Owning More of the Value Chain Considerations for on-farm processing
Producer Value Add – processing Sell Value Chain Producer Value Add – processing Sell
Expanding your Operation Product Trends unique Market Customer Wants and Needs Competition Who Price Cost of Production Profit Customer willing to pay
Trends Better Educated Healthy Busy Social Media Local Aging population Millennials
Expanding your Operation Product Trends unique Market Customer Wants and Needs Competition Who Price Cost of Production Profit Customer willing to pay
Variable costs + fixed costs = COP COP + Profit = Price Cost of Production Must include all costs Production costs to weaning weight Cost to finish animal Cost to process the animal Variable costs + fixed costs = COP COP + Profit = Price Biz Info – www.agriculture.alberta.ca/bizinfo
Start small and grow slowly Scaling up Business Start small and grow slowly Plan Financial Customer needs Provincial, Federal inspection
Food Safety & Regulations Provincial vs Federal Meat plants or abattoirs Alberta Health Services Meat processing and handling CFIA Labelling All meat for sale must be Inspected
Get to Know your Butcher Abattoir vs On Farm Provincial Abattoir Pro Knowledge No set up costs Con Traveling Product quality Get to Know your Butcher
On Farm Pro Con No travel Set up costs Inspection On going costs Increased paper work Need to find someone with meat cutting skills
Resources Alberta Agriculture and Forestry Meat inspectors Alberta Health CFIA New Venture Specialists
Contact a New Venture Coach Thank You Contact a New Venture Coach 310 – FARM (3276) www.agric.gov.ab.ca