2012-2013 AGA Annual Report

IMPACTING the BEEF BUSINESS

2012-2013 American Gelbvieh Association Annual Report

FORWARD

The focus during the past year has been the direct result of the plan jointly developed in the summer of 2012 by the American Gelbvieh Association’s membership, board and staff. The AGA’s Impacting the Beef BusinessTM (IBB) long-range strategic plan provides the goals and time lines to assure that Gelbvieh and Balancer® breeders are provided the selection, promotional and educational tools needed in today’s rapidly changing beef industry.

The breed improvement goals targeted for 2013 in the IBB strategic plan this past year were accomplished. Research EPDs for heifer pregnancy, 30-month

pregnancy, and feed efficiency were developed. Great progress was made in the creation of a maternal index, which will be most valuable as we continue the number one IBB goal of “owning maternal.” After tremendous support by the AGA membership and effort by the staff, the first Gelbvieh and Balancer genomic-enhanced EPDs were developed and will be officially launched in January 2014.

There has been a continued focus on breed promotion, with the goal of increasing our reach by

5 percent per year over the next three years. This past year saw a six percent increase in circulation of the advertising inserts, reaching more than 383,000 beef producers. Circulation for our breed publications, Gelbvieh World and The Profit Picture, increased more than 4 percent to almost 128,000 magazines distributed. Plus, visits to the AGA website increased by an impressive 14 percent and views on the AGA YouTube channel were up over 71 percent.

None of the accomplishments this past year would have been possible without the financial resources provided by the AGA membership. With great enthusiasm, we look forward to even more progress in expanding the relevance of Gelbvieh and Balancer in the years to come.

Expanding RelevanceBy Dr. Jim Gibb, American Gelbvieh Association Executive Director

TABLE OF CONTENTSBreed Improvement | Owning Maternal ................................................................................................................................. 2-3Breed Promotion | Crossbreeding is Smart and Easy ....................................................................................................... 4-5Youth Development | Building Leaders through the AGJA ................................................................................................ 6-7Communications | Source of Information ............................................................................................................................... 8-9American Gelbvieh Foundation | Investing in the Future ..............................................................................................10-11Consolidated Financial Statements ......................................................................................................................................12-16Strategic Plan | Impacting the Beef Business ......................................................................................................................17

2013 American Gelbvieh Association Board of Directors: Front row (left to right) Bob Prosser, Winslow, Ariz.; Secretary Brian Dunn, St. John, Kan.; President Rob Arnold, Minot, N.D.; Vice President Dan Warner, Beaver City, Neb.; Treasurer Neal Pearson, Lake City, S.D.; Ronnie Rogers, Mendon, Mo.; and Ken Flikkema, Bozeman, Mont. Back row (left to right) Gary Tilghman, Glasgow, Ky.; Grant Thayer, Ramah, Colo.; Bob Hart, Kansas City, Kan.; Duane Strider, Asheboro, N.C.; John Huston, New Carlisle, Ohio; Andy LeDoux, Agenda, Kan.; Scott Starr, Stapleton, Neb.; and David Martin, Judsonia, Ark.

ProgressBy Rob Arnold, American Gelbvieh Association President

We operate in a very dynamic business and it’s up to us to keep pace if we are going to remain relevant in the beef business. We could probably sit and debate all day long whether change is good or bad, but the real question is “Are we making progress?”

The American Gelbvieh Association has seen success in recent years. Herd assessments numbers have grown in the past two years. New AGA members have increased by 36 percent in the last four years. There continues to be new buyers of Gelbvieh and Balancer® genetics and sale averages remain very strong.

The Impacting the Beef BusinessTM long-range strategic plan, developed in 2012, serves as our road map. The strategic plan identifies those core points that will keep the Association and the breed industry relevant. The plan sets goals and priorities for the three segments of our business – breed improvement, breed promotion, member education.

The strategic plan has helped to

keep the board and staff focused on clear objectives that were defined by membership. Many of the goals identified within the plan are being completed. The strategic plan will be revisited and updated on an annual basis to ensure we stay relevant in the beef business.

The Board of Directors are proud of the many projects initiated and completed during this past year. Membership should be equally proud that this progress has been for the benefit of AGA members and their commercial customers.

2 | 2013-2014 ANNUAL REPORT

BREED IMPROVEMENT

The national cow herd will expand or at least stabilize in the near future. By focusing on the breed improvement goals of the American Gelbvieh Association’s strategic plan, Gelbvieh and Balancer® breeders will be better positioned to take advantage of market opportunities.

