Jeff Schahczenski Ag Economist NCAT home of the ATTRA Project

Similar documents
Building a Montana Organic Livestock Industry Montana Organic Producers Cooperative Final Report Growth Through Ag Project

Consumer Willingness to Pay for Specialty Meats

SURVEY OF LIVESTOCK PRODUCERS IN SOUTHERN NEW ENGLAND

Why Rotational Stocking Makes Dollars and Sense Victor Shelton & Jerry Perkins Grazing Specialists Natural Resources Conservation Service

EKLUND S PROCESSING, INC. STAMFORD, NY

Iowa Farm Outlook. May 2015 Ames, Iowa Econ. Info Several Factors Supporting, Pressuring Fed Cattle Prices

ANALYSIS AND COMMENTS

ATTENTION: This presentation is meant to be used as a training tool for food producers, food marketers and food buyers.

Cattle Situation and Outlook

Determining Your Unit Costs of Producing A Hundred Weight of Calf

AMERICAN MEAT INSTITUTE

Managing For Today s Cattle Market And Beyond A Comparative Analysis Of Demo Herd 1997 Herd To McKenzie County Database

Montana Beef to School Supply Chain Relationships: Initial Case Study Findings

Increasing Sales in Small Farms Using Web Based Classifieds

Farm Radio Habits Wave 1, Winter Conducted by Millennium Research, Inc.

RE: Documentation Needed to Substantiate Animal Raising Claims for Label Submission

2017 Grass-Fed Beef Conference Evaluation Summary Chuck Grigsby, Center for Profitable Agriculture

Gross Domestic Product

Intro to Livestock Marketing Annie s Project. Tim Petry Livestock Economist 2018

Livestock Enterprise. Budgets for Iowa 2017 File B1-21. Ag Decision Maker

Slope Farms. Our farm. Our work with other farmers. Experience with leasing land. Models for seasonal grazing

Overview of the 2007 USDA GIPSA / RTI Livestock and Meat Marketing Study

AN ECONOMIC DESCRIPTION OF THE AGRICULTURE SECTOR IN LYON COUNTY

Cattle Market Situation and Outlook

MANITOBA CONSERVATION USE OF A CENTRIFUGE FOR LIQUID/SOLID MANURE SEPARATION

Louisiana Cattle Market Update FRIDAY, MARCH 30 TH, Ground Beef Prices

Project on Organic Agriculture

Costs to Produce Milk in Illinois 2003

Cattle and Hay Outlook

Proceedings, The Range Beef Cow Symposium XXII November 29, 30, & December1, 2011, Mitchell, NE

What Hay Is Right For Your Livestock. Tom Gallagher Capital Area Agriculture Horticulture Program Livestock Specialist

Managing For Today s Cattle Market And Beyond: A Comparative Analysis Of ND - Demo Cow Herd To North Dakota Database

CHOICES The magazine of food, farm, and resource issues

Guidelines for Estimating. Beef Feedlot Finishing Costs. in Manitoba

Analysis. Domestic Supplier Verification FDA Position in Proposed FDA Position in Supplemental

Beef Cattle Outlook Dr. Curt Lacy Extension Economist-Livestock

Overview of Demand for Alternative Pork Products

POTENTIAL CHALLENGES FOR BEGINNING FARMERS AND RANCHERS

Health Information and Impacts on the Beef Industry

Emmit L. Rawls Professor Agricultural Economics

CURRENCY VALUES AND TRADE A STRONG U.S. DOLLAR INCREASES COMPETITION FOR U.S. PRODUCERS. John J. VanSickle. PBTC November 2003

2011 Southern Peanut Farmers Conference. Marshall Lamb USDA/ARS National Peanut Research Laboratory Dawson, GA

Organic Dairy Sector Evolves To Meet Changing Demand

Q1 How well are you able to satisfy your customers' orders?

