COLORADO HOMESTEAD RANCHES
Colorado Homestead Ranches (CHR) is a cooperative of ranches that have organized
to raise, process, and sell their free-range beef at various local sites throughout the Western
foot of the Colorado Rockies. CHR currently sells primal beef cuts to over 750 local
customers, several area restaurants, at weekly farmer’s markets in the resort communities of
Aspen and Glenwood Springs, and most recently, from their retail storefront in Paonia,
Colorado, Homestead Market. Over the past five years, the business has sustained a 20%
growth rate.
CHR began in 1996 with a harvest of 16 animals and has steadily increased that number to 84
in 1997, 88 in 1998, 94 in 1999, 103 in 2000, 140 in 2001and 180 in 2002. Consistent,
manageable growth is the result of determination and a managerial commitment on the part of
each producer, cooperation among the producers and clearly defined production objectives.
CHR’s primary mission is to increase the share of its producers’ cattle herds that are
processed and marketed through CHR activities.
CHR has established itself as a premier beef producer and marketer, as well as a loyal,
community citizen and steward. CHR takes pride in the fact that all cattle are born and raised
on family-owned operations, then fed on the open range until they are finished in a small,
non-commercial feedlot maintained on one of the five ranches. With such care invested in
raising quality stock, limiting exposure to stress and reducing susceptibility to disease, CHR
is able to eliminate the use of all feedlot antibiotics and hormones in order to provide an all-
natural product, something of utmost importance to the consumer.
Full carcass utilization to improve profitability is the most recent emphasis of CHR
marketing activities. Primal cuts were traditionally priced higher and had a higher profit
margin than the chuck and ground beef portions of the carcass. While the chuck and ground
beef portions of the carcass were priced lower than the primal cuts, they were not selling as
quickly. A few years ago CHR began a business venture of producing processed meats
(bratwurst, polish sausage, meat sticks, jerky, and summer sausage) from the lower valued
beef cuts. In the first year of processed meat sales, the company’s income increased by
$11,000. The success of these products inspired the producers to expand their product lines to
include more value-added products. More recently, Colorado Homestead Ranches chose to
explore the market for ready-to-eat beef entrees. CHR’s direct marketing efforts and
innovative value added products have increased the success and profitability of the company
as a whole.
The group’s venture into slightly processed meats (bratwurst, polish sausage, meat sticks,
jerky and summer sausage) and ready-to-eat entrees fueled interest in developing a more
stable, direct marketing venue. Thus, CHR opened up Homestead Market in Paonia,
Colorado in May 2002 for daily sales of all CHR product lines, in addition to meat, dairy,
fruit, vegetable and lightly processed products from other Colorado value-added producers.
These product and marketing developments have increased the company’s sales. So far in