Internal Factors

Available Processing Capacity - The Company experienced a devastating fire at the Processing Plant in November 1997. The entire first processing area was destroyed. A new and expanded, modern designed building replaced the destroyed structure. The new modern facility has new (1998) equipment including a high- speed evisceration system. This system is designed to operate at speeds up to 140 birds per minute. The Company presently operates one shift for first processing. The facility can accommodate considerably more production, more than twice its current production.

High-Profile Customers - Because of an excellent reputation the Company has a following of consumers who value premium products.

Diversified Customer Base - There are no customer concentrations. The company has many hundreds of active customers divided into retail food stores (60%), and food service accounts (40%).

Value-Added Products - The Company has developed a premium boneless, skinless breast product. It is marketed in retail tray packs with our own printed over wrap film. A complete line of retail tray packaged products is offered in this printed film. Food service customers can also choose from a marinated product line.

Operational Factors

Reputation for Quality - A strong emphasis on quality control begins at the hatchery. A bio-security program produces stronger and healthier chicks. The feed program uses only pre-tested grains for the feed ingredients. The farmers provide excellent care to the growing chickens. The processing plant uses modern equipment to thoroughly process a wholesome poultry product.

Technological Development - Most of the operational systems in the processing plant are computer monitored. The hatchery has all setters and hatchers linked to a computerized monitoring and control system.

Management in Place - An experienced and trained management and supervisory team handles day-to-day operations with a well-trained workforce that ensures quality fresh chicken products that meet the standards set by the Company.

Brand Name Recognition - The Gerber Poultry name is recognized as a top quality product in the Ohio marketplace. The Company has developed a loyal following in this regional market. One reason for this recognition is the consistency of quality products and service produced by the company for over 40 years.

Reliable Service - The Company's customers can depend on receiving regular deliveries and having their orders properly filled with various poultry products as ordered. A fleet of, twenty-two foot, refrigerated delivery trucks distribute the poultry products to the customers Monday through Saturday.

Employee Tenure/Expertise - Many of the Company's key employees have been employed for over 7 years. Most promotions are filled from within the Company's employee base. Many have attended U S Poultry workshops and seminars to gain additional knowledge about the poultry industry. As the Company has grown, the Gerber Family has sought to build an operational infrastructure that would free them up to perform those functions that place them closer to the customers. Customer service is vital to the operation, which is what keeps Gerber Poultry’s products at a premium. While the family still oversees the entire operation, they have, over the years, allowed a "Management Team" to assume responsibility for executing the operational plans of the Company. In combination with other supervisory personnel in the Company, the "Management Team" leads a group of people that is fully capable of taking the Company to the next level of growth and prosperity.

External Factors

Industry Trends - The chicken industry continues to achieve growing consumer acceptance as a product of choice. New products and suggested uses of chicken continue to gain consumer approval. Retail market promotions continue to feature various chicken products.

Recession Resistance (Market Variances) - The chicken and poultry market in general is influenced by supply and demand. Factors that affect this are production increases and/or decreases, exports, the availability of competing protein supplies, and the seasonal demand for chicken products. Grain costs are the major factor regarding costs of producing chicken.