Download - USDA PROCESS VERIFIED
USDA PROCESS VERIFIED
Michael Boland and Renee Sanden Kansas State University
Funded by Agricultural Marketing Resource Center
Why is K-State Involved?
• Increase awareness of process verification and how it may benefit many different value added ventures
• Gain first-hand knowledge about latest USDA certification
• Increase rate of learning process for other groups
• All Natural Beef
Cooperative• Rainbow
Organic Farms
• Retailers
• Kansas State
University
Markets• Hen House
– 15 locations in the Kansas City area
• Price Choppers– 4 locations in
Kansas City area• Community
Mercantile– One location in
Lawrence
All Natural Beef Cooperative
• Beef Producer Cooperative
• Supplies beef solely to program
• Operations vary in size, location and goals
Differentiation• Sought to differentiate themselves from
other value added beef programs• Main considerations
–Tastes good–Environmentally conscious–Humane treatment of animals–Local production–No hormones or sub-therapeutic
antibiotics
Process Verification
• USDA system
• Based on ISO 9000
• Provides third party audits for a fee
• Verifies that self-imposed label claims are credible
Claims
• Can be simple or complex as a group chooses
• The group wanted their claims to be valuable to the consumer
• They also wanted claims to reflect what they were already doing in their production practices
Producer Question
• Why did you decide to participate in this program?
GNFF Process Verified Claims
1) Raised on local, family size farm operations
2) No growth hormones
3) No sub-therapeutic antibiotics
4) 100% vegetarian ration (no animal by-products)
Claims continued…
5) No antibiotics during the finishing phase
6) Source of origin verified from producer through retailer
7) Dry-aged 10-14 days
Producer Question
• Why these particular claims?
Program consists of…..
• Self-written process verified manual• Training Guides• Major record keeping includes:
–Passports for each animal– Internal reviews–Records and affidavits for purchased
cattle
Producer Question
• What was the training like?
Audit
• First Audit, September of 2002• 2 Auditors came and visited 2 farms, 1
grocery store and the processing facility• Discussions were held to find out what
the program was missing to fulfill requirements
• Awaiting Process Verification
Producer Question
• What kinds of questions were you prepared to answer for the audit?
• How did you prepare?
Outcomes
• Currently only 8 programs in the U.S. are process verified– Excel Pork, Farmland Pork, PSF (pork), Pro
Pork Associates, Berkshire Pork, and Pederson’s Natural Farms
– PM Beef Group and Red Angus Association
• Consumers are not yet aware of what the label means
• Action will be taken to educate consumers once verification is received
Benefits• Producer
–Prepared for COOL and other regulations with record keeping
• Processor– Able to collect data that would otherwise
be unavailable
• Retailer– Able to gain knowledge and
understanding of products they sell
Accomplishments• Increased demand for beef by average of
per year 40% each year since 2000
• Average $0.12 per pound premium based on dressed weight since 2001
• High level of communication between producer, processor and retailer.
• High level of consumer education
Producer Question
• What are the benefits of Process Verification?
• What are the drawbacks?
Summary
• Need to be linked to consumer preferences– Implies vertical coordination or integration
• Not every operation can or should do this• There are some upfront costs
– Not major but the big cost is finding a “champion” to lead the process.
• Deciding what is to be process verified is important– Source of verification is likely to be the most widely
adopted• Not all animals are likely to be process verified