U.S. Premium Beef, LLC

PLEASE NOTE: Please view the "August 3, 2023 Trading Services Operations Manual for U.S. Premium Beef" for updated information on caps for transaction fees.

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Formed in 1996, U.S. Premium Beef, LLC (USPB) is an integrated cattle production, processing and marketing company which provides U.S. beef producers an opportunity to retain ownership of the beef they produce, from the ranch to retail. It is owned by beef producers who produce high quality cattle that are processed into value-added beef products, which are designed to meet consumers' demands.

USPB unitholders and associates market finished beef cattle on a value-based grid through National Beef Packing Co., LLC (National Beef), one of the largest beef processing companies in the United States. National Beef, of which USPB is a minority owner, develops and markets value-added and branded beef products, including Black Canyon® Angus Beef, NatureSource® Natural Angus Beef, Certified Angus Beef® and Certified Hereford Beef®. It has an international reputation for quality and reliability.

National Beef owns National Carriers, Inc., a refrigerated and livestock transportation company that provides transportation services for NBP and third parties. National Beef also owns The Kansas City Steak Company, LLC (Kansas City Steak) and National Beef Leathers, LLC (NBP Leathers). Kansas City Steak is a portion control steak cutting operation, which sells portioned beef and other products directly to customers in the food service and retail channels as well as direct to consumers through the internet, direct mail and the QVC shopping network. NBP Leathers operates a wet blue tanning facility that sells processed hides to tanners that produce finished leathers for the automotive, luxury goods, apparel and furniture industries. Wet blue tanning refers to the first step in processing raw and brine-cured hides into tanned leather.

USPB unitholders share in the financial results of National Beef. As a result, the more profitable National Beef is, the greater the opportunity for our unitholders to receive cash distributions from USPB. This provides a direct economic incentive to produce high quality beef for National Beef's consumer markets.

 

 

·        All producers who market their cattle through USPB must first become an Associate, which costs $100.

·        Any quantity of Class A units may be purchased. Anyone owning 1 (one) or more Class A units is a unitholder. Anyone owning 100 or more Class A Units is a Member.

·        Buyers of Class A’s will have the right and obligation to deliver one head per unit owned during the delivery year described above, and in each future delivery year, as long as the unit is owned.

·        Seller will be required to pay a Transaction Fee to Variable Investment Advisors, Inc., which is 1.75% of the total purchase price.

·        Please refer to the U.S. Premium Beef, LLC Limited Liability Company Agreement for further details on unit ownership.

·        All producers who market their cattle through USPB must first become an Associate, which costs $100.

·        Any quantity of Class A units may be purchased. Anyone owning 1 (one) or more Class A units is a unitholder. Anyone owning 100 or more Class A Units is a Member.

·        Buyers of Class A’s will have the right and obligation to deliver one head per unit owned during the delivery year described above, and in each future delivery year, as long as the unit is owned.

·        Seller will be required to pay a Transaction Fee to Variable Investment Advisors, Inc., which is 1.75% of the total purchase price.

·        Please refer to the U.S. Premium Beef, LLC Limited Liability Company Agreement for further details on unit ownership.

·         Any quantity of Class B units may be purchased. Anyone owning 1 (one) or more Class B units is a unitholder. Anyone owning 100 or more Class B Units is a Member.

·        To become an owner of Class B units, an Application for Class B Membership, which costs $100, will need to be submitted.

·        Seller will be required to pay a Transaction Fee to Variable Investment Advisors, Inc., which is 1.75% of the total purchase price.

·        Class B units, unlike Class A units, do not provide delivery rights for finished cattle.

·        Please refer to the U.S. Premium Beef, LLC Limited Liability Company Agreement for further details on unit ownership.