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Convened by the Central Appalachian Network In partnership with: The Greenbrier Valley Economic Development Corporation Swift Level Farms The West Virginia Food and Farm Coalition
Executive
Summary
On June 19th and 20th, 2012, the Central Appalachian Network and its partners convened a gathering of 45 people from across Central Appalachia in Lewisburg, WV, to discuss how to strengthen the regions local meat industry. Participants hailed from every part of the industry production, processing, inspection, finance, sales, and support. They worked together to: Understand the core challenges the industry is facing, Develop solutions to address these challenges, Create the relationships necessary to implement these solutions, and Identify clear next steps to move this work forward. This paper is intended to share the knowledge and ideas brought forth during this gathering with a broader audience, to increase the collective understanding of key issues being faced by the local meat industry, and catalyze efforts to address them. The paper consists of five main sections: An introduction, which gives background information on the gathering itself, and illustrates key concepts and trends surrounding the local meat industry in Central Appalachia, including why local meat is such an important issue in the region A section on processing, which reviews three different ownership and operating models that small meat processors are using in Central Appalachia. This section also reviews two core challenges that must be overcome for small local meat processing to remain viable in the region A look at six key issues facing the local meat industry as a whole. Here, participants offered strategies for strengthening the industry by addressing these issues in both the long and short-term A list of partners and resources for implementing these strategies And a conclusion, with clear next steps for supporting and strengthening the regions local meat industry Through a series of open and honest discussions, we reinforced our initial belief that the local meat industry is a sector with enormous economic potential for the Central Appalachian region. We also recognized the challenges that face this industry, and worked with people from every part of the industry to gain a deeper understanding of these challenges and develop some great ideas for addressing them. Perhaps most importantly, we brought together a diverse group of knowledgeable, experienced, and highly invested individuals and organizations who are ready to work together to move this industry forward in ways that will contribute to creating a more just and sustainable Appalachia. The Local Meat Industry: Opportunities and Challenges in Central Appalachia 1
Introduction
To
develop
a
collective
understanding
On
June
20th,
2012,
the
Central
Appalachian
of
the
core
opportunities
and
Network
(CAN),
in
partnership
with
the
challenges
facing
the
local
meat
Greenbrier
Valley
Economic
Development
industry
in
the
region.
Corporation,
Swift
Level
Farms,
and
the
To
work
together
to
come
up
with
West
Virginia
Food
and
Farm
Coalition,
solutions
for
advancing
this
industry,
hosted
a
gathering
in
Lewisburg,
WV
to
both
short-term
and
long-term.
To
develop
clear
and
actionable
next
discuss
how
to
strengthen
local
and
regional
steps
to
implement
these
solutions.
meat
value
chains.
To
create
relationships
and
make
connections
between
people
who
are
This
event
is
part
of
CAN
and
its
partners
ready
and
able
to
move
forward.
larger
work
to
strengthen
local
food
value
chains,
which
we
define
as
supply
chains
that
are
infused
with
the
triple
bottom
line
values
of
simultaneously
promoting
financial,
social,
and
environmental
goals.
As
CAN
and
its
partners
have
worked
to
strengthen
local
food
value
chains
across
five
states
in
Central
Appalachia,
local
meat
has
emerged
repeatedly
as
an
area
of
both
opportunity
and
concern
for
farmers,
processors,
and
local
food
advocates.
This
gathering
is
an
attempt
to
hold
a
conversation
about
some
of
those
concerns,
to
bring
together
actors
from
every
part
of
the
local
meat
value
chain,
to
learn
from
each
other
and
plan
for
action.
Gathering Objectives
In planning this gathering, we began by identifying an area where there is great opportunity (i.e., local meat production The Central Appalachian Network and processing), coupled with unique The Central Appalachian Network (CAN) is a challenges. Our goal was to bring together network of nonprofit organizations a diverse group of people who are dedicated to working for a more just and knowledgeable, experienced, and invested sustainable Appalachia. CAN acts as a in this field to figure out where change regional convener and network builder, needs to happen. In order to achieve this with a current focus on supporting local and goal, we made sure to bring in attendees regional food systems. CAN is supported by from all of the Central Appalachian states the Ford Foundation, the Mary Reynolds (KY, OH, TN, WV, VA), and from every part Babcock Foundation, the blue moon fund, of the local meat value chain. Our planning and the Appalachian Regional Commission. team was similarly diverse, and having those diverse voices in the planning process really helped to ensure that the gatherings discussions and presentations would bring out the knowledge of each group in the room, and move the whole system forward. The Local Meat Industry: Opportunities and Challenges in Central Appalachia 2
Local
meat
value
chains
include
all
of
the
actors
that
take
meat
from
production
all
the
way
through
the
final
consumer,
including
input
suppliers,
producers,
processors,
aggregators
and
distributors,
and
markets.
In
addition
to
these
core
elements,
the
value
chain
includes
all
of
the
supporting
actors
as
well
like
regulators,
trainers,
veterinarians,
waste
management,
marketing
and
advertising
firms,
and
advocacy/non-profit
organizations.
Aggregators/
Distributors
Accessible
Markets
Informed
Customers
Inputs
Producers
Processors
I
get
a
lot
of
calls
wanting
the
local,
grass-fed,
no
hormones,
etc
it
aint
about
the
money,
its
about
Can
I
get
the
product?
Andy
Nelson,
Nelsons
Meat
Processing
More
and
more,
consumers
are
looking
for
locally-produced,
pasture-raised,
hormone-free
meat.
Demand
is
growing
in
the
region
and
across
the
US,
but
some
critical
barriers
must
be
addressed
so
that
Central
Appalachias
local
meat
industry
can
meet
that
demand.
Opportunities.
As
we
have
talked
with
people
across
Central
Appalachia
about
local
food
value
chains,
they
have
repeatedly
stressed
that
meat
is
important.
Appalachian
land
that
is
too
hilly,
rocky,
or
shady
to
produce
fruits
and
vegetables
may
be
perfect
for
meat
production.
And
there
is
plenty
of
room
to
expand
local
sales
for
example,
West
Virginia
only
gets
2/1000ths
of
its
food
from
local
sources!
Moreover,
consumers
have
consistently
demonstrated
their
willingness
to
pay
a
premium
price
for
local
and
grass-fed
meats.
In
addition
to
its
economic
benefits,
local
meat
production
has
social
and
environmental
benefits
as
well.
Pasture-based
animal
agriculture
provides
healthy
food
for
consumers,
improves
animal
welfare,
and
encourages
environmentally
sound
farming
practices.
Challenges.
Despite
these
opportunities,
we
hear
farmers
say
that
there
is
often
not
enough
local
infrastructure
to
process
the
animals
they
are
raising.
In
many
rural
communities,
the
number
of
small
butcher
shops
and
slaughter
plants
declined,
as
large- scale
industrial
processing
became
the
norm.
Further,
we
hear
small
meat
processing
businesses
say
that
they
are
struggling
under
the
rules
and
regulations
that
the
federal
government
places
on
meat
processing.
It appears that we have a potential crisis looming in local meat value chains across Central Appalachia. Small meat processors are essential, but are struggling mightily. If we want local meat value chains to thrive, we need local meat processing that is profitable, accessible, and affordable for producers. This is the concern that spurred this gathering. The Local Meat Industry: Opportunities and Challenges in Central Appalachia 3
At the gathering, we heard a panel discussion about various approaches to developing the infrastructure needed for meat processing. Below, we outline three brief case studies of varying approaches to local meat processing in Central Appalachia. 1. A traditional for-profit business. Andy Nelson owns Nelsons Meat Processing, a meat processing plant in Milton, WV. Andy grew up cutting meat at his fathers grocery store, which eventually closed. In 1997, during a downturn in the trucking industry (where he had been employed,) Andy decided to create his own job by going back to his roots and renting and renovating a closed-up slaughterhouse. He eventually built his own facility nearby, and owns and operates his plant as a for-profit business. He has grown steadily over the years by, as he puts it, treating people the way Id like to be treated, and recently bought out a local competitor in order to expand his capacity and his value-added processing services. He has a diverse business, processing custom orders from farmers, butchering and processing hunters deer, transporting meat regionally with a refrigerated truck, and processing for the prison system, as well as processing some of his own animals. He shares other processors challenges around regulations and the timing of producers processing needs. He also notes that he has many struggles with getting consistent, reliable labor for his plant, noting, I have 10 or 11 employees on average when they all show up. 2. A social enterprise. Marksbury Farm Market is in the grass business; they see their business as a way of converting good Kentucky grass into animal protein in a sustainable way. They are a small scale, locally-owned butchers shop, farm market, and processing facility near Lexington, KY. The company is a social enterprise, combining financial, social, and environmental goals. Marksbury was formed as a partnership between 4 investors who knew that they could make an impact, and a good living, by operating a facility that encourages the ethical treatment of animals and care of the land, and which capitalizes on the growing market for sustainable local meat. Their primary income stream comes from selling local animals raised on pasture according to Marksburys strict environmental and animal welfare standards to wholesale markets: restaurants, grocery stores, and institutions. They also do custom processing for local producers, keeping strong ties to the community while staying out of those producers primary markets by focusing on wholesale. Finally, Marksbury is dedicated to transparency in its operations to the point where every package of their meat can be traced back to the animal it came from.
For
smaller
plants,
these
requirements
add
disproportionately
more
operational
costs
per
pound
of
processed
meat.
And
a
new
set
of
proposed
validation
requirements
from
the
USDA
is
poised
to
add
another
layer
of
testing
for
each
one
of
these
HACCP
plans,
further
increasing
the
regulatory
burden.
