USPB Dividends Up,
Stock Up As Well

KANSAS CITY — U.S. Premium Beef Ltd., a U.S. producer-owned beef marketing company, recently announced that the company's patronage dividends for fiscal year 1999 were $10,079,267. On a per-head basis, it totaled $17.99.

"We are very encouraged by the financial results our company achieved during our first full year of operations," says Steve Hunt, USPB CEO. "This was a year in which most segments of the beef industry realized some level of increased profitability, including beef processors. As members and owners of the industry's only large-scale integrated beef system, we are in a unique position to capture profitability from the pasture to the dinner plate."

USPB owns Farmland National Beef Packing Company, the nation's fourth largest beef processor, in partnership with Farmland Industries.

"Through USPB our producers now realize the value of selling meat and meals instead of cattle."

USPB also paid out more than $7.7 million in premiums to its members over its quality-based grid during the fiscal year which ended August 28.

Combined with the total patronage dividend of $17.99 per head, USPB members who delivered cattle and received the average fiscal 1999 grid premium of $13.87 per head, earned approximately 58 percent return on their $55 per share investment. Members whose cattle were in the top 25 percent of USPB cattle during fiscal 1999 earned a $35.79 average premium on the company's approximately 98 percent return on their $55 per share investment.

In addition, USPB stock has increased in value over the last year. Originally at $55 share, it has recently traded for $80 per share.

USPB has producer ownership from every segment of the beef industry. More than 950 producers from 28 states have marketed their cattle though USPB since the company was formed in December 1997. Members' cattle go into several branded products, including Farmland Black Angus Beef, Farmland Certified Premium Beef and Certified Angus Beef. In addition, USPB member cattle are also being marketed direct to consumers through Kansas City Steak Company, a high quality, portion control and mail order company, which Farmland National Beef purchased in 1998.