the local meat industry - opportunities and challenges in central appalachia

7/31/2019 The Local Meat Industry - Opportunities and Challenges in Central Appalachia

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TheLocalMeatIndustry:OpportunitiesandChallengesinCentralAppalachia 1

ExecutiveSummary

OnJune19thand20th,2012,theCentralAppalachianNetworkanditspartnersconvenedagatheringof45peoplefromacrossCentralAppalachiainLewisburg,WV,todiscusshowtostrengthentheregionslocalmeatindustry.Participantshailedfromeverypartofthe

industryproduction,processing,inspection,finance,sales,andsupport.Theyworkedtogetherto:

Understandthecorechallengestheindustryisfacing, Developsolutionstoaddressthesechallenges, Createtherelationshipsnecessarytoimplementthesesolutions,and Identifyclearnextstepstomovethisworkforward.

Thispaperisintendedtosharetheknowledgeandideasbroughtforthduringthisgatheringwithabroaderaudience,toincreasethecollectiveunderstandingofkeyissuesbeingfacedbythelocalmeatindustry,andcatalyzeeffortstoaddressthem.Thepaperconsistsoffivemainsections:

Anintroduction,whichgivesbackgroundinformationonthegatheringitself,andillustrateskeyconceptsandtrendssurroundingthelocalmeatindustryinCentralAppalachia,includingwhylocalmeatissuchanimportantissueintheregion

Asectiononprocessing,whichreviewsthreedifferentownershipandoperatingmodelsthatsmallmeatprocessorsareusinginCentralAppalachia.Thissectionalsoreviewstwocorechallengesthatmustbeovercomeforsmalllocalmeatprocessingtoremainviableintheregion

Alookatsixkeyissuesfacingthelocalmeatindustryasawhole.Here,participantsofferedstrategiesforstrengtheningtheindustrybyaddressingtheseissuesinboththelongandshort-term

Alistofpartnersandresourcesforimplementingthesestrategies

Andaconclusion,withclearnextstepsforsupportingandstrengtheningtheregionslocalmeatindustry

Throughaseriesofopenandhonestdiscussions,wereinforcedourinitialbeliefthatthelocalmeatindustryisasectorwithenormouseconomicpotentialfortheCentral

Appalachianregion.Wealsorecognizedthechallengesthatfacethisindustry,andworkedwithpeoplefromeverypartoftheindustrytogainadeeperunderstandingofthesechallengesanddevelopsomegreatideasforaddressingthem.Perhapsmostimportantly,webroughttogetheradiversegroupofknowledgeable,experienced,andhighlyinvestedindividualsandorganizationswhoarereadytoworktogethertomovethisindustryforwardinwaysthatwillcontributetocreatingamorejustandsustainableAppalachia.


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GatheringObjectives

Todevelopacollectiveunderstanding

ofthecoreopportunitiesand

challengesfacingthelocalmeat

industryintheregion. Toworktogethertocomeupwith

solutionsforadvancingthisindustry,

bothshort-termandlong-term.

Todevelopclearandactionablenext

stepstoimplementthesesolutions.

Tocreaterelationshipsandmake

connectionsbetweenpeoplewhoare

readyandabletomoveforward.

Introduction

OnJune20th,2012,theCentralAppalachian

Network(CAN),inpartnershipwiththe

GreenbrierValleyEconomicDevelopmentCorporation,SwiftLevelFarms,andthe

WestVirginiaFoodandFarmCoalition,

hostedagatheringinLewisburg,WVto

discusshowtostrengthenlocalandregional

meatvaluechains.

ThiseventispartofCANanditspartners

largerworktostrengthenlocalfoodvalue

chains,whichwedefineassupplychainsthatareinfusedwiththetriplebottomlinevalues

ofsimultaneouslypromotingfinancial,social,andenvironmentalgoals.AsCANandits

partnershaveworkedtostrengthenlocalfoodvaluechainsacrossfivestatesinCentral

Appalachia,localmeathasemergedrepeatedlyasanareaofbothopportunityandconcern

forfarmers,processors,andlocalfoodadvocates.Thisgatheringisanattempttoholda

conversationaboutsomeofthoseconcerns,tobringtogetheractorsfromeverypartofthe

localmeatvaluechain,tolearnfromeachotherandplanforaction.

