MEATing a Need – Resource kit available for those exploring meat processing business

By Joy Bauman

beef carcasses

A team of Ohio State business and meat science specialists have compiled a Meat Processing Business Tool Kit for people who are exploring the meat processing business. Designed as a decision-making aid for people exploring investing in or expanding a meat processing facility, this online tool kit can help entrepreneurs evaluate the business and navigate business planning. The Meat Processing Business Tool Kit is available in the Business section at the OSU South Centers webpage and at the OSU Extension Meat Science webpage.

With the COVID-19 pandemic, consumers saw shortages of meat in large supermarkets caused by disruptions in large packing plant operations. “As a result, consumers started shopping at smaller, local meat shops, that didn’t have shortages of meat,” explained Lynn Knipe, PhD, associate professor of food science and technology at Ohio State who worked with the team to develop the meat processing business tool kit. “This, in turn, increased business for the smaller meat processors to a point that people who were used to taking animals to their local slaughterhouse, had to schedule their animals much farther out than normal,” Knipe said.

Knipe explained that entrepreneurial people who either raised livestock or had some past experience with slaughter or cutting of meat, have decided to consider opening their own meat businesses. Knipe and his colleague, Lyda Garcia, PhD, assistant professor of animal science began receiving more calls than usual, with people finding them either through their Extension Meat Science website or by referral from meat inspection people they had contacted.

Likewise, many of the same people were reaching out for guidance from the business development specialists at OSU South Centers and the specialists at the CFAES Center for Cooperatives, which is also based at the OSU South Centers. While gathering information to assist clients in summer 2020, the Center for Cooperatives team members reached out to OSU Extension meat science specialists Knipe and

Garcia. Soon, a working group was formed with team members from the CFAES Center for Cooperatives, the Small Business Development Center at OSU South Centers, the Extension Meat Science Program, and the OSU Department of Agricultural, Environmental, and Development Economics.  Together, the group developed and compiled resources to help guide entrepreneurs interested in the meat processing business.

“It only made sense that we work together as Ohio State colleagues to better serve our clientele,” said Garcia. “Instead of individuals contacting one OSU source and getting a bit of information and then needing to contact another OSU source for more information, we can all point them toward this fantastic online resource that will help answer their questions and guide them in the decision-making process,” Garcia explained.

On the webpage housing the tool kit, users will find information to help get started, including understanding the capacity for such a business, maps of federal and state inspection facilities and auction sites, as well as livestock inventory. To aid in decision making regarding business models, there are samples of cooperative and corporate business models, with business planning templates, financial worksheets, and information about funding sources. Contacts are also listed for those using the tool kit and seeking additional assistance with their business planning.

“The materials lead entrepreneurs to investigate critical considerations during the planning process, including collecting livestock data, gathering financial information, financial modeling, and business planning. That means that the tools are adaptable and intended to be changed to the user’s unique circumstance,” said Ryan Kline, Cooperative Program Specialist for the CFAES Center for Cooperatives.

A business plan is helpful as a decision-making tool for entrepreneurs and it becomes a tool they can use when talking to potential lenders, investors, or future key employees. CFAES Center for Cooperatives program manager Hannah Scott explained, “In our experience, entrepreneurs don’t usually look forward to business planning, but many of them are already going through the business planning process mentally as they consider a new business or ways to expand their current operation. We encourage entrepreneurs to write down their plans – and to use tools and coaching that can help them approach the process in a systematic way without being overwhelming – because it can help them identify potential issues and consider topics they might not have before.”

“There is lots of assistance for entrepreneurs going through the business planning process, from templates like the ones in this tool kit to assistance from business development specialists like our team at the CFAES Center for Cooperatives or the OSU South Centers Business Development Network, which houses a multi-county Small Business Development Center (SBDC),” Scott said. The SBDC program is a nationwide network of business development specialists who provide no-cost business consulting for entrepreneurs. Readers can locate their nearest SBDC here.

“We hope that the tool will be intuitive as entrepreneurs move through the planning process,” Kline said. “When visiting the website, people will find a self-guided and self-paced exploration of Meat Processing that we hope will help anyone interested in starting a meat processing facility.”

