USDA PROCESS VERIFIED

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USDA PROCESS VERIFIED

• Michael Boland and Renee Sanden
• Kansas State University
• Funded by Agricultural Marketing Resource Center

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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

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• Retailers

• All Natural Beef Cooperative

• Rainbow Organic Farms

• Kansas State University

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Markets

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

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All Natural Beef Cooperative

• Beef Producer Cooperative
• Supplies beef solely to program
• Operations vary in size, location and goals

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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

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Process Verification

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

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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

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Producer Question

• Why did you decide to participate in this program?

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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)

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Claims continued

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

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Producer Question

• Why these particular claims?

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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

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Producer Question

• What was the training like?

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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

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Producer Question

• What kinds of questions were you prepared to
  answer for the audit?
• How did you prepare?

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Outcomes

• Currently only 8 programs in the U.S. are process
  verified
• Excel Pork, Farmland Pork, PSF (pork), Pro Pork
  Associates, Berkshire Pork, and Pedersons
  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

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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

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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

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Producer Question

• What are the benefits of Process Verification?
• What are the drawbacks?

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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