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2012 Beef University Direct Marketing Beef. Jason Fischbach, Agriculture Agent Ashland and Bayfield County March 5, 2012. Direct Marketing Beef. Rules and Regulations Markets Packaging, Branding, Marketing, Pricing.
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2012 Beef UniversityDirect Marketing Beef Jason Fischbach, Agriculture Agent Ashland and Bayfield County March 5, 2012
Direct Marketing Beef • Rules and Regulations • Markets • Packaging, Branding, Marketing, Pricing
Beef cattle harvested on farm by the producer or custom mobile processor cannot be sold. Scenario 1: Uncle Bob wants to buy half a steer from you. You hire a custom mobile processor to kill and slaughter the steer on your farm. You and Uncle Bob help out and Uncle Bob takes a side home to cut and pack in his freezer and pays you for the meat. Not Legal Scenario 2: You sell Uncle Bob the live steer. You and Uncle Bob hire a custom mobile processor to kill and slaughter the steer on your farm. Uncle Bob takes his meat home. Not Legal Scenario 3: You buy a live fattened steer and bring it home to your farm. You hire a custom mobile processor and kill and slaughter the steer on your farm. You package and store the meat in your freezer and give some to your friend, Billy. Legal
From the Farm Beef sold from the farm direct to the customer must have been processed in a State or USDA inspected plant and be labeled for sale. AND The farm (seller) must have a retail food establishment license and inspected freezer. Meat processed at custom processing plants cannot be sold!
Labeling Requirements • Product name (e.g. ground beef) • Product ingredients, if more than one • Name and address of packer, processor, or distributor • Inspection legend • “Keep Refrigerated” or “Keep Frozen” statement • Safe handling instructions • Weight • Different rules for product claims (grass-fed, organic, pasture-raised, etc.) • Bar code (SKU) is NOT REQUIRED
Retail Food Establishment License • Issued by County DATCP personnel • Must have a dedicated freezer that keeps the meat frozen • Located in a clean space (house, garage, shed)
Scenario 4: You take a steer to a custom processor and you get the meat back in freezer-wrapped paper stamped “Not For Sale”. You store the meat in your freezer and sell it to friends and neighbors. Not Legal Scenario 5: You take a steer to an inspected processor and you get the meat back in freezer-wrapped paper with each cut labeled with the processor’s label. You store the meat in a chest freezer and sell the cuts to friends and neighbors. You have a retail food establishment license and the freezer is inspected. Legal Scenario 6: You take a steer to an inspected processor and you get the meat back in freezer-wrapped paper with each cut labeled with the processor’s label. You store the meat in an inspected freezer and sell cuts at farmer’s markets and to grocery stores. Not Legal
Grocery Stores and Restaurants Beef sold to a retailer (grocery store or restaurant) must have been processed in a State or USDA inspected plant and be labeled for sale. AND The farm (seller) must be registered as a meat distributor.
Meat Distributor • Meat must be stored in an inspected freezer • Meat must be transported in a manner that frozen meat stays frozen and un-frozen meat stays below 41F
Farmers Markets, Door-To-Door Beef sold at Farmers Markets must have been processed in a State or USDA inspected plant and be labeled for sale. AND The farm (seller) must have a mobile retail food establishment license.
CSA-Community Supported Agriculture Beef sold via CSAs must have been processed in a State or USDA inspected plant and be labeled for sale. AND The farm (seller) must be registered as a meat distributor and MAYBE have a mobile retail food establishment license.
Two Local Meat Economies Direct marketers Cryo-vac packaging Family and friends Sides, 1/4s Freezer paper VENISON Jan Mar Jun Aug Dec
The Food System Pendulum The growing interest in locally-produced differentiated food products is creating new economic opportunities for producers and their communities. Global Commodity-Based System Local Differentiated Food Based System
US Beef Consumption: 28 billion pounds US Chicken Consumption: 35 billion pounds
The Local Market 95% of the local market is priced-based and probably not available to local producers 5% is still a lot… 86,128 dozen eggs 59,469 chickens 270,689 lbs of beef A local market is often the springboard to a regional market
Possible Markets • Direct To The Customer • From The Farm • Farmers Markets • Community Supported Agriculture (CSA) • To Retailers • Grocery Stores • Restaurants • Distributors
Selling To Retailers • The big problem is the less desirable cuts • They want your steaks, but probably not your roasts • Focus on ground or value-added • Consider bar codes, must have nice packaging and labeling
Selling Direct to Customers • Customers will sort through and buy your best cuts, leaving you with less desirables • Most direct marketers sell 20-30 lb variety beef boxes (ground, steaks, roasts) • Variety boxes range between $5-$7 per lb • Consider mixed meat boxes (beef, pork, poultry, lamb)
Marketing and Branding • The goal of a brand is to communicate a story with a symbol or picture • You need a nice looking logo • You need a nice story and quality product • The “local” food movement is all about personalizing food • Link your product with your story • Tell the story over and over again • Make it as easy as possible for customers to buy your meat • Customers will tolerate higher prices, but not more hassle
How Much Should I Charge? • Just because you’re a cheapskate doesn’t mean your customers are • If no one complains about your price, you aren’t charging enough • Are you providing a community service or trying to make money? • You aren’t selling grocery store beef • Cost +
Summary • Take a deep breath and figure out the rules and regulations. You only have to do it once. • Spend the time and money to develop a marketing plan and marketing materials. • Develop your farm story and tell it over and over again. • You are selling your high quality product AND your farm story.