The AGA’s role in breed improvement is to convert the data members collect and submit to information so you can provide enhanced genetics to your customers, enabling them to produce more pounds of better beef to our ultimate consumers. It takes data to own maternal. Exposure dates, pregnancy status, reporting all calves and dispersal codes are very important. As well, ultrasound data is essential to improve marbling. Breed Improvement Projects:• The AGA National Cattle Evaluation was moved to

a new service provider, the American Simmental Association. This move enables the AGA to be on the same base as ASA and the Red Angus Association of America, which means EPDs for

growth and carcass traits, can be directly compared, simplifying breeding decisions for members and commercial producers.

• Heifer pregnancy and 30-month pregnancy EPD prototypes completed. These selection tools allow for the quantification of Gelbvieh and Balancer cattle’s ability to own maternal traits.

• The first production run of AGA feed efficiency EPDs was conducted, allowing members to further select for feed efficiency in their herds.

• A prototype EPD for mature weight was developed, enabling members to monitor mature cow size in their herds.

• To assist members in the selection for continued udder quality in their herds, a research EPD for udder soundness was released.

• A prototype for a maternal index was completed. This index defines a cow’s contribution to the system as a whole.

Owning Maternal

AMERICAN GELBVIEH ASSOCIATION | 3

• Through Board of Directors action, a breed improvement oversight committee was formed with the purpose of reviewing new breed improvement projects such as the maternal index.

• The completion of the Genomic Pioneers research project led to the unveiling of genomic-enhanced EPDs posted in a research mode, with the release of GE EPDs across the entire population following shortly thereafter.

• A new module was added to the AGA registry system allowing members a more efficient way to monitor genetic testing on their animals.

2012-2013 Animal Registrations


BREED PROMOTION

2012-2013 AGA Statisticss 105 new AGA members

s 11,101 animal transfers

s$1,062,217 in herd assessment revenue

s 84% of bull transfers went to commercial producers

s 37% of all bull transfers went to new commercial producers

The American Gelbvieh Association’s national promotion campaign uses a multi-media approach of five forms of media: print, web, video, words and visual. Promotion is different than advertising. Promotion is the broader, all inclusive term. Advertising is just one specific action you could take to promote your product or service. Promotion, as a general term, includes all the ways available to make a product and/or service known to and purchased by customers and clients.

The AGA national promotion campaign increases awareness of the many benefits of Gelbvieh,

Balancer® and crossbreeding. AGA members play a role in these efforts by advertising their own programs and sales and by providing cattlemen and women with quality Gelbvieh and Balancer bulls and replacement females.

One of the key principles of the AGA’s Impacting the Beef BusinessTM long-range strategic plan is to promote Gelbvieh, Balancer and crossbreeding merits to the commercial cow-calf and feedlot sectors by increasing promotion reach by five percent per year for the next three years. The message communicated revolved around the strengths

of the breed: maternal traits, stayability, mature cow size, early puberty, and the ease of use of Gelbvieh and Balancer in a crossbreeding system. At the close

Crossbreeding is Smart and Easy


of the 2012-2013 fiscal year, the expectations for the strategic plan goal were exceeded.

Reach refers to the total number of people who were exposed to, at least once, a message through any form of media during a given period of time. Combining all the promotion efforts for the 2012-

2013 year, the AGA expanded its promotion reach by more than 20 percent on average; some outlets

such as YouTube views were 71 percent greater.

Combined Breed Promotion Efforts 2012-2013 Fiscal Year Budget

Crossbreeding is Smart and Easy with Gelbvieh and Balancer®

2012-2013 Breed Promotion Statisticss 362,000 national

advertising insert circulation

s 113,754 website visits

s 10,475 YouTube views

s 13,249 minutes watched on YouTube


YOUTH DEVELOPMENT

The American Gelbvieh Junior Association is in its 39th year of existence. Established in 1974, AGJA has grown into an integral part of the American Gelbvieh Association. AGJA prepares members not only for a strong future within the breed and as AGA members, but it also strives to fulfill its vision to unify, educate, and develop leaders of the beef industry.

The American Gelbvieh Junior Association serves approximately 495 members throughout the United States and is governed by a 10 member Board of Directors. Membership is open to any youth who has not reached their 22nd birthday by January 1 of

the current year. Members age 8 through 21, as of January 1, are eligible to compete in AGJA shows and contests.