Value of Preconditioned Certified Health Programs to Feedlots

Chapter 13 Perfect Competition

New Generation Cooperatives: What Motivates Producer Participation? Presented by: Matson Consulting Aiken SC

Branded Livestock & Meat Programs

CHAPTER 3 SUPPLY AND DEMAND: AN INITIAL LOOK

The Cattle Feeding Industry

FACTORS THAT AFFECT THE PRICE OF MANURE AS A FERTILIZER Ray Massey, Economist University of Missouri, Commercial Ag Program

Custom and Retail Exempt Meat Processing 1

Agribusiness Cases in Supply Chain Management. William J. Brown

An Economic Comparison of Organic and Conventional Dairy Production, and Estimations on the Cost of Transitioning to Organic Production

Floods and Organic Producers: Steps to Recovery after a Natural Disaster

Livestock Marketing Channel Assessment. Matt LeRoux, Marketing Specialist

SUPPLYING LOCAL AND REGIONAL MARKETS:

Marketing Cull Cows How & When?

APPENDIX A CALIFORNIA S LIVESTOCK INDUSTRIES

United States and Canadian Cattle and Sheep

ANIMAL SCIENCE Merit Badge Requirements

Alabama Beef Cattle Strategic Plan

Goals. What Are Goals? How To Use Goal Setting. Steps in Goal Setting

Livestock and Poultry Environmental Learning Center Webcast Series June 20, From: G. Albrecht P. Ristow

Illinois Farmers as Nutrient Stewards: Opportunities via the Illinois Nutrient Loss Reduction Strategy

ROB MYERS, PH.D. UNIVERSITY OF MISSOURI AND NORTH CENTRAL SARE

The Economics of Farm Animal Welfare and Consumer Choice Evidence from Australia

2017 Beef Cattle Market Outlook

Cattle Feeder's Planning Guide

Composting Manure for Value Added Markets

Urban Ag Academy. A Look Into Iowa s Pork Industry. Gregg Hora Iowa Pork Producer IPPA President Elect

October 20, 1998 Ames, Iowa Econ. Info U.S., WORLD CROP ESTIMATES TIGHTEN SOYBEAN SUPPLY- DEMAND:

Northwest Florida Beef Conference Chris Prevatt UF/IFAS Range Cattle REC Livestock and Forage Economist

Seasonal Trends in Steer Feeding Profits, Prices, and Performance

Cow-Calf Ranch Input Worksheet- Unit Cost of Production Workshop Users Guide

The Iowa Pork Industry 2008: Patterns and Economic Importance by Daniel Otto and John Lawrence 1

EVALUATING LIVESTOCK ENTERPRISES WESLEY TUCKER AGRICULTURE BUSINESS SPECIALIST

Jason Henderson Vice President and Branch Executive Federal Reserve Bank of Kansas City Omaha Branch April 25, 2012

EC Estimating the Most Profitable Use of Center-Pivot Irrigation for a Ranch

Steers weighing 500 pounds and over, as of January 1, 2018, totaled 16.4 million head, down slightly from January 1, 2017.

Expanding Grass-Based Animal Agriculture in the Midwest: The Pasture Project

Historical Prices, Trends, Seasonal Indexes, and Future Basis of Cattle and Calves at Sioux Falls, South Dakota

Understanding Supply Factors and Agricultural Products

Market Structures. Perfect competition Monopolistic Competition Oligopoly Monopoly

THUNDER BAY + AREA FOOD + AGRICULTURE MARKET STUDY SECTION FOOD DISTRIBUTORS

3/25/2017. What to do today? Cattle & Beef Markets: Commodity Outlook

When Certification Programs to Ensure Compliance with Foreign Standards Enhance Trade: The Case of Brazilian Beef Exports

Q1 How well are you able to satisfy your customers' orders?

Requirements for Selling Manufactured or Processed Foods At Farmers Markets and Other Direct-to-Consumer Markets

Attachment # 1. Commonwealth of Pennsylvania. Pennsylvania Code. Title 25. Environmental Protection. Department of Environmental Protection

Texas A&M Ranch to Rail - North/South Summary Report

Costs to Produce Milk in Illinois 2016

Iowa Farm Outlook. February 2018 Ames, Iowa Econ. Info Betting on the Come in the Fed Cattle Market

Milk Marketing. As 472, AVS472 Fall 2015 John Swain. Resources. The Market Administrator s Report -

Opportunities and Challenges for Cow/Calf Producers 1. Rick Rasby Extension Beef Specialist University of Nebraska

