----

 **UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

**(Mark one)**

| x | **  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES EXCHANGE ACT OF 1934**

**  For the quarterly period ended	November 26, 2005** |
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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**  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT OF 1934**

**  For the transition period from	________ to _________.**
        
**Commissionfile number 333-115164**

**U.S. PREMIUM BEEF, LLC***(Exact name of registrant as specified in its charter)*

**DELAWARE**

**20-1576986**

**(State  or other jurisdiction of	incorporation  or organization)**

**(I.R.S.  employer	identification  number)**

**12200  North Ambassador Drive Kansas  City****, MO 64163****(Addressof principal executive offices)**

**Telephone:(866) 877-2525(Registrant'stelephone number, including area code)**

Indicate by checkmark whether the registrant (1) has filed all reports required to be filedby Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. Yes xNo o

Indicate by checkmark whether the registrant is an accelerated filer (as defined inRule 12b-2 of the Exchange Act). Yes o No x

Indicateby check mark whether the registrant is a shell company (as defined inRule 12b-2 of the Exchange Act). Yes o No x

The Registrant'sequity is not traded on an exchange or in any public market.  As of January 3,  2006, there were 691,845 Class A units and 691,845 Class B unitsoutstanding.     

 

 

**TABLE OF CONTENTS**

 

**PART I.**

**FINANCIAL INFORMATION**

**Page No.**
 
Item 1.

Financial Statements.

1
 
Item 2.

Management's  Discussion and Analysis of Financial Condition 	and Results of Operations.

9
 
Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

13
 
Item 4.

Controls and Procedures.

15
  
**PART II.**

**OTHER INFORMATION**
 
Item 1.

Legal Proceedings.

15
 
Item 1A.

Risk Factors

15
 
Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

15
 
Item 3.

Defaults Upon Senior Securities.

15
 
Item 4.

Submission of Matters to a Vote of Security Holders.

15
 
Item 5.

Other Information.

16
 
Item 6.

Exhibits.        

16
 
Signatures.

17

Unless the context indicates orotherwise requires, the terms "the Company", "we", "our" and "us" refer to U.S.Premium Beef, LLC (formerly known as U.S. Premium Beef, Ltd.) and itsconsolidated subsidiaries. As used in this report, the term "NBP" refers toNational Beef Packing Company, LLC (formerly known as Farmland National BeefPacking Company, LP), a Delaware limited liability company, and "USPB" refersto U.S. Premium Beef, LLC (formerly known U.S. Premium Beef, Ltd.) prior toconsolidation. 

 

 

iii

**PART I.  FINANCIAL INFORMATION**

**Item 1.  Financial Statements**

 

 

 

 

 

 

 

 

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1

**U.S. PREMIUM BEEF, LLC AND SUBSIDIARIES****Consolidated Balance Sheets**(in thousands) 
             **November 26,**  **August 27,**  **Assets**   **2005**  **2005**      
**(unaudited)**    Current assets:             Cash and cash equivalents  $47,884  $54,428       Accounts receivable, less allowance for returns and doubtful accounts       of			$3,852 and $3,903 in fiscal years 2006 and 2005, respectively 170,041   170,854       Due from affiliates   2,567   2,979       Other receivables   3,577   3,385     			Inventory   98,691   85,426       Other current assets   10,962   9,920   Total current assets   333,722   326,992  Property, plant and equipment, at cost   267,382   258,493       Less accumulated depreciation   (49,249)  (43,331)  Net property, plant and equipment  218,133   215,162  Goodwill    78,858   78,858  Other intangible assets, net of accumulated amortization            of $3,738 and $3,335 in fiscal years 2006 and 2005, respectively 28,023   28,426  Other assets   5,900   6,710   Total assets  $664,636  $656,148             **Liabilities and Capital Shares and Equities**      Current liabilities:             Current installments of long-term debt $1,808  $1,030       Cattle purchases payable   64,805   54,394       Accounts payable   46,372   42,514       Due to affiliates   616   1,533       Accrued compensation and benefits  17,387   22,168       Accrued insurance   14,050   15,528       Other accrued expenses and liabilities  13,156   9,389       Distributions payable   286   1,865   Total current liabilities   158,480   148,421  Long-term liabilities:             Long-term debt, excluding current installments  325,896   313,998       Other liabilities   4,744   4,738   Total long-term liabilities   330,640   318,736   Total liabilities   489,120   467,157  Minority interest in National Beef Packing Company and Kansas City Steak, LLC 59,112   64,971  Capital shares and equities:             Members' capital, 691,845 Class A units and 691,845 Class B units       authorized, issued and outstanding  65,726   73,343       Patronage notices   50,642   50,642       Accumulated other comprehensive income  36   35   Total capital shares and equities  116,404   124,020   Total liabilities and capital shares and equities $664,636  $656,148            See accompanying notes to consolidated financial statements.      
 

 

2

**U.S. PREMIUM BEEF, LLC AND SUBSIDIARIESConsolidated Statements of Operations(in thousands, except per unit data)**
 **13 weeks ended** **13 weeks ended** **November 26, 2005** **November 27, 2004** **(unaudited)** **(unaudited)**    Net sales$1,095,738  $1,050,720        Costs and expenses:           Cost of sales 1,084,545   1,034,189       Selling, general and administrative expenses 9,390   8,633       Depreciation and amortization 6,595   6,038                 Total costs and expenses 1,100,530   1,048,860                    Operating (loss) income (4,792)  1,860        Other income (expense):           Interest income 258   145       Interest expense (7,373)  (7,213)      Minority owner's interest in net loss              of National Beef Packing Co., LLC 5,606   2,382       Minority owners' interest in net income              of Kansas City Steak, LLC (14)  (54)      Equity in loss of aLF Ventures, LLC (47)  (122)      Interest rate exchange agreement -   78       Other, net 504   480                   Loss before taxes (5,858)  (2,444)      Income tax expense (543)  (538)                  Net loss$(6,401) $(2,982)            Net loss per Class A and Class B linked unit:           Basic$(9.25) $(4.31)      Diluted$(9.25) $(4.31)       Outstanding weighted-average Class A and Class B linked units:           Basic 691,845  691,845       Diluted 691,845  691,845        See accompanying notes to consolidated financial statements.     
 