AGJA activities, awards and events are sponsored by the support of AGA members and friends. Through various fundraisers and activities, AGA members have risen to the occasion to provide AGJA members with the best there is to offer. Much thanks is owed to each individual who supports efforts of the AGJA. Because of that continued support, our members have opportunities and experiences that contribute to AGJA’s reputation for building strong industry leaders. AGJA is

thankful for the commitment of AGA members and friends.

This year proved to be an outstanding year for AGJA with successful programs, shows and outreach to youth:• AGJA Donation Heifer Raffle:

The Association’s annual and largest fundraiser, raised more than $12,000 thanks to the hard work of AGJA members and support of Gelbvieh breeders and friends. Rippe Gelbvieh continued their deep commitment to AGJA by donating the heifer.

• Regional Shows: The AGJA Western Regional was held in Columbus, Kan., while the

Building Leaders through the AGJA


AGJA Eastern Regional was held in Waynesville, N.C.

• Junior Classic: The Minnesota Gelbvieh Junior Association hosted a very memorable and successful AGJA Northern Lights Classic in Rochester, Minn. More than 150 AGJA members from 16 states exhibited 253 head.

• New Contests: Two new contests were added to the Junior Classic, skill-a-thon and premier bred and owned award. The skill-a-thon contest was developed by the AGJA Board of Directors as a way to promote the aspects of the AGA’s long range strategic plan and encourages AGJA members to learn the importance and techniques to record keeping within the AGA herdbook. The premier bred and owned award honors an AGJA member for their achievements and goals within their own herd. The award consists of an application, interview and achievements in the show held during the junior classic.

• Scholarships: Eight AGJA scholarships totaling $7,000 were awarded in conjunction

with the American Gelbvieh Foundation throughout 2013.

• National FFA Convention: AGJA participated in the Livestock Education Center at the 86th National FFA Convention Career Show. Vocational agricultural instructors received a CD with classroom materials including Gelbvieh breed history, fact sheets, photos, the AGJA showing cattle brochure and more.

Connection between AGJA active members at the time of Junior Classic and number of head shown at Junior Classic


Established in 1986, Gelbvieh World completed its 27th volume in 2013. As the official publication of the American Gelbvieh Association, Gelbvieh World has a circulation of more than 5,000 Gelbvieh and Balancer® seedstock breeders and commercial customers using Gelbvieh genetics.

This year Gelbvieh World unveiled a new look to the magazine. The redesign welcomes readers into the magazine and makes a more pleasurable reading experience. The new design strives to achieve a clean, fresh, simple yet professional look. Color was added and the font size for editorial content was increased.

The Profit Picture publication is AGA’s commercially-focused tabloid newspaper published in February and October, in place of Gelbvieh World. The Profit Picture has an extended mailing list including more than 40,000 commercial producers and Gelbvieh seedstock breeders. Editorial content is focused on issues important to the commercial cow-calf producer.

Surveys have indicated that members use the AGA publications as their number one source of information. Keeping this in mind, the focus of the communications staff is to continue to provide quality editorial.

Gelbvieh Media Productions (GMP) is a member services entity of the communications

COMMUNICATIONS

May 2013 FFF www.GELBVIEH.org July 2013 FFF www.GELBVIEH.org FFF Herd Reference Edition

2012-2013 Communication Statisticss 127,991 publications

distributed

s 406 pages of advertising

s 204 full color ads

s $264,130 of advertising revenue

s 77 GELBVIEH SALES email blasts sent

s $25,998 of Gelbvieh Media Productions revenue

Source of Information


department. GMP offers professional marketing and design services to AGA members and state associations. Services have grown since GMP’s inception in July of 2011, and with that, GMP revenue has increased eight-fold to a total revenue of $25,998 at the close of the 2013 fiscal year.