Inplanningthisgathering,webeganbyidentifyinganareawherethereisgreat

opportunity(i.e.,localmeatproduction

andprocessing),coupledwithunique

challenges.Ourgoalwastobringtogether

adiversegroupofpeoplewhoare

knowledgeable,experienced,andinvested

inthisfieldtofigureoutwherechange

needstohappen.Inordertoachievethis

goal,wemadesuretobringinattendees

fromalloftheCentralAppalachianstates

(KY,OH,TN,WV,VA),andfromeverypart

ofthelocalmeatvaluechain.Ourplanning

teamwassimilarlydiverse,andhavingthosediversevoicesintheplanning

processreallyhelpedtoensurethatthe

gatheringsdiscussionsandpresentations

wouldbringouttheknowledgeofeach

groupintheroom,andmovethewhole

systemforward.

TheCentralAppalachianNetwork

TheCentralAppalachianNetwork(CAN)isa

networkofnonprofitorganizations

dedicatedtoworkingforamorejustand

sustainableAppalachia.CANactsasa

regionalconvenerandnetworkbuilder,

withacurrentfocusonsupportinglocaland

regionalfoodsystems.CANissupportedby

theFordFoundation,theMaryReynolds

BabcockFoundation,thebluemoonfund,

andtheAppalachianRegionalCommission.


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WhatisaLocalMeatValueChain?

Localmeatvaluechainsincludealloftheactorsthattakemeatfromproductionalltheway

throughthefinalconsumer,includinginputsuppliers,producers,processors,aggregators

anddistributors,andmarkets.Inadditiontothesecoreelements,thevaluechainincludes

allofthesupportingactorsaswelllikeregulators,trainers,veterinarians,waste

management,marketingandadvertisingfirms,andadvocacy/non-profitorganizations.

LocalMeatProductionandProcessinginCentralAppalachia

Igetalotofcallswantingthelocal,grass-fed,nohormones,etcitaintaboutthe

money,itsaboutCanIgettheproduct?AndyNelson,NelsonsMeatProcessingMoreandmore,consumersarelookingforlocally-produced,pasture-raised,hormone-free

meat.DemandisgrowingintheregionandacrosstheUS,butsomecriticalbarriersmust

beaddressedsothatCentralAppalachiaslocalmeatindustrycanmeetthatdemand.

Opportunities.AswehavetalkedwithpeopleacrossCentralAppalachiaaboutlocalfood

valuechains,theyhaverepeatedlystressedthatmeatisimportant.Appalachianlandthatis

toohilly,rocky,orshadytoproducefruitsandvegetablesmaybeperfectformeat

production.Andthereisplentyofroomtoexpandlocalsalesforexample,WestVirginia

onlygets2/1000thsofitsfoodfromlocalsources!Moreover,consumershaveconsistently

demonstratedtheirwillingnesstopayapremiumpriceforlocalandgrass-fedmeats.In

additiontoitseconomicbenefits,localmeatproductionhassocialandenvironmental

benefitsaswell.Pasture-basedanimalagricultureprovideshealthyfoodforconsumers,

improvesanimalwelfare,andencouragesenvironmentallysoundfarmingpractices.

Challenges.Despitetheseopportunities,wehearfarmerssaythatthereisoftennot

enoughlocalinfrastructuretoprocesstheanimalstheyareraising.Inmanyrural

communities,thenumberofsmallbutchershopsandslaughterplantsdeclined,aslarge-

scaleindustrialprocessingbecamethenorm.Further,wehearsmallmeatprocessingbusinessessaythattheyarestrugglingundertherulesandregulationsthatthefederal

governmentplacesonmeatprocessing.

ItappearsthatwehaveapotentialcrisisloominginlocalmeatvaluechainsacrossCentral

Appalachia.Smallmeatprocessorsareessential,butarestrugglingmightily.Ifwewant

localmeatvaluechainstothrive,weneedlocalmeatprocessingthatisprofitable,

accessible,andaffordableforproducers.Thisistheconcernthatspurredthisgathering.

