powell Shareholder William T. Patton has been appointed to the board of directors for Cascade AIDS Project, an organization that provides educational services and outreach to thousands of Oregonians living with HIV/AIDS.
Fifty-one Lane Powell lawyers were recently selected by their peers for inclusion in The Best Lawyers in America® (Best Lawyers) 2015; of those selected, 23 lawyers are from the Firm’s office in Portland, Oregon.
Barran Liebman is proud to announce that Andrew Schpak, a Partner of the firm, has been named Chair of the American Bar Association’s Young Lawyers Division for the 2014-2015 bar year.