Business management in animal care

2014 Economic Contribution Analysis of the Washington Beef Industry

Essentials of Selling Local Food. Christine Anderson Local Foods Specialist

Supply and Demand Michael Powell, All Rights Reserved

Promote New Naturewell Offerings

Transcription:

Jeff Schahczenski Ag Economist NCAT home of the ATTRA Project Jeffs@ncat.org 406-494-8636 Where s the Beef? The alternative beef market: a slow start or real barriers National Small Farms Conference September 15-17, 2009 Springfield, Illinois

ATTRA National Sustainable Agriculture Information Service is one of the nation s oldest and most-respected sources for sustainable agriculture information. Our vast resources include hundreds of expert publications, worksheets, sustainable agriculture specialists and personalized technical assistance. ATTRA is managed by the National Center for Appropriate Technology (NCAT) and is funded under a grant from the U. S. Department of Agriculture's Rural Business-Cooperative Service.

Overview: The national market- size and growth Cost of production Price expectations Profitability Labeling barriers Processing barriers Willingness to Pay

National Market-Growing Fast

Size of Market-Very Small Organic Meat/Fish/Poultry is only.34% of total U.S. food sales in this category Organic fruits/vegetables is 9.8% of total U.S. sales this category Source- OTA, 2009 Organic Industry Survey

Small % of Organic Market

Cost of Production, Profitability, Value Chain Cost of Production Economic Profit Income minus all costs Demand- what consumer wants and can attain- effective demand Supply- who can meet effective demand of the market Value-Chain for a new market- who has market power?

Expectations

Costs of Production

Costs-Comparisons

Profitability-Montana

Prices- Certified Organic Grass-finished-Direct Markets

Organic Hamburger Value-Chain Producer sells burger to retailer- $1.26/lbs Wholesaler sells burger to retailer- $4.54/lbs Retailer sells burger to consumer- at $6.99/lbs

Labels: a way to differentiate a product Commodity Natural Grass-finished Organic Local Combination naturally-raised

Label Claim-Confusion Food Safety Inspection Service Agricultural Marketing Service- Process Verified Agricultural Marketing Service-Voluntary Label Standards- Grass-fed National Organic Program Trade Mark/Brand- American Grass-fed Association label

Processing Needs: the Challenge

Processing Needs Assessment: What It Costs

Processing Needs Assessment: What It Costs

Processing Needs Assessment: What It Costs Average cost for mobile: $233,000 Average costs for cut and wrap : $902,689 Combined: $1.1 million dollars Average pound/meat/year= 1.5 million ~.73 per lbs processed (capital costs)

Willingness to Pay: Survey results 282 surveys sent- 28 returned not all useable

Willingness to Pay: Retailer survey results

Willingness to pay: Survey results

Marketing Opportunities: Summary In Nevada consumer willing to pay 42% higher prices for New York Strip (12% for retailers in project area) In Nevada consumers willing to pay 12% higher prices for ground beef (27% for retailers in project area) In Nevada consumers willing to pay 15 % higher prices for leg of lamb (12% for retailers in project area

Summary: What is required for development of regional alternative livestock market Organic grass-finished beef market is very small but growing very rapidly. Organic grass-finished beef is profitable in MT, at prices in 2007. Costs of production appear to be higher relative to commodity beef. Labeling confusion within USDA and for consumers is high. Available organic processing at a reasonable cost is a significant barrier to entry into the market. Stationary processing is expensive, a core group of producers must be willing to invest to develop their own facility. Mobile-processing is also expensive and still may require a stationary facility to meet processing inspection demands The willingness to pay sufficiently higher prices for organic grassfinished beef by retailers and consumers is problematic except perhaps by a limited segment of the consuming public.

Challenge: The Future? In 10, 20, 50 years, what will the alternative beef sector look like? Though there will likely always be some independent producers, marketing their beef through local and direct channels like farmers markets and subscription programs, it is possible that natural, organic, and grass-fed beef could be largely taken over by today s conventional beef producers. Natural is the most likely of the three to go this route indeed, that steer is already out of the barn. What are the implications of this trend?

Thank You! Questions?