3

 

**U.S. PREMIUM BEEF, LLC AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands) **
 **13 weeks ended** **13 weeks ended**  **November 26,	2005** **November 27, 2004**  **(unaudited)** **(unaudited)** Cash flows from operating activities:            Net loss$(6,401) $(2,982)       Adjustments to reconcile net loss to net cash provided by / (used in) operating activities:               Depreciation and amortization 6,595   6,038           Gain on disposal of property, plant and equipment (83)  (102)          Minority interest (5,592)  (2,328)          Interest rate exchange agreement -   (78)          Changes in assets and liabilities:                  Accounts receivable 813   15,526              Due from affiliates 412   1,155              Other receivables (192)  1,593              Inventories (13,265)  9,603              Other assets (232)  (1,478)             Accounts payable 2,766   (1,414)             Due to affiliates (917)  (63)             Accrued compensation and benefits (4,781)  (4,775)             Accrued insurance (1,478)  1,387              Other accrued expenses and liabilities 3,773   3,602              Cattle purchases payable 6,197   10,246                 Net cash (used in) / provided by operating activities (12,385)  35,930  Cash flows from investing activities:            Capital expenditures, including interest capitalized (4,988)  (5,170)       Proceeds from sale of property, plant and equipment 250   519           Net cash used in investing activities (4,738)  (4,651) Cash flows from financing activities:            Net receipts (payments) under revolving credit lines 8,800   (17,694)       Payments of notes payable and fees (257)  (260)       Repayments of capital lease obligation (209)  (39)       Change in overdraft balances 5,306   (6,270)       Distributions to minority interest owners in National Beef Packing Co. (1,865)  (2,296)       Member distributions (1,197)  -                 Net cash provided by / (used in) financing activities 10,578   (26,559)       Effect of exchange rate changes on cash 1   16                 Net (decrease) increase in cash (6,544)  4,736  Cash and cash equivalents at beginning of the period 54,428   43,611  Cash and cash equivalents at end of the period$47,884  $48,347  Supplemental disclosures:            Cash paid during the period for interest$2,746  $2,493        Cash paid during the period for taxes, net$81  $7          Supplemental non-cash disclosures:         Assets acquired through capital lease$4,342  $-         See accompanying notes to consolidated financial statements.      
 

4

**U.S. PREMIUM BEEF, LLC AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(1)Interim Financial Statements**

**Basisof Presentation**

The accompanying unaudited Consolidated FinancialStatements have been prepared in accordance with U.S. generally accepted accountingprinciples (GAAP) for interim financial information; therefore, they do notinclude all of the information and footnotes required by GAAP for completefinancial statements. In the opinion of management, all adjustments considerednecessary for a fair presentation have been included. For further information,refer to the audited Consolidated Financial Statements and Notes toConsolidated Financial Statements, which are included in the Company's Annual Report on Form 10-K on file with the Securities and Exchange Commission (SEC) forthe fiscal year ended August 27, 2005.  The results of operations for theinterim periods presented are not necessarily indicative of the results for afull fiscal year.  Certain prior year amounts have been reclassified in orderto conform to the current year presentation.

In December 2004, Financial Accounting Standards Board(FASB) Statement No. 123 (revised 2004), Shared-Based Payment, was issued.Statement 123(R) requires an entity to recognize, in the statement ofoperations, the grant-date fair-value of stock options and other equity-basedcompensation issued to employees.  The Company was required to adoptStatement 123R on August 28, 2005. The adoption of Statement 123R hadno effect on the Company's consolidated financial statements.

The unaudited Consolidated Financial Statements havebeen prepared in conformity with accounting principles generally accepted inthe United States of America, using management's best estimates and judgmentswhere appropriate. These estimates and judgments affect the reported amounts ofassets and liabilities and disclosure of the contingent assets and liabilitiesat the date of the financial statements. The estimates and judgments will alsoaffect the reported amounts for certain revenues and expenses during thereporting period. Actual results could differ materially from these estimatesand judgments.

NB Finance Corp., a wholly-owned finance subsidiary ofNBP, is a co-issuer on a joint and several basis with NBP of the Senior Notes,which are our senior unsecured obligations, ranking equal in right of paymentwith all of our other senior unsecured obligations.  NB Finance Corp. hasnominal assets and conducts no business or operations. There are no significantrestrictions on the ability of subsidiaries to transfer funds to NBP.

**(2)Inventories**

Inventories at November 26, 2005 and  August 27, 2005 consisted of the following (in thousands):

** **
 **November 26,** **August 27,** **2005** **2005**    Dressed and boxed meat products$77,688 $66,993Beef by-products 10,294  8,476Supplies 10,709  9,957 $98,691 $85,426
 

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** **

5

** (3)Comprehensive Loss**

Comprehensive loss, which consists of net loss andforeign currency translation adjustments, was as follows for the periodsindicated (in thousands): 
 **13 weeks ended** **13 weeks ended** **November 26,** **November 27,** **2005** **2004**Net loss$(6,401) $(2,982)Other comprehensive income:        Foreign currency translation adjustments 1   16       Comprehensive loss$(6,400) $(2,966)
**(4)Minority Interest  **

At any time after certain dates, the earliest beingJuly 31, 2008, the latest being July 31, 2011, certain members of NBP managementand/or NBPCo Holdings, LLC have the right to request that NBP repurchase theirinterests, the value of which is to be determined by a mutually agreedappraisal process. If NBP is unable to effect the repurchase within a specifiedtime, the requesting member(s) have the right to cause a sale process tocommence.  NBP accounts for changes in the redemption value of these interestsby accreting the change in value over the current period through the earliestredemption date of the respective interests. At November 26, 2005, the minority interest in National Beef was revalued by an independent appraisal process,and the value was determined to be $58.6 million, which was in excess of itscarrying value.  Accordingly, the carrying value of the minority interest inNational Beef increased by approximately $0.02 million through accretion duringthe thirteen weeks ended November 26, 2005, resulting in a carrying value of $58.3million which is reflected in the accompanying Consolidated Balance Sheet as of November 26, 2005.  

