Promoting the development of economically and ecologically sustainable pasture-fed beef markets

Promoting the development of economically and ecologically sustainable pasture-fed beef markets

Summary

The PFB research project made significant progress in 2007. Data from the producer survey was analyzed and written up in report format, a series of farm-level case studies was conducted to determine the financial properties of PFB production systems, a survey of processors was conducted, and interviews with several retailers and producers were also conducted with preliminary results already being analyzed and presented. The taste test and willingness to pay experiments will be implemented during summer 2008.

Objectives/Performance Targets

Objective 1: Identify and describe economic/financial properties of alternative PFB systems using different levels of off-farm resources, and how their product is valued by consumers.

1. Characterization of PFB producers in Virginia through a farm survey;
a. The survey has been completed.
b. Results were analyzed and written up by a MS student as part of his degree requirements. An extension publication and/or journal article of the characterization results has been drafted and should be completed by the fall of 2008.
2. A comparative analysis of on-farm costs of PFB systems using different ratios of grass/grain feed regimes
a. Information on cost of production could not be obtained from farmers as they did not have the records or were unwilling to disclose data. However, there were site visits to 7 farms that were direct marketing beef. Data was collected on their production practices and anecdotal evidence on profitability was collected via a survey.
b. Information from these farm visits was used to clarify and further define the survey data characterization of farmers’ production systems.
c. Results were analyzed and written up by a MS student as part of his degree requirements. An extension publication and/or journal article of these results has been drafted and should be completed by the fall of 2008.

Objective 2: Map the structure of the PFB marketing channels currently in use, and identify constraints and inefficiencies that currently constrain the market or will likely impede its expansion.

We have made significant progress towards this objective. We conducted a telephone survey of all known pasture-fed beef producers in the state (we ended up including other direct marketers of beef also) and ended up with 42 completed surveys, with greater than 80% participation among those producers who qualified for the survey. The survey has permitted us to have a clearer view of the production, logistical, and marketing practices used by pasture-fed beef farmers. Results of the survey were written up as part of a Master’s degree student’s case project, and are currently being prepared for an extension publication and journal article submission.

We also surveyed all known USDA, state and T-A certified processors of beef in Virginia to get basic information on their operations, availability, costs, and constraints. A selection of results from this survey will be published as an “Inventory” of beef processors for direct marketers of beef in Virginia, as a need for greater information on processing availability has been evident since early in the project. The results will also enable us to analyze the nature and extent that processing serves as a bottleneck in the marketing chain.

Objective 3: Analyze the potential for diverse retail and food service outlets to participate in PFB markets, and requirements for sales through these markets;

The retail survey was designed, pre-tested, and interviews with several major supermarket buyers were done, as well as with numerous direct marketers of beef. More surveys will be conducted during summer 2008. Preliminary results of this portion of the research have been presented in numerous extension meetings and one industry/academic conference, and the final results are expected to be published as an extension publication in summer 2008.

Objective 4: Analyze preferences and demand for PFB among growing Latin American, Asian, and European populations.

The survey for this objective has been developed and is currently being pre-tested. Due to constraints with the availability of beef, the implementation of the survey was postponed until summer 2008.

The initial objective has been narrowed down to focus exclusively on Hispanic markets for PFB. This is due to several reasons: First, the large number of ethnic groups originally intended to be included would have required an extremely large sample size to get significant results. Second, Hispanics are the fastest growing ethnic population in the South, and they spend a large portion of their incomes on fresh foods and value quality. They the Hispanic market was identified as an appropriate focal point.

Objective 5: Extend results of research through educational programs to producers and dissemination of research results through extension, industry and professional outlets.

Preliminary results from the retail interviews were presented at the Food Distribution Research Society annual meeting in November.

Accomplishments/Milestones

Objective 1 has been completed and the results are being prepared for publication in an extension and/or journal article. Results have also been extended to producers in various workshops.

The mapping of the marketing chain has been completed using the producers survey, with results currently being prepared for publication as an extension and/or journal article. The evaluation of constraints to the marketing chain is ongoing with results to be available in 2008.

Analysis of the potential and requirements to sell PFB through retail outlets is partially complete and preliminary results are available and being prepared for publication as extension and/or journal articles.

Impacts and Contributions/Outcomes

Information about the financial characteristics of PFB farms as well as marketing opportunities has been presented in workshops attended by farmers who currently produce and are interested in producing PFB. This information has helped them better understand the prospects and requirements attendant with participating in the PFB market.

Collaborators: