David Thompson, MBA
EXPANDING LOCALLY SOURCED BEEF IN NORTHERN ONTARIO THROUGH THE
CO-OPERATIVE MODELNORDIK INSTITUTE
SAULT STE. MARIE, ON
87% of Ontario’s landmass (more than UK & France combined)
Three urban centresSmall towns
(forestry / steel/ mining /agriculture industries)
Distance from markets, aging population, youth outmigration
NORTHERN ONTARIO
NORTHERN AGRICULTURE AREAS
80% of agriculture is dairy and beef.
752 beef cattle farms$24.5 million in cash
farm receipts for cattle and calves in 2009
Mad cow crisis in 2003Struggling abattoirs
(slaughterhouses)
INTRO TO NORTHERN BEEF
Penokean Hills Farms (Algoma/Sault Ste. Marie)
Eat Local Sudbury Co-op Golden Beef Co-operative
(Temiskaming)True North Community
Co-operative (T-Bay)Ontario Northeast Meats
(Cochrane)CrEATive Meats (Sudbury)Rainy River District Abattoir
(Rainy River)
CO-OPERATIVE DIFFERENCE
RESEARCH PARTICIPANTS
Contribute to develop sustainable food systems in the North
Increase Northern Ontario’s food processing capacity to keep small slaughterhouses in operation
Produce, process and distribute food in a way that lessens environmental degradation
HOW CAN NORTHERN CO-OPS…
How can marketing co-ops and place-based businesses in Northern Ontario stabilize or raise incomes in the value chain through selling differentiated beef products in the local market?
RESEARCH QUESTION
What is the demand for differentiated beef products in Northern Ontario?
SOME SECONDARY QUESTIONS
How can beef farmers in Northern Ontario work effectively within a value chain to achieve a greater market share for their products in the local market?
SOME SECONDARY QUESTIONS
What influences the participation of Northern Ontario beef farmers in marketing co-operatives and place-based businesses?
SOME SECONDARY QUESTIONS
Consumer preferences (beef/locavores)
Effective value chains that build relationships
Co-operative entities in value chains
Challenges in Northern Ontario with co-op model
LITERATURE REVIEW
Action research approach to tackle real-world problems
Leaders of value chain partners (abattoirs, retail co-ops, producer co-ops) that produce, process or sell Northern beef
Eight organizations, eleven participants (board members, farmers, managers)
Semi-structured interviews / grounded theory to analyze data
METHODOLOGY
Producers• Raising and finishing of cattle according to set protocols
Abattoir
• Animals are killed, inspected, processed and refrigerated at the abattoir/slaughterhouse.
Distribution
• Delivery of wrapped product is performed by producer groups or by transport
Market
• Marketing of product is sold from farmer to consumer at farmers' markets, the farm gate or through intermediaries (retailers/restaurants).
Consumer
• The consumer picks up their beef in bulk (boxes of various cuts) or in individual cuts from the farmer directly or from a retailer.
VALUE CHAIN
Direct marketing – farmers’ markets, building relationships and community organizing.
Local food co-op retailers – resurgence of food co-ops, staff/volunteer turnover is a frustration
FINDINGS AND DISCUSSION:CONSUMER PREFERENCES &
MARKETING
Community Supported Agriculture that reach Ontario’s Far North
Co-operatives that access Nutrition North Canada subsidy program
Partnerships through co-operatives and First Nation communities and Nishnawbe Aski Nation
FINDINGS AND DISCUSSION:CSA FOR THE NORTH
Intermediary marketing – communication issues, loss of direct relationship, additional resources
Restaurant sales – beneficial depending on scale, marketing opportunity
Institutional market – infrastructure gaps to meet market needs (federally inspected abattoirs), farmers’ trying to produce premium products; scale is an issue.
FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE
CHAIN
Quality – from the producer and the slaughterhouse; grading capability is not there for some. Local beef is not linked to quality.
Scale – ability to scale local processing is difficult without producers working together with common protocols.
Staffing – attracting and retaining workers in rural areas is increasingly difficult.
FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE
CHAIN
Government regulations that limits opportunities for value-added meats
Lack of federally inspected slaughterhouses in the North; limits expansion to markets, but also expensive
Push towards higher standards for slaughterhouses (HACCP) adding significant costs
FINDINGS AND DISCUSSION:STRENGTHENING THE VALUE
CHAIN
Socializing and organizing important factor in development
Volunteer fatigue amongst farmers
Global forces can quickly alter engagement
Collaboration between co-ops is stifled
FINDINGS AND DISCUSSIONMEMBERSHIP ENGAGEMENT
Local beef producer co-ops are stretched Pervasive quality and consistency concerns Need for direct marketing for the North Local food co-ops with an engaged membership and minimized overhead
Distribution networks to bridge hubs Future research? Local food co-ops and First Nations; local food co-op startup challenges (reliance on funding vs. membership engagement)
CONCLUSION
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THANK YOU