This
burden
is
compounded
by
the
fact
that
many
small
processors
dont
have
formal
HAACP
training;
training
events
are
infrequent
(generally
once
a
year
per
state),
and
cost
busy
processors
two
full
days
of
work
time
and
about
$500.
Many
small-scale
processors
feel
these
requirements
place
them
at
a
disadvantage.
As
one
participant
in
this
gathering
said,
It
makes
absolutely
no
sense
for
me
to
be
subjected
to
the
same
regulations
with
a
12,000
square
foot
facility
that
Tyson
Foods
has
with
a
300,000
square
foot
facility.
Furthermore,
a
former
USDA
supervisor
of
inspectors
who
attended
this
gathering
noted
that
the
HACCP
regulations
are
interpreted
and
enforced
inconsistently,
which
means
that
different
processors
face
different
regulatory
challenges.
Thus, small meat processors challenges are related both to federal policy (the HACCP system) and the ways the policy is implemented on the ground (the inconsistent enforcement of USDA HACCP regulations.) These regulatory burdens have contributed to the decline of many local processors, which eliminates jobs, raises costs for producers, and hampers economic growth.
The other key challenge noted by processors revolves around the fact that most farmers raise and finish their animals on roughly the same schedule, with demand for processing services peaking in the fall and early winter, and bottoming out in the late spring and early summer. This means unsteady employment for workers, further exacerbating the difficulties that many small processors have with finding reliable labor for their plants. Moreover, since processors have to make most of their yearly income during the relatively short peak season, they have to keep prices higher than they would otherwise if they were able to process at a higher volume year-round. And because most of the years processing demand comes at once, a bottleneck effect occurs, where the labor force and infrastructure of small plants are hard-pressed to meet this short-term spike in demand. The irony of all these seasonality issues is that the biggest season of demand for local meats happens around the summer grilling time and farmers market time just when most small processors are experiencing the lowest demand for their services. Notably, the problem of seasonal peaks and valleys is one that people were already starting to solve during the gathering, as processors and producers talked to one another and made arrangements to have animals finished and processed during off-season times. These conversations clearly demonstrated the importance of bringing together people from every part of the local meat industry to build relationships and solve common problems. The Local Meat Industry: Opportunities and Challenges in Central Appalachia 6
Unsupportive
policy
environment
Access
to
capital
and
financing
Need
for
training
and
education
Need
for
consumer
education
We
identified
six
key
issues:
(1)
an
Lack
of
collaboration
within
the
unsupportive
policy
environment,
(2)
a
lack
of
community
access
to
capital
and
financing,
(3)
a
need
for
6. Need
for
additional
or
improved
training
and
education
within
the
industry,
(4)
processing
infrastructure
a
need
for
consumer
education,
(5)
a
lack
of
collaboration
within
the
community,
and
(6)
a
need
for
additional
or
improved
meat
processing
infrastructure.
We
then
worked
in
small
groups
to
develop
strategies
for
addressing
each
of
these
six
issues,
and
got
feedback
and
suggestions
on
these
strategies
from
everyone
at
the
gathering.
The
strategies
have
been
summarized
below.
At the gathering, participants also engaged in a participatory process to identify the most important issues facing the local meat industry in Central Appalachia.
Propose
adjustments
to
existing
regulations
that
make
them
more
appropriate
and
realistic
for
small
processors.
Create
a
new
regulatory
basis
for
small
processors
to
reduce
pathogen
sampling.
Base
USDA
overtime
rules
for
inspectors
on
a
40-hour
week,
not
an
8-hour
day.
Increase
capital
from
local
banks
via
local
agriculture
targeted
CDs
and
401(k)s.
Increase
access
to
funding
from
community
development
financial
institutions.
Provide
standardized
loans
for
small
farm
incubation
projects
in
meat
production,
similar
to
the
high
tunnel
program
in
the
USDA
NRCS
Environmental
Quality
Incentives
Program
(EQIP.)
Develop
a
meat-cutting
apprenticeship
program,
involving
processors,
educators,
and
state
entities.
Teach
producers
how
to
properly
finish
animals
for
slaughter.
New
training
programs
at
land-grant
universities
to
support
the
local
foods
movement.
As small groups developed strategies related to the six issues outlined above, some groups also identified potential partners that could help strengthen the local meat industry in Central Appalachia. Some of these key partners and resources are listed below.
Center for Environmental Farming Systems Center for Regional Food Systems at Michigan State University Virginia Tech College of Agriculture and Life Sciences West Virginia Small Farm Center
The Central Appalachian Network Appalachian Center for Economic Networks Appalachian Sustainable Development Center for Economic Options Mountain Association for Community Economic Development Natural Capital Investment Fund Rural Action The Greenbrier Valley Economic Development Corporation The Greenbrier Valley Local Foods Initiative Swift Level Farms The West Virginia Food and Farm Coalition First National Bank The One Foundation
One Foundation
Contact Information
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