To find the Meat Processing Business Tool Kit online, visit: southcenters.osu.edu/meat-processing-business-toolkit or meatsci.osu.edu/programs/meat-processing-business-toolkit.

Center for Co-ops Collaborating to Assess the Impact of COVID-19 on Ohio’s Ag Co-ops

The Center for Cooperatives in the College of Food, Agricultural, and Environmental Sciences (CFAES) at The Ohio State University is collaborating with the Center for Economic Development in the Maxine Goodman Levin College of Urban Affairs at Cleveland State University to understand the economic impacts of COVID-19 on the state’s agricultural co-ops and to estimate the economic contribution of cooperatives to Ohio’s economy. The project will gather data from public sources and interviews of agricultural co-op leaders.

Hannah Scott, Program Manager of the CFAES Center for Cooperatives, explained the goals for the project. “The COVID-19 public health emergency has had far-reaching impacts across so many aspects of our economy. We’re looking forward to better understanding how the state’s cooperatives have weathered the changes brought about by the pandemic — from temporary closures to supply chain shifts. At the same time, we’re collecting information to reliably estimate the economic contribution of co-ops to our state’s overall economy. Ohio is home to some of the largest co-ops in the country and while we know that co-ops are important, we do not currently have a reliable estimate of their economic impact.”

The project work is funded, in part, by a U.S. Economic Development Administration (EDA) University Center CARES Act Award received by the Center for Economic Development at Cleveland State University. Dr. Iryna Demko, Research Associate with the Center for Economic Development, shared that cooperatives play a unique role in the agri-food supply chain. “The purpose of the agricultural supply chain is the fast and efficient delivery of agricultural products from farmers to consumers. Each cooperative acts as an intermediary in the supply chain by connecting its members to wholesalers,” Demko said. “Cooperatives also purchase products and materials needed for their business to function. We want to quantify the impact of the COVID-19 pandemic on cooperatives’ supply chain and on their role in the supply chain.”

For more information, contact Hannah Scott, Program Manager of the CFAES Center for Cooperatives at Ohio State, at scott.1220@osu.edu.

Sustainability through Cooperation

While the concept of sustainability can mean different things to different audiences, the cooperative business model builds sustainable practices into the fabric of businesses from agriculture to food cooperatives to credit providers. The Sustainable Agriculture Research and Education (SARE) organization include concepts of productivity, environmental stewardship, profitability, and quality of life in the way they think about sustainability. The examples shared here from cooperatives across industries, geographies, and growth stages demonstrate how sustainability is a part of being a co-op.

Environmental Stewardship

In early 2020, Ocean Spray, a farmer-owned cooperative of cranberry growers across the United States, Canada, and Chile, announced that 100% of the cranberries it used in products from juices to snacks to fresh fruit were sustainably grown, according to the Sustainable Agriculture Initiative Platform’s (SAI Platform) Farm Sustainability Assessment. The SAI Platform defines sustainable agriculture as the “efficient production of safe, high- quality agricultural products in a way that protects and improves the natural environment, the social and economic conditions of farmers and their communities, and safeguards the health and welfare of all farmed species.”

Practices like water efficiency technologies, nutrient management practices, and more help ensure that cranberry production enhances the quality of natural resources. Ocean Spray shared that, on average, every acre of cranberry bog conserves 5.5 acres of natural lands for native plants and wildlife.

Concern for Community

Social aspects of sustainability focus on promoting resilience and well-being for individuals and communities. The National Council of Farm Cooperatives (NCFC) adopted an approach to sustainability that includes community well-being, including “conducting our businesses responsibly, maintaining safe, healthy and respectful workplaces for our employees, and fostering vibrant rural communities.” Co-op regulars will recognize in these concepts one of the principles of the cooperative model – concern for community. The concept of community engagement is an internationally recognized and celebrated principle of the cooperative model. Not only are co-ops rooted in community through their member-owned structure, but they also support their communities in ways that are as diverse as the co-op community across the U.S. For example, in Ohio, three cooperatives founded Fueling the Cure, an effort to promote cancer research and prevention. By donating $1 for every delivery stop of bulk propane purchased through their cooperatives, the group has now donated over $1.5 million to help find a cure for cancer.

