1. USDA PROCESS VERIFIED Michael Boland and Renee Sanden Kansas State University Funded by Agricultural Marketing Resource Center

2. Why is K-State Involved? Increase awareness of process verification and how it may benefit many different value added ventures Gain first-hand knowledge about latest USDA certification Increase rate of learning process for other groups

3. All Natural Beef Cooperative Rainbow Organic Farms Retailers Kansas State University

4. Markets Hen House –15 locations in the Kansas City area Price Choppers –4 locations in Kansas City area Community Mercantile –One location in Lawrence

5. All Natural Beef Cooperative Beef Producer Cooperative Supplies beef solely to program Operations vary in size, location and goals

6. Differentiation Sought to differentiate themselves from other value added beef programs Main considerations –Tastes good –Environmentally conscious –Humane treatment of animals –Local production –No hormones or sub-therapeutic antibiotics

7. Process Verification USDA system Based on ISO 9000 Provides third party audits for a fee Verifies that self- imposed label claims are credible

8. Claims Can be simple or complex as a group chooses The group wanted their claims to be valuable to the consumer They also wanted claims to reflect what they were already doing in their production practices

9. Producer Question Why did you decide to participate in this program?

10. GNFF Process Verified Claims 1)Raised on local, family size farm operations 2)No growth hormones 3)No sub-therapeutic antibiotics 4)100% vegetarian ration (no animal by-products)

11. Claims continued… 5) No antibiotics during the finishing phase 6) Source of origin verified from producer through retailer 7) Dry-aged 10-14 days

12. Producer Question Why these particular claims?

13. Program consists of….. Self-written process verified manual Training Guides Major record keeping includes: –Passports for each animal –Internal reviews –Records and affidavits for purchased cattle

14. Producer Question What was the training like?

15. Audit First Audit, September of 2002 2 Auditors came and visited 2 farms, 1 grocery store and the processing facility Discussions were held to find out what the program was missing to fulfill requirements Awaiting Process Verification

16. Producer Question What kinds of questions were you prepared to answer for the audit? How did you prepare?

17. Outcomes Currently only 8 programs in the U.S. are process verified –Excel Pork, Farmland Pork, PSF (pork), Pro Pork Associates, Berkshire Pork, and Pederson’s Natural Farms –PM Beef Group and Red Angus Association Consumers are not yet aware of what the label means Action will be taken to educate consumers once verification is received

18. Benefits Producer –Prepared for COOL and other regulations with record keeping Processor –Able to collect data that would otherwise be unavailable Retailer –Able to gain knowledge and understanding of products they sell

19. Accomplishments Increased demand for beef by average of per year 40% each year since 2000 Average $0.12 per pound premium based on dressed weight since 2001 High level of communication between producer, processor and retailer. High level of consumer education

21. Producer Question What are the benefits of Process Verification? What are the drawbacks?

22. Summary Need to be linked to consumer preferences –Implies vertical coordination or integration Not every operation can or should do this There are some upfront costs –Not major but the big cost is finding a “champion” to lead the process. Deciding what is to be process verified is important –Source of verification is likely to be the most widely adopted Not all animals are likely to be process verified