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and Adding Value to Livestock Tour

School Bus on Wheels Learning Guide

It often takes 10 to 15 years to get an on farm processing operation up and running smoothly and the financing, distribution and marketing challenges resolved.

Spragg’s Meat Shop - Greg and Bonnie Spragg

The Family Bonnie grew up on an alfalfa seed farm that her parents and brothers continue to operate today. Greg started his career in the army. After attending a hog workshop in Three Hills and obtaining experience working in a neighbouring hog barn, Greg knew that he wanted to raise hogs of his own using a different production philosophy. The idea for a humanely raised, low stress hog operation was born.

The Farm This free range pork operation has grown from the three little pigs Greg received as a gift from Bonnie in 2002 to the 700 market hogs they raise annually on their farm near Rosemary. The Spraggs have 250 to 350 hogs on pasture at any one time. A partner producer supplies the Spraggs with 50 pound piglets that they finish in an environmentally friendly manner, feeding only plant based, antibiotic and growth hormone-free feeds. Sales of their provincially inspected meat started with farmers’ markets.

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Adding Value As production and market demand increased, expansion was inevitable. Spragg’s Meat Shop opened in Rosemary in 2005 and enabled the Spraggs to raise and process the hogs and market their pork directly to consumers. It provided three additional benefits: control of the meat processing function to better meet consumer needs, access to potable (treated town) water sufficient to meet their processing requirements and a centrally located retail outlet to better access the market opportunity. Between 3,000 and 4,000 square feet, the meat shop required an approximate investment of $250,000.

In 2013 a 5,000 square foot expansion was added. The original shop space is now the retail outlet while all product manufacturing is done in the new expansion. The operation processes between 20 and 25 hogs per week and employs 16 people between the Rosemary facility and Calgary and Brooks farmers’ markets.

Products Spragg’s Meat Shop processes and sells a full range of pork products from retail meat cuts to sausages, deli meats, smoked and cured meats and jerky. It also offers a custom processing service for beef, pork, lamb and wild game. In addition to their signature pork, the meat shop also sells beef and chicken. A recent partnership with Calgary based TeamFund added a fund raising option to product sales.

Spragg’s Meat Shop, Greg and Bonnie Spragg

438 Centre ST Rosemary AB T0J 2W0 Phone: 403.378.3800 [email protected] http://spraggsmeatshop.blogspot.ca/

NOTES:

Discussion Questions: Spragg’s Meat Shop

What initial investment is needed to start a processing enterprise?

Who did you approach for financing?

What is your pricing strategy (retail, wholesale, direct, fundraising)?

How did you identify and secure production partners?

Where do you find staff?

What is your vision for the future?




Medicine Hat Meat Traders Ltd. - Greg and Joanne Pahl

The Family Tour organizer Bert Dening first met Greg and Joanne Pahl in 2008 when their family’s fourth generation ranch seven miles northeast of Medicine Hat was a test site for the red meat mobile abattoir pilot plant. Owned and operated by the Pahls and their children, Medicine Hat Meat Traders makes their award winning beef jerky in their on-farm processing facility. Both Greg and his oldest son, Jackson, learned the basics of their trade from the Olds College Meat Processing certificate program. They are seasoned producers who know the meat business and how to make top quality meat products.

The Farm The Pahl family operation has been proud suppliers of high quality, natural beef for over 79 years. In addition to their meat processing operation, the family raises pigs, chickens and eggs.

A downturn in their livestock business seven years ago spurred Greg and Joanne to diversify their operation and change their business focus from beef production to value added processing. Selling a parcel of land reduced their debt and cattle commitments and provided approximately $200,000 for their beautiful shop and on-farm processing facility that was “built with food safety in mind.”

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Adding Value Medicine Hat Meat Traders purchases about 20 head of cull cows annually to process into jerky. The Pahls maximize their profits by processing low cost cull cows into high margin jerky products. Jerky is sold in 85 gram packages under the Medicine Hat Meat Traders label that reflects the authenticity and premium quality of their products.