Economic Viability

For an enterprise to be sustainable, it must be economically viable over the long term. Cooperatives are no exception. But cooperatives also have characteristics that ensure that their economic viability spreads beyond the co-op itself to its member-owners. One of the hallmarks of the cooperative business model is that member-owners share in the benefits of the business, including the profits or surplus. Cooperatives share profits based on member-owners’ use of the business rather than their investment in the enterprise. This is known as patronage. Patronage refunds that are returned to member-owners can be reinvested in their farms, businesses, or homes. For example, in early 2020, Farm Credit Mid-America, a lender in the Farm Credit system serving Ohio, Kentucky, Indiana, and Tennessee, announced that it would return $186 million in patronage to customer-members. In 2019, the co-op returned $146 million to customer members.

Watch “Cooperating for Sustainable Development”

In November 2020, the CFAES Center for Cooperatives teamed up with the OSU School of Environment and Natural Resources Environmental Professionals Network and the OSU Sustainability Institute to host “Cooperating for Sustainable Development.” The webinar was a conversation with Dr. Kip Curtis and founding members of the Richland Gro-Op cooperative (RGO), Matthew Stanfield, and Walt Bonham. RGO is a marketing co-op supporting new growers in Richland County, Ohio, in their goals to grow new farmers and build a more sustainable and just food system in their community. The CFAES Center for Cooperatives team has supported the development of RGO since 2018. You can view the video of the conversation below with introductory comments from special guests Dr. Ryan Schmiesing, Vice Provost for Outreach and Engagement at The Ohio State University, Dr. Cathann Kress, Vice President for Agricultural Administration and Dean of The Ohio State University College of Food, Agricultural, and Environmental Sciences, and Doug O’Brien, President, and CEO of the National Cooperative Business Association CLUSA International.

Cooperatives interested in developing a comprehensive sustainability program, or refreshing an existing program, can use the National Council of Farmer Cooperatives’ Field Guild for Farmer Cooperative Sustainability Programs for guidance.

Forming a More Inclusive Cooperative History

Coop Month Theme this year is Cooperative Commit: Diversity, Equity, and Inclusion https://www.coopmonth.coop/

October is National Co-op Month, a celebration of cooperatives that started in 1964. The month is a time for allied organizations and co-ops to promote cooperative values and advantages. This year’s theme is “Co-ops Commit: Diversity, Equity, and Inclusion,” which supports an important conversation about change and action in the cooperative community.

One step toward making diversity and racial equity not just an intention, but a reality, is forming an inclusive cooperative history. Including African American, Latinx, and Appalachian co-ops in U.S. cooperative history highlights the long tradition of cooperation among Black, Indigenous, and People of Color (BIPOC)and socioeconomically disadvantaged communities and creates an accurate understanding of the movement.

Highlighting the importance of including these histories, I selected three case studies from Appalachia, African American, and Latinx cooperatives, each of which show just the fraction of the communities’ cooperative impact.

Appalachian Cooperative Networks Before Rural Electrification

The growth of rural electric cooperatives in the 1930s and 40s brought electricity and technological advancements, such as water pumps and agricultural machines, to much of rural America. Though these coops created an electrical transformation, cooperation was familiar to many rural areas, including Appalachia. From community care to unions, Appalachians had utilized community networks to cooperate for generations.

Before the rural electrification efforts, community members and farmers in the South and Appalachia, according to the Southern Oral History Program, kept telephone networks up and running for rural areas, which was only possible through cooperation. Dema Lyall, a native Appalachian from North Carolina, born in 1918, said, “I don’t remember when we just didn’t have a telephone.” Farmers and residents worked together to provide telephones to local communities, typically working in networks of 8-10 families. In some cases, telephone lines were widely available to areas that would not see any electrification efforts until the early 1940s. The community networks that supported these local telephone lines may have supported cooperatives’ growth over corporations during the Rural Electric Administration’s campaign the 30s and 40s. The cooperative networks established before rural electric coops highlight a much longer history of cooperation in the Appalachia.