**(5)Contingencies**

*Schumacher v. Tyson Foods, et al. *On July 1, 2002, a lawsuit was filed against FarmlandNational Beef Packing Company, L.P. (FNBPC or the predecessor to NBP), ConAgraBeef Company, Tyson Foods, Inc. and Excel Corporation in the United StatesDistrict Court for the District of South Dakota seeking certification of aclass of all persons who sold cattle to the defendants for cash, or on a basisaffected by the cash price for cattle, during the period from April 2, 2001through May 11, 2001 and for some period up to two weeks thereafter. The casewas filed by three named plaintiffs on behalf of a putative nationwide classthat plaintiffs estimate is comprised of hundreds or thousands of members. Thecomplaint alleges that the defendants, in violation of the Packers andStockyards Act of 1921, knowingly used, without correction or disclosure,incorrect and misleading boxed beef price information generated by the USDA topurchase cattle offered for sale by the plaintiffs at a price substantiallylower than was justified by the actual and correct price of boxed beef duringthis period. Plaintiffs also seek recovery against all defendants under atheory of unjust enrichment.  The case was certified as a class-action matterin June of 2004. The plaintiffs claim damages against FNBPC in the amount ofapproximately $4.5 million plus prejudgment interest, attorneys' fees and courtcosts.  The claim will be reduced in an unknown amount by the number of classmembers who have opted out of the class.  The opt-out deadline was October 31, 2005, and plaintiffs have filed their report of opt-outs which is now beingevaluated for objections.  Discovery has been completed.  Trial is set for April 3, 2006.  Management believes that FNBPC acted properly and lawfully in dealingswith cattle producers. Management is currently unable to evaluate the outcomeof this matter or to estimate the amount of potential loss, if any. Inaccordance with SFAS No. 5. *Accounting for Contingencies*, NBP has notestablished a loss accrual associated with this claim.**

6

 

The Company is also a party to a number of otherlawsuits and claims arising out of the operation of its business. Managementbelieves the ultimate resolution of such matters should not have a materialadverse effect on the Company's financial condition, results of operations orliquidity.

* ***(6)  United States BSE Outbreak**

On December 23, 2003, it was announced by the United States Department ofAgriculture (USDA) that a single Holstein dairy cow was discovered in the stateof Washington to have tested positive for bovine spongiform encephalopathy(BSE).  The origin of the animal was subsequently traced to a farm in Canada.  Shortly after the announcement, several countries, including Japan, representing a substantial share of NBP's export business, closed their borders tothe importation of edible beef products from the United States.

In July 2005, the U.S. Court of Appeals for the NinthCircuit overturned a March 2005 preliminary injunction issued by the U.S.District Court in Billings, Montana, which had continued the closure of theCanadian border, since May 2003, to imports of live cattle.  The U.S. Court ofAppeals ruling resulted in the immediate reopening of the Canadian border to livecattle imports under the age of 30 months.  A petition for rehearing of theNinth Circuit's ruling to the entire panel of Ninth Circuit judges was rejectedby the Ninth Circuit on October 13, 2005.  The Court of Appeals action does notcompletely dispose of the action in the lower court and the lower court may ormay not enter final rulings that will permit continued trade in live animalsand beef products between the two countries.

Announcements of inconclusive, preliminary testresults for BSE can be expected from time to time as a result of thesensitivity of the new screening regime.  Prior to a second case of BSE in the U.S., which was confirmed in June 2005, many countries had reopened their borders to allowthe import of U.S. beef; however, this second confirmed case of BSE led touncertainty as to whether or when additional markets may reopen, and whether orwhen existing open markets may close.

On December 8, 2005, the Japanese Food Safety Commissionissued its final report, concluding that U.S. beef under 20 months of age issafe for Japanese consumers.  On December 11, 2005, Japan reopened its marketto U.S. and Canadian beef from cattle 20 months of age or younger, where priorto the border closing, there were no age restrictions on cattle used in beefproducts imported to Japan.  Beef from cattle that will qualify for export to Japan must comply with requirements for age verification of cattle and removal of specifiedrisk materials (SRMs).  Initially, industry estimates of market-ready cattlethat will qualify for export to Japan range between 5% to 15% of the total fedcattle slaughter.  The Company believes availability of market-ready cattle toits beef processing facilities will be similar to industry expectations.  We cannotas yet determine the impact on profitability as a result of the opening of theJapanese market or the potential opening of other less significant exportmarkets.

The Company cannot presently assess the full economicimpact of the consequences of BSE on the U.S. beef packing industry or on itsoperations.  The Company's revenues and net income may continue to bematerially adversely affected due to existing or new import restrictions or additionalregulatory restrictions, or disruptions in domestic consumer demand for beef.

**(7) Long-term Debt and Loan Agreements**

*SeniorCredit Facilities*

Effective October 14, 2005, NBP's amended and restated senior credit facility was further amended to reflect changes in the covenantlimiting NBP's net capital expenditures.  There were no changes to theremaining covenants in the credit facility.  NBP's net capital expenditures arenow limited to amounts in each period as follows:  $64 million in the combinedperiod of FYE 2005 and FYE 2006, $35 million in FYE 2007 and $40 million in FYE2008 and fiscal years thereafter.  Prior to this amendment, FYE 2005 and FYE2006 were separately limited to $32 million each year.

