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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.