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