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Niche Meat Processing SMALL AND VERY SMALL HARVESTING AND CUT-AND-WRAP FACILITIES IN CALIFORNIA

DEVELOPED BY THE HIGH SIERRA RESOURCE CONSERVATION AND DEVELOPMENT COUNCIL

DECEMBER 2012

Overview   Report  background     Projects  

  Synthesis  of  Project  Findings  and  Next  Steps  

Report Background   April  2010  Meat  Summit  organized  by  UCCE  idenIfied  three  barriers  to  the  expansion  of  local  and  direct  meat  markeIng  opportuniIes:  ◦  A  lack  of  small  and  very  small  niche  meat  harvesIng  and  cut-­‐and-­‐wrap  faciliIes  

◦  A  confusing  system  of  state  and  federal  regulaIons  

◦  Challenges  for  processors  in  working  with  a  large  number  of  small  scale  producers  

  Rural  Business  Enterprise  Grant  (RBEG)  helped  evaluate  potenIal  soluIons.    

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Projects   Inventory  of  Small  and  Niche  Meat  HarvesIng  FaciliIes  with  GIS  mapping  

  Regulatory  Streamlining  

  State  to  Federal  Processing  Facility  and  ROP  Training  

  Determining  Demand  for  USDA  Inspected  Beef  Slaughter  in  18  California  CounIes  

  CoordinaIng  Live  Animal  TransportaIon,  Delivery,  IdenIficaIon,  etc.  

  Lamb  FabricaIon  Workshop  

Synthesis   Are  there  enough  ranchers  who  want  to  raise,  process  and  market  their  animals  directly  to  support  a  facility  that  can  process  2,500  to  3,000  animals  per  year?  

  The  meat  processing  business  has  largely  been  organized  on  a  manufacturing  model  ◦  Processors  purchase  raw  material  (live  animals),  convert  it  to  another  form  (meat),  and  market  this  product  to  an  end  user  

◦  Direct  market  producers  need  a  service  provider  –  how  does  a  processor  make  a  profit  with  this  model?  

Synthesis   To  win  new  business,  a  new  processing  facility  will  need  to  offer  quality  service  at  a  price  that  is  compeIIve  with  exisIng  service.  ◦  Superior  Farms  example  

  Increased  cooperaIon  and  coordinaIon  between  exisIng  producers  and  processors  might  help  both  be  more  profitable.  

  Seasonal  variaIon  in  demand  for  processing  services  will  likely  create  cash-­‐flow  issues  for  a  new  processing  facility.  

  Working  with  a  large  number  of  small  producers  is  much  more  complicated  (and  expensive)  for  a  processor  than  working  with  a  small  number  of  large  producers.  

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Synthesis   ExisIng  custom-­‐exempt  faciliIes  are  oden  reluctant  to  invest  the  Ime  and  capital  necessary  to  upgrade  to  USDA  inspecIon.  ◦  Cost  may  be  prohibiIve  ◦  Uncertain  demand  for  stand-­‐alone  cut-­‐and-­‐wrap  services  (most  producers  want  harvest  and  fabricaIon)  

◦  Different  “culture”  in  small  meat  markets  

  Regulatory  changes  that  recognize  the  differences  between  meat  products  that  are  marketed  locally  versus  those  that  are  shipped  cross-­‐country  or  around  the  world  might  create  more  flexibility  while  conInuing  to  ensure  food  safety.  

Synthesis   Producer  coordinaIon  on  transportaIon  (both  live-­‐animal  and  product)  might  help  producers  reduce  costs.  

  Detailed  economic  analysis  is  criIcal  at  all  points  of  the  producIon  system  (from  producer  to  processor).  

©  PrescripIve  Livestock  Services  

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Next Steps… 1.  We  need  to  quanIfy  the  demand  for  

processing  services  –  how  many  producers  are  currently  selling  meat,  at  what  volume,  etc.  

2.  Make  the  producer  economic  analysis  available  via  the  Foothill  Farming  website.    Provide  technical  assistance  to  producers  who  wish  to  evaluate  direct  markeIng  opIons.  

3.  Conduct  a  thorough  economic  analysis  of  a  full-­‐service  facility,  based  on  examples  of  other  exisIng  and  new  faciliIes.