Enhancing Feasibility for Range Poultry Expansion

Natural poultry production is a two-tiered industry. Big business is getting into natural and organic production with large flocks, but the hundreds of pastured poultry producers who raise small flocks do so on family farms. NCAT established a baseline snapshot of pastured poultry producers and their enterprises in early 2000 through a survey of the APPPA membership. Of the 100 respondents to the survey, 87% produce products other than poultry. Nearly 80% raised less than 1000 broilers per year and 63% had gross incomes from broiler production of less than $5,000. Direct marketing was the key marketing method (80%). Both broilers and layers were raised by 69% of respondents and 31% also raised turkeys. Processing was accomplished on-farm in a non-inspected facility by 73% of respondents. Ninety percent of respondents were interested in a government inspected mobile processing unit (MPU) available for on-farm use (55%) or within 50 miles of the farm (35%).

Most (82%) of the responding producers wish to expand their business, but only a small percentage (5%) hope to expand beyond 10,000 broilers per year. Of those wishing to expand 40% indicated that they would do a feasibility study and 48% would do a marketing study. Only 4% would be willing to pay over $500 to conduct a feasibility study or a business plan.

Cornish-cross is the primary meat breed used by producers and 65% indicated satisfaction with their breed. There was significant interest in purchasing chicks from pastured breeding stock, particularly if there was no price difference (89%). Still, over half (56%) indicated a willingness to purchase higher priced chicks which originated from pastured breeding stock.

Feed sources for producers are mixed. Most producers use a custom feed (70%) but many have trouble finding the necessary ingredients. Commercial feed is used by some of responding producers, but many have trouble finding feed that is non-medicated. 72% of respondents indicated an interest in organic feed. Ration formulation can be an issue for producers and 29% indicated a willingness to pay for formulation services.

Finally, 85% of responding producers indicated an interest in collaborative work or purchases.

This snapshot survey proved very informative to us as we were beginning our project. Over the next three years significant advances for this small industry were made in several of the areas identified from the survey. These advances (described below) should lead to greater success for those desiring to participate in the industry.

1. Feasibility. The entrepreneur’s toolbox developed through this project is the perfect starting place for potential new growers, small growers who wish to expand their production, groups of growers who wish to work together or those who may wish to pursue the development of a small-scale processing plant. The toolbox is a holistic planning tool that helps producers consider all aspects of the business. It is the first such tool available for the industry and its use should result in greater professionalism and a higher degree of success all the way from the first chick to the first check.

2. Small-scale processing. Significant milestones were accomplished through this project in the area of processing. Access to processing is critical for small-scale producers, but many don’t know the basics involved in processing or how they should go about processing for their operation. At the same time, some people see the opportunity arising to provide small scale processing facilities to the increasing number of producers. With these issues in mind, NCAT developed “Small-Scale Poultry Processing”, a comprehensive review of the many issues faced by producers and processors or potential processors. The document compares types of processing and explores numerous other issues such as packaging, delivery, aging and waste management. Layouts for small scale plants and mobile processing units (MPU’s) are provided, equipment needs are reviewed and economics are considered.

MPU Development. After countless hours working with various federal and state departments, developing numerous planning documents, setting up management structures and operating agreements, a Mobile Processing Unit (MPU) for small livestock species was approved for operation in the state of Kentucky. The MPU is exempt at the 20,000 bird level per producer from federal inspection for poultry and was approved for chicken, turkey and freshwater shrimp processing through Kentucky’s state department of Health. This is a huge accomplishment in light of the fact that prior to development of the MPU, Kentucky did not have a processing plant in the entire state that would legally process poultry for independent producers seeking to resell their product. Trainings for MPU usage were conducted in 2001, 2002 and 2003. To date, approximately 3,800 chickens and 4,000 pounds of freshwater shrimp have been processed through the unit. The Kentucky MPU is considered a pioneer of mobile processing in the USA and many aspiring groups, including the Humane Society of the United States, and individuals have visited or requested information about the MPU.

Law Modification in Mississippi. Significant processing milestones in Alabama and Mississippi were also attained. As a result of the two meetings sponsored by Heifer and SARE in Mississippi, a new law passed stating that state law may not be more stringent than federal law regarding exemptions for poultry processing.

New USDA Plant in Mississippi. Another outcome of the meetings mentioned above is that Heifer field staff and collaborators in Alabama began working with Blackwater Farms, a pastured poultry operation in Daleville, Mississippi, on upgrading an existing beef/goat/emu processing facility on the MS-AL border. By June 2004, with ongoing assistance from Heifer, the Mississippi Department of Agriculture, USDA-FSIS, and other entities, Blackwater expects to be ready to process chickens and turkeys under USDA inspection out of this facility.

Producers outside of Kentucky, Mississippi and Alabama now have additional tools to help them with processing decisions. Many producers would like to know what their states allow in terms of on-farm processing of poultry. Unfortunately they often do not know who to ask about this issue. When they begin their research they generally find themselves in conversations with low-level regulatory officials who don’t really understand their questions and who pass them on to another agency, which in turn passes them somewhere else. It is now possible to avoid much of this frustration through the publication “Legal Issues For Small-Scale Poultry Processors” which was compiled in 2001. Now producers have a starting place to determine if their states allow the option of on-farm processing. Though individual producers should conduct more in-depth research on this topic, they now have the basic background for their states and contacts on how to find additional information.

Producers in the SARE’s Southern Region have the additional tool of a newly available document “Poultry Processing Facilities Available for Use by Independent Producers in the Southern Region”. This document is provided for those producers who do not wish to process on the farm and are looking for an inspected plant to which they may take their poultry for processing. The brevity of this document is a milestone itself. In the thirteen states and two U.S. territories researched only eleven plants were identified whose managers were willing to consider doing custom slaughter and processing for independent producers. Six states and the Virgin Islands had no options available to them at all. Although this widespread lack of facilities has been assumed by many producers, it is confirmed by this research.

3. Nutrition. Most current information regarding poultry nutrition was established based on the dominant model of confined poultry. Through this SARE project, producers now have a new tool with which to understand nutrition for poultry raised on pasture. The publication “Pasture-Raised Poultry Nutrition” was completed in 2002 and explains the feed requirements of pasture-raised poultry and how to meet them.

4. Genetic Options. While the systems of production are quite different, pastured poultry producers often purchase and raise birds selected for intensive production in large houses. This is often done because of lack of information about breeds more adapted to outdoor production. “Which Bird Shall I Raise” identifies the genetic options, including slow growing “Label Rouge” type broilers, popular in Europe, available to pastured poultry producers. It also considers the various factors in deciding upon these options and provides contact information for some of the less frequently available lines.