Products The company is into its seventh season of selling beef jerky and offers it in nine flavours. The Pahls sell their jerky, beef sticks and soft dried beef strips at Calgary, Medicine Hat, Cochrane and Strathmore farmers’ markets as well as in their on-farm shop. Wholesale orders are shipped to Calgary. Looking to expand into Edmonton area farmers’ markets, the Pahls are seeking a vendor partner to test the Edmonton market demand.

Medicine Hat Meat Traders offers limited pork, chicken and egg sales in addition to their jerky products.

Medicine Hat Meat Traders Ltd., Greg and Joanne Pahl

Location address: 5016 Township Road 132 (7 miles NE of Medicine Hat) Mailing Address: P.O. Box 981 Medicine Hat AB T1A 7G8 403.488.1344 [email protected] www.mhmt.ca

NOTES:

Discussion Questions: Medicine Hat Meat Traders Ltd.

What spurred the decision to do on-farm meat processing?

What made you decide to build the processing facility on farm instead of in Medicine Hat?

The company name projects an urban rather than on-farm image. What is the story behind it?

What has been your biggest challenge/weakness?

What plans for future growth are you considering?

If you had the chance to do it all again, what would you do differently?




Premium Sausage Inc. - Mark and Debbie Penner

The History Premium Sausage Inc. was established in 1990 by local hog producers, Ralph and Elaine Erb. They began producing homemade sausage in their garage facility when the hog market fell. As demand grew, the Erbs moved a skid shack into Seven Persons and opened their first shop. With a growth rate of about five percent a year, the business continues to flourish and drove two more facility expansions.

The Family In 2009 Premium Sausage was purchased by Mark and Debbie Penner. Mark was one of the first Premium Sausage employees, joining the company in 1990, and has been involved in the company operations, expansions and product development since then. Debbie and Mark attribute their business success to their commitment to producing only quality food products and listening to their customers. A clean, neat facility, strong marketing skills, friendly staff, a belief in employing experienced food handlers and a requirement for food safety training further encourage repeat customers and walk-in traffic.

The Farm The Penner’s don’t raise their own animals but rather buy all the trim needed for processing from the federal Cargill plant in Brooks as well as some local beef.

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Adding Value Premium Sausage is a meat processing and retail outlet that is also the hamlet of Seven Person’s community service destination. Entering through its prairie grain elevator entrance customers will find a small general store and post office in addition to the meat processing and retail facility. Ideally located right on Highway 3, it’s a popular truck stop for commercial drivers.

The last building expansion required about a $200,000 investment, obtained through AFSC. Money was saved on equipment by buying used and reformatting. For instance, the owners purchased two used ovens from Safeway at a nominal price and retooled them as smokehouses for Premium Sausage.

Premium Sausage has grown steadily since its inception. Easy access for highway traffic, a supportive local community and strong management keeps the business thriving.

Products Premium Sausage retails a complete line of fresh pork and beef cuts, deli meats, cured meats and sausages. The also provide custom processing for local beef and wild game and a fundraising option that is popular with local organizations.

Premium Sausage Inc., Mark and Debbie Penner

141 Mildred ST Seven Persons AB T0K 1Z0 403.832.2224 [email protected] http://premiumsausage.ca/

NOTES:

Discussion Questions: Premium Sausage Inc.

Ralph and Elaine Erb had a unique succession plan. What are the pros and cons of passing a business to someone outside of the family?

What are the keys to your success?

Can you share the process you went through to secure financing for the purchase/expansion?

Who does your social media? What has it contributed to your market share?

How do you find staff?

What staff training programs do you have?

What are your future plans?

What words of advice can you offer to someone just starting to retail farm direct?




Vital Green Farms - Joe and Caroline Mans

The Family Joe and Caroline Mans and their family operate the only independent organic dairy enterprise in Alberta. A third generation dairy farmer, Joe arrived in Canada from Holland in 1982. In 2004 Joe and Caroline started Vital Greens organic dairy and began processing a year later. Going organic and doing the processing themselves presented new challenges and a steep learning curve. With the hands-on involvement demanded by a smaller herd and controlling their own production and niche marketing, the Mans have created a viable business model that works for them and their family.

