2012 Beef UniversityDirect Marketing Beef

Jason Fischbach, Agriculture AgentAshland 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.

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.

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.

Not Legal

Not Legal

Legal

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!

From the Farm

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.

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.

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

Legal

Not Legal

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.

ANDThe farm (seller) must be registered as a meat

distributor.

Grocery Stores and Restaurants

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

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.

Farmers Markets, Door-To-Door

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.

CSA-Community Supported Agriculture

Markets

Two Local Meat Economies

Family and friendsSides, 1/4s

Freezer paper

Direct marketersCryo-vac packaging

Jan Jun DecMar Aug

VENISON

The Food System Pendulum

Global Commodity-

Based System

The growing interest in locally-produced

differentiated food products is creating new economic

opportunities for producers and their communities.

Local Differentiated Food Based System

The Local Market

Local Meat Consumption

US Beef Consumption:28 billion pounds

US Chicken Consumption:35 billion pounds

The Local Market

5% is still a lot…86,128 dozen eggs59,469 chickens270,689 lbs of beef

95% of the local market is priced-based and probably not available to local producers

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

Brochures

Paper Order Forms

Posters

Newsletters

Website and Facebook

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.