Inputs Producers ProcessorsAggregators/Distributors

AccessibleMarkets

InformedCustomers


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ApproachestoLocalMeatProcessing:ThreeBriefCaseStudies

Atthegathering,weheardapaneldiscussionaboutvariousapproachestodevelopingthe

infrastructureneededformeatprocessing.Below,weoutlinethreebriefcasestudiesof

varyingapproachestolocalmeatprocessinginCentralAppalachia.

1.Atraditionalfor-profitbusiness.AndyNelsonowns

NelsonsMeatProcessing,ameatprocessingplantinMilton,

WV.Andygrewupcuttingmeatathisfathersgrocerystore,

whicheventuallyclosed.In1997,duringadownturninthe

truckingindustry(wherehehadbeenemployed,)Andydecided

tocreatehisownjobbygoingbacktohisrootsandrentingand

renovatingaclosed-upslaughterhouse.Heeventuallybuilthisownfacilitynearby,and

ownsandoperateshisplantasafor-profitbusiness.Hehasgrownsteadilyovertheyears

by,asheputsit,treatingpeoplethewayIdliketobetreated,andrecentlyboughtouta

localcompetitorinordertoexpandhiscapacityandhisvalue-addedprocessingservices.

Hehasadiversebusiness,processingcustomordersfromfarmers,butcheringand

processinghuntersdeer,transportingmeatregionallywitharefrigeratedtruck,and

processingfortheprisonsystem,aswellasprocessingsomeofhisownanimals.Heshares

otherprocessorschallengesaroundregulationsandthetimingofproducersprocessing

needs.Healsonotesthathehasmanystruggleswithgettingconsistent,reliablelaborfor

hisplant,noting,Ihave10or11employeesonaveragewhentheyallshowup.

2.Asocialenterprise.MarksburyFarmMarketisinthegrassbusiness;theyseetheirbusinessasawayofconvertinggood

Kentuckygrassintoanimalproteininasustainableway.Theyarea

smallscale,locally-ownedbutchersshop,farmmarket,and

processingfacilitynearLexington,KY.Thecompanyisasocial

enterprise,combiningfinancial,social,andenvironmentalgoals.

Marksburywasformedasapartnershipbetween4investorswhoknewthatthey

couldmakeanimpact,andagoodliving,byoperatingafacilitythatencouragestheethical

treatmentofanimalsandcareoftheland,andwhichcapitalizesonthegrowingmarketfor

sustainablelocalmeat.Theirprimaryincomestreamcomesfromsellinglocalanimals

raisedonpastureaccordingtoMarksburysstrictenvironmentalandanimalwelfare

standardstowholesalemarkets:restaurants,grocerystores,andinstitutions.Theyalso

docustomprocessingforlocalproducers,keepingstrongtiestothecommunitywhile

stayingoutofthoseproducersprimarymarketsbyfocusingonwholesale.Finally,

Marksburyisdedicatedtotransparencyinitsoperationstothepointwhereevery

packageoftheirmeatcanbetracedbacktotheanimalitcamefrom.


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3.Acommunity-ownedenterprise.AlleghanyMeats,a

venturethatincludesslaughterandprocessing,aswellas

live-animalmarketingandeducation,startedasaresultof

astudy,ledbyalocalnonprofit(TheHighlandCenter,)to

figureouthowtoincreasetheviabilityofthelocalmeat

industryinHighlandsCounty,VAandthesurroundingcounties.

Thisstudyfoundthatthelocalindustrycouldntthrivewithoutacloserprocessing

facility.Inresponse,acomprehensivefeasibilitystudywasconducted,whichfoundthatthe

communitycouldsupportitsownprocessingcenter.Thewholecommunityworked

togethertoraisethemoneyandmatchthegrantsandloansneededtocreatethisfacility;

93localinvestorsputinatleast$5,000eachtobringthecommunitytheinfrastructurethat

itneeded.Asaresultofthiscommunity-ledprocess,theareahasafacilitythattrulyserves

itsbusinessandeducationalneeds.Initsfirstyearoffull-scaleoperation,AlleghanyMeats

isalreadygeneratingravereviewsfromproducers,andtheincreasedsupplyoflocalmeats

hasdrivenupsalesatthelocalfarmersmarketby200%.