The Farm Surrounded by the ubiquitous feedlot operations of southern Alberta, Vital Green Farms stands out with their small milking herd of approximately fifty Holstein-cross cows. Starting with about 10 milk cows and one quarter section of land, the operation has grown to include a second, irrigated quarter section, enabling on-farm irrigated hay production and further expansion.

Vital Green Farms is self-sufficient in terms of feed with the exception of molasses, minerals and flax meal. The flax meal is sourced from Highwood Crossing. The cows are grass fed as much as possible.

The Mans leased their first small processing facility from Noble Meadows. About two years ago they built a new on-farm processing facility to process their entire milk production, ensuring the quality of products they are known for.

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Adding Value Vital Green Farms does not homogenize their milk so the lighter cream rises to the top. Vital Green whole, reduced fat and chocolate milk products need to be shaken before drinking to experience the full bodied, creamy taste and in the case of chocolate milk, to disperse the Callebaut chocolate that settles to the bottom. Chefs and consumers demand the non-homogenized milk and cream to make their own butter, yogurts and cheeses.

Vital Green Farms has well-developed markets for their certified organic dairy products. Their products are available at their farm store; speciality retailers in Edmonton, Calgary, St Albert, Camrose, High River, Okotoks, Claresholm, Lethbridge and Medicine Hat; The Organic Box in Edmonton as well as the Calgary and Kingsland Farmers’ Markets.

Products Vital Green Farms now has a complete line of certified organic processed milk products. They started small with non-homogenized whole milk, plain yogurt and a small amount of butter. As demand grew they added 2%, skim, chocolate and buttermilk; 14% sour cream, crème fraîche, and a 52% heavy cream; a yogurt line; cream cheese and Gouda.

The Mans also pasteurize, process and sell a neighbour’s sheep milk which they process into sheep yogurt, sheep cream and some sheep butter.

Vital Green Farms, Joe and Caroline Mans

Box 9361 Picture Butte AB T0K 1V0 403.824.3072

NOTES:

Discussion Questions: Vital Green Farms

What was your initial start-up investment in terms of both capital and family labour and skills?

How did you finance your expansion – both in terms of capital and quota?

Where did you source equipment from?

Do you have to sell your milk into the system and then buy it back as a processor?

How many cows do you have in production at once?

What is the production life expectancy of organic milk cows?

Are cull organic milk cows sold for processing into products such as jerky?

What are your plans for the future?




Broek Pork Acres, Noble Meadows Farm and Ewe-Nique Farms

NOTES:

A Co-operative Marketing Arrangement

Three potentially competitive operations chose to work together to reduce their marketing costs. Broek Pork Acres, Noble Meadows Farm and Ewe-Nique Farms co-operatively market their products to Calgary consumers. The three operations purchased a five tonne cube van and each week on a rotating basis one farm delivers product from the three operations into their Calgary markets. This arrangement increases the efficiency of each partner, reduces the cost of marketing and frees up time to pursue other aspects of their businesses.

Discussion Questions: Co-operative Marketing Arrangement

Do you know your neighbours? Are they potential business partners?

When might it work to partner with potential competitors?

Do you practice cross merchandizing strategies?

What are the ones that have worked well for you?

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Broek Pork Acres - Allan and Joanne Vanden Broek

The Family Allan and Joanne Vanden Broek with the help of their nine children raise Yorkshire, Duroc and Berkshire hogs on their small pastured pork operation near Lethbridge. They are unique, running their operation on less than one quarter of land and completely surrounded by large, intensive feedlots. Hailing from southern Alberta farm families, Allan and Joanne started grain farming in 1994 and added the hogs six years later. In 2005 they switched from a barn-based market hog enterprise to a pastured pork operation and began to market their pork products directly to consumers.

The Farm The Vanden Broek family control all aspects of their venture. They grow grain and hay for feed, raise the hogs, process the meat in their on-farm facility and market their products. They even control the slaughter process, renting a provincially inspected facility in Coaldale on their off-kill days where they kill the pigs and cool the carcasses before bringing them back to the farm for processing.

An early marketing venture involved subletting retail space from a provincially inspected plant in Lethbridge. That didn’t last long as the plant wanted to sell its products first. Now Broek Pork Acres sells their pastured pork by the side, whole or individual cuts to Calgary high end restaurants, meat shops and directly to consumers. They have wholesale and retail product lines.

