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Fritz Ranch Case Study

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The Fritz Ranch is in Potter Valley, California. The ranch has been in the family since 1898. The land owned by the Fritz family runs 4,129 acres. The Fritz Ranch has been a family run operation for 118 years. The cow-calf operation was set up in 1898 by Anthony J. Fritz with 2 cows and has been expanding slowly over the years. The Fritz Ranch decided to start moving towards an organic cow-calf operation in 2005. This would allow them to reduce the number of cows on the ranch to take care of, but increase the profit they made.
The Fritz Ranch runs an organic cow-calf operation that runs on an 800-acre of their land (Harper et al, 2). The operation produces, slaughters, packages and markets a final beef product during an 18-month cycle (Harper et al, 1). The cows are usually bred during late winter through early spring, or November
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This means the operation is selling to a niche market. The ranch can increase the price they sell at compared to other cow-calf operations. Since many consumers are not completely informed about the differences between organic and conventionally raised beef, the demand for organically raised beef has increase. Since the Fritz Ranch is a small cow-calf operation, they mostly do business in the Potter Valley area. Most their final product goes to the local retailers in the area. If the price of beef in the United States increases or decreases, then this will affect the supply of beef of the Fritz Ranch. Global changes in the in the beef industry will not affect the ranch that much, since most of their business is local. Change of policies about organic cattle farms could have a significant impact on the profit of the ranch. Depending on the changes made to organic compliance polices, the Fritz Ranch may profit or shutdown. Since the Fritz Ranch is a small-time operation, any change in policy would significantly change how the operation
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