July 2013 FFF www.GELBVIEH.org FFF Herd Reference Edition August 2013 FFF www.GELBVIEH.org September 2013 FFF www.GELBVIEH.org FFF Junior Feature

October 2013 | www.GELBVIEH.org

In this Issue:

Ranching in Tough Country - Cedar Top and Spade Ranches

Over the Fence with John Schroeder

Mining Up an Old Topic to Help Improve Your Production - Mineral Nutrition

A Fitting Transition: Cow-Calf to Seedstock

Profitability in the Beef Business

Continued on page 6

PRSRT STDU.S. Postage

PAIDColumbia MO Permit No. 353

American Gelbvieh Association10900 Dover StreetWestminster, CO 80021

Using Genetics to Get More Efficient – Selecting to Improve Efficiency

MATURE COW WEIGHT and lactation potential play a key role in determining annual nutrient requirements for cows. Increasing average cow mature weights from 1,000 pounds to 1,400 pounds, approximately the change we’ve observed over the last 30 years, increased nutrient requirements by 27 percent. Increasing lactation potential from 10 pounds to 30 pounds per day, at peak, results in a 16 percent increase in nutrient requirements. These increases in potential have the opportunity to be associated with increases in output, but they also have the potential to undermine a cows fitness in a given production environment.

The associated change in maintenance requirement due to mature weight change is distinctly different from the change increased weight has on maintenance energy or metabolic efficiency. Metabolic rate does not scale linearly with mass or

weight. Instead, it increases exponentially by the ¾ power. Thus, warm blooded animals with larger mass are more metabolically efficient than ones of small mass. The principle reason for these phenomena is relationship between surface area of the animal and it’s mass. Large animals have less surface area per unit o f mass enabling them to conserve heat more effectively. So, large cows are more efficient users of maintenance energy but have higher requirements.

The key then is finding cows with appropriate levels of mature weight and lactation potential (or biological type) for your production environment. Note that managerial (i.e. reducing supplemental feedstuffs) or environmental (i.e. drought) changes that alter nutrient availability may substantially change the fitness of your existing cows. Care should be taken in sire selection for production of replacement

Growth and lactation potential affect ME efficiency and ME requirements. Increases in mature weight and lactation drive up maintenance requirements. Optimization of growth and lactation genetics, and ultimately profitability, requires understanding the marginal revenues and marginal costs associated with these attributes. By Dr. Bob Weaber

November 2013 FFF www.GELBVIEH.org December 2013 FFF www.GELBVIEH.org

Gelbvieh World and GMP Combined Net Revenue

Design Services

Email Marketing

Marketing Plans


AMERICAN GELBVIEH FOUNDATION

Since its formation in 1991, the American Gelbvieh Foundation has been focused on the future of Gelbvieh, working to pave the way for valuable research projects while supporting Gelbvieh youth with a future within the breed.

This spring, the Foundation Board of Directors took momentous action by establishing an aggressive goal for the Foundation, to grow the Foundation by 100 percent, from $61,581 to $123,162 by 2015. To prepare for that significant step the Foundation engaged the services of a consultant, Virgil Scott, CFRE, a certified fund raising executive. Mr. Scott has begun working with the AGA staff and Foundation Board of Directors to lay the groundwork for the development and growth

of the Foundation. At the end of the fiscal year in 2013, the American Gelbvieh Foundation held a balance of $79,741.43.Scholarships and Research

The Foundation has continued its mission to support research and education. In 2013, $7,000 in scholarships were awarded to eight deserving members of the American Gelbvieh Junior Association. Investments to the Foundation by AGA members and existing funds make these scholarships possible.

Former scholarship recipient and current Ph. D. student, Staci DeGeer says, “AGJA scholarships and the American Gelbvieh Foundation have been a huge blessing to me. Scholarships are becoming increasingly important as the cost of tuition,

books, and housing continues to rise. AGJA scholarships helped relieve financial burden and made me proud to be part of an organization that values not only its young members, but also the education of those members.”

Grace Hammer of Wallace, Kan., another past AGJA scholarship recipient and current AGJA president adds, “AGJA scholarships have been an important part of my education and have helped me to pursue a career in agriculture. They have encouraged me to be a leader on the local, state, and national level as well as become an active part in advocating for the Gelbvieh breed and beef industry.”

Further, through the investments to the Foundation made by AGA members in the

Investing in the Future


“The American Gelbvieh Foundation is dedicated to Gelbvieh genetics, merit advancement, and strengthening the breed influence within the changing beef

industry. This will be accomplished through breed promotion, growing the demand for Gelbvieh genetics, member education, research and junior support.”

Foundation Growth

Genomic Pioneers initiative, members will have the power of soon-to-be released genomic-enhanced EPDs.

The Foundation is thankful for the support of the many AGA members who have contributed to the success and mission of the Foundation. The Foundation exists to improve Gelbvieh and Balancer® genetics and strengthen the breed influence within the changing beef industry. Through the Foundation, the AGA can support research projects and educational programs that will solidify the breed’s continued progress and success.