CoreChallengeforProcessors:TheRegulatoryEnvironment

Overthepastyear,CANhasdiscussedtheopportunitiesandchallengesfacingthelocal

meatindustrywithmeatproducers,processors,andothersinvolvedinthemeatvalue

chain.Overandoveragain,weveheardthatoneofthecorechallengesfacingthemeat

industryintheregionistheregulatoryenvironment,specificallyasitrelatestothe

regulationofsmallprocessors.Atthegathering,weexploredtheseissuesindetail.

TheHACCPSystem.Producerswhowantto

sellmeatacrossstatelinesintheUSare

requiredtohavetheirmeatprocessedata

USDAcertifiedplant.Inturn,allUSDA

certifiedplantsmusthavewhatisknownas

aHACCP(HazardAnalysisandCritical

ControlPoint)planinplaceforeachkind

animaltheyprocess,andforeachkindof

value-addedproducttheymake.

ImpactsonSmall-ScaleProcessors.Small

processorsfrequentlyhavetodevelopnumerousextensiveHACCPplans,becausethey

processawiderrangeofanimalsandvalue-addedproductsthanevenmanylargeplants

do.ProcessorshavetojustifyeachoftheseHACCPplanswithscientificstudiesandtests,

andsetupextensiverecord-keepingsystemstomonitortheirplansandtheirprocessing.


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KeyIssuesintheLocalMeatIndustry

1. Unsupportivepolicyenvironment

2. Accesstocapitalandfinancing3. Needfortrainingandeducation

4. Needforconsumereducation

5. Lackofcollaborationwithinthe

community

6. Needforadditionalorimproved

processinginfrastructure

StrategiesforStrengtheningtheLocalMeatIndustry

Atthegathering,participantsalsoengagedina

participatoryprocesstoidentifythemost

importantissuesfacingthelocalmeatindustryinCentralAppalachia.

Weidentifiedsixkeyissues:(1)an

unsupportivepolicyenvironment,(2)alackof

accesstocapitalandfinancing,(3)aneedfor

trainingandeducationwithintheindustry,(4)

aneedforconsumereducation,(5)alackof

collaborationwithinthecommunity,and(6)aneedforadditionalorimprovedmeat

processinginfrastructure.Wethenworkedinsmallgroupstodevelopstrategiesfor

addressingeachofthesesixissues,andgotfeedbackandsuggestionsonthesestrategiesfromeveryoneatthegathering.Thestrategieshavebeensummarizedbelow.

Strategiesrelatedtopolicy

Proposeadjustmentstoexistingregulationsthatmakethemmoreappropriateandrealisticforsmallprocessors.

Createanewregulatorybasisforsmallprocessorstoreducepathogensampling. BaseUSDAovertimerulesforinspectorsona40-hourweek,notan8-hourday.

Strategiesrelatedtocapitalandfinance

IncreasecapitalfromlocalbanksvialocalagriculturetargetedCDsand401(k)s. Increaseaccesstofundingfromcommunitydevelopmentfinancialinstitutions. Providestandardizedloansforsmallfarmincubationprojectsinmeatproduction,

similartothehightunnelprogramintheUSDANRCSEnvironmentalQualityIncentives

Program(EQIP.)

Strategiesrelatedtoindustrytraining

Developameat-cuttingapprenticeshipprogram,involvingprocessors,educators,andstateentities.

Teachproducershowtoproperlyfinishanimalsforslaughter. Newtrainingprogramsatland-grantuniversitiestosupportthelocalfoodsmovement.

Strategiesrelatedtoconsumereducation

Formalocalmeattradeassociationfocusedoneducatingconsumers. Developalocalmeatand/orlocalfoodsmarketingplatformandidentifymediaoutletsacrosstheregion.