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Adding Value The Vanden Broeks start adding value at production. They raise Berkshire hogs, a heritage breed of pig that is known for its well-marbled, moist, tender and flavourful meat that garners a price premium. Because they had a high end product Joanne and Allan initially targeted high end restaurants as those patrons are willing to pay the higher price for their quality product.

Allan and Joanne began on-farm processing in 2005 to diversify their operation and increase profit. In 2009 the Vanden Broeks expanded their on-farm, provincially inspected processing facility and now process over 10 hogs per week. From meat cutting to sausage making, a self-contained smokehouse and deli meats, the Vanden Broeks do all their meat processing on site. They do not offer a custom processing service, preferring to butcher and process only their own pork.

Products Broek Pork Acres offers diverse wholesale and retail pork product lines. Customers can choose from a wide variety of pork cuts including roasts and chops as well as sausages, bacon, hams, jerky, pepperoni sticks and sandwich meats. Their newest health watch line includes low salt sausage and sugar free ham, bacon and sausage.

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Broek Pork Acres, Allan and Joanne Vanden Broek

Box 791, Coalhurst AB T0L 0V0 403.381.4753 [email protected] www.broekporkacres.com

NOTES:

Discussion Questions: Broek Pork Acres

What were the main challenges you faced?

How did you build knowledge and confidence about your products and what you can realistically do?

What is your pricing strategy?

How are orders and payment taken for your Calgary deliveries?

Where do you drop product off?

How does your shared delivery with Noble Meadows and Ewe-Nique work?

How did you obtain financing?

How do customers sign up for your newsletter?

What are your future goals?

With a limited land base what options do you have for growth?




Noble Meadows Farm - Harvey and Carolyn Van Driesten

The Family Noble Meadows Farm is a family run goat dairy and goat milk processor. Harvey and Carolyn Van Driesten along with one of their sons are the key workers in the operation.

When the Van Driestens bought their farm near Nobleford they were hog farmers. They leased the small milk processing facility on the farm to their neighbors, Joe and Caroline Mans of Vital Green Farms. About the time the hog market dropped Vital Green Farms built their own on-farm milk plant. This prompted the Van Driestens to make the switch to goat production and learn the goat milk processing business.

Of all the businesses on the tour Harvey and Carolyn are the newest to their business. Like every other small business operator they struggled to get established, mostly because of the huge learning curve required with the switch from hog to goat production and goat milk processing.

The Farm Noble Meadows Farm milks about 100 goats which produce a volume of milk equivalent to about 10 cows. The goats are raised on pasture in season and fed locally sourced alfalfa and natural grain rations throughout the winter and in the milking parlour. Although not certified organic, the Van Driestens follow organic principles and don’t use sprays, fertilizers, growth hormones or antibiotics in their feed or vaccines.

Goats routinely birth multiple kids. Males and cull females are sold into the thriving meat market.

After the goats are milked in the morning the milk goes from the milking parlour to the small provincially inspected on-farm processing plant where it is pasteurized. It is then bottled or made into yogurt or a myriad of cheeses. The operation has very little automation so much of the work is still done by hand.

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Adding Value The Van Driestens have an on-site pasteurizing system that they bought from another operator who had imported the equipment and then didn’t use it. Value added processing started with pasteurizing the fluid milk and bottling some of it while processing the rest into goat cheeses.

Noble Meadows Farm products are available at Calgary area farmers’ markets, specialty retailers across southern Alberta, Calgary restaurants such as A Ladybug and Cafe and through a unique marketing arrangement with the Calgary Co-op.

Products The product line started with the manufacturing of goat milk, feta and soft goat milk cheese, chevre. The line soon expanded to include flavoured soft goat cheeses, plain and flavoured yogurts, goat cheddar, and specialty goat cheeses such as the Mexican mild flavoured, creamy soft cheese, queso fresco, and halloumi, a semi-hard, unripened brine cheese from Cyprus. Many of the soft cheeses are uniquely flavoured by the addition of herbs, spices or fruits. Yogurts are available in three formats: drinkable, traditional and Greek-style.