7

*Capitaland Operating Leases*

Effective August 31, 2005, NBP financed a material handling system for its Liberal, Kansas, beef facility under a capital leaseobligation for five years.  Future minimum lease payments under this lease are$1.0 million each year for the fiscal years ended 2006, 2007, 2008, 2009 and2010, respectively.

**(8) Earnings Per Unit**

Basic EPU excludes dilution and is computed bydividing income available to unitholders by the weighted-average number oflinked Class A and Class B units outstanding for the period.  Class A units andClass B units shall be issued, redeemed, and transferred together on a one forone basis until the board of directors determines the extent and conditionsunder which Class A units and Class B units may be issued, redeemed, andtransferred separately.

Diluted EPU reflects the potential dilution that couldoccur if potential unit purchase rights were exercised or contractualappreciation rights were converted into units.   Upon termination of the CEOemployment agreement, at the election of the CEO, or upon mutual agreement ofthe Board of the Company and the CEO, the CEO may purchase up to 20,000 Class Aand Class B units, or upon agreement of the CEO and the Board of the Company,the CEO may convert the contractual unit appreciation rights to up to 20,000Class A and Class B units.  The diluted EPU reflects the circumstances oftermination of the CEO employment agreement, and the election of CEO oragreement by the Board of the Company and the CEO for the CEO to purchase orconvert contractual rights to the maximum 20,000 units at $55 per unit for theperiods as provided in the CEO employment agreement. 

The diluted loss per unit calculation in the followingtable excludes the effect of the 20,000 unit purchase rights noted above forthe periods ending November 26, 2005 and November 27, 2004, respectively, asthe effect of including them would have been anti-dilutive to the loss per linkedunit calculation. 
**Loss Per Linked Unit Calculation**           (In thousands, except unit and per unit data)13 Weeks Ended November 26, 2005 November 27, 2004 (unaudited) (unaudited)**Basic loss per unit**     Income available to unitholders (numerator)$(6,401) $(2,982)Outstanding units (denominator) 691,845   691,845    Per unit amount$(9.25) $(4.31)       **Diluted loss per unit**     Income available to unitholders (numerator)$(6,401) $(2,982)Outstanding units 691,845   691,845 Effect of dilutive securities - unit options -   -    Units (demoninator) 691,845   691,845    Per unit amount$(9.25) $(4.31)
 

8

**Item 2.  Management'sDiscussion and Analysis of Financial Condition and Results of Operations**

**DisclosureRegarding Forward-Looking Statements**

This report contains"forward-looking statements," which are subject to a number of risks anduncertainties, many of which are beyond our control. Forward-looking statementsare typically identified by the words "believe," "expect," "anticipate,""intend," "estimate" and similar expressions. Actual results could differmaterially from those contemplated by these forward-looking statements as aresult of many factors, including economic conditions generally and in ourprincipal markets, the availability and prices of live cattle and commodities,food safety, livestock disease, including the identification of cattle with BSE,competitive practices and consolidation in the cattle production and processingindustries, actions of domestic or foreign governments, hedging risk, changesin interest rates and foreign currency exchange rates, consumer demand andpreferences, the cost of compliance with environmental and health laws, loss ofkey customers, loss of key employees, labor relations and consolidation amongour customers. 

In light of these risks anduncertainties, there can be no assurance that the results and events contemplatedby the forward-looking information contained in this report will in facttranspire. Readers are cautioned not to place undue reliance on theseforward-looking statements. We do not undertake any obligation to update orrevise any forward-looking statements. All subsequent written or oralforward-looking statements attributable to us or persons acting on our behalfare expressly qualified in their entirety by these factors.  Please review the *RiskFactors* in Item 1*. Business* of the Company's Annual Report forthe year ended August 27, 2005 on Form 10-K filed with the Securities andExchange Commission for other important factors that could cause actual resultsto differ materially from those in any such forward-looking statements, andwhich should be read in conjunction with this report.

**IndustryOutlook**

Cyclically low cattle supplies, along with limitedaccess to key export markets, has provided a difficult environment for beefindustry participants.  In general, domestic cattle supplies are anticipated toimprove over the next two to three years, but with questions remainingregarding international market access, margins can be expected to continue tobe negatively impacted.

**RecentDevelopments**

On December 23, 2003, it was announced by the United States Department ofAgriculture (USDA) that a single Holstein dairy cow was discovered in the stateof Washington to have tested positive for bovine spongiform encephalopathy(BSE).  The origin of the animal was subsequently traced to a farm in Canada.  Shortly after the announcement, several countries, including Japan, representing a substantial share of NBP's export business, closed their borders tothe importation of edible beef products from the United States.

In July 2005, the U.S. Court of Appeals for the NinthCircuit overturned a March 2005 preliminary injunction issued by the U.S.District Court in Billings, Montana, which had continued the closure of theCanadian border, since May 2003, to imports of live cattle.  The U.S. Court ofAppeals ruling resulted in the immediate reopening of the Canadian border tolive cattle imports under the age of 30 months.  A petition for rehearing ofthe Ninth Circuit's ruling to the entire panel of Ninth Circuit judges wasrejected by the Ninth Circuit on October 13, 2005.  The Court of Appeals action does not completely dispose of the action in the lower court and the lowercourt may or may not enter final rulings that will permit continued trade inlive animals and beef products between the two countries.

Announcements of inconclusive, preliminary testresults for BSE can be expected from time to time as a result of thesensitivity of the new screening regime.  Prior to a second case of BSE in the U.S., which was confirmed in June 2005, many countries had reopened their borders to allowthe import of U.S. beef; however, this second confirmed case of BSE led touncertainty as to whether or when additional markets may reopen, and whether orwhen existing open markets may close.