Contact the American Gelbvieh Foundation staff liaison Dana Stewart to explore the many options to invest in the success and future of the Gelbvieh.


CONSOLIDATED FINANCIAL STATEMENTS

Independent Auditor’s ReportBoard of DirectorsAmerican Gelbvieh Associationa.k.a. AGAWestminster, Colorado

I have audited the accompanying consolidated statements of American Gelbvieh Association, a.k.a. AGA, (a nonprofit organization), which comprise the statements of financial position as of September 30, 2013 and 2012, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.Opinion

In my opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Gelbvieh Association as of September 30, 2013 and 2012, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

November 21, 2013Robert C. Loewen, P.C.Certified Public Accountant


Consolidated Statements of Financial Position - Assets Years ending September 30

2013 2012CURRENT ASSETS Cash and cash equivalents $ 839,315 865,332 Total cash, cash equivalents 839,315 65,332Accounts Receivable – Trade, net of allowance for Doubtful accounts of $3,000 52,924 39,221Other current assets – Origination Fee – Net of Amortization 430 1,465 Supplies Inventory 3,059 3,661 Prepaid expenses 5,737 3,646 Total other current assets 9,226 8,772 Total current assets 901,465 913,325PROPERTY AND EQUIPMENT, at cost Land, building and improvements 445,611 445,611 Office equipment 134,511 123,571Office Furniture 66,147 66,147 646,269 635,329 Less accumulated depreciation - (371,196) (354,547) Net property and equipment 275,073 280,782

Total assets $ 1,176,538 $ 1,194,107

LIABILITIES AND NET ASSETSCURRENT LIABILITIES Accounts payable – trade $ 6,981 $ 35,580 Customer deposits 1,150 9,446 Accrued expenses 12,134 33,459 Deferred one-rate registration 300,000 300,000 Deferred subscriptions – Gelbvieh World 0 2,385 Deferred Income – other 9,492 9,492 Total current liabilities 329,757 390,362NET ASSETS Unrestricted Net Assets Unappropriated 767,040 697,763 Temporarily Restricted Net Assets American Gelbvieh Foundation 79,741 105,982 Total net assets 846,781 803,745

Total liabilities and net assets $ 1,176,538 $ 1,194,107


CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Activities

Unrestricted Net Assets: 2013 2012REVENUE Registration Income $ 1,062,217 59.72% $ 1,007,159 61.80% Transfer Income and miscellaneous 16,834 .94 35,386 2.17 Total registration revenue 1,079,051 60.66% 1,042,545 63.97% Gelbvieh World revenue 332,921 18.72% 308,058 18.90%Other revenue – Dues and assessments 95,844 5.39 98,968 6.07 Data services income 13,200 .74 12,350 .76 DNA income 127,195 7.15 14,578 .90 Junior Association income 72,443 4.07 69,362 4.26 Sale items income 2,711 .16 2,398 .15 Rental income 26,110 1.47 25,505 1.57 Investment earnings 1,309 .07 1,286 .07 Net assets released from restrictions 28,025 1.57 54,532 3.35 Total other revenue 366,837 20.62 278,979 17.13 Total revenue 1,778,809 100.00% 1,629,582 100.00%GENERAL AND ADMINISTRATIVE EXPENSES Activities expense 41,976 2.36 35,491 2.17% Administrative expense 825,014 46.38 788,564 48.40 DNA expense 105,281 5.92 8,560 .52 Facilities expense 70,365 3.96 62,610 3.84 Miscellaneous expense 67,236 3.78 62,091 3.81 Junior Association expense 62,720 3.53 59,698 3.66 Promotional expense 130,380 7.33 98,281 6.03 Cost of sale items sold 4,074 .23 2,467 .15 Travel and entertainment 94,151 5.29 93,290 5.76 Publication expenses – Gelbvieh World 161,250 9.06 137,943 8.46 Administrative expenses – Gelbvieh World 147,085 8.27 127,135 7.80 Administrative expenses $ 1,709,532 96.11% $ 1,476,130 90.60% Net Increase in unrestricted Net assets from activities 69,277 3.89 153,452 9.40%

Temporarily Restricted Net Asset: American Gelbvieh Foundation Investment earnings $ 174 $ 210 Contribution income 1,590 73,681 Net assets released from restrictions (28,025) (54,532)(Decrease) Increase in Temporarily Restricted Net Assets (26,241) 19,359

