More than a decade ago, CoBank provided funding for the creation of U.S. Premium Beef, a unique marketing company that allows American cattle ranchers to retain ownership of the beef they produce from ranch to plate. 

Today, U.S. Premium Beef, through its ownership in National Beef, is one of the nation’s leading marketers of beef to American consumers. It's also one of our Corporate Agribusiness customers.

“CoBank’s been an integral part of our success over the years, allowing us to sustain what we’re doing and look at growth opportunities,” Chief Executive Officer Steve Hunt said. “We couldn’t do it without a lender that understands our industry and shares our vision of aligning beef producers all the way through to consumers.”

It’s an important banking relationship that extends through U.S. Premium Beef’s various brands and lines of business. In 2010, CoBank provided a major syndicated loan to National Beef, one of the nation’s leading beef processing companies. U.S. Premium Beef has a controlling stake in National Beef; both companies are headquartered in Kansas City.

The two companies have seen solid financial performance over the last few years, thanks to an integrated business model that has helped insulate them from volatility in the commodities market and the recent economic downturn. Additionally, demand for beef and beef byproducts was strong overseas throughout 2010 and has been improving domestically. Working capital from CoBank gives U.S. Premium Beef and National Beef the financial flexibility to seize market opportunities, whether that’s selling steaks to national restaurant chains or delivering hides to the Italian leather industry.

Tim Klein, president of National Beef, values CoBank’s industry knowledge and financial capacity.

“We’re very bullish on our industry,” Klein said. “The U.S. is the only place on earth where you can produce high-quality cattle in any volume, and it is going to play a key role in meeting growing international demand. It gives us a lot of confidence to know we’ve got a partner like CoBank that will stand behind us through all business cycles and give us the opportunity to grow.”