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Provincially licensed meat processing facilities in BC Lessons learned from a decade on the meat file And the effort to “make it work” Kathleen Gibson and Abra Brynne for Farm, Fish and Finance * May 2013 * Toronto 25/05/2013 (c) GBH Consulting Group Ltd. 1

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Page 1: Kathleen Gibson

(c) GBH Consulting Group Ltd.

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Provincially licensed meat processing facilities in BCLessons learned from a decade on the meat file

And the effort to “make it work”

Kathleen Gibson and Abra Brynne forFarm, Fish and Finance * May 2013 * Toronto

25/05/2013

Page 2: Kathleen Gibson

(c) GBH Consulting Group Ltd.

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IntroductionThe “meat file” decade2003-05 BC Food Systems Network

2005-12 BC Food Processors AssociationGovernment-funded projects MIES, MTAP

2005-08 Help Desk2008-12 Project Manager

25/05/2013

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(c) GBH Consulting Group Ltd.

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BC’s Meat Inspection RegulationPrior to 2003: Meat Inspection Areas2004: all meat for sale for human

consumption in BC must be from a licensed, inspected facility

2007: full implementation; introduction of waste Code from MoE and SRM requirements from CFIA

2009-10: Remote Sites Consultation, D/E licences

2011-13: provincial inspection system review

25/05/2013

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(c) GBH Consulting Group Ltd.

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BC’s graduated meat processing licensing system

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(c) GBH Consulting Group Ltd.

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BC slaughter facilitiesWe worked only with the provincial systemThe very many very smallThis discussion will focus on A and B facilitiesBC currently has:

56 A and B licensed facilities95 D and E farmgate licences11 federally licensed facilities (only one red

meat)

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(c) GBH Consulting Group Ltd.

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(c) GBH Consulting Group Ltd.

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Producers and processorsInterdependent relationship, reciprocal rolesPRODUCERS

Need accessible, affordable slaughter facilities10% animals available for slaughter in BC are

processed in provincial facilitiesPROCESSORS

Need steady, reliable, good quality animal supply

Can’t recover most capital costs from marketplaceOften lack affordable waste solutions (red meat)

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(c) GBH Consulting Group Ltd.

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Facility business models1. Private business2. Co-op3. Social enterprise / community business Jurisdiction, terrain, population size and

type, foodshed and food culture are determining factors

Operation may be Slaughter plant only (B) Slaughter plus cut/wrap (A) Slaughter, cut/wrap (A), plus butcher shop

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(c) GBH Consulting Group Ltd.

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Privately owned portable poultry

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(c) GBH Consulting Group Ltd.

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Community portablered meat and poultry

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:

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(c) GBH Consulting Group Ltd.

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Capital costsPlans, building, equipmentProjects usually cost 2X what was budgeted

and took 2-3X longer than forecastActual cost for a new poultry mobile $150-

350KActual cost for a new red meat mobile $300K

or moreActual cost new red meat fixed plant $1MWaste handling facility costs on top, could

cost as much as the abattoir

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(c) GBH Consulting Group Ltd.

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Operating costsTraining and compensating workersSlowdowns with new people (workers,

inspectors)Downtime required for repairsRefrigeration – ongoing cost and repair

issuesWaste management, removal or dumping

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(c) GBH Consulting Group Ltd.

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Regulatory costsEvery regulation carries cost, even filing for a

permitMany iterations for plans approvalHealth, environment regulators recommend

gold-plated “world class” measuresFirst licence puts the facility on other agencies’

radarProducers want abattoirs, neighbours don’t,

leads to cost through time-consuming public process

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(c) GBH Consulting Group Ltd.

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(c) GBH Consulting Group Ltd.

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MarketingCustomers should be the basis of the

operationWork backwards from marketplaceMeat from provincial facilities may only be

sold in BCBe careful what markets you wish for!Same product may earn more away from

homeEthnic markets growing, especially HalalCan combine direct sales and web-based

organizing, ordering and sales25/05/2013

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(c) GBH Consulting Group Ltd.

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Business planningGood producer does not necessarily = good

processorTight margins in slaughter, best debt is OValue adding tends to help profitabilitySmall operations are seasonalOperating plan is critical, needs strong

emphasis on value chain relationships, scheduling

Qualified labour is hard to get and retain

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(c) GBH Consulting Group Ltd.

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Of noteProduction envelope can be stretched – up to a

pointMobiles are not a magic solutionFor food safety, good hygiene is the best preventionYou can’t achieve zero risk or zero contaminationRelationships and communications are key – web is

under-usedLicensing and inspection should be graduated,

based on assessment of public health, animal welfare and environmental risks

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(c) GBH Consulting Group Ltd.

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ChallengesExport-oriented single-

commodity systemReactive, risk-averse

environment gold-plated standards, increasing liability, cost

Regulatory mazeFarmers and rural

communities struggling, supply faltering

OpportunitiesLarge system reaching

limitsImport replacement

potentialSolid demand for local,

especially from citiesIncreasing demand for

ethnic foods and meatsHandful of capable

survivors in the business

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(c) GBH Consulting Group Ltd.

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Worth exploring – next steps?1. Community food processing facilities

Red meat, poultry, fish, vegetables from farm to package, sharing refrigerated storage

College or UBC farm as sponsor, with regional government?

2. Standardized modular portable facilities, using containers, that can be ramped up and down seasonally

3. Online support for processors (e.g. NMPAN)4. Online tools

For producer-processor organizing and schedulingFor customer orders

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(c) GBH Consulting Group Ltd.

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Some abattoir websitesRed meatnorthwestpremiummeat.comwww.pasture-to-plate.comwww.kelownafreegrazelamb.comPoultrywww.farmhousepoultry.cawww.passmorepluckers.caRed meat and poultrywww.saltspringabattoir.ca

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(c) GBH Consulting Group Ltd.

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Thank you! Questions?

GBH Consulting Group Ltd.659 Radcliffe Lane, Victoria, BC V8S 5B8

Tel: 250.598.4280Cell: 250.216.9736

Email: [email protected]: kathleen.gibson.659

25/05/2013