case histories of grass-fed market development in the upper …conferences.illinois.edu ›...
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Case Histories of Grass-Fed Market Development in
the Upper Midwest
Laura PaineGrazing & Organic Agriculture SpecialistWisconsin Department of Agriculture, Trade & Consumer [email protected]
National Small Farm Conference, September 15-17, 2009
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Growing grass-based farming
• Supporting graziers’ efforts to develop markets for grass-fed products.
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Grass-Dairy Projects
Grass-fed dairy product research
Grass-based Dairy Marketing Case Histories
Available soon at ww.cias.wisc.edu
• Farmstead– Cedar Summit Creamery– Otter Creek Farm– Saxon Homestead– Uplands Cheese
• Cooperatives– Edelweiss Graziers– Paradise Prairie Graziers– PastureLand Coop– Still Meadows– WI Dairy Graziers Coop
• Existing Companies– Alto Dairy Coop– Grass Point Farms
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Management intensive dairy grazing
• 30 days• 30 paddocks
• Why Grass-fed?– Economics– Environment– Quality of Life– Healthier meat & milk?
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Healthy fats in grass-fed products
• Multiple studies have documented:– Higher Conjugated
Linoleic Acid (a nutritionally important fatty acid).
– Lower Omega 6/Omega 3 ratios
– Higher Vitamin A– Higher Vitamin E(Clancy 2006)
0
2
4
6
8
10
12
14
16
mg
/g o
f fa
t
July
Augus
tSe
ptembe
r
Octobe
r
Grass-fed Confinement
CLA in milk from WI Farms
Data from Pearson et.al. 2000
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Marketing claims used with grass-fed products
• Environmentally friendly• Humane animal treatment• Nutritionally healthy (CLA,
Omega 3s)• Supports family farms• Food safety issues (E.Coli/factory
farms)• Local, know the farmer• ‘Natural’ claims, including rBGH
free, antibiotic free.
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Do features associated with grass-fed translate into perceived consumer benefits?
Survey responses Feature Benefit Very
Important Somewhat Important
Environmentally friendly Clean water, wildlife 64.6% 28.2%
No antibiotics or hormones Healthier for me 63.2% 24.1%
Humanely raised The animal didn’t suffer
to produce my food 62.7% 28.8%
Family farm Supporting farm families with my purchase 29.2% 33.2%
Raised in my state (MI) Supporting local
economy, smaller carbon footprint, etc.
23.1% 29.2%
Knowing the farmer Trust in how the product was made 16.8% 17.3%
Increased CLA, Omega 3s, Vitamins A & E Healthier for me Question not asked
Data from Connor, MSU, 2006
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TMR
G+G
GBC
Grass-fed is different2005 comparison of grass-fed and conventional cheddar cheese at UW
• Conventional stored feed diet
• Grass-fed with grain• Grass-fed, no
supplement
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Investigating the chemical and physical differences in grass-fed milk
SARE Research Grant$148,000 over three years.
• Participants– Researchers– Farmers– Processors– Chefs
• Activities– Research
– Market assessment– Outreach to farmers, processors, & buyers.
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• Comparisons– Grass-fed vs. conventional stored feeds.– Seasonal variation
• Spring flush• Summer• Fall
• Product testing– Whole milk– Cream– Butter– Yogurt– Cheese (next year)
SARE Research Grant
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Tasting Event
• Participant comments:– Grass-fed is creamy—melts in your mouth.– Conventional ‘cleaner’ flavor, more familiar,
what I’m used to.– Grass-fed butter has a more ‘complex’
flavor.– Grass-fed brings out the flavors of the
seasonings.– Flavor difference is remarkable.
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“Terroir”
Animals
Plants
Soil
Unique flavors
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Narrative Marketing
• “The consumer is saying, ‘I want to know the place it comes from. I want to be able to identify with it.’” (Fred Kirschenmann)
• “Consumers no longer respond to companies that speak at them—they respond to companies that speak with them.” (The Hartman Group)
• “The food business is no longer about fast, convenient, and cheap. It’s about memory, romance and trust” (Rick Schneiders, Sysco CEO)
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Uplands Cheese Company
• Dairy farm partnership (two families) in SW WI.• Started in 2001.• Use only their own milk.• Researched Alpine cheese types to develop their own recipe.• Make one type of cheese: Pleasant Ridge Reserve. • Won Grand Champion at American Cheese Society their 1st year.
Memory….Romance….Trust
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Cedar Summit Dairy
New Prague, MN
• Started in 2001.• Farmstead creamery.• Multi-generational family farm.• Signature product: glass
bottled milk and cream.• Farmers market sales
important tool.
Memory….Romance….Trust
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Scaling up toFarmer
Cooperatives
• Five farmers in Eastern WI.• Formed in 2001.• Contracted to make cheddar cheese.• Won award for cheese spread.• Disbanded in 2007.
Memory….Romance….Trust
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PastureLands Cooperative• Four farmers in SE Minnesota.• Formed in 1998.• Contract with various processors to
make several kinds of cheese and butter.
• Butter has won awards in American Cheese Society contest.
• Currently developing new artisan cheeses.
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Large Existing Dairy Processors
• Grass Point Farms • Alto Dairy
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Lessons learned….What’s creating challenges?
• Milk variability.• Milk handling and pooling.• Commonplace foods, like fluid milk and cheddar
cheese.• Starting out with a national marketing campaign.• Focusing marketing on health benefits.• Investment in facilities.• Timing.
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Lessons learned….what’s working so far?
• Do your own marketing.• Have a unique signature product,
a compelling story.• Do your own processing, or find
like-minded processing partners.• Minimize initial investment.• Start local and small.• Timing.
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Saxon Homestead Creamery
• Memory—a good flavor, a good experience
• Romance—a good story• Trust--consistency
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Can grass-based dairy be an economic development strategy for rural communities?
• Pasture based dairying– A 250 acre pasture based dairy can generate an annual
income of $225,000.– 60 to 100 cows can provide a comfortable living for a
farm family.– A farm that is compatible with urban development.
• A dairy farm generates– $15,000 to $17,000 in economic activity per cow in the
local community.• Dairy processing plants provide jobs and generate
revenue for rural communities.
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Resources for Dairy Artisans
• Participants– UW Extension & UW CALS– WI Dept. Ag (DATCP).– WI Dept. Commerce.
• Activities– Education.– Technical assistance.– Tax credits.– Low interest loans.
• Non-profit group supported by DATCP.
• Consultant teams.– Business planning– Equipment.– Recipes.– Marketing– Label development.
• Assisting farmers and existing processors.
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Additional Tools• University Extension
– Traditional small business development assistance
– Ag and Community Development staff working together (Ag Innovation Counselors)
• Local Economic Development Resources– Tax incremental financing– Revolving loan funds– “Ag Development Zones”
• Private investment possibilities– Angel Investment networks– Badger Ag Vest– Slow Money
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