Introduction to Niche Meats

Seth Church, Apple Brandy Beef

PJ Jackson, Chop Shop Butchery

Holly Whitesides, Against the Grain Farm

The Chop Shop Butchery

Established Brick and mortar shop, well-respected,

neighborhood staple, expert knowledge...

What are we going to talk about?

- What are “niche meats” and why diversify with meats?

- Market Opportunities

- Choosing the species that’s right for your farm

- Do the numbers work?

- What’s the regulatory market?

- Choosing and working with a processor

- Creating a marketing plan

What are niche meats?

Differentiate it in two general ways:

● Superior or unique product qualities

● Socially or environmentally responsible attributes

These “alternative” attributes of meat respond to increasing consumer concerns

regarding environmental impacts, animal welfare, and human nutrition.

organic production grass -fed pasture -raised heritage breed local

small scale

raised without antibiotics or added hormones cage -free free -range

The Apple Brandy Beef Niche

Sell the STORY before the steak

● LOCAL ○ 3rd generation family farm

○ North Carolina Century farm

○ Processed at 3rd generation family abattoir

○ Cooperation with other family farms

■ Source other non beef proteins from local family farms

■ Cooperation keeps cost down - basic economic principle

The Apple Brandy Beef Niche

Sell the STEAK after they are intrigued by the story

● CORN FED

● Dry Aged ○ 14 Day minimum

○ Maximizes tenderness and flavor

● Consistent Quality○ A quality that can only be achieved by CORN FED

○ Conventionally Raised

○ Hereford and Angus Genetics

■ Genetics proven high in MARBLING

● Marbling is “risk management for bad cooking”

How we differentiate

Why Local

Beef Matters

How we differentiate

How we Differentiate - The Chop Shop Butchery

THE AVENUE

BETWEEN

FARMERS

&

EATERS

Why Diversify with Meats?

Why Diversify with Meats?

Why Diversify with Meats?

Choosing your Species

Choosing your species

- What is your land base?

- What assets or infrastructure do you own or have access to?

- How will the livestock fit into your overall farm production plan?

- How will the livestock fit into your whole farm cash flow?

- How will the livestock fit into your overall marketing plan?

- What’s the market demand?

- Who’s the competition?

Market Opportunities

● Direct markets

○ Farmer’s markets

○ CSA

○ Direct online sales

○ Farm store

● Restaurants

● Wholesale

Direct Markets: Farmers Markets

PROS

● Retail price/immediate payment

● No pre-commitment

● Lots of direct customer contact

● Low start-up costs

● Minimal Advertising

responsibility

CONS

● Specific time frame off the farm

● No pre-commitment

● Lots of direct customer contact

● Start-up costs/COGS (depending

on display)

● Competitive

Direct Markets: CSA

PROS

● Pre-payment

● Significant level of pre-

commitment

● Lots of direct customer contact

● Builds social capital and

community

● Medium time away from the

farm

CONS

● Specific delivery times

● Promised value with no back-ups

● Lots of direct customer contact

● Heavy advertising responsibility

● Diversity of offerings implied

Direct Markets: Restaurants

PROS

● Close to retail price (sometimes)

● Some pre-commitment

● Zero direct customer contact

● Low start-up costs

● Semi-flexible/short delivery times

● Minimal advertising responsibility

CONS

● Up to 30 day terms

● No guarantees

● Zero direct customer contact

● COGS

● Minimum delivery

● Direct Chef contact and

communication

Do the numbers work?

Do the Numbers Work? - The Chop Shop Butchery

What to expect when it comes to charging different customers...

Do the numbers work?

Enterprise Budgets

● Includes income (lbs of certain cut per price)

● Includes expenses both fixed (asset depreciation, taxes, etc) and variable

(cost of stock, cost of feed, cost of processor, cost of labor)

● Profit and loss by species (Quickbooks or excel)

● www.calculator.meatsuite.com - price and yield calculator

Regulatory Environment

● Meat handlers licence

● Product liability

● On farm processing

● Storage/transport

● Labeling claims: Grassfed, pasture raised, no added hormones

Resources:

➢ NC Choices, including FAQ resource for beginning niche meat producers

➢ Whole Animal Buying Guide (Small Meat Processors Working Group, Iowa State)

What are the options?

● NCDA

● USDA

● Custom Butcher

Choosing a Processor

Working with a Processor - The Chop Shop

ButcheryWhat should you be asking them? What do they want? What can you give? What

can go wrong?

Working with your Processor

Price and volume and consistency

Create a Plan

● What are your goals for diversifying with meats?

● What species you are going to start with?

● What will your market outlets be?

● How will you differentiate your farm/products?

● Do the numbers work (on paper)?

● What are your processing options?

● Do you understand the production, processing,

packaging and distribution requirements?

● Where can you go with questions?

Questions?