Direct marketing livestock is a popular outlet producers are evaluating for their farm operations, but entering this type of venture requires substantial research. Although a producer might gain more profit from direct marketing livestock, they will wear a variety of hats in the process.
According to a recent study by the Institute for Sustainable Agriculture, farmers who direct market their meat keep 75 to 80 percent of the consumer price of the meat, compared to about 45 percent for animals they sell on the open market. Retaining more of the food dollar is what makes this type of marketing an attractive option for smaller farms, although direct consumer interaction is not for everyone.
Producers first need to evaluate market options. Typically, a farm will market its products through farmers’ markets, restaurants, grocery stores and other direct sales. Markets must be evaluated and a farm must be careful not to overextend labor and time management.
“Start slowly and build gradually,” said Nancy Rasmussen of Sunny Lane Farms in Lockwood, Mo., a grass-finished beef operation. “You need to produce a consistent, quality meat product because customers won’t allow for a second chance.”
After determining the market strategy, producers must identify a processor that fits their needs. Arkansas and Oklahoma producers should choose a processing facility that is regulated by their state’s Department of Agriculture.
Robert Long owner of Golden City Meats, a duel-inspected plant in Golden City, Mo., offers four tips for producers looking into meat marketing.
Meat Marketing Tips
1. Understand scheduling of a facility and plan ahead for fall processing, as deer season runs in the middle and brings unexpected obstacles.
2. Find a processor that is inspected most days of the week for convenience.
3. Boneless products are better because bones can puncture the vacuum seal, making for a lost profit.
4. See what processor most meat vendors are using as a processor.
Long, also a direct marketer of bison, said that in today’s economy having enough burger to fill consumer demand is vitally important.
“Folks today are looking for value and don’t have to have all the extras,” he said. “At the plant we have a lot of folks that are running out of burger product and can’t keep up with their weekly customers.”
Quality, consistency and building good relations with a processor is essential in ringing up sales.
“One of the biggest challenges being a meat producer is processing,” said Cody Hopkins, of Falling Sky Farm in Marshall, Ark. “Every meat producer would probably say this, but there just aren’t enough USDA facilities. We drive close to 4 hours to a butcher shop that will allow us to package and sell how we need. Once we get customers who try our meat and like it, we encourage them to buy a freezer, buy a whole animal, buy a half. It’s cheaper for them and it’s easier on us.”
Meat products should be vacuum sealed in Cryovac, like consumers see in a store, according to the National Sustainable Agriculture Information Center.
For further information and other resources about direct marketing of meat, go online to www.ozarksfn.com.
