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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

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USDA PROCESS VERIFIED

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  1. USDA PROCESS VERIFIED Michael Boland and Renee Sanden Kansas State University Funded by Agricultural Marketing Resource Center

  2. 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

  3. All Natural Beef Cooperative • Retailers • Rainbow Organic Farms • Kansas State University

  4. Markets • Hen House • 15 locations in the Kansas City area • Price Choppers • 4 locations in Kansas City area • Community Mercantile • One location in Lawrence

  5. All Natural Beef Cooperative • Beef Producer Cooperative • Supplies beef solely to program • Operations vary in size, location and goals

  6. 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

  7. Process Verification • USDA system • Based on ISO 9000 • Provides third party audits for a fee • Verifies that self-imposed label claims are credible

  8. 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

  9. Producer Question • Why did you decide to participate in this program?

  10. GNFF Process Verified Claims • Raised on local, family size farm operations • No growth hormones • No sub-therapeutic antibiotics • 100% vegetarian ration (no animal by-products)

  11. Claims continued… 5) No antibiotics during the finishing phase 6) Source of origin verified from producer through retailer 7) Dry-aged 10-14 days

  12. Producer Question • Why these particular claims?

  13. 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

  14. Producer Question • What was the training like?

  15. 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

  16. Producer Question • What kinds of questions were you prepared to answer for the audit? • How did you prepare?

  17. 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

  18. 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

  19. 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

  20. Producer Question • What are the benefits of Process Verification? • What are the drawbacks?

  21. 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

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