9

 

On December 8, 2005, the Japanese Food Safety Commissionissued its final report, concluding that U.S. beef under 20 months of age issafe for Japanese consumers.  On December 11, 2005, Japan reopened its marketto U.S. and Canadian beef from cattle 20 months of age or younger, where priorto the border closing, there were no age restrictions on cattle used in beefproducts imported to Japan.  Beef from cattle that will qualify for export to Japan must comply with requirements for age verification of cattle and removal of specifiedrisk materials (SRMs).  Initially, industry estimates of market-ready cattlethat will qualify for export to Japan range between 5% to 15% of the total fedcattle slaughter.  The Company believes availability of market-ready cattle toits beef processing facilities will be similar to industry expectations.  We cannotas yet determine the impact on profitability as a result of the opening of theJapanese market or the potential opening of other less significant exportmarkets.

The Company cannot presently assess the full economicimpact of the consequences of BSE on the U.S. beef packing industry or on itsoperations.  The Company's revenues and net income may continue to bematerially adversely affected due to existing or new import restrictions or additionalregulatory restrictions, or disruptions in domestic consumer demand for beef.

**Resultsof Operations**

***Thirteen weeks ended November 26, 2005 compared to thirteen weeks ended November 27, 2004***

*General.* Net loss for the thirteen weeks ended November 26, 2005 was $6.4 million compared to net loss of $3.0 million for the thirteen weeks ended November 27, 2004, a change of $3.4 million or 113.3%.  Sales were higher in the thirteen weeks ended November 26, 2005 than those of the prior year period partially due to anincrease in the number of cattle processed of approximately 1.4%, at weightsthat averaged 1.0% higher than the same period in the prior year. Additionally,while sales prices improved by approximately 2.4% compared to the same periodin the prior year, cost of sales increased at a higher rate, due in part to anincrease in live cattle prices of approximately 3.7% resulting from the tightenedsupply of market-ready cattle. 

Total costs and expenses of $1,100.5 million and $1,048.9million for the thirteen weeks ended November 26, 2005 and November 27, 2004, respectively, were 100.4% as a percent of sales for the thirteen weeksended November 26, 2005 compared to 99.8% for the thirteen weeks ended November 27, 2004.  Tightened supply of market-ready cattle and lower plant capacityutilization contributed to a decline in gross margin, resulting in a decreasein operating income of $6.7 million.

*Net Sales*. Net sales were $1,095.7 million for the thirteen weeks ended November 26, 2005 compared to $1,050.7 million for the thirteen weeks ended November 27, 2004, an increase of $45.0 million or 4.3%.  The increase resulted primarilyfrom an increase in boxed beef and beef product prices of approximately 2.4%combined with an approximate 1.4% increase in the number of cattle processed inthe thirteen weeks ended November 26, 2005 at weights that averaged 1.0% higherthan the same period in the prior year.  Sales prices improved due to animproved product sales mix and continued growth in value-added sales for thethirteen weeks ended November 26, 2005 as compared to November 27, 2004.

*Cost of Sales*. Cost of sales was $1,084.5 million for the thirteen weeks ended November 26, 2005 compared to $1,034.2 million for the thirteen weeks ended November 27, 2004, an increase of $50.3 million or 4.9%.  The increase resulted primarilyfrom a 3.7% increase in live cattle prices resulting from tightened supply ofmarket-ready cattle, combined with an increase in the number of cattleprocessed from 2004 of 1.4% and an increase in average live weights of 1.0%.

*Selling, General and Administrative Expenses*.  Selling, general and administrative expenses were $9.4million for the thirteen weeks ended November 26, 2005 compared to $8.6 million for the thirteen weeks ended November 27, 2004, an increase of $0.8 million or 9.3%.  The increase reflects an increase in payroll and related expenses ofapproximately $0.4 million and an increase in travel and related expenses ofapproximately $0.3 million.

10

 

*Depreciation and Amortization Expense*.  Depreciation and amortization expenses were $6.6 millionfor the thirteen weeks ended November 26, 2005 compared to $6.0 million for thethirteen weeks ended November 27, 2004, an increase of $0.6 million or 10.0%.  Depreciationexpense increased due largely to assets being placed into service, primarily atthe Dodge City and Liberal beef plants, during the second, third and fourthquarters of fiscal year 2005.

*Operating (Loss) Income*.  Operating loss was $4.8 million for the thirteenweeks ended November 26, 2005 compared to operating income of $1.9 million forthe thirteen weeks ended November 27, 2004, a decrease of $6.7 million or 352.6%. The decrease resulted primarily from a tightened supply of market-ready cattleand lower plant capacity utilization.

*Interest Expense*.  Interest expense was $7.4 million for the thirteen weeks ended November 26, 2005 compared to $7.2 million for the thirteen weeks ended November 27, 2004, an increase of $0.2 million or 2.8%.  The increase was due primarily tohigher interest rates on our variable rate debt in the thirteen weeks ended November 26, 2005 as compared to the same period in fiscal 2005.

*Income Tax Expense*.  Income tax expense was $0.5 million for both the thirteen weeksended November 26, 2005 and for the thirteen weeks ended November 27, 2004.  Income tax expense is recorded on income from National Carriers, Inc., which isorganized as a C Corporation.

**Liquidityand Capital Resources**

As of November 26, 2005, we had net working capital of$175.2 million, which included $0.3 million in distributions payable, and cashand cash equivalents of $47.9 million, including $3.9 million restricted to IRBapproved expenditures. As of August 27, 2005, we had net working capital of $178.6million, which included $1.9 million in distributions payable, and cash andcash equivalents of $54.4 million, including $3.9 million restricted to IRBapproved expenditures. Our primary sources of liquidity are cash flows fromoperations and available borrowings under our amended and restated creditfacility.

