Opinions and Philosophies of a Self Made Dairyman Pete Gelber Barrington Dairies Montezuma, Georgia

Agenda     

Life History, influences Buying Bankrupt Dairies Economic and life philosophies Opinions on labor Visions for the Future

A Different Childhood

A Positive Experience • • • • • • •

Great parents Catholic School Education Fear of drugs Hustle and getting with the beat A chance to be mischievous Comfortable with all races of people Dealing with intimidation

Bronx Decision Making

Messages from Mom and Pop

•Don’t argue with a crazy

person or a drunk

•Life wasn’t meant to be fair •It’s a sin to be grouchy •When judging people look

through their mother’s eyes

•Life should be a celebration

How I learned to Milk a Cow From the New York Subway •My first dairy experience age 10 •Degree from Cornell University 1982 •Built a small herd of cows in NY •1990 Began working up the ladder at Alliance Dairies in Florida •Promoted one disaster at a time to Dairy Manager •1997 issued phantom stock in new purchased bankrupt dairy •2007 General Manager and 10% partner in GA dairies •2013 Owner of Barrington Dairies but rents land from partners

A 25 Year Friendship • • • • • • Evolving Relationship Boss, mentor Shared core values and business principles Best Friends Potential to Proven Ask permission to beg forgiveness Send the Profit and Loss

Why Was I Invited to Queretaro?

• • •

Started with a dream Owner of a 9,000 cow dairy Perceived strengths 1. Vision and Culture Changer 2. Economic Decision making 3. Enthusiastic Motivator of Labor 4. Fun and not very serious

Buying a Distressed Company

Look Before Leaping • • • • • • •

Insurmountable problems Environmental hazards, Land ,FacilityLimitations Feed availability Economic advantage Priced fairly Does it cash flow?

Why Montezuma?

Barrington History • • • • • • Irish Investors @1986 National Attention 1990 financial problems Southern Plantations Progressive Dairies New Milk Inc.

• • • • • • 1997purchased first smaller dairy Great initial success through 2001 2002 Purchased other unit (Barrington) 2002-2006 struggles Move to GA or sell out 2007 –present high profits

Common Flaws on Failing Dairies • • • • • • • • • •

Problem Reproduction Lameness Leftover feed Silo management Dry cow nutrition Dead calves Crop quality and yield No maintenance program Cow comfort EPA issues

• • • • • •

Economic Ramification Feed costs, production High cull rate Heifer growers, high costs Poor crops/ high feed cost EPA fines and sanctions Lots of cap ex

Turning a dairy into a winner

No one plans to fail • • • • • • • • Infusion of energy and enthusiasm Set the vision Change the culture Correct cash flow Set priorities Field a team Stick up for what is right Rome was not built in a day

Where to Start?