Dr. Bryon WiegandUniversity of Missouri

Direct Meat Marketing

Elements of Market DiscoveryWhy do I want to participate in a non-

traditional marketing system?What can I produce?Am I an expert in these production

systems?Who would buy it?Where would I sell it?What can I charge?Will I make money?What is my contingency plan?

Why do I want to participate in a non-traditional marketing system?Incorporate hobby into earningsAdditional income stream for householdSmall-scale production systemParticipate in local or regional economyValue-added in current economic climate

What can I produce?Endless possibilitiesBound by local ordinanceLimited by expertise and facilities

BeefPorkLambGoatPoultryRabbitVenison

Am I an expert in these production systems?Animal husbandry

Niche does not mean inefficient!!Niche does not mean devoid of technology

and/or science!!Previous knowledge base

Draw on previous knowledge, but be prepared for new thinking and changes in production practices.

Access to production practice information and willingness for adoption.

Planning is key! Jumping into animal agriculture with both feet might be the riskiest venture ever if serious consideration is not made for the “SYSTEM” of making meat.

Who would buy it?Market studyCase study

Full Circle FarmThankful HarvestPlanned Lamb

Evaluate locallyAsk questionsDo not assume that your customer wants

what you want!

Where would I process the animals?Local meat processors are a good sourceMany are State or Federally Inspected and would

entertain a business agreementApproach them with a good planKnow your product

Ask them questions as to options for:Slaughter capacityCooler space (especially important for aging of beef)All fees (slaughter, aging, cutting, packaging, storage)

The more streamlined you can make the system, the easier it is for the processor

www.missourimeatprocessors.com

Where would I sell it?Farmer’s MarketsDirect/off farmGrocery storesRestaurantWeb marketing

Farmer’s MarketsMost require an annual membershipCan lead to more direct marketing

opportunities/build customer baseRegulated by local health authorities

Selling meat at Farmer’s MarketsRequire meat to be inspected either by state

or federal inspectionMost health ordinances require meat to be

sold frozen and require a chest freezer to be provided by the producer. Check with your local health department for their regulations.

Requires a well defined pricing that is highly visible.

Most shoppers move quickly through the market and need quick and concise information without the “total sales pitch”.

Columbia Farmer’s MarketHours

Monday 4-6Wednesday 4-6 Saturday 8-12

Locationbehind the Activity & Recreation Center

(ARC), on the corner of Clinkscales & Ash streets.

Successful Vendors• Show-me farms• “Born Tender Beef”• “Omega Beef”• No hormones, implants, antibiotics• Pasture raised chickens

• Susie’s Grass Fed Meats• “100% grass fed locally raised

animals, not fed antibiotics or implanted with hormones.

• Animals are sustainably raised on small family farms.”

• Missouri Legacy Beef

Direct/Off farm MarketingProducers located near large metropolitan

areas have a greater potential for direct marketing because of their proximity to a large number of consumers.

Requires more “education”, but likely appeals to more customers with “niche language”.

Might have the greatest margin capabilities.More expensive

TravelFeesTime

Grocery StoresSmall independent retailers with more

upscale meat departments are probably your best opportunity

Realize however that even some independent grocers buy from wholesale warehouse businesses and some products may be “spoken for” in these purchasing agreements.

Large grocery chains give management some discretion for local purchases.GerbesHy-Vee

RestaurantsSince individual restaurants do

not use large quantities of meat, access to a large number of restaurants and a mixture of different restaurant types is necessary for a producer to successfully target this market.Patchwork Farms features the

Patchwork pork chop at Murray’s in Columbia, MO

Missouri Legacy Beef is featured at Hoss’s Market in Columbia, MO

Internet MarketingOne of the barriers to this kind of “remote

marketing” is that packaging and shipping costs can as much as double the end price to the consumer.

Websites can be useful in helping local buyers to locate producers in their area.

Strict rules exist regarding interstate commerce and sales tax collection. Federal Inspection required for interstate

trade of most meat products. (Stayed tuned next week for Dr. Clarke)

Ethnic/Religious MarketsThe ethnic market is a niche often

forgotten for meat products.Goat is preferred by Hispanics,

Caribbeans, and MuslimsJewish prefer cuts from the front-end of

the animal which can be difficult to market to typical American consumer (Kosher)

Facilities for on-farm ritual slaughter may be desired by some ethnic groups (Kosher or Halal)

Marketing ideasSeparate yourself from other producers or

products that can be found at a grocery storeBe certain the claims are accurate and backed

by fact and not feelingSell your product rather than demean the

competitionMost directly marketed products have a unique

claim - find your nicheOrganicLocalNaturalGrass-fedAntibiotic FreeSynthetic Hormone FreeFree-Range

What can I charge?Know your cost of production, promotion,

and distribution. Make sure you charge more than your break-

even price.Be aware of what other direct marketers

are chargingAttend farmer’s markets in your area to see

what other producers are charging for the same type of product

Economic assessment

Whole Carcass salesIf selling a whole or half carcass, processing

doesn’t necessarily need to be done at a USDA inspected facilityIf the animal is sold LIVE to the consumer, custom

exempt processors can be used. (Rules and Regulations for this in Part II of this series).

By using this sales method, customers can specify certain cuts, wrapping, and curing preferences.Whole Animal Buying Guide

Make sure customers understand how much yield they could expect from a certain live animalBeef CutoutPork CutoutGoat Cutout

Will I make money?Be honest when balancing the books

Your labor is an expenseTreat it like a business

Small business ventures usually see “light” in three years.

Depending on the level of capital investment, some turn a profit in their first full year of existence.

Be patientDon’t be afraid to cut costs

Web site designPrinted advertisingRadio advertising

What is my contingency plan?Hopefully the business will be successful

and you find room for growth, but what if………….?

Be certain to have an outWhere do you sell animals?Where do you sell equipment?Can the business be sold in it’s entirety?Having a plan to dissolve, liquidate, or sell

a small business will save a lot of pain in the end.