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030517 Dakota Beef Goes Global with Organic Beef

May 16, 2003

Chicago - The Dakota Beef Company announced the signing of an exclusive commercial agreement with the Canadian Organic Livestock Association (COLA) to provide a steady supply of certified organic beef to the European Union. The company has also contracted with a leading British-based engineering company, FJB Systems to meet EU beef importation standards. Dakota Beef plans to begin processing COLA beef in September 2003 for distribution in the EU.

"North American certified organic beef is a natural for the EU market, which has refused to accept hormone-treated beef from the US for more than a decade," stated Scott Lively, CEO of Dakota Beef LLC. Dakota Beef decided to partner with COLA due to the limited supply of certified organic beef available in the United States. According to a study released in September 2002 by the Economic Research Service of the United States Department of Agriculture, because US meat products could not be labeled organic until February 1999, the move to organic beef production has lagged behind other agricultural products. As a result, less than one percent of livestock in the US is currently certified organic.

"This is a perfect time and an exciting opportunity to illustrate to cattle producers in the US that they can improve profits by moving to certified organic production," Scott added. There are two goals for this program. First, Mr. Lively intends to use the revenue generated from the COLA agreement to increase the number of certified organic beef suppliers in the US, while also creating a stronger market for them in the US.

COLA is the world's largest organic livestock association. "This additional outlet will benefit our members as they realize higher margins and a different market for their beef," said COLA's President, Sam Rhode. "We are very excited about our new relationship with Dakota Beef."

Dakota Beef Company is a fully integrated beef processing company providing private label Organic and Natural beef for retail and food service industry sale. Additional information can be found at www.dakotabeefcompany.com .

The primary purpose of COLA, based in Saskatchewan, Ontario, Canada, is to promote the organic livestock industry and develop marketing opportunities and structures for the benefit of its producer members.

FJB Systems is a food technology engineering company providing design and project management services worldwide for the production and transportation of all types of meat products. As a leader in the food production industry, FJB Systems has assisted companies to meet USDA and EU regulations for more than a decade

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