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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.
Wednesday, October 22, 2014
BY AMY MILSHTEIN
Everyone knows college is expensive, but a look at the numbers brings that into sharp — and painful — focus.
Thursday, December 18, 2014
BY MEGHAN NOLT
VIDEO: Under the radar — complete with a soda counter, the traditional Paulsen's Pharmacy looks to compete with big box retailers.
Thursday, November 20, 2014
BY OB STAFF
Farmers, grocery stores and food processors cash in on kale.
Tuesday, December 09, 2014
BY LINDA BAKER
On the eve of the Portland Ad Federation's Rosey Awards, Matt Anderson, CEO of Struck, talks about the transition from creative director to CEO, the Portland talent pool and whether data is the new black in the creative services sector.
Thursday, December 11, 2014
There’s a fascinating article in the December issue of the Harvard Business Review about a profound power shift taking place in business and society. It’s a long read, but the gist revolves around the tension between “old power” and “new power” as a driver of transformation. Here’s an excerpt:
The authors, Henry Timms and Jeremy Heimans, don’t necessarily favor one form of power over another but merely outline how power is transitioning, and how companies can take advantage of these changes to strengthen their positions in the marketplace.
Our Powerbook issue might be viewed as a case study in the new-power transition. This annual book of lists provides information on leading businesses, nonprofits and universities in the state. Most of the featured companies are entrenched power players now pursuing more flexible and less hierarchical approaches to doing business. Law firms, for example, are adopting new technologies and fee structures to make legal services more accessible and affordable.
This month we also take a look at a controversial new U.S. Securities and Exchange Commission rule requiring public companies to disclose the median pay of workers, as well as the ratio between CEO and median-worker pay.
Part of the 2010 Dodd-Frank financial reform law, the rule will compel public companies to be more open about employee compensation, with the assumption that greater transparency will improve corporate performance and, perhaps, help address one of the major challenges of our time: income inequality.
New power is not only about strategy and tactics, the Harvard Business Review authors say. “The ultimate questions are ethical. The big question is whether new power can genuinely serve the common good and confront society’s most intractable problems.”
That sounds like a call to arms. Or a New Year’s resolution. Old power or new, the goals are the same: to be a force for positive change in the world. Happy 2015!
Saturday, December 13, 2014
The president of LaPorte & Associates lets us in on his day-to-day life.
Thursday, November 20, 2014
BY JASON NORRIS | OB CONTRIBUTOR
Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).
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Amy will practice in the firm's Business, Real Estate, and Tax practice groups.
While the Bend City Council ultimately upheld the approval which enables OSU-Cascades to move forward with the 10 acre site, it did also thoughtfully consider the nature of its code requirements, resident concerns and OSU-Cascade’s efforts and suggestions and crafted conditions of approval to address potential impacts of the site in the area.