Developagliteracycurriculaonagriculture,food,andnutritionforK-12education.


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Strategiesrelatedtocommunitycollaboration

Promoteawatershedapproachthatconnectsvariousstateandfederalagenciesacrossdesignatedwatersheds.

DevelopaCommunityIncubatorTeammadeupoflocalleadersandorganizations. Expandtheconversationamonggovernmentagenciestosupportlocalmeatinfrastructure,aimingforsomethingsimilartotheWestVirginiaDepartmentof

Educationsrecenthiringofafarm-to-schoolcoordinator.

Strategiesrelatedtomeatprocessinginfrastructure

Findorcreateanaggregatortopurchaselivestockandmarketanddistributeproductsacrosstheregion.

Connectwithexistingfoodhubstostartanewfoodhub/meatstoragebusiness.Workwithexistingprocessors,meatmarkets,andbutcherstocoordinateschedulesthroughouttheyear.

Low-costorno-coststrategies

Participantsinsmallgroupsidentifiedseverallow-costorno-coststrategies,whichcanbe

implementedimmediatelywithrelativelylittleeffortormoney.Theseareoutlinedbelow.

1. Policy:Createapamphletoutliningpolicyissuesrelatedtomeatprocessing,senditto

RepresentativesandSenatorsacrossCentralAppalachia,thenbringexistinglegislative

contactstogethertopresentinformationandrecommendations.

2. CapitalandFinance:Developascanofwhatisavailableinprivateandpublicfundingformeatprocessinginfrastructure.

3. Industrytrainingandeducation:Developamentorshipprogram,whereexperienced

farmerssupportemergingfarmers.Workwithregionalsustainableagricultureand

economicdevelopmentorganizationstodevelopandimplementthisprogram.

4. Consumereducation:Holdcommunityworkshopswherelocalfarmersexplainand

providedemonstrationsrelatedtosustainableagriculture,localfoods,andlocalmeat

valuechains.

5. Communitycollaboration:OrganizeameetingwithFederalandStateDepartmentsof

CommerceandAgriculturetoseeiftheycansupportthedevelopmentofinfrastructureneededforlocalmeatvaluechains.

6. Industryinfrastructure:Bringinanestablishedlocalmeataggregator(anentitythat

purchaseslivestockandmarketsanddistributesproducts)andtalkwithbusinessesthat

arealread urchasin roductsaboutcreatin a roduct ool.


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PartnersandResourcesforImplementingtheseStrategies

Assmallgroupsdevelopedstrategiesrelatedtothesixissuesoutlinedabove,somegroups

alsoidentifiedpotentialpartnersthatcouldhelpstrengthenthelocalmeatindustryin

CentralAppalachia.Someofthesekeypartnersandresourcesarelistedbelow.

Potentialpartnersandresourcesforpolicychange:

AnimalWelfareApproved FarmtoConsumerLegalDefenseFund TheLeopoldCenteratIowaStateUniversity NationalSustainableAgricultureCoalition NicheMeatProcessorsAssistanceNetwork

Potentialpartnersandresourcesforindustry

trainingandeducation: CenterforEnvironmentalFarmingSystems CenterforRegionalFoodSystemsatMichigan

StateUniversity

VirginiaTechCollegeofAgricultureandLifeSciences WestVirginiaSmallFarmCenter

Potentialpartnersandresourcesformeatprocessinginfrastructure:

EasternCarolinaOrganics LocalFoodHubinVA MarksburyFarmMarket MonroeFarmMarketinWV USDepartmentofAgriculture TheWallaceCenteratWinrock

International

Potentialpartnersandresourcesfor

communitycollaboration:

10PercentCampaigninNC 30MileMealProjectinOhio GreenbrierValleyEconomicDevelopment

Corporation

VirginiaFoodSystemCouncil WestVirginiaFoodandFarmCoalition


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ConclusionsandNextSteps

Opportunitieshighlighted,connectionscreated.Throughtheconversationsthat

happenedatandbecauseofthisgathering,wereinforcedourinitialbeliefthatthelocalmeatindustryisripeforfurthergrowthandexpansionintheCentralAppalachianregion.