Change in Net Assets $ 43,036 $ 172,811


BALANCE AT SEPTEMBER 30, 2011 $ 544,311 $ 86,623 $ 630,934

UNRESTRICTED NET ASSETSTotal Support and net assets released From restrictions 1,629,582 0 1,629,582Total unrestricted expenses (1,476,130) 0 (1,476,130)Increase in unrestricted net assets 153,452 0 153,452

TEMPORARILY RESTRICTED NET ASSETSIncrease in temporarily Restricted net assets 0 19,359 19,359

CHANGE IN NET ASSETS 153,452 19,359 172,811

BALANCE AT SEPTEMBER 30, 2012 $ 697,763 105,982 803,745

UNRESTRICTED NET ASSETSTotal Support and net assets released From restrictions 1,778,809 0 1,778,809Total unrestricted expenses (1,709,532) 0 1,709,532 Increase in unrestricted net assets 69,277 0 69,277

TEMPORARILY RESTRICTED NET ASSETSDecrease in temporarily restricted net assets 0 (26,241) (26,241)

CHANGE IN NET ASSETS 69,277 (26,241) 43,036

BALANCE AT SEPTEMBER 30, 2013 $ 767,040 $ 79,741 $ 846,781

Consolidated Statements of Changes to Net AssetsYears ending September 30, 2013 and 2012

Temporarily Unrestricted Restricted Total Net Assets Net Assets Net Assets


CONSOLIDATED FINANCIAL STATEMENTSConsolidated Statements of Changes to Net Assets

Years ending September 30 2013 2012CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets 43,036 $ 172,811 Adjustments to reconcile excess revenue over expenses to net cash provided by operating activities – Depreciation & Amortization 17,684 108,307 (Increase) Decrease in current assets Trade accounts receivable (13,703) 314 Supplies Inventory 602 (626) Prepaid expenses (2,091) 1,619 Increase (Decrease) in current liabilities – Trade accounts payable (28,599) 18,147 Customer deposits (8,296) (1,016) Accrued expenses (21,325) 819 Deferred registrations 0 89,000 Deferred income, other 0 (3,010) Deferred subscriptions and advertising – Gelbvieh World (2,385) (9,542) Net cash (used) provided by operating activities (15,077) 376,823CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (10,940) (58,069) Net cash (used) by investing activities (10,940) (58,069)NET (DECREASE) INCREASE IN CASH (26,017) 318,754CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 865,332 546,578CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 839,315 $ 865,332


STRATEGIC PLAN

Breed Improvement“Own maternal efficiency and stay between the guardrails for all other traits.”

High Priority Goals 1. Develop reliable tools to monitor traits for maternal efficiency2. Improve Gelbvieh marbling to 60% Choice3. Implement genomic-enhanced EPD’s4. Develop feed efficiency EPDs5. Tenderness: Decrease breed average WBSF by .40 lbs.

Additional Goals1. Monitor growth – Communicate the importance of excelling in weaning and yearling weight and provide tools for benchmarking progress2. Monitor foot soundness: Develop and implement foot scoring system and EPDs3. Monitor temperament: Develop and implement temperament EPDs

Breed Promotion “Celebrate our strengths while we improve our weaknesses.”

1. Promote Gelbvieh, Balancer® and crossbreeding merits to the commercial cow-calf and feedlot sectors by increasing promotion reach by five percent per year for the next three years2. Develop a commercial marketing program3. Promote Gelbvieh and Balancer® to potential new seedstock breeders with the goal of increasing total AGA members by two percent annually for the next three years4. Increase transfer rate to 45 percent of the animals registered

Member EducationMember involvement in the strategic plan goals is crucial to the success of the American Gelbvieh Association and the Gelbvieh breed.

1. Communicate the strategic plan to stakeholders within the AGA2. Conduct regional meetings and webinars3. Post information on Gelbvieh website to allow members continued access to the plan goals and progress4. Develop member education efforts to help facilitate implementation of goals outlined within in the strategic plan5. Upgrade AGA online data entry and information system to provide more meaningful herd improvement and marketing tools6. Grow the American Gelbvieh Foundation by 100 percent by 2015

Impacting the Beef BusinessTM

AMERICAN GELBVIEH ASSOCIATION | 10900 DOVER ST. | WESTMINSTER, CO | WWW.GELBVIEH.ORG

The American Gelbvieh Association is dedicated to its mission of “Recording,

promoting and improving Gelbvieh cattle.”

Documents

2012-2013 AGA Annual Report