 

The Freedom Quilting Bee, Alabama 1960s

By 1967, generations of Black men and women struggled under the sharecropping economic system, where white plantation owners often bonded people to the land through debt and labor. With the Civil Rights Movement, a group of Black craftswomen in Alabama sought to leave sharecropping and generate independent income with an increasingly popular commodity: quilts.

Started by a group of Black women near Selma, Alabama, the Freedom Quilting Bee collectively quilted cloth scraps into usable blankets. They hoped to generate individual income for their sharecropper spouses, families, and themselves. However, as Dr. Jessica Gordon Nembhard found, these women not only supported their families, but also promoted community economic stability. The Freedom Quilting Bee bought 23 acres of land, provided housing for evicted farmers, formed childcare cooperatives, and supported community solidarity, fostering growing support from within the cooperative and the community.

The Freedom Quilting Bee Coop highlights how Black women regained economic control through cooperation. When the traditional socioeconomic parameters oppressed these craftswomen, they mobilized collective power for themselves and the community. By including the quilting bee cooperative in the American cooperative movement’s history, the real economic advantage and community stability that cooperation offers to members becomes clearer.

Exploring Latinx Cooperatives

In a recent study, the University of Wisconsin Center for Cooperatives explored the growing cooperative movement in Latinx communities. In Latinx Co-op Power in the U.S.Dr. Jessica Gordon Nembhard and Esther West reveal a rich and expansive network of 180 Latinx cooperatives. Though Latinx cooperative history has not been studied in the American movement, Latin American communities across North America have a strong tradition of cooperation.

In their sample survey, Nembhard and West uncovered that most Latinx coops are urban and suburban, with nearly 89% located in urban areas. From credit unions to agriculture and food co-ops, there were Latinx cooperatives in every sector. The results also revealed that most coops were younger businesses, with only two Latinx co-ops formed before 2000. Between 2004 and 2020, Latinx cooperative numbers skyrocketed, with 14 developing within the last five years. Though the 180 cooperatives surveyed does not depict the entire Latinx co-op community, the study makes important strides in Latinx co-op development and efforts to integrate them into the national cooperative movement history.

 

The diversity of cooperatives in the United States has expanded tenfold with recent studies; however, these cooperators are often overlooked in history. Though many are familiar with the Rochdale pioneers, perhaps a more inclusive history of American cooperation should begin with indigenous networks of cooperation, such as John Curl’s For All The People. With the addition of BIPOC and underserved communities, the history of the U.S. cooperative movement becomes both more inclusive and accurate.

Food Hubs Connect Healthy Food, Farms, and Communities

The USDA defines a food hub as a “business or organization that actively manages the aggregation, distribution and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand”, but food hubs do much more. Food hubs are a catalyst for community wellness. They address problems of food insecurity and connect community members to the source of their food.

Building a regional food hub requires collaboration of multiple partners. Each partner contributes unique strengths and resources to the project. Community stakeholders amplify success by participating in project planning and execution and supporting the food hub in their community.

In 2018 the Ohio State University’s Initiative for Food and AgriCultural Transformation (InFact) partnered with the Methodist Theological School in Ohio (MTSO), Seminary Hill Farm, and Franklinton Gardens Urban Farm, to develop a model for food hub businesses in underserved urban communities. The organizations invite community stakeholders, individuals and organizations to attend the Building Regional Food Hubs Conference on Nov. 9, 2018.

The conference will host local food leaders from across the state of Ohio. Anna Haas from Local Food Connection will share online possibilities for urban food hubs. Piper Fernway will describe how Bon Appetit Management Company connects institutions to local food in Appalachia. Leslie Schaller, the founder of the Appalachian Center for Economic Networks’ (ACEnet) Food Venture Center and Nelsonville Food Hub, will tell how ACEnet helps producers enhance their businesses with value-added products.

