Jeff and Kara Smith lead Colorado Craft Beef, a direct-to-consumer beef company that integrates sustainability with tradition in the heart of Colorado’s northeastern plains.
Kara Smith’s great-great-grandfather journeyed from Kansas and settled in the rich, high grass of the Plains on the promise of the Enlarged Homestead Act of 1917. Jeff and Kara, deeply rooted in this land, settled a half mile from the original homestead, developing a company founded on delivering high-quality beef nationwide while adhering to sustainable practices and ethical animal treatment.
“I’m not sure there is as much emphasis put on the legacy side of the business as there is the legacy of the ground and what we’ve been doing for generations,” Kara told WLJ. “Thinking from a legacy business perspective, that’s why we branched off to do something a little bit different with Colorado Craft Beef, moving it in the business route of something that goes out of the commodity space.”
Kara said a conversation with her father—who buys calves, weans them and sells them as yearlings, an art that cannot be taught—inspired her to shift from a commodity space to a create-and-capture-value model. The couple’s combined expertise in agriculture, business and marketing allowed them to establish a strong foundation for the company.
Jeff’s upbringing around agriculture influenced his journey into the beef industry. After graduating from Colorado State University with a major in agriculture business, Jeff recognized the differences between agricultural business and general business, particularly in financial management, technology and strategy.
Jeff’s career took him across multiple states and continents, including Europe and South America, giving him a unique perspective on various agricultural markets, such as peanuts, hops and different protein sectors. Eventually, Jeff transitioned to focusing on the beef industry. He left his position in Iowa to work for a private equity group in Denver, serving as their agricultural subject matter expert. This role involved bridging the gap between finance, business management and the practical realities of agricultural production.
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“I learned to see business in a different way,” Jeff told WLJ, “Where to zoom in and zoom out and understand a critical path in a way that a lot of production ag doesn’t see.”
Kara pursued her passion for ranching and the Western lifestyle, earning a degree in animal science at Texas Tech University and further specializing with a master’s degree in ruminant nutrition from West Texas A&M University. Her career took her into the animal health sector, where she worked on Beef Quality Assurance programs at the University of Idaho.
With a decade of experience in animal health, Kara attended numerous meetings across the country. She often found herself as one of the few millennials in rooms dominated by older generations, discussing the challenge of transitioning the cattle industry from baby boomers to millennials. This experience highlighted the need for fresh perspectives to reshape the industry internally and from a consumer standpoint.
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Kara also spent time in the corporate world but had a pivotal moment after moving back closer to the ranch and starting to run yearlings of her own. She recalled the realization of the capital-intensive nature of cattle farming, and how after months of hard work and meticulous calculations, she discovered their profitability hinged solely on their trades rather than actual cattle sales. This eye-opening experience led her to question the business viability of traditional cattle farming, prompting her and Jeff to consider alternative approaches that balance legacy, lifestyle and financial sustainability.
The company
Colorado Craft Beef was founded in 2017 as a separate entity from the ranching operations and began shipping nationwide in 2018. In 2022, they started their own feedyard and, after a couple of years of negotiations and an investment round, purchased Mike’s Meat Market in Sterling, CO, to do their processing.
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Kara manages the cattle and oversees the branding for the company. She developed a comprehensive marketing strategy that included social media campaigns, content creation and direct customer engagement.
Jeff oversees the finances and employee management as CEO of Colorado Craft Beef’s holding company. Together, they leverage their complementary skillsets to ensure the success of their business.
“The best way to describe it is, I’m three inches deep and 10 miles wide with my experience, and Kara is three miles deep and 10 inches wide because she’s damn good with cattle,” Jeff said. “So, we have a very complementary set of skills, but they are very different, so they work together very well.”
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With their combined expertise, the company has effectively communicated its values and connected with consumers who shared their commitment to ethical and sustainable food production.
“We believe in educating consumers about where their food comes from and the efforts of those who produce it,” Kara said. “It’s part of our company ethos. When Jeff and I embarked on this journey, we made a commitment not to vilify any part of agriculture. Instead, we aim to contribute positively to feeding the world in a unique way, fostering a deeper connection with our customers. In our marketing approach, we see our consumers as heroes and ourselves as guides, much like Yoda and Luke Skywalker—a perspective that defines our brand.”
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Jeff explained the intricacies of marketing as more than just ad spend—it’s about meeting customers’ diverse needs across operations and finance. He emphasized the importance of offering products at price points and quantities that appeal to buyers beyond traditional cuts like halves and quarters. Jeff stressed the significance of delivering quality cuts that match customer expectations, even educating them on steak anatomy to enhance their dining experience. By adapting to consumer demands and refining their offerings, Jeff aims to build lasting connections with customers.
Advice for the ag community
The Smiths believe in the power of community and the importance of helping others within the industry succeed. By fostering a culture of collaboration rather than competition, they contribute to the overall health and sustainability of the beef industry. ​
In discussing the agriculture community’s dynamics, Jeff reflected on cooperation and fragmentation among peers who are also competitors. He advocates for local, direct-to-consumer models but acknowledges their financial and operational limitations on a broader scale. Jeff underscores the resilience and independence of the agricultural sector, yet he highlights the challenges posed by its fragmented nature, which complicates business operations despite its inherent strengths.
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Jeff, known as the financial mind in their operation, expressed concern over a common issue in agriculture: the sunk cost fallacy. He observes that many in the industry neglect to value their time or manage their economics effectively, viewing certain expenditures as inevitable losses. This mindset, Jeff argues, undermines agricultural profitability across the board. He illustrates with a practical example involving beef sales, where decisions on pricing and product distribution significantly impact profitability. Jeff emphasizes the importance of rigorous financial scrutiny and self-assessment, akin to how an investor would evaluate a business. Despite its challenges, he believes that adopting this disciplined approach is crucial for sustainability in agriculture, where profitability must align with maintaining cherished ways of life and legacies.
Kara advises aspiring direct-to-consumer beef producers to thoroughly assess their operation and resources, considering both natural assets and human skills. Highlighting her and Jeff’s complementary skill sets as an advantage, she emphasizes the importance of engaging with the public and mastering marketing strategies. Kara acknowledges the unique challenges of entering the beef market amidst consolidation by major packers, stressing the need for realistic expectations and a clear understanding of the distinct business model involved. She encourages prospective entrepreneurs to recognize their value to consumers and differentiate their approach from traditional agricultural practices.
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“The mindset is very different going from a cow-calf level to the end product,” Kara said. “It’s more business-minded, business-oriented versus lifestyle and the way of life. I would say to the cow-calf producer you are in the beef business, not just the ranching business, and that is the kind of mindset and hat they should wear.”
