|| Print ||
|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.
Friday, January 23, 2015
BY KIM MOORE | OB RESEARCH EDITOR
Carbon pricing is gaining momentum in Oregon, sparking concern for energy-intensive businesses — but also opportunity to expand a homespun green economy.
Friday, February 27, 2015
VIDEO: 2015 100 Best Companies to work for in Oregon
Monday, January 26, 2015
BY AMY MILSHTEIN | PHOTOS BY JASON E. KAPLAN
The Jade International District, already Portland's center of Asian life, is poised for rejuvenation. Where does that leave the westside's historic Chinatown?
Wednesday, February 18, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
NBA commissioner: "I would love to end up having an All-Star Game in Portland. It's really just a function of ensuring that we can fit in town."
Tuesday, January 27, 2015
Smartwatches are all the rage. But old-fashioned timepieces keep on ticking.
Tuesday, January 20, 2015
BY LINDA BAKER | OB EDITOR
A place-based multimodal transportation plan for Mt. Hood is long overdue.
Thursday, January 22, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
They say maintaining a healthy marriage takes work. So does running a business with your spouse.
Real Time - Oregon Business
Tweets by @OregonBusiness
|The 100 Best Companies to Work For in Oregon|
|Help Wanted: Poached Jobs aids restaurateurs |
|On the Brink|
|How Oregon will survive the loss of Hanjin|
|Thy neighbor's house|
|How a Utah-based essential oils company cornered the Oregon market|
|Green Rush: Cashing in on legal marijuana|
|SeaWorld aims to alter marketing strategy|
|Herbalife stock falls after forecast cut|
|Target reports $2.6B loss in 4Q after closing Canadian holdings|
|Jury: Apple must pay $529.9M to settle patent case|
|Study finds many retire earlier than they expected|
|Rhetoric heats up ahead of net-neutrality vote|
|Google readies to fight Apple Pay|
Generations of students and graduates have been plagued by the question: What is my true calling in life? Four alumni from Corban University’s Hoff School of Business who graduated in different decades say the school helped them find the answer by giving them a practical, well-rounded education.
It’s happening whether anyone’s ready or not. Businesses here in Oregon and across the U.S. are already experiencing the effects of the largest generational shift in recent history, and these changing tides will impact every level of the workplace — from a company’s executive leadership to its cultural core.
Success stories spotlight meaningful career opportunities in Oregon's diverse and lucrative tourism industry.
The Firm was recognized for the strength of its case matters during 2014, including precedents set or verdicts with notable high dollar amounts at stake.
The Oregon Chapter of the Society for Marketing Professional Services, will be hosting it’s Annual Dinner and Keynote event on March 12, 2015. The evening promises to be memorable, with this years Keynote, Christine McKinley.
Lane Powell will team with Oregon Business magazine for a half-day seminar titled “Best Practices For Best Employers™: How to Become One of ‘Oregon’s Best Workplaces’ Starting Today!”