The conference will feature a panel of practitioners discussing challenges and opportunities for producers in food hub models. Panelist Tadd Petersen, manager of Seminary Hill Farm, notes that producers face many challenges. Tadd says, “Storage is the number one barrier facing producers.” Food hubs can provide aggregation, packing, processing and storage space to help farmers expand business capacity. Seminary Hill Farm works with 30 local farms to provide catering and event services, supply MTSO’s dining facilities with farm fresh food, and operate a 300-member Community Supported Agriculture (CSA) subscription. A tour of Seminary Hill Farm will follow the conference.

Attend the Building Regional Food Hubs Conference

Date: Friday, Nov. 9, 2018

Time: 9 a.m. to 4 p.m.

Location: Methodist Theological School in Ohio, 3081 Columbus Pike, Delaware, Ohio

Fee: $10

To learn more and register for the event visit www.mtso.edu/foodhubconference

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References

1. Barham, James, Debra Tropp, Kathleen Enterline, Jeff Farbman, John Fisk, and Stacia Kiraly. Regional Food Hub Resource Guide. Washington, D.C. U.S. Department of Agriculture, Agricultural Marketing Service. April 2012.

*Article originally published in Farm & Dairy Newspaper

Take Ag Action in Moorefield, West Virginia on 8/27 and Kearneyville, WV on 8/28

Think a co-op may be part of the solution for your farm or food business?

Now is the time to get involved and/or come to ask questions.

Date: Monday 8/27/2018

Time: 6:30 p.m.

Location: Eastern WV Community & Technical College, 316 Eastern Drive, Moorefield, West Virginia 26836

Date: Tuesday 8/28/2018

Time: 6:30 p.m.

Location: WVU Kearneysville Tree Fruit Research and Education Center, 67 Apple Harvest Drive, Kearneyville, WV.

For more information and to register contact:  tina.metzer@easternwv.edu or nbergdoll@wvda.us

Farming 101: How to Price Farm Products

Determining a price for farm products that attracts consumers and creates profits for producers can be a challenge. A three-part Farming 101 series of articles in Farm & Dairy Newspaper helps farmers calculate costs, conduct price research and implement a price strategy to increase farm sales and revenue.

Click article to visit Farming 101 Archives.
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Celebrate Cooperatives and Sustainability Today

Today, cooperators everywhere celebrate the International Day of Cooperatives. The United Nations established the holiday to recognize co-ops’ contributions to society, culture and the economy. This year’s theme is “Sustainable Consumption and Production.” ¹ The World Commission on Environment and Development defines sustainable development as “meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.” ²

Cooperatives provide sustainable solutions

Cooperatives are businesses owned by the people they benefit. They exist in every major industry and are common in food and agriculture. Co-ops provide members with sustainable solutions. They help farmers gain access to larger markets, boost product quality, reduce costs and achieve greater efficiency and operational effectiveness.

Dairy Farmers of America (DFA) is owned by 14,500 farmer-members. The co-op’s sustainability program aims to improve animal and environmental health. DFA’s Gold Standard Dairy Program upholds standards set forth by the National Milk Producers Federation’s National Dairy Farmers Assuring Responsible Management Program (FARM), for animal health, nutrition, management, housing and facilities, handling and transporting. DFA offers on-farm consultations to members to identify areas where sustainable practices can benefit their operations. Members that participate in the Gold Standard Program receive tailored resources and on-going technical assistance to improve sustainability on the farm. ³

Ohio’s Electric Cooperatives (OEC) power rural communities in 77 counties. In recent years OEC has diversified their energy sources portfolio to include renewable sources such as air, wind, hydro, biomass, solar and heat recovery. The co-op promotes energy efficiency through advising, energy audits and appliance rebate incentives that reduce members’ energy expenditures and save members money. ⁴

Nationwide Mutual Insurance Company is the No. 1 writer of insurance policies for farms and ranches. Nationwide works towards greater sustainability by reducing environmental waste and carbon emissions and promoting recycling. Nationwide’s green purchasing initiative works with suppliers to purchase eco-friendlier products. The company partners with voluntary government and industry programs such as Energy Star and Leadership in Energy and Environmental Design (LEED). ⁵

On the International Day of Cooperatives farmers everywhere tip our hats to recognize these and other cooperative businesses’ dedication to sustainable consumption and production.

