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Bill Kurtis’s Tallgrass Beef Not In Tall Cotton

Tough Market For Socially Conscious Cows

Bill Kurtis has been fined just shy of $403,000 by the USDA for failure to pay suppliers of his “troubled” Tallgrass Beef Company.
“The past few years have not been easy for Mr. Kurtis, who started Tallgrass Beef Company in 2005,” Crain’s reports.
“The Sedan, Kansas-based company that supplies grass-fed, grass-finished beef to upscale Chicago-area restaurants such as Harry Caray’s, Frontera Grill and Prairie Grass Cafe, has long struggled as a small player in a big industry, and Mr. Kurtis, Tallgrass’ chairman, says the recession made matters worse.
“In 2010, several of his suppliers filed a complaint against Tallgrass for non-payment. Now he’s reached a negotiated settlement with the USDA and says he’s pleased he’s closer to putting this chapter behind him and keeping his business alive.”


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Background from the Tallgrass website:
“Founded in 2005 by broadcast journalist Bill Kurtis, Tallgrass Beef Company is the industry leader in the production of grass-fed, grass-finished beef in the United States. After purchasing his 10,000 acre ranch near the town of Sedan, Kansas, Kurtis was compelled to find a sustainable method of raising cattle that was not only good for the environment, but also the animals themselves and the American food consumer. This was the genesis of Tallgrass Beef Company.
“Today Tallgrass Beef Company is comprised of a network of family farmers and ranchers across the United States that produce grass-fed, grass-finished cattle according to a strict set of protocols. These stringent standards ensure that food consumers are buying the safest, healthiest, most nutritious beef possible. Tallgrass Beef is a favorite among consumers seeking a healthy, humane source of beef.
“In addition to being available for purchase by consumers online, Tallgrass Beef became the first grass-fed, grass-finished product served in many of Chicago’s finest restaurants, with a roster of clients featuring James Beard Award Winning chefs Rick Bayless (owner of Chicago’s Frontera Grill, Topolobampo, and XOCO restaurants), Charlie Trotter, George Bumbaris and Sarah Stegner. Harry Caray’s, Praire Grass Cafe, Frontera Grill, and Topolobombo serve Tallgrass. The brand has expanded to the West Coast where Tallgrass Beef is available in San Diego, Los Angeles, San Francisco and Seattle. Tallgrass Beef products are also available in select grocery stores, including Sunset Foods and Fox and Obel in Chicago; Fairway Markets in New York; and Sendik’s Markets in Milwaukee.
“Much like the cattlemen of the old west, Bill Kurtis started Tallgrass Beef with a vision of a healthy, sustainable, delicious beef source for the American consumer. With a steady annual growth rate and a loyal customer following, Tallgrass Beef Company provides customers with a sustainable alternative to traditionally raised and processed beef.”
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From the company’s Wikipedia entry:
“Tallgrass’ production process involves scientists employed by the company searching the United States for cattle whose genetics naturally causes the animal to fatten quickly and tenderly on grass. Beef producers have no databank of DNA with which to compare their findings, and so Tallgrass scientists use ultrasound technology to determine the tenderness of its potential herds. The company philosophy places a greater emphasis on the quality of production than the feedlot system.”
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Unfortunately, Tallgrass has had a problem paying its suppliers.
“On Oct. 23, USDA’S Grain, Inspection, Packers and Stockyards Administration (GIPSA) assessed Tallgrass a $402,816 civil penalty as part of a consent decision requiring it to ‘cease and desist’ from: ‘failing to pay, when due, the full purchase price of livestock; engaging in the business of a packer when its financial condition does not meet the requirements of the Packers and Stockyards Act; and engaging in the business of a packer without maintaining a bond or bond equivalent,'” Crain’s reports.
“According to documents from [a] 2010 hearing, as of Nov. 30, 2009, Tallgrass owed close to four dozen livestock sellers a total of $1.6 million. At the time, the company reported liabilities of $4.5 million and assets totaling $1.3 million.
“As a result of the 2010 hearing, and following several continuances, Tallgrass worked out a payment plan that has been monitored by GIPSA, so that the amount owed the livestock producers has decreased from $1.6 million to the $352,000. The latest ruling sets December 31, 2013 as the deadline for paying the suppliers, plus a $50,000 fine.”
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“When this happened, everyone advised me to declare bankruptcy,” Kurtis told Crain’s, “but I didn’t want to do that and I’m proud of the decision.”
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How BH Capital helped, from last May:

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A couple cows speak.

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Off the local news soon.
“Two years ago, CBS 2 management asked me and Walter to return to WBBM-TV and help re-establish Channel 2’s news,” Kurtis said in a statement. “While we are well on our way, our return was never intended to last more than a couple of years. Come 2013, I need more time to focus on my other businesses.”
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Adding:


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Comments welcome.

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Posted on December 18, 2012