Noble Meadows Farm, Harvey and Carolyn Van Driesten

Box 551 Nobleford AB T0L 1S0 403.824.3228

NOTES:

Discussion Questions: Noble Meadows Farm

What was your start up investment?

How did you obtain financing?

What are your marketing options?

What does the exclusive agreement with Co-op entail? Does it restrict your marketing options or pricing? What are the pros and cons?

How do you ship products to markets?


You have a huge product mix. What are your best sellers? How do you manage your inventory?

Dairy products have a short shelf life and usually don’t freeze well. What happens to the products that don’t sell in time?

What are your future goals?




Ewe-Nique Farms - Bert and Caroline Vande Bruinhorst

The Family Ewe-Nique Farms is truly a family operation operating under rather unique circumstances. The parents, Bert and Caroline, own the processing side of the farm while their children own and raise the sheep. As the animals mature the production arm sells the lambs to the parent’s on-farm processing side of the operation. Growth in consumer demand is matched by increased production capacity as the younger generation purchases additional land around the farm site. By November, 2013 Ewe-nique Farms had processed 1,000 lambs with their sights set on doing 1,500 next year.

The Farm Bert and Caroline started Ewe-Nique Farms as a small lamb operation on one quarter of irrigated land near Picture Butte. The loss of the commercial lamb market due to BSE spurred them to diversify into meat processing. After a year of getting their meat custom processed with a less than desired quality, they decided to do it themselves. New to the meat cutting industry, the Bruinhorsts built their first facility on-farm and Bert hired a local butcher to show him how to cut up lamb. Augmenting their production with lamb from local producers, the family soon outgrew their processing capacity. Surrounded by feedlots and with no room for expansion, Bert and Caroline sold their land to their neighbours, the Mans of Vital Green Farms. The land sale financed their current five quarter spread southwest of Champion where the family raises, processes and markets lamb, chicken and eggs.

The lambs are raised free range without artificial growth hormones or animal by-product feeds and finished on a natural grain and forage hay ration. This ration produces a nicely marbled meat that is tender and tasty.

From four weeks of age the broiler and layer chickens are raised on free range pasture and a home grown wheat and pea ration. Broiler chickens, running between five and eight pounds, are available fresh five times a year and frozen year round. Chickens can be purchased whole or cut up at a price of $3.75 per pound plus a minimal packaging fee.

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Adding Value Ewe-Nique Farms is known for its authenticity, customer focus and product quality. Its products meet customer needs and exceed expectations. Bert is a perfectionist when it comes to slaughter and processing. Every step in his on-farm processing ensures product quality is maintained in every cut.

Lambs are slaughtered and cooled at a provincially inspected facility in High River; all the meat is hung and processed on farm. The first on-farm processing facility was the size of a single car garage and cost about $25,000. After the move to Champion, Bert and Caroline built a larger, provincially inspected on-farm meat plant for about $80,000. Resembling a hip roofed barn the new facility was planned so an addition can easily be added on. Ewe-Nique Farms is almost ready for its third plant expansion.

Ewe-Nique Farms sells their free range natural meat and eggs at the farm gate and their meat through Calgary restaurants and specialty retailers such as Blush Lane Organics, Second to None Meats and Community Natural Foods.

Products The Bruinhorsts process and sell free range natural lamb, chicken and eggs. All cuts of lamb are available as well as soup bones, kidney, heart and liver. The minimum charge for lamb is $300 which provides about 40 pounds of cut, wrapped and frozen lamb.

Ewe-Nique Farms, Bert and Caroline Vande Bruinhorst

Box 130 Champion AB T0L 0R0 403.897.3737 [email protected] www.eweniquefarms.com

NOTES:

Discussion Questions: Ewe-Nique Farms

Have you pursued farm direct marketing channels other than farm gate sales?

What kind of agreement do you have between the two arms of the operation?

How do new families get involved or existing ones leave without damaging the business?

What are your markets? How did you identify and secure your markets?

What are your marketing strategies? Do you use social media?

What do you do to obtain repeat customers?

What were your primary challenges and how did you overcome them?


What are your future plans?

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