*Article originally published in Farm & Dairy Newspaper

References

  1. United Nations Development. (March 3, 2018). 2018 International Day of Cooperatives. Retrieved from https://www.un.org/development/desa/cooperatives/2018/03/02/coopsday/
  2. United Nations General Assembly. (1987). Report of the world commission on environment and development: Our common future. Oslo, Norway: United Nations General Assembly, Development and International Co-operation: Environment.
  3. Dairy Farmers of America. (n.d.). Sustainability. Retrieved from http://www.dfamilk.com/our-cooperative/sustainability
  4. Ohio’s Electric Cooperatives. (n.d.) Efficiency. Retrieved from https://ohioec.org/oec/efficiency/
  5. Nationwide Insurance. (n.d.) Energy & Environment. Retrieved from https://www.nationwide.com/about-us/energy-environment.jspSTAY INFORMED

CFAES Center for Cooperatives Launches Co-op Mastery

The Ohio State University College of Food, Agricultural, and Environmental Sciences Center for Cooperatives launched Co-op Mastery: Beyond Cooperatives 101, a new and innovative online training course designed to educate cooperative members, boards, management, employees, and students.

Co-op Mastery: Beyond Cooperatives 101 is made possible by a grant from the CHS Foundation 2017 Cooperative Education Grants Program. The training is housed in The Ohio State University’s public-facing online education platform. It is free and can be accessed online at go.osu.edu/coopmastery.

Caption: Co-op Mastery is a new online learning tool launched by The Ohio State University College of Food, Agricultural, and Environmental Sciences Center for Cooperatives.

“Co-op Mastery curriculum focuses on mid-level knowledge about the cooperative business model,” said Center for Cooperatives Program Manager, Hannah Scott.  “Training modules build on existing fundamental materials by providing an in-depth look at governance, finance, taxation and other areas not typically covered by courses in fundamentals, yet challenging topics for stakeholders.”

The training features eight modules which include video interviews with numerous leaders in the cooperative movement:

  • Logan County Electric Cooperative General Manager Rick Petty discusses cooperative principles and various functions of cooperatives.
  • Dennis Bolling retired President and CEO of United Producers Cooperative shares the benefits cooperatives provide members.
  • Mid-America Cooperative Counsel Executive Director Rod Kelsay discusses effective education and training the Board of Directors.
  • Ohio State Univerisity Extension Educator Dr. Chris Bruynis gives insight to key factors that contribute to a cooperative’s success.
  • Nationwide’s VP of Sponsor Relations Devin Fuhrman shares the story of Nationwide’s history as a mutual cooperative company.
  • Agricultural attorney Carolyn Eselgroth of Barrett, Easterday, Cunningham and Eselgroth, LLP addresses legal considerations when forming a cooperative business.
  • Co-Bank Senior Relationship Manager Gary Weidenborner leads users through an interactive financial document exercise.
  • David Hahn, Professor Emeritus the Ohio State University, explains cooperative taxation.

“We invite folks to ask questions and receive answers from our Center staff in the online Co-op Forum,” said Joy Bauman, Program Coordinator.  “They can also browse an extensive collection of online resources in the Cooperative Library.”

The CFAES Center for Cooperatives offers customized in-person workshops to complement the online training. Workshops are designed to serve the requesting cooperative’s needs. Examples include: new employee education, board of director education, strategic plan development, cooperative marketing and policy development. Workshop participants receive a companion workbook with activities to fortify learning. They gain on-going access to Co-op Mastery online training materials, which they may work through at their own pace or search for specific information to meet immediate needs. Users can return to the Co-op Mastery online materials at any time to troubleshoot cooperative issues and they can receive ongoing technical assistance from CFAES Center for Cooperatives staff. To request a workshop or more information, visit go.osu.edu/cooperatives or contact the Center for Cooperatives at osucooperatives@osu.edu or 740-289-2071 ext. 111.