PRESS RELEASE
March 7, 2005
Beefnet, an internet cash commodity exchange, announced today the formation of a partnership with Union Ganadera
Regional de Chihuahua. The Union, a cattle association located in Chihuahua, Mexico, plans to market Mexican producer cattle over the Internet using the Beefnet Exchange. The State of Chihuahua and its beef breeders have a proud tradition of producing high quality cattle.
The complex world of purchasing cattle in Mexico has forever frustrated U.S. buyers. The development of the Internet and the ability to trade directly with the cattle owners will mean major improvements for both buyers and sellers. A centralized marketplace will allow the best buyer to find the best seller resulting in improved pricing for both. Lower transactions cost created by the electronic exchange will complete the package delivering better prices and lower costs. “We have combined click and buy trading with electronic settlement and clearing on the financial side”, said David Huseman, Beefnet technical designer. “The Beefnet site allows Members to match trades for the purchase of cattle and when delivery occurs, to transparently watch the money flow after the parties have agreed to the final settlement”.
The selling format will be regularly scheduled Internet auctions to be hosted on the Beefnet web site. The trading fee will be $6/head with buyer and seller paying $3 each. Not only does the low commission structure, by any industry standards, drive out cost, but also savings from innovative electronic settlement and clearing services will allow both buyers and sellers to focus on the transaction without time consuming and costly back office paperwork.
“From the click of a mouse to make the purchase to the e-confirm purchase contract, transparency and efficiency will rule”, said Beefnet developer, Bill O’Brien. “U.S. buyers expect to receive what is represented to them and we have built a trading platform to assure purchases meet those expectations.”
“Our Mexican producers want a competitive market for their cattle and the centralized marketplace developed by Beefnet presents the future for livestock marketing”, said Bilo Wallace, association President.
Membership in Beefnet will be free. All Members agree to be bound by the terms and conditions of sale posted on the web site. Sign up for Membership is available on the web site at www.beefnet.org as well as additional information on the Exchange.
Those interested in additional press information should contact Beefnet or the Union de Ganadera
Regional de Chihuahua.
Beefnet:
Bill O'Brien
806.372.3877 ext: 104
who@beefnet.org
Union de Ganadera Regional de Chihuahua:
Jorge Estrada
52.614.434.0151
jaestrada@ugrch.org
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