As of November 26, 2005, we had $327.7 million oflong-term debt, of which $1.8 million was classified as a current liability. Asof November 26, 2005, NBP's amended and restated credit facility consisted of a$120.0 million term loan, all of which was outstanding and a $140.0 millionrevolving line of credit loan, which had outstanding borrowings of $23.8million, outstanding letters of credit of $44.0 million and availableborrowings of $51.2 million, based on the most restrictive financial covenantcalculations.  Cash flow from operations and borrowings under NBP's amended andrestated credit facility has funded our working capital requirements, capitalexpenditures and other general corporate purposes.  We were in compliance withall of our financial covenants under our amended and restated credit facilityas of November 26, 2005.

In addition to outstanding borrowings under theamended and restated credit facility, the Company had outstanding senior notesof $160.0 million, borrowings under industrial revenue bonds of $13.8 million, aterm loan with CoBank, of which $5.9 million was outstanding, and a capitallease of $4.2 million as of November 26, 2005.  On August 31, 2005, NBP financed $4.3 million under this capital lease obligation for a material handlingsystem at its Liberal, Kansas, beef facility.  Future minimum lease paymentsunder this lease are $1.0 million each year for the fiscal years ended 2006,2007, 2008, 2009 and 2010, respectively.

We believe that available borrowings under the amendedand restated credit facility and cash provided by operating activities will besufficient to support working capital, capital expenditures and debt servicerequirements for the foreseeable future. Our ability to generate sufficientcash, however, is subject to certain general economic, financial, industry,legislative, regulatory and other factors beyond our control.  For a review ofour obligations that affect liquidity, please see the *Cash PaymentObligations* table in Item 7. *Management's Discussion and Analysis ofFinancial Condition and Results of Operations* of our report on Form 10-Kfor the fiscal year ended August 27, 2005.

* *

* *

11

*OperatingActivities*

Net cash used in operating activities in the thirteenweeks ended November 26, 2005 was $12.4 million compared to net cash providedby operating activities $35.9 million in the thirteen weeks ended November 27, 2004.  The $48.3 million decrease was primarily due to an increase in workingcapital requirements in the current period resulting partially from increasedinventory valuation, combined with a larger net loss in the current yearcompared to the same period last year.

*InvestingActivities*

Net cash used in investing activities was $4.7 millionin the thirteen weeks ended November 26, 2005 compared to $4.7 million in thethirteen weeks ended November 27, 2004.  This slight increase in cash used wasprimarily attributable to an increase in expenditures for property, plant andequipment in the current year. 

*FinancingActivities*

Net cash provided by financing activities was $10.6million in the thirteen weeks ended November 26, 2005 compared to net cash used in financing activities of $26.6 million in the thirteen weeks ended November 27, 2004.  The change was primarily attributed to a $26.5 million difference inthe thirteen week change of fiscal year 2006 as compared to the thirteen weekchange in fiscal year 2005 in revolving credit borrowings, combined with an$11.6 million increase in the overdraft balance.

*Amendedand Restated SeniorCredit Facility*

NBP's amended and restated credit facility contains aprovision for a conversion to more favorable interest rates and morerestrictive financial covenants on the earlier of (a) June 1, 2006 or (b) the election of NBP (the Conversion Date).  At the election of NBP,interest may be computed at the Base Rate (as defined in the credit agreement)plus an applicable margin or a LIBOR rate plus an applicable margin.  As ofNovember 26, 2005, the interest rate for the term loan was equal to LIBOR plus275 basis points (6.6%) and the weighted average interest rate for therevolving loan was equal to a combination of LIBOR plus 250 basis points plusPrime plus 50 basis points (a combined weighted average of 7.1%).  After theConversion Date, the interest rate for the term loan and the revolving loan willbe determined by reference to a matrix of rates keyed to NBP's funded debt toEBITDA (as defined in the credit agreement) ratio.

The amended and restated credit facility also imposescertain financial covenants.  From December 30, 2004 until the Conversion Date,NBP is required to  (i) have as of the end of each fiscal quarter aminimum four-quarter rolling EBITDA of $50.0 million and (ii) maintain atall times a minimum Borrowing Base Availability (as defined in the creditagreement) of at least $25.0 million.  As defined in the amended creditfacility, EBITDA contains specified adjustments.  NBP was in compliance withall of the financial covenants under its amended and restated credit facilityas of November 26, 2005.

After the Conversion Date, NBP will be subject to thefollowing financial covenants:

(i)                A maximum Funded Debt to EBITDARatio (as defined in the credit agreement), as follows: 
 
Funded Debt
  
to EBITDA
FiscalQuarter Ended 
4.50 to 1.00
August 31, 2005 through May 31, 2006 
4.25 to 1.00
August 31, 2006 through November 30, 2006 
4.00 to 1.00
February 28, 2007 through May 31, 2007 
3.75 to 1.00
August 31, 2007 and thereafter
(ii)               A maximum Senior Secured Funded Debtto EBITDA Ratio (as defined in the credit agreement), as follows:

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Senior Secured
  
Funded Debt
  
to EBITDA Ratio
FiscalQuarter Ended 
3.25 to 1.00
August 31, 2005 through May 31, 2006 
2.75 to 1.00 
August 31, 2006 and thereafter    
(iii)              A minimum four-quarter rollingEBITDA as follows:
   
EBITDA
FiscalQuarter Ended 
$72,000,000
August 31, 2005 through May 31, 2006 
$75,000,000
August 31, 2006 through May 31, 2007 
$85,000,000
August 31, 2007 and thereafter    
(iv)              A minimum four-quarter rolling DebtService Coverage Ratio (as defined in the credit agreement) as follows:
   
Debt Service
  
Coverage Ratio
FiscalQuarter Ended 
2.00 to 1.00
August 31, 2005 and thereafter
Effective October 14, 2005, the amended senior credit facility was further amended to reflect changes in the covenant limiting NBP'snet capital expenditures.  There were no changes to the remaining covenants inthe credit facility.  NBP's net capital expenditures are now limited to amountsin each period as follows:  $64 million in the combined period of FYE 2005 andFYE 2006, $35 million in FYE 2007 and $40 million in FYE 2008 and fiscal yearsthereafter.  Prior to this amendment, FYE 2005 and FYE 2006 were separatelylimited to $32 million each year.

