Social distancing, hand sanitizer, facemasks, and the new normal are phrases that have entered our vocabulary in the last three months. The global COVID-19 pandemic has been a tremendous challenge for livestock farmers and the meat processing industry. COVID-19 moved through our meat processing industry, forcing temporary closures of large plants, grocery stores started to see shortages and issued package limits, and now consumers are seeing meat prices increase. However, some farmers want to fill the void by selling the meat from their animals directly to consumers. Here are the top five tips for direct marketing meat to consumers:
Meat Inspection. Congress passed the Federal Meat Inspection Act in 1906, mandating meat inspection before entering into interstate commerce, no exceptions. The USDA – Food Safety and Inspection Service (FSIS) oversees the inspection of red meat and poultry. Therefore, farmers must have their animals processed at a USDA inspected facility to be able to sell meat, legally. If you are going to be selling poultry directly to the end consumer, you can use a USDA-Exempt poultry facility. Please be aware that not all Kentucky meat processors are USDA inspected; some are custom processors that perform a service for farmers. The packages of meat from custom processed animals must be stamped “Not for Sale”, indicating that they cannot enter into commerce. Visit with your meat processor; let them know your intentions as their inspection legend must appear on the packages.
Choosing a Meat Processor. Again, make sure you are working with a USDA-inspected meat processor. Acknowledging that location will always be a factor, farmers need to visit with the meat processor and share with them your plans. While visiting with the processor ask yourself these questions:
Can I work with this individual and have open lines of communication? Problems will occur and the ability to discuss those situations is crucial. Although this is a free market system, you do not want to change meat processors often;
If there is there a retail case, what do the cuts look like? This will be an indication of the quality you will receive;
What does the place smell like? Meat facilities have a unique, distinct smell, but a pungent, foul odor can be an indication of sanitation issues;
Was everyone friendly? Customer service can be an indication of your ability to work with that facility. The relationship between you and the meat processor will be a key to success.
Target Customers. Farmers need to think about what they want to sell and where to sell, i.e. do you want to sell individual retail cuts at a farmer’s market/roadside stand, or sell freezer beef/pork as whole carcasses, halves, quarters or bundles off the farm. Your marketing plan/target audience will determine the amount of extra work needed. Saturdays tend to be a popular time for farmer’s markets and some may not want to give up a whole or half of a Saturday. In addition, selling freezer beef/pork can be a challenge as not all customers have a freezer large enough to hold that much meat, so you may have to find multiple buyers for your product(s).
Pricing. There is a big difference between cash flow and profit. Most farmers want to make a profit from the direct marketing of meat from their animals. Therefore, it is important that farmers determine the breakeven price for their animals and efforts. Locally produced products demand a premium price due to the lack of economies of scale, so simply using the same prices from the grocery store will not ensure profit. The Kentucky Center for Agriculture and Rural Development can assist you to determine your breakeven pricing or your local extension agent can put you in contact with an Ag Economist that can help you determine your breakeven price.
Packaging. The last package from the freezer needs to taste like the first, regardless of how long it has been in the freezer. Vacuum packaging is a technology that removes the air to create an airtight seal that promotes a longer shelf life as well as preventing freezer burn, which can cause off-flavors. However, vacuum packaging removes the oxygen, thus eliminating the bright cherry-red color of beef or the reddish-pink color of pork. Famers need to educate their customers about the technology and assure them that the desirable color will return when exposed to air. Another positive to vacuum packaging as it allows the consumer to see the product and provides more protection during frozen storage. Other packaging technologies such as PVC (polyvinyl chloride) over-wrap or freezer paper will allow for the development of freezer burn.
Direct marketing is a wonderful way to promote your farm and fulfill a need for consumers. There are more tips to help direct marketers, please reach out to your local county extension agent or the state meats specialist. We are always willing to help and share advice that we have learned from others.
Dr. Gregg Rentfrow has been with the University of Kentucky Cooperative Extension program since 2006 as the Meat Specialist. Dr. Rentfrow works closely with meat and livestock producers, and the 4-H and FFA programs in the state to provide training and education about meat production. He also develops and organizes educational programs and workshops designed to educate individuals on the meat, food, and livestock industries, often working with other extension specialists and county extension agents. Dr. Rentfrow is a trusted and valued resource for KCARD with his extensive knowledge of the meat and livestock industries and has participated in several KCARD Marketing Locally Grown Meat workshops in the past.
To hear more from Dr. Gregg Rentfrow, join us and several partners including the Kentucky Cattlemen’s Association; University of Kentucky College of Agriculture, Food and Environment professors; and many more, for our first Direct-to-Consumer Beef Webinar Series beginning tonight, July 14th, and continuing tomorrow and Thursday, July 15th, and 16th, from 7-8:15 pm Eastern. This 3-night webinar series will offer an introduction to production practices, processing, and sales of local beef for new or beginning farmers. To learn more about the webinar’s agendas and to register for the live webinars here: https://zoom.us/webinar/register/WN_a7pM6nqOSlGy1-FfTkP-Sg.