Owning More of the Value Chain

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Presentation transcript:

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