And,aswewatcheddealsbeingmadeandrelationshipsbeingestablished,wesawagainjusthowimportantitisholdgatheringslikethisone.Thesegatheringsbringtogetherknowledgeable,experienced,andhighlyinvestedindividualsandorganizationsfromallpartsofavaluechain,andhelpthemseehowtheycanworktogetherformutualbenefit.Bycatalyzingconnectionsandcollaborations,thisgatheringhelpedmovethisindustryforwardinwaysthatwillcontributetocreatingamorejustandsustainableAppalachia.

NextSteps.Throughoutthisgathering,we

workedtodevelopacollectiveanalysisoftheopportunitiesandchallengesinthelocalmeatindustry.Wethoughtaboutwhatneedsto

happentomovethisindustrytothenextlevel,andproblem-solvedaroundthechallengesthatmakeitdifficulttogetthere.

Wecameupwithrealsolutionsforstrengtheninglocalmeatvaluechains;somearelow-cost,immediatesolutions,whileothersmayrequirelonger-termplanningandinvestment.Andfinally,wedevelopedsomeclearandactionablenextstepstoimplementthesesolutions.

Twooftheorganizationsinvolvedinplanningthegathering,theCentralAppalachianNetworkandtheWestVirginiaFoodandFarmCoalitionsLocalMeatInfrastructureWorkingGroup,willtaketheleadonimplementingsomeofthesenextsteps.Somepotentialnextstepsfortheseorganizationsareoutlinedtotheleft.

Howyoucanhelp.Eachparticipantinthe

gathering,andeveryonewhoreadsthispaper,canworktocontinuetheseconversations,and

helpimplementsomeofthestrategiesfrompages7and8intheirowncommunities,counties,andstates.Wecanallreachouttoourfederalandstatelegislatorstopresentthepolicyconcernsdiscussedinthispaper,eitherasindividuals,orasrepresentativesofgroupsandorganizationswithwhichweareinvolved.And,asconsumersandbusinesspeople,wecanallcontinuetopurchasefrom,support,andspreadthewordaboutlocalmeatproducers,processors,andmarketsinCentralAppalachia.

PotentialnextstepsforCAN

Bringtogetherland-grant

universitiesandcommunitycolleges

todiscusshowtheycansupport

localfoodsystems. Bringtogetherstaffmembersof

CentralAppalachianSenatorsand

Representativestoaddresspolicy

issuesandrecommendations. Hostregionalgatheringstofurther

thisconversationandmove

strategiesforward. Continuetosupportthiswork

throughtheSmallGrantsProgram.

UsetheCANmailinglisttoshareinformationaboutthelocalmeat

industryintheregion.

PotentialnextstepsfortheLocal

MeatInfrastructureWorkingGroup

Collectinformationaboutallofthe

meatprocessorsinWV. Createadirectoryofprocessors,the

servicesthoseprocessorsprovide,

andimportantregulationsfor

variousmarketsandproducts.


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One Foundation

GatheringSponsorsandPartners

TheCentralAppalachianNetwork AppalachianCenterforEconomicNetworks AppalachianSustainableDevelopment CenterforEconomicOptions MountainAssociationforCommunityEconomic

Development NaturalCapitalInvestmentFund RuralAction

TheGreenbrierValleyEconomicDevelopmentCorporationTheGreenbrierValleyLocalFoodsInitiativeSwiftLevelFarmsTheWestVirginiaFoodandFarmCoalitionFirstNationalBankTheOneFoundation

ContactInformationCentralAppalachianNetwork

Email:[email protected]:www.cannetwork.orgFindusonFacebook.

CentralAppalachianNetworkCoordinator

ThomasWatson,RuralSupportPartnersEmail:[email protected]:www.ruralsupportpartners.com

Coverphotoandpage4photocourtesyoftheMarksburyFarmMarket.AllotherphotosbytheCentralAppalachianNetwork.

ThispaperwasdevelopedandwrittenbyRuralSupportPartners

incooperationwiththeCentralAppalachianNetwork.

the local meat industry - opportunities and challenges in central appalachia

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