**Item3. Quantitative and Qualitative Disclosures About Market Risk**

The principal market risks affecting our business areexposure to changes in prices for commodities, such as livestock and boxedbeef, and interest rate risk.

*Commodities.*NBPuses various raw materials, many of which are commodities. Raw materials aregenerally available from several different sources, and NBP presently believesthat it can obtain them as needed.  Commodities are subject to pricefluctuations that may create price risk. When appropriate, NBP may hedgecommodities in order to mitigate this price risk. While this may tend to limit NBP'sability to participate in gains from commodity price fluctuations, it alsotends to reduce the risk of loss from changes in commodity prices. NBP reflectscommodity contract gains and losses as adjustments to the basis of underlyingcommodities purchased; gains or losses are recognized in the statement ofoperations as a component of costs of goods sold.

NBP purchases cattle for use in its processingbusinesses. When appropriate, NBP enters into forward purchase contracts atprices determined prior to the delivery of the cattle. The commodity price riskassociated with these activities can be hedged by selling (or buying) theunderlying commodity, or by using an appropriate commodity derivativeinstrument. The particular hedging instrument NBP uses depends on a number offactors, including availability of appropriate derivative instruments.

NBP sells commodity beef products in its business.Commodity beef products are subject to price fluctuations that may create pricerisk. When appropriate, NBP enters into forward sales contracts at pricesdetermined prior to shipment. While this may tend to limit NBP's ability toparticipate in gains from commodity price fluctuations, it also tends to reducethe risk of loss from changes in commodity beef prices. NBP reflects commoditycontract gains and losses as adjustments to the basis of underlying commoditiessold; gains or losses are recognized in the statement of operations as acomponent of net sales.

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NBP may use futures contracts in order to reduceexposure associated with entering into firm commitments to purchase live cattleat prices determined prior to delivery of the cattle as well as firmcommitments to sell certain beef products at sales prices determined prior toshipment. In accordance with SFAS No. 133. *Accounting for DerivativeInstruments and Hedging Activities*, as amended, NBP accounts for futurescontracts and their related firm commitments at fair value. Most firmcommitments are treated as "normal purchases and sales" and not marked tomarket.  SFAS No. 133 imposes extensive recordkeeping requirements in order totreat a derivative instrument as a hedge for accounting purposes. Derivativesqualify for treatment as hedges when there is a high correlation between thechange in fair value of the instrument and the related change in fair value ofthe underlying commitment. For derivatives that qualify as effective hedges,the change in fair value has no net effect on earnings until the hedgedtransaction affects earnings. For derivatives that are not designated ashedging instruments, or for the ineffective portion of a hedging instrument,the change in fair value does affect current period net earnings.

While management believes each of these instrumentshelp mitigate various market risks, they are not designated and accounted foras hedges under SFAS No. 133 as a result of the extensive recordkeepingrequirements of this statement. Accordingly, the gains and losses associated withthe change in fair value of the instrument and the offsetting gains and lossesassociated with changes in the market value of certain of the firm commitmentsrelated to the futures contracts are recorded to income and expense in theperiod of change.

Thefollowing table describes the number of futures positions and the fair value ofthose positions and related firm commitments at November 26, 2005 and August 27, 2005.  A position in live cattle consists of 40,000 pounds.  Firm commitmentsfor purchase are for live cattle and firm commitments for sales are for boxedbeef (dollars in thousands).
 **Positions expiring**  **within one year****Fair Value****November 26, 2005**  Live Cattle     Futures long -           Futures short
1,761(1,573)            Firm Commitments Purchase 1,452             Firm Commitments Sale -            **August 27, 2005**  Live Cattle     Futures long -           Futures short
443(51)            Firm Commitments Purchase 62             Firm Commitments Sale -        
*Interest Rates.*As a result of the Company's normal borrowing and leasing activities,our operating results are exposed to fluctuations in interest rates, which wemanage primarily through our regular financing activities. We generallymaintain limited investments in cash and cash equivalents.  

We have long-term debt with variable interest rates.Short-term debt is primarily comprised of the current portion of long-term debtmaturing twelve months from the balance sheet date.  Our variable interestexpense is sensitive to changes in the general level of interest rates. 

Our exposure to interest rate risk has not materiallychanged since August 27, 2005.

 

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**Item 4. Controls and Procedures**

We maintain asystem of controls and procedures designed to provide reasonable assurance asto the reliability of the Consolidated Financial Statements and otherdisclosures included in this report, as well as to safeguard assets fromunauthorized use or disposition. We evaluated the effectiveness of the designand operation of our disclosure controls and procedures as defined in theSecurities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e) undersupervision and with the participation of management, including our ChiefExecutive Officer and Chief Reporting and Compliance Officer. Based upon thatevaluation, as of the end of the period covered by this Quarterly Report onForm 10-Q, our Chief Executive Officer and Chief Reporting and ComplianceOfficer concluded that our disclosure controls and procedures were effective inalerting them, in a timely manner, to material information required to beincluded in our periodic Securities and Exchange Commission filings.  Therehave been no changes in our internal controls over financial reporting duringthe thirteen weeks ended November 26, 2005 that have materially affected, orare reasonably likely to materially affect, our internal control over financialreporting.  The design of any system of controls and procedures is based inpart upon certain assumptions about the likelihood of future events. 

**PARTII. OTHER INFORMATION**

**Item 1. Legal Proceedings**

For information regarding legal proceedings, see Note 6.*Contingencies* to our Consolidated Financial Statements included inPart I- Item 1 of this Form 10-Q. 

**Item1A. Risk Factors**

The risk factors set forth in our Annual Report onForm 10-K for the year ended August 27, 2005 have not materially changed.  Pleaserefer to the Company's report on Form 10-K for the period ended August 27, 2005 to consider those risk factors.

**Item 2. Unregistered Sales of Equity Securities andUse of Proceeds**

None.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Submission of Matters toa Vote of Security Holders**

The Annual Meeting of members of USPB was held on November 30 , 2005. Other than approval of the minutes from the previous annual meeting,the only proposal presented for member consideration at the Annual Meeting wasthe election of two (2) directors to serve for three-year terms expiring afterthe 2008 fiscal year.  The four nominees who stood for election to the Board ofDirectors were incumbent directors John Adams and Kelly K. Giles and newcandidates Carol Keiser and Rex McCloy.  Biographical information regarding Mr.Adams and Mr. Giles has previously been included in the Company's filings withthe Securities and Exchange Commission, while information regarding Ms. Keiserand Mr. McCloy is presented in the following paragraphs.  

15

 

Carol Keiser is president of C-BAR Cattle Company,Inc. which she established and currently manages operations for feeding 5,000to 6,000 head of cattle in feedlots in Texas, Kansas, Nebraska, and Western Illinois. Prior to C-BAR Cattle Company she developed health and well-beingprocedures for Loveless Feedlot in Illinois. Previously, Ms. Keiser taught vocationalagriculture and served as a Future Farmers of America advisor. Ms. Keiser is aCertified Livestock Manager, Certified Livestock Dealer and served on the Boardof Directors of the Council of Food and Agricultural Research (C-FAR), IllinoisBeef Association Check-off Division, past chairperson of the University of Illinois Alumni Association and the University of Illinois Agriculture, Consumerand Environmental Sciences Alumni Board. She is also a member of the NationalCattlemen's Beef Association and has served on NCBA's animal health and taxcommittees. In addition, Ms. Keiser is a professional member of the AmericanSociety of Animal Science and American Meat Science Association. Currently, Ms.Keiser represents food animal commodity producers on the National AgriculturalResearch, Extension, Education, and Economics Advisory Board, which is aprimary advisory board to the U.S. Secretary of Agriculture. In addition, sheserves as Chair of the Farm Foundation, Roundtable Steering Committee. Ms. Keiseralso serves on the Steering Committee of the Future of Animal AgricultureProject, specifically representing beef producers on the Food Safety and AnimalHealth Subcommittee. Ms. Keiser holds a Bachelors degree in Animal Science fromthe University of Illinois.

RexMcCloy is manager and part-owner of McLeod Farms Inc., a family-owned businessheadquartered in Morse, TX. The operation includes a 6,500 head capacity feedyard, a 7,000 acre irrigated farm, a backgrounding operation and a 20,000 acreranch in Harding Co., NM. Mr. McCloy is a member of the National Cattlemen'sBeef Association, the Texas Cattle Feeder's Association (TCFA) and the TexasSouthwestern Cattle Raiser's Association. He is a past board member andmarketing committee chairman of TCFA. In addition he is a former member of U.S.Premium Beef's nominating committee. Mr. McCloy holds a Bachelors degreein Agricultural Economics from Texas Tech University. 

At the AnnualMeeting, under procedures established by the Company's nominating committee,Mr. Adams and Ms. Keiser stood for election to the same seat on the USPB Boardof Directors and Mr. Giles and Mr. McCloy stood for election to the other openseat on the Board of Directors.  USPB's members elected Carol Keiser and RexMcCloy to serve as directors on the Board of Directors for a term that willexpire after fiscal year 2008.  The election of the nominees was by amajority of the members present and voting at the Annual Meeting, expressed bya written ballot.  In the election between Mr. Adams and Ms. Keiser, out of atotal of 96 votes, Mr. Adams received a total of 46 votes and Ms. Keiserreceived a total of 50 votes, winning election to the Board of Directors.  Inthe election between Mr. Giles and Mr. McCloy, Mr. Giles received a total of 35votes and Mr. McCloy received a total of 61 votes to win election to the Boardof Directors.   The other members of the Board of Directors, Mr. Ryan, Mr.Gardiner, Mr. Fairleigh, Mr. Laue and Mr. Bohn continued in service as membersof the USPB Board of Directors following the Annual Meeting. 

**Item5. Other Information**

NBP may purchase a portion of its outstanding SeniorNotes from time to time in accordance with the limits imposed under its seniorcredit facility. 

 **Item 6. Exhibits**

(A)

Exhibits
           
10.1
   
Second Amendment to Fourth  Amended and Restated Credit Agreement dated as of October 14, 2005, by and  among NBP, certain agents, lenders and issuers (incorporated by reference to  Exhibit 10.1 to NBP's Current Report on Form 8-K, filed with the SEC on  October 20, 2005).
    
31.1 
   
Certification of the Chief  Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.
    
31.2 
   
Certification of the  Principal Financial and Accounting Officer pursuant to Section 302 of  the Sarbanes-Oxley Act of 2002.
    
32.1 
   
Certification of the Chief  Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
    
32.2 
   
Certification of the  Principal Financial and Accounting Officer pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002.

 

16

 

**SIGNATURES**

Pursuant to the requirements of the SecuritiesExchange Act of 1934, the registrant has duly caused this report to be signedon its behalf by the undersigned thereunto duly authorized.

                                                                                           
   U.S. Premium Beef, LLC        By:
/s/ Steven D. Hunt

Steven D. Hunt*Chief Executive Officer	(Principal Executive Officer)*
  
 
By:
/s/ Scott J. Miller

Scott J. Miller* Chief Reporting and Compliance Officer	(Principal Financial and Accounting Officer)*

Date: January 9, 2006 